Freezone vs Mainland in 2026 — how did you actually decide?

[mia_dxb]

So I’ve been going back and forth on this for a while now and honestly the more I research, the more confused I get

I’m thinking about setting up a small consultancy here in Dubai — just me to start, maybe one or two people later. Every conversation I have seems to end with “it depends” and I totally get that, but I’d love to hear from people who’ve actually been through it recently.

The freezone route seems simpler and cheaper upfront, but then I keep reading that if most of your clients are based in the UAE (not abroad), mainland might make more sense. And with corporate tax now in place, I’m not sure the freezone advantage is as clear-cut as it used to be?

For those of you who set up in the last year or two — what tipped the balance for you? Did you regret it or feel like you made the right call? And did you use a business setup agent or figure it out yourselves?

Any real-world perspective would be genuinely helpful — the official guides only go so far!

[mia_dxb]

Great question and honestly one of the most common ones here lately.

For my setup (small consultancy, similar situation), the client base question was the thing that actually decided it. Most of my work was with UAE-based companies, and the old rule about freezones needing a local distributor or agent to sell onshore still applies in practice, even if the rules have loosened slightly. That friction matters day to day.

On corporate tax, worth checking tax.gov.ae directly. Qualifying freezone entities can still get 0% on qualifying income, but the conditions are specific and worth reading carefully before assuming the advantage holds for your model.

A few people I know used setup agents and found it saved time, though you can DIY through most freezone portals now.

The honest tipping point for most people I’ve spoken to: where are your actual clients based, and how often will you need to meet them formally?

What does your client split look like roughly?