This is usually the first question a founder asks me — and usually one they've already half-answered based on something they read online, not on what their business actually needs.
Free zone and mainland aren't "cheaper" versus "more expensive." They're different operating models, and the right one depends on where your clients are, whether you need to trade directly within the UAE market, and how you plan to raise or exit.
A free zone company gives you 100% foreign ownership and sector-specific licensing, but with restrictions on direct mainland trading unless structured carefully. A mainland company gives unrestricted access to the local market and government contracts, at the cost of different compliance considerations.
For a B2B SaaS or tech company selling internationally, a free zone is often the right starting point. For a business whose revenue depends on UAE-based clients or government tenders, mainland is frequently unavoidable. Neither answer is universal — that's exactly the problem with picking one before the business model is settled.