How to Set Up an IT Company in Dubai?

Dubai has quickly grown into one of the world’s leading tech and startup hubs. In recent years, the city has attracted billions in tech investments and continues to rank among the top choices for digital entrepreneurs. In fact, the UAE’s digital economy is expected to reach over AED 140 billion by 2031, showing just how fast this sector is growing.

With its strong digital infrastructure, world-class connectivity, and business-friendly environment, it’s no surprise that more people are searching for how to start an IT company in Dubai.

What makes Dubai so ideal for IT businesses? For starters, zones like IFZA, Dubai Internet City and Dubai Silicon Oasis offer 100% foreign ownership, zero corporate tax (within a threshold), and full profit repatriation. These zones are home to tech giants like Google, Microsoft, Oracle, and thousands of startups, creating an environment where innovation thrives.

The government is also heavily invested in the future of tech. Initiatives like Smart Dubai aim to turn the city into one of the smartest in the world, using AI and digital services to improve daily life for residents and businesses. With goals set for 2030 and beyond, Dubai is clearly betting big on technology.

So, if you’re planning for IT company setup in Dubai, there’s never been a better time or place.

Why Dubai is Ideal for IT Businesses in 2025?

If you’re thinking about launching a tech business, Dubai is one of the best places in the world to do it. Here’s why:

1. Tax Advantages

Dubai offers 0% personal and corporate tax in most zones (with some exceptions under the new corporate tax law if income crosses AED 375,000). Plus, there are no restrictions on repatriating profits, making it easier for entrepreneurs to grow their business and keep their earnings.

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2. No Overregulation in the IT Sector

Unlike some global hubs, Dubai doesn’t drown IT businesses in red tape. For most tech activities, you don’t need external approvals (e.g., no DTCM or health authority clearance like tourism or clinics would require). This lets you launch and adapt faster, which is crucial in IT.

3. Easy Fundraising & Access to VCs

Dubai is now home to over 100+ active VC firms and angel networks, including BECO Capital, Shorooq Partners, and Crescent Enterprises Ventures. IT startups with strong models are getting funding faster than ever before, especially those in cloud, fintech, cybersecurity, and SaaS.

4. Tech-Friendly Free Zones

Free Zones like Dubai Internet City (DIC), Dubai Silicon Oasis (DSO), and Dubai Multi Commodities Centre (DMCC) are tailor-made for IT and tech businesses. They offer:

• 100% foreign ownership

• No customs duties

• Easy visa processing

• Access to like-minded tech communities

5. Easy Setup & Licensing

With the right guidance, setting up an IT company in Dubai can be done in just a few days. The process is straightforward, and there are tailored packages for tech startups.

6. Global Connectivity

Being based in Dubai gives you direct access to the regional headquarters of Google, Oracle, Microsoft, SAP, Cisco, and others. Events like GITEX Global, STEP Conference, and AI Everything happen right here. These are prime grounds to form partnerships, pitch, and gain clients from day one.

Key Insights About the UAE IT Sector Market in 2025

The IT industry in the UAE is booming in 2025, and it’s only getting stronger. Here are some important highlights that show just how fast things are moving:

• The UAE’s overall tech (ICT) market is worth USD 52.2 billion in 2025 and is expected to grow to USD 85.2 billion by 2030.

• Revenue from IT services alone is about USD 3.7 billion in 2025 and is expected to reach USD 4.81 billion by 2030.

• IT outsourcing, where companies hire others to handle tech support, software, etc., is also growing fast, hitting USD 1.5 billion in 2025.

• The cloud market in the UAE is huge, it’s worth around USD 12.84 billion in 2025, and is set to jump to USD 45.4 billion by 2030.

• Under the UAE AI Strategy 2031, the country is building one of the world’s largest AI data centres in Abu Dhabi.

• Dubai and Abu Dhabi are becoming “smart cities” with tech like 5G, IoT, and edge computing being used in everything from transport to energy.

• Big tech companies like Amazon (AWS), Microsoft, Oracle, and Huawei are investing heavily (over USD 10 billion) in local cloud and data centres. That means faster and safer digital services for businesses.

What Kind of IT Services Can You Offer in Dubai?

Dubai offers a wide range of approved IT and tech-related business activities that you can include under your company license. Here are some of the most popular and in-demand options:

1. Software Development: Build and sell desktop software, SaaS products, or customised enterprise solutions.

2. Web & Mobile App Development: Design, develop, and maintain websites or mobile applications for clients or your own startup.

3. IT Consultancy Services: Advise businesses on IT strategy, digital transformation, systems integration, or cloud migration.

4. Cybersecurity Services: Offer network security, data protection, penetration testing, or managed security solutions.

5. Artificial Intelligence (AI) Solutions: Develop or implement AI-powered tools, including chatbots, machine learning models, and automation software.

6. Blockchain Development: Create blockchain apps, smart contracts, or Web3 platforms—especially relevant in Free Zones like DMCC or DSO.

7. Cloud Services & Hosting: Provide cloud infrastructure, storage, server hosting, or managed cloud support for businesses.

8. IT Infrastructure & Networking: Set up IT systems, hardware installation, network cabling, and system maintenance for organisations.

9. Digital & Technology Training: Run certified courses or workshops in areas like coding, cybersecurity, AI, or digital marketing.

10. E-commerce Tech Solutions: Develop and manage e-commerce platforms, plugins, payment gateway integration, and backend support.

How to Choose the Right Jurisdiction for Your IT Business in the UAE?

Before starting your IT company in Dubai, one of the most important decisions is choosing the right jurisdiction. This affects your ownership, operations, taxes, and who you can work with.

A. Mainland

Mainland companies are registered under the Department of Economic Development (DED) and are allowed to freely operate anywhere in the UAE and internationally.

Key Features:

• You can do business anywhere in the UAE and internationally.

• Eligible to work with government clients and big UAE-based corporations.

• You’ll need to lease a physical office and get approval from DED.

• Corporate tax applies if profits exceed AED 375,000 (currently 9%).

Ideal for:

• IT consultancies targeting UAE government contracts

• Large-scale software or cloud solution providers

• Companies hiring many employees on the ground

B. Free Zone

A Free Zone is a specially designated business zone in the UAE where you get benefits like 100% foreign ownership, tax exemptions, and simplified setup. However, Free Zone companies cannot directly trade with the UAE mainland unless they appoint a local agent or open a branch in the mainland.

Key Features:

• 100% foreign ownership, no local sponsor required.

• Easy business setup with flexible office options (shared desk, flexi-desk, etc.).

• Tax benefits – many Free Zones still offer 0% corporate tax (within limits).

• Can’t directly work with UAE mainland clients unless through a distributor or with a mainland license.

Popular Free Zones for IT Business in Dubai:

• Dubai Internet City (DIC) – home to Google, Oracle, etc.

• International Free Zone Authority (IFZA)

• Dubai Silicon Oasis (DSO) – tech R&D and startups

• DMCC Tech Hub – software, blockchain, and crypto firms

• DTEC – ideal for small IT startups

Read Also: Free Zone vs. Mainland: Detailed Explanation

C. Offshore

An Offshore company is registered in the UAE but is not allowed to do business inside the country. These companies are used mainly for international business activities, such as holding assets, billing clients abroad, or protecting intellectual property.

Key Features:

• Register a company in zones like JAFZA Offshore or RAK ICC

• Can open a corporate bank account in UAE

• No physical office or visa eligibility

• Can’t operate inside the UAE or hire locally

• Mostly used for holding intellectual property, managing remote global teams, or billing clients internationally

How to Start an IT Company in Dubai, UAE?

Setting up an IT business in Dubai involves a few key legal and administrative steps. Here’s a step-by-step guide to help you get started:

Step 1: Define Your Business Activity & Structure

Choose your main IT services (e.g., software development, cybersecurity, consultancy) and decide on the legal structure – LLC, sole establishment, branch office, or free-zone entity.

Step 2: Choose the Ideal Jurisdiction

Select whether to register in the Mainland, a Free Zone, or Offshore based on your business purpose – local clients, global clients, or IP-holding, respectively.

Step 3: Reserve Company Name & Trademark

Apply for a trade name that complies with UAE naming rules (unique, business-related, no offensive words) within your chosen jurisdiction.

Step 4: Get Initial Approvals

Submit your business activity, trade name, passport copies, and optionally a business plan to obtain initial no-objection approval from the DED (Mainland) or Free Zone authority.

Step 5: Secure Office Space

• Mainland: Rent a physical office and register the Ejari tenancy contract.

• Free Zone: Opt for options like shared desks, flexi-desk, or dedicated offices, depending on your team size and visa needs.

Step 6: Get External Approvals (if required)

Some specific IT activities may need approvals from regulatory bodies such as the TRA (Telecommunications and Digital Government Regulatory Authority) for certain tech operations.

Step 7: Obtain Your Trade License

After document review and payment, collect your official IT company license: DED trade license for Mainland or relevant license (e.g., Service License) from Free Zone authorities.

Step 8: Open a Corporate Bank Account

With your license and company documents in hand, open a business bank account in the UAE with banks like Emirates NBD, Mashreq, HSBC, or Citibank.

Step 9: Apply for Visas & Health Cards

Sponsor residence visas for investors, employees, and dependents, based on your office space and jurisdiction limits. Mainland companies can sponsor more visas.

