Dubai is rapidly becoming a global tech hub, attracting startups, SaaS companies, and IT service firms from around the world. With dedicated technology free zones, zero corporate tax on qualifying income, and a growing talent pool, Dubai offers a compelling base for tech businesses. Here's how to set up your IT company.
Best Free Zones for IT Companies
Dubai Internet City (DIC) is the original tech hub, home to Google, Microsoft, and LinkedIn. Dubai Silicon Oasis (DSO) offers affordable packages with incubation programs. IFZA provides budget-friendly IT licenses from AED 5,750. DMCC works well for IT trading companies. Dubai CommerCity suits e-commerce tech companies.
License Types for IT
Most IT companies need a 'Service' license covering activities like IT consulting, software development, web development, app development, IT infrastructure services, cloud services, and cybersecurity. Some free zones offer specific 'Technology' licenses. If you're selling hardware, you'll need a 'Trading' license too.
Costs Breakdown
License: AED 5,750-25,000/year depending on zone. Office: AED 0-15,000+ (virtual to flexi-desk). Visa (per person): AED 3,000-6,000. Total first year: AED 12,000-45,000 for a solo founder, AED 25,000-80,000 for a small team. DIC and DSO offer startup packages that include coworking space.
Key Considerations
Data protection: UAE has PDPL (Personal Data Protection Law). Intellectual property: register with UAE Ministry of Economy. Banking: tech companies can face extra KYC checks — IFZA and DMCC have best banking relationships. Remote team: you can hire globally while based in UAE.
Relevant Free Zones
Hub71
abu dhabi
Setup: Application-based, 4-8 weeks
Creative City
fujairah
Setup: 2-3 business days
Ajman Media City
ajman
Setup: 2-3 business days
IFZA
dubai
Setup: 1-2 business days
Shams
sharjah
Setup: 1-2 business days
AFZA
ajman
Setup: 2-3 business days
FMFZ
fujairah
Setup: 3-5 business days
Arada FZ
sharjah
Setup: 3-5 business days
Frequently Asked Questions
What license do I need for a software company in Dubai?
A Service license with 'Software Development' or 'IT Services' as your business activity. Most free zones offer this. You can add multiple activities like consulting, web development, and app development under one license.
Can I run a SaaS company from a UAE free zone?
Yes. A service license covers SaaS operations. Your company can serve global customers. Revenue from outside the UAE may qualify for 0% corporate tax under the free zone tax exemption.
Which is cheaper for IT companies — DIC or IFZA?
IFZA is significantly cheaper (from AED 5,750 vs AED 15,000+ for DIC). However, DIC offers better prestige, networking in the tech ecosystem, and easier banking. Choose IFZA for cost savings, DIC for ecosystem benefits.
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Start Free AssessmentThis content is for informational purposes only and does not constitute legal, tax, or financial advice. Prices and regulations are subject to change. Always verify with the relevant authorities.