As Dubai continues to dominate headlines as a global business destination, savvy investors and entrepreneurs are looking beyond the Emirate for new frontiers of opportunity. In 2025, Ras Al Khaimah (RAK) and Sharjah have emerged as serious contenders for international business setup, offering strategic benefits without the price tag of their high-profile neighbour.
Whether you’re a cost-conscious startup, a regional SME, or a global player looking to diversify operations in the UAE, these Emirates deserve your attention.
Why Look Beyond Dubai?
While Dubai offers unmatched infrastructure and a globally recognised business ecosystem, it also comes with:
- Higher office rental and license costs
- Saturated markets in several industries
- Stricter compliance thresholds for some business categories
RAK and Sharjah, in contrast, provide cost-efficiency, regulatory flexibility, and industry-specific zones that are quickly gaining global traction.
Ras Al Khaimah: Quietly Powerful
Ras Al Khaimah (RAK) is becoming a magnet for international companies, especially those in manufacturing, trading, and e-commerce.
What Makes RAK Attractive?
- Low-Cost Setup: One of the most affordable Emirates for business licensing and office rent
- RAKEZ Free Zone: A diverse zone with packages for freelancers, SMEs, and large corporations
- No Corporate Tax (on qualifying income): Leverage 0% CT on Free Zone income under UAE tax law
- Strategic Port Access: Connectivity through Saqr Port (the largest bulk port in the region)
- Ease of Incorporation: Quick registration timelines and streamlined banking introductions
Pro Tip: RAK ICC is a popular jurisdiction for holding companies due to confidentiality and global compliance.
Sharjah: The Industrial & Innovation Hub
Often overshadowed by Dubai, Sharjah is now rising for businesses in education, publishing, light manufacturing, and sustainability sectors.
Why Choose Sharjah?
- Strong Infrastructure: World-class airports, deep-water ports, and academic institutions
- Sharjah Publishing City (SPC) & Sharjah Research Technology and Innovation Park (SRTIP): Dedicated zones for niche sectors
- Competitive Licensing: Lower fees compared to Dubai or Abu Dhabi
- Government Support: Active initiatives for startups, tech, and ESG-focused businesses
- Cultural and Educational Edge: Ideal for businesses aligned with the knowledge economy
Interesting Insight: Sharjah’s free zones permit 100% foreign ownership, capital repatriation, and multi-year visas.
RAK vs Sharjah: What’s Right for You?
| Criteria | Ras Al Khaimah | Sharjah |
| Best For | Manufacturing, Trading, Holding Companies | Education, Tech, Sustainability Sectors |
| Setup Cost | Low | Moderate |
| Popular Free Zones | RAKEZ, RAK ICC | SPC, SRTIP, Hamriyah Free Zone |
| Connectivity | Strong via Saqr Port | Excellent via ports & airports |
| Unique Advantage | International reputation for holding entities | Innovation-friendly ecosystem |
How We Help
At Horizon Biz Consultancy, we assist founders, SMEs, and international clients in:
- Choosing the right Emirate based on your business model and budget
- Structuring tax-efficient entities in RAKEZ, RAK ICC, or Sharjah Free Zones
- Aligning compliance with UAE Corporate Tax, ESR, and UBO regulations
- Managing end-to-end incorporation, visa, and banking setup
Our goal? To help you enter the UAE market smartly, affordably, and compliantly.
Conclusion
The UAE’s growth story is no longer confined to Dubai.
RAK and Sharjah are writing their own playbooks, more flexible, more affordable, and just as ambitious.
Whether you’re looking to relocate, expand, or restructure, 2025 is the time to explore the full map of the UAE.
- Set up smart.
- Operate lean.
- Scale with confidence.Ready to set up smart and scale right? Reach out to us and drop a message at info@horizonbizco.com, we’ll guide you step by step.
FAQ’s
Yes. Most free zones allow for remote incorporation and do not require residency, although investor visas are available.
RAKEZ is an operational free zone for businesses, while RAK ICC is ideal for holding or asset protection structures.
Yes, qualifying income within free zones can benefit from 0% corporate tax if compliant with the UAE’s tax laws.
Sharjah, especially through SRTIP, offers more support and facilities for innovation-driven businesses.
Yes. Both Emirates have strong banking support for free zone entities, especially if your documentation is well-prepared.