What Documents are Required to Start an IT Company in Dubai?

To start your IT company in Dubai, you’ll need to submit a few essential documents. Here’s a quick list to help you prepare:

• Passport copies of all shareholders/partners

• UAE visa or entry stamp page

• Passport-sized photographs (white background)

• Proposed company name(s)

• Description of IT business activities

• No Objection Certificate (if on an existing UAE visa)

• Office address or tenancy contract (Ejari for Mainland / flexi-desk for Free Zone)

• Memorandum of Association (for Mainland setup)

• Completed application forms from the licensing authority

What is the Cost of Starting an IT Company in Dubai?

Starting an IT business in Dubai can cost anywhere from AED 12,000 to AED 60,000 or more, depending on the business location (Mainland, Free Zone, or Offshore), the size of your team, and the type of office you choose.

Setting up your IT company in a Free Zone is one of the most cost-effective options. The total setup cost typically ranges between AED 12,000 to AED 30,000. Free Zones like IFZA, Meydan, SPC, and DTEC offer some of the most affordable options for IT startups, especially for small teams or solo founders.

Mainland IT company setup generally costs more, but gives you full access to the UAE market. The initial setup cost can start around AED 25,000 and go up to AED 60,000 or more, depending on office rent, number of visas, and additional legal steps.

Common Challenges and How to Overcome Them

Setting up an IT company in Dubai can come with challenges. Here are the most common ones and how to address them:

1. Challenge: Choosing the Right Jurisdiction
   Issue: Deciding between Mainland, Free Zone, or Offshore can be confusing due to differing benefits and limitations.
   Solution: Assess your target market. Choose Mainland for local UAE clients, Free Zone for tax benefits and global operations, or Offshore for remote businesses. Consult experts like Shuraa for tailored advice.
2. Challenge: High Office Rental Costs
   Issue: Mainland setups require physical offices, which can cost AED 50,000+ annually in prime areas.
   Solution: Opt for Free Zones with flexi-desk options (starting at AED 2,000/year) or shared spaces in DTEC or IFZA to minimize costs.
3. Challenge: Regulatory Compliance
   Issue: Navigating UAE’s licensing, visa, or tax rules (e.g., 9% corporate tax for profits over AED 375,000) can be complex.
   Solution: Work with a business setup consultant like Shuraa to ensure compliance and timely renewals. Stay updated on UAE’s corporate tax laws via the Federal Tax Authority. Consult experts like Shuraa Tax for tailored advice.
4. Challenge: Finding Local Talent
   Issue: Hiring skilled IT professionals in a competitive market can be tough for startups.
   Solution: Use platforms like Bayt, LinkedIn, or Dubai-based job fairs to recruit from the UAE’s diverse talent pool. Offer competitive packages to attract top talent.
5. Challenge: Accessing UAE Mainland Clients from a Free Zone
   Issue: Free Zone companies cannot directly serve Mainland clients without a distributor or branch.
   Solution: Set up a Mainland branch or partner with a local distributor. Alternatively, focus on international or online clients to leverage Free Zone benefits.

Case Studies: How AWS Is Powering IT Success in Dubai

When it comes to big names in tech choosing Dubai, Amazon Web Services (AWS) stands out as a great example. Not only did AWS launch a local region in the UAE, but it’s also helping Dubai-based companies scale faster, cut costs, and operate smarter.

Let’s take Sharaf Retail, a major retail group in Dubai. They partnered with AWS and a local cloud expert, Zero&One, to move their entire IT infrastructure to the cloud. What’s impressive is that the migration took just five months, something that could take years for large companies.

Key results:

• 65% reduction in infrastructure costs
• 50% lower IT staff expenses
• 75% faster store launches (cutting down from 30 days to just a few)
• Improved data security, backups, and UAE-compliant cloud hosting

In 2022, AWS launched its own cloud region in the UAE, which includes three availability zones. This is more than just a tech upgrade; it’s a game changer for IT startups and digital businesses in Dubai. Here’s what it means:

• $5 billion investment committed through 2036
• AED 41 billion expected to be added to the UAE’s GDP
• 6,000+ full-time jobs supported annually in tech, data centres, construction, and telecom
• Faster and more secure cloud services, with local data compliance

If you’re thinking about starting an IT company in Dubai, the AWS success story shows just how ready the city is for tech growth.

Tips for Success in Dubai’s IT Market

1. Leverage Free Zone Benefits: Choose a free zone like DIC or DSO for networking with tech giants and startups.
2. Attend Tech Events: Participate in GITEX Global, STEP Conference, or AI Everything to connect with clients and investors.
3. Focus on High-Demand Sectors: Prioritise AI, cