Why Compare Sharjah vs Dubai For Business Setup
Investors often narrow their UAE shortlist to Sharjah and Dubai because both emirates sit in one of the world’s most competitive economies, yet offer distinctly different ecosystems. Dubai is a global trade and services hub with highly developed clusters for logistics, ICT and creative industries. Sharjah, by contrast, combines a strong industrial base with multi‑port access and a reputation for cost‑effective manufacturing and distribution.
This article provides a structured, neutral comparison of Sharjah vs Dubai business setup costs and benefits. It explains what is federal and therefore identical in both emirates, and what varies at the emirate and free‑zone level. You will not find exact fee quotes here, but you will gain a clear framework to decide which jurisdiction is more suitable for your specific activity, scale and budget.
Shared UAE Framework: Tax, Ownership And Procedures That Are The Same In Sharjah And Dubai
Before comparing Sharjah vs Dubai business setup costs, it is essential to understand the federal rules that apply uniformly across the UAE. From a tax, ownership and immigration perspective, Sharjah and Dubai operate within the same national framework.
From financial years starting on or after 1 June 2023, the UAE introduced a federal corporate tax that applies in all emirates. According to the UAE Government portal, most businesses with a commercial licence are taxed at 0% on taxable income up to AED 375,000 and at 9% on taxable income above that threshold. This regime covers both mainland and free zone entities in Sharjah and Dubai, as well as elsewhere in the UAE.
Free zones do benefit from a specific corporate tax treatment, but again on a federal basis. Guidance from the Federal Tax Authority (tax.gov.ae) explains that “Qualifying Free Zone Persons” can receive a 0% corporate tax rate on “Qualifying Income” and a 9% rate on non‑qualifying taxable income, provided they meet substance and other conditions set by the authority. These rules apply equally to free zones in Dubai and Sharjah; there is no emirate‑specific corporate tax rate.
Corporate tax also extends to specific natural persons. The Federal Tax Authority’s guide on the taxation of natural persons states that individuals conducting business activities in the UAE are subject to corporate tax if their annual business turnover in a calendar year exceeds AED 1 million. In such cases, their business income is taxed at 0% up to AED 375,000 and 9% above that, regardless of whether they operate in Sharjah or Dubai. Returns and payments must be filed within nine months from the end of the relevant tax period, and late payment attracts federal penalties starting at AED 500 per month for the first 12 months, rising to AED 1,000 per month thereafter.
On the ownership side, the UAE’s foreign direct investment policy allows 100% foreign ownership of companies in many sectors across all emirates. This means that, in broad terms, the possibility of full foreign ownership is a national feature rather than a Dubai‑ or Sharjah‑specific incentive. The precise activities eligible and any sector‑specific conditions should still be verified for each emirate and legal form, but the underlying policy is federal.
Work permits and residence visas for employees are likewise governed by federal procedures. Whether you choose a business setup in Sharjah or in Dubai, employment is processed through the Ministry of Human Resources and Emiratisation (MOHRE) and the relevant General Directorate of Residency and Foreigners Affairs (GDRFA). The steps and legal requirements for work visas and residency permits are therefore aligned nationally, with no fundamental procedural difference between the two emirates.
In summary, when investors ask “Does corporate tax differ between Sharjah and Dubai?” or “Is 100% foreign ownership available only in one emirate?”, the answer is that these are primarily federal matters. Your choice of emirate will usually turn less on tax and ownership frameworks and more on sector fit, infrastructure, licence structure and local fee schedules.
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Mainland And Free Zone Options: How Structure Influences Costs In Both Emirates
Across the UAE, including Sharjah and Dubai, businesses can be established either on the mainland or in a free zone. This structural choice often has more impact on your cost base and operating model than whether you pick Sharjah or Dubai.
The emirate’s economic department licenses mainland companies. In Dubai, this is the Department of Economy and Tourism (often referred to as Dubai Economy or DED), whose business agenda and licensing role are set out on whydubai.ded.ae. In Sharjah, mainland trade licences and associated fees are administered by the Sharjah Department of Economic Development (SDED). Both authorities regulate which activities are allowed, the licence categories, and related charges.
Free zones, by contrast, are special jurisdictions within the UAE that fall under the regulations of their respective free zone authorities. Companies established in UAE free zones, including those in Dubai and Sharjah, follow the specific rules, licence types, permitted activities, capital requirements and fee structures of the zone in question. The primary legal forms typically include a Free Zone Limited Liability Company (FZ LLC), a Free Zone Establishment (FZE), and branches of local or foreign companies.
Crucially, minimum share capital requirements and licensing fees are not harmonised across free zones. The federal portal notes that some zones set no minimum capital while others specify amounts such as AED 1,000, illustrating that each free zone authority can take its own approach. This logic applies equally when comparing Sharjah free zone business setup (for example, in Hamriyah Free Zone or Sharjah Airport International Free Zone) with Dubai free zone business setup in areas such as Dubai Internet City or other specialised clusters.
Therefore, when investors consider Sharjah vs Dubai company formation, an early decision point is whether their business model requires a mainland licence (for unlimited onshore trading) or whether a free zone structure aligned with specific facilities and sector clustering is more appropriate. The structure chosen will strongly influence licences, regulatory flexibility and cost patterns in either emirate.
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Direct Cost Components: A Comparison Framework For Sharjah And Dubai
Although absolute fee levels vary by authority and over time, the main cost components you will face are similar whether you pursue business setup in Sharjah or business setup in Dubai. The key is to compare them systematically and then overlay emirate‑specific infrastructure and sector benefits.
Core direct cost categories typically include:
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Trade name reservation and initial approvals. Both emirates provide online tools: trade‑name search via Dubai Economy & Tourism and trade‑licence search via Sharjah Department of Economic Development. Dubai’s Invest in Dubai portal additionally offers free business name registration for 30 days, which temporarily reduces the initial registration cost for entrepreneurs choosing Dubai.
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Licence and registration fees. These can be for a mainland trade licence issued by the DED or Sharjah Economic Development Department (SDED) or for a free zone licence issued by the relevant authority. After obtaining initial approval in a free zone, investors must pay registration and licence fees determined by that authority; the specific amounts are not standardised.
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Office, warehouse, industrial land or flexi‑desk facilities. Leasing costs are usually a significant component of annual expenditure. Sharjah’s industrial free zones and areas, as well as Dubai’s port‑ and airport‑adjacent zones, each publish their own leasing guides. In Dubai, each free zone and commercial landlord sets its own pricing.
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Work permits and residency visas. As noted earlier, these are processed under federal MOHRE and residency rules, but fees can vary depending on the visa category and any emirate‑level service charges. The underlying process, however, is uniform across Sharjah and Dubai.
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Ongoing compliance and corporate tax. Federal corporate tax registration, return filing and payment obligations apply equally in both emirates. Late payment penalties, as defined by the Federal Tax Authority, are the same.
Rather than focusing only on headline licence prices when comparing Dubai business setup cost with Sharjah business setup cost, it is helpful to think in terms of “total cost of operation”. This means factoring in how infrastructure, logistics, connectivity, sector clustering, and potential policy initiatives in each emirate might reduce or increase your overall cost base, even if the initial licence fee looks higher or lower.
A practical way to visualise this is shown in the non‑numerical comparison table below.
| Cost Component | Federal Rule The Same? | Sharjah – Typical Considerations | Dubai – Typical Considerations |
|---|---|---|---|
| Corporate tax (rates and scope) | Yes – 0% up to AED 375,000; 9% above | Same corporate tax rules; applies to mainland and free zone businesses | Same corporate tax rules; applies to mainland and free zone businesses |
| Foreign ownership framework | Broadly, yes – 100% allowed in many sectors | 100% foreign ownership is possible in permitted sectors | 100% foreign ownership is possible in permitted sectors |
| Mainland licence fees | No – set by emirate economic departments | Fees and categories set by Sharjah DED | Fees and categories set by Dubai Economy & Tourism |
| Free zone licence and registration | No – set by each free zone authority | Fees set by Sharjah free zones (e.g. Hamriyah, SAIF Zone) | Fees set by Dubai free zones (e.g. Dubai Internet City and others) |
| Facility leasing (office/ warehouse) | No – purely commercial | Extensive industrial land and ports; multiple industrial areas | High‑demand commercial districts; specialised zones adjacent to major ports/airport |
| Work permits and residency visas | Yes – MOHRE and federal residency procedures | Same visa rules; local service centres may differ in practical arrangements | Same visa rules; local service centres may vary in practical arrangements |
| Name reservation and initial approvals | Largely similar, with local tools and charges | Online name and licence search via Sharjah DED | Invest in Dubai with a free 30‑day name reservation for new businesses |
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Sharjah Business Setup: Cost Advantages And Industrial Strengths
Sharjah offers a strong proposition for investors whose business models rely on manufacturing, processing, warehousing or multi‑port access. Sharjah covers about 2,590 km² (excluding islands), ranking third among the emirates by area. Its population was around 1.8 million in 2022, including roughly 208,000 Emirati citizens and 1.6 million expatriate residents, providing a workforce and a local consumer base.
Economically, Sharjah is considerably oriented towards the non‑oil sector. The emirate’s GDP reached AED 136.9 billion in 2022, with non‑oil activities contributing AED 133.4 billion and growing by 5.2% compared to 2021. Key non‑oil drivers include wholesale and retail trade, and the repair of motor vehicles and motorcycles (AED 32.9 billion in 2022), as well as manufacturing (AED 22.9 billion in 2022). This underscores Sharjah’s relevance for companies that want to plug into established supply chains and industrial ecosystems.
One of Sharjah’s most notable advantages is its industrial base. The emirate has 19 industrial areas with a combined area of about 15 km², accounting for more than 48% of the UAE’s total industrial output. This density of industrial activity can translate into practical benefits for investors, such as ready access to suppliers, subcontractors and skilled labour. For manufacturing‑related businesses, this concentration often matters as much as the formal licence cost when evaluating a Sharjah vs Dubai business comparison.
Sharjah is also distinctive in its maritime and geographic positioning. It is the only emirate with coastlines on both the Arabian Gulf and the Gulf of Oman, giving trading companies sea access to both western and eastern maritime routes. The emirate hosts three seaports with a combined area of about 49 million square metres, supporting trade‑ and logistics‑oriented businesses that need diversified port options or redundancy in their supply chains.
Within this environment, Sharjah’s free zones function as major capacity levers and can offer cost advantages or specialised facilities, depending on the sector and required infrastructure. For some industries, zones such as Hamriyah Free Zone and SAIF Zone may be more cost-efficient than certain Dubai free zones, particularly for industrial and logistics operations.
Hamriyah Free Zone, as one of the largest in the region, provides around 22 million square metres of industrial and commercial land. It is designed for industrial, logistics and commercial activities and publishes its own detailed leasing and licensing information through the Hamriyah Free Zone Authority. Sharjah Airport International Free Zone (SAIF Zone) offers direct proximity to Sharjah International Airport, a key advantage for air‑freight‑driven businesses and import‑export operations.
The emirate has also shown a willingness to introduce targeted economic support measures. In March 2020, the Sharjah Executive Council approved a package of 53 economic incentives, including temporary reductions in energy costs (such as a 10% deduction on water and electricity bills for three months) and a 50% reduction of insurance premiums, to support private and family business sectors. While these measures were time‑limited and should not be assumed to apply today, they demonstrate Sharjah’s capacity to deploy emirate‑level incentives in response to economic conditions.
Additionally, facilities such as Expo Centre Sharjah, a significant trade exhibition venue, contribute to the emirate’s role as a regional trade‑fair hub. For some sectors—particularly manufacturing, industrial equipment, and consumer goods—regular exhibitions can reduce marketing and business‑development costs by providing recurring B2B and B2C platforms.
In practice, Sharjah may be attractive for investors who prioritise:
- Large industrial plots or warehouse space.
- Proximity to multiple seaports and both coasts.
- Integration into established manufacturing and trade ecosystems.
- Potentially more cost‑efficient industrial facilities compared with some high‑demand districts in Dubai.
However, precise licence fees, land‑lease rates, and current incentives depend on the specific authority. They must be verified directly through the Sharjah Department of Economic Development, Hamriyah Free Zone Authority, SAIF Zone, or other relevant bodies.
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Dubai Business Setup: Costs In Context Of Connectivity And Specialisation
Dubai is widely known as a global hub for trade, logistics, tourism, services and innovation. When comparing Dubai vs Sharjah business setup, it is vital to view Dubai’s costs alongside its extensive connectivity, sector clusters and strategic initiatives, which can offer substantial operational advantages.
On the logistics side, Dubai hosts Jebel Ali Port, the largest marine terminal in the Middle East, with a handling capacity of 19.5 million TEUs and more than 80 weekly services linking to over 140 ports worldwide. For companies whose cost base is heavily influenced by global shipping routes, transit times and container volumes, this level of connectivity can translate into competitive freight rates and reliable scheduling, potentially offsetting higher local real‑estate or licence costs.
Dubai also has one of the world’s busiest aviation hubs. Emirates Airlines alone flies to over 140 destinations from Dubai, underpinning extensive air cargo and passenger connectivity. This connectivity can significantly reduce indirect costs such as transit delays, complex routing or limited flight options for time‑sensitive cargo, high‑value goods, or businesses that rely on frequent international travel by management and clients.
Dubai’s government has invested in streamlining business setup procedures. The Department of Economy and Tourism’s Business Registration & Licensing sector offers an “Instant Licence” that allows some businesses to obtain a licence within minutes, as well as a “Virtual Company Licence” enabling foreign entrepreneurs to conduct specified activities in Dubai without a physical presence. These tools can lower the time and transaction costs of entry, particularly for service providers and digital‑first businesses.
The Invest in Dubai portal (app.invest.dubai.ae) provides a single, step‑by‑step online journey for business setup in Dubai, including planning tools, activity and legal type selection, viewing of licence packages, new‑licence registration and trade‑name reservation. One concrete cost advantage is that Invest in Dubai offers free business name registration for 30 days, reducing the initial registration cost during the early decision phase for entrepreneurs choosing Dubai.
Beyond procedural facilitation, Dubai has launched emirate‑level strategies that specifically target cost efficiency and sector growth. The Dubai eCommerce Strategy, approved by the Dubai Executive Council, aims to cut the business cost of eCommerce activities—covering storage, customs fees, VAT and transportation—by around 20%. It also seeks to reduce expenses on goods passing through free zones, targeting AED 12 billion in contribution to Dubai’s GDP by 2023 and increasing the market share of Dubai‑based firms in local and regional distribution. For investors evaluating the Sharjah vs Dubai free zone for eCommerce, these targeted policies are a relevant part of the cost‑benefit calculus.
Similarly, the Dubai Creative Economy Strategy aims to raise the creative sector’s contribution to Dubai’s GDP from 2.6% in 2020 to 5% by 2025, double the number of innovative companies from 8,300 to 15,000, and double the number of creative professionals from 70,000 to 140,000. Multiple specialised free zones and districts for media, design and cultural activities support this. For creative industries, the presence of peers, clients and supportive regulations can reduce marketing, recruitment and collaboration costs.
Dubai Internet City, the largest ICT hub in the MENA region, illustrates Dubai’s approach to sector-specific clustering. It provides a concentrated ecosystem of technology firms and a regulatory environment tailored to ICT businesses. For software companies, digital service providers, and tech start-ups assessing Dubai versus other emirates’ free zone options, such specialised clusters can offer access to investors, partners, and skilled talent—advantages that may justify higher operating costs in Dubai.
Looking ahead, Dubai’s 2040 Urban Master Plan aims to double green and recreational areas, increase land for hotel and tourism activities by 134%, raise land for commercial activities to 168 km², and increase public beach length by 400% by 2040. While not a direct cost factor, this long‑term planning can influence quality of life for residents and employees, which indirectly affects talent attraction and retention costs.
In summary, while some aspects of Dubai business setup costs—such as commercial rents—may be higher than in other emirates, investors must weigh these against:
- Unparalleled sea and air connectivity.
- Highly developed sector clusters in ICT, creative industries and eCommerce.
- Streamlined licensing options (Instant Licence, Virtual Company Licence).
- Digital setup tools (Invest in Dubai portal and free 30‑day name reservation).
- Long‑term urban and economic strategies designed to support business environments.
As with Sharjah, actual licence and leasing fees in Dubai are set by specific authorities and free zones, and should be confirmed directly via Invest in Dubai, Dubai Economy & Tourism and the relevant free‑zone portals.
Which Emirate Suits Which Business? Sector‑Based Considerations
Once the federal baseline and structural options are clear, the practical question becomes: Sharjah or Dubai, which is better for business in your particular sector? There is no universal answer, but official data allow for some indicative guidance.
For manufacturing and heavy industry, Sharjah’s profile is particularly strong. With 19 industrial areas producing more than 48% of the UAE’s industrial output and a manufacturing sector contributing AED 22.9 billion to GDP in 2022, Sharjah offers a dense ecosystem of factories, suppliers and logistics providers. Hamriyah Free Zone’s approximately 22 million square metres of industrial and commercial land is geared explicitly to such activities. For capital‑intensive manufacturing where land availability, industrial utilities and proximity to multi‑port logistics matter, Sharjah may often be structurally attractive.
For trade and logistics, both emirates provide compelling but slightly different value propositions. Sharjah’s three seaports and its unique presence on both the Arabian Gulf and the Gulf of Oman offer diversified maritime access and routing flexibility, which can be valuable for regional traders. Dubai, with Jebel Ali Port’s global connectivity and one of the world’s busiest aviation hubs, excels in high‑volume container traffic and global air‑cargo networks. The “best emirate for logistics business in UAE” for a specific investor will depend on whether their priority is multi‑port redundancy and industrial clustering (often favouring Sharjah) or maximum global connectivity and integrated air‑sea logistics (often favouring Dubai).
For ICT and digital businesses, Dubai’s sector‑specific investments are a considerable draw. Dubai Internet City and related clusters provide a mature ICT ecosystem, international talent pool and strong links to regional and global tech markets. That said, Sharjah’s growing non‑oil sectors and educational institutions, combined with competitive facilities in its free zones, can be attractive for cost‑sensitive or niche digital operations that prefer a lower fixed‑cost base while still being within the broader UAE digital economy.
For creative industries and cultural enterprises, both emirates participate in a national ecosystem. The UAE’s Cultural and Creative Industries Strategy notes the presence of 22 free zones across the country serving cultural and creative sectors, including zones in Dubai and Sharjah. Dubai’s Creative Economy Strategy and its dedicated creative districts may appeal to media, design and arts companies seeking dense clustering and international exposure. Sharjah, renowned for cultural initiatives and events, offers a complementary environment, particularly for organisations aligning with cultural, educational or heritage‑related projects.
For eCommerce and distribution, investors should compare Sharjah’s ports and industrial base with Dubai’s targeted eCommerce Strategy. Dubai’s aim to cut eCommerce business costs (storage, customs, VAT and transportation) by 20% and to reduce fees on goods passing through free zones positions it as a strong hub for regional online retail and fulfilment, especially when combined with Jebel Ali Port and airport connectivity. Sharjah, with significant warehouse and industrial land and multi‑port access, can be advantageous for cost‑sensitive warehousing, regional distribution and manufacturing‑linked fulfilment.
Across all these sectors, it is vital to remember that UAE corporate tax in Sharjah and Dubai, foreign ownership possibilities and visa procedures are the same at the federal level. The decisive factors will typically be:
- Sector‑specific ecosystems and strategies.
- Type and cost of facilities required.
- Desired mix of local, regional and global markets.
- Tolerance for higher upfront or ongoing costs in exchange for connectivity or clustering benefits.
How To Decide Between Sharjah And Dubai: Step‑By‑Step Comparison For Investors
To make an informed decision between Sharjah vs Dubai business setup cost and benefits, it is helpful to follow a structured comparison process rather than relying on headline impressions.
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Define your business activity and target markets.
Clarify exactly what you will do (e.g. manufacturing, wholesale, software development, creative production, eCommerce fulfilment) and who your primary customers are (local UAE, GCC, wider MENA, global). This will guide whether proximity to a particular port, airport, industrial cluster or creative hub is critical. -
Decide on mainland vs free zone.
If you need broad onshore access to UAE customers without restrictions or plan significant government contracting, a mainland licence via Dubai Economy & Tourism or the Sharjah DED may be appropriate. If you are export‑oriented, or your activity aligns closely with a free zone’s specialisation (such as ICT or media), a free zone licence in either emirate may provide a more suitable regulatory and cost structure. -
Specify facility needs.
Determine whether you require industrial land, a large warehouse, standard office space, a flexi‑desk, or a combination of these. Sharjah’s industrial areas and Hamriyah Free Zone’s large land bank may offer advantages for extensive physical footprints, while Dubai’s specialised free zones may be better suited for office‑centric or high‑value logistics operations.
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Use official portals to compare licence packages and fees.
For Dubai, the Invest in Dubai portal allows you to plan your business, select activities and legal types, view licence packages, register a new licence and reserve a business name (with a free 30‑day name reservation benefit). For Sharjah, use the trade‑licence search and related tools of Sharjah DED, and consult Hamriyah Free Zone Authority’s leasing and licensing guide and SAIF Zone information for free‑zone options. -
Factor in sector‑specific strategies and initiatives.
Consider whether your business would materially benefit from policies like Dubai’s eCommerce Strategy or Creative Economy Strategy, or from Sharjah’s industrial focus and history of targeted incentives. Also consider long‑term infrastructure investments, such as Sharjah’s sewage treatment facilities in Al Sajaa, providing treated water for green spaces, or Dubai’s deep tunnel sewerage system and Jebel Ali plant expansion, which signal sustainable support for urban and industrial users. -
Assess the total cost of operation, not just setup fees.
Combine licence, facility and visa costs with estimated logistics expenses, staff recruitment and retention factors, and potential cluster or connectivity advantages. For example, lower rent in one emirate may be offset by higher transport or opportunity costs if your key partners and customers are concentrated in the other. -
Seek professional advice where needed.
Federal corporate tax rules (including the 0% and 9% bands, Qualifying Free Zone Person conditions, and natural person thresholds) are identical in both emirates, but their practical impact on your structure should be discussed with qualified legal and tax advisers.
FAQs On Sharjah vs Dubai Business Setup Cost And Benefits
Which Is Cheaper For Business Setup, Sharjah Or Dubai?
There is no single answer because Sharjah business setup cost and Dubai business setup cost depend on your activity, structure (mainland vs free zone), facility needs and chosen authority. Sharjah may offer cost advantages for manufacturing and warehousing through its extensive industrial areas and Hamriyah Free Zone’s large industrial land bank. Dubai, while sometimes more expensive in prime commercial areas, can reduce the total cost of operation for some sectors through superior global connectivity, specialised clusters (such as Dubai Internet City) and initiatives like the Dubai eCommerce Strategy aimed at cutting eCommerce costs. To compare accurately, you should obtain current licence and leasing quotations from the relevant authorities in each emirate and evaluate them against your logistics and market needs.
Is Corporate Tax Different In Dubai And Sharjah?
No. UAE corporate tax in Sharjah and Dubai is set at the federal level and is the same in both emirates. Most businesses with a commercial licence are taxed at 0% on taxable income up to AED 375,000 and 9% on taxable income above that, regardless of whether they are established in Sharjah or Dubai. The same applies to qualifying free zone entities and to natural persons conducting business whose annual turnover exceeds AED 1 million. Filing deadlines (within nine months of the end of the tax period) and late‑payment penalties also apply uniformly across all emirates.
Sharjah vs Dubai Mainland vs Free Zone: Which Should I Choose?
The decision between Sharjah, Dubai mainland vs free zone depends primarily on your business model and customers. Mainland licences via Dubai Economy & Tourism or the Sharjah DED are often preferable if you intend to trade extensively with the domestic UAE market without restrictions. Free zones can be more suitable if you focus on exports, require specific sector clustering (such as ICT or creative industries in Dubai, or manufacturing in Sharjah’s Hamriyah Free Zone), or value bundled facilities and services. Because corporate tax and many federal rules are identical, your choice should be driven by activity fit, regulatory flexibility, and total operating cost in the specific zone or mainland jurisdiction.
Which Is Better For Manufacturing: Sharjah vs Dubai Free Zone?
For manufacturing, Sharjah’s industrial profile is particularly strong. The emirate’s 19 industrial areas account for more than 48% of UAE industrial output, and Hamriyah Free Zone offers approximately 22 million square metres of industrial and commercial land designed for manufacturing and related activities. This can make Sharjah especially attractive for cost‑sensitive or land‑intensive projects. Dubai also hosts industrial and logistics free zones, often with excellent connectivity via Jebel Ali Port and Dubai’s airports. If your manufacturing is deeply export‑oriented with high reliance on global shipping and air‑cargo networks, a Dubai free zone may still be competitive. The optimal choice will emerge from comparing specific land, utility and logistics arrangements in candidate zones in both emirates.
How Do Sharjah vs Dubai Free Zones Compare For eCommerce Businesses?
Both emirates support eCommerce, but in different ways. Dubai’s eCommerce Strategy, approved by its Executive Council, explicitly aims to reduce the business cost of eCommerce activities, including storage, customs fees, VAT and transportation, by about 20%, and to lower fees on goods passing through free zones. Combined with Jebel Ali Port and major air‑cargo facilities, this can make Dubai a powerful base for regional or global eCommerce distribution. Sharjah, with its three seaports, dual‑coast access and sizable industrial and warehousing capacity, can be attractive for cost‑efficient storage and regional distribution. When deciding on Sharjah vs Dubai free zone for eCommerce, you should model not only licence and warehousing fees but also shipping, last‑mile delivery and customs‑related costs for your specific markets.
Which Emirate Is Best For A Logistics Business In The UAE?
For a logistics business, “best” is context‑specific. Dubai offers Jebel Ali Port, with its 19.5 million TEU capacity and links to over 140 ports worldwide, and a central international aviation hub with Emirates airline serving more than 140 destinations. This combination is highly favourable for global logistics and integrated multimodal solutions. Sharjah’s strengths lie in its three seaports and unique presence on the Arabian Gulf and the Gulf of Oman, along with substantial industrial areas and free zones. This can be advantageous for regional distribution, cross‑Gulf trade and serving manufacturing clients. Your optimal emirate will depend on whether your core flows are global or regional, your customers’ locations, and your preferred balance between land and facility costs and connectivity benefits.
Explained by
Shaimaa Sayed Qasem
Department of Dubai Economic Services at EGSH
Shaimaa Sayed Qasem is a dedicated service provider with the Department of Dubai Economic Services at EGSH, with seven years of experience delivering business services, supporting clients and ensuring compliance with regulatory requirements.
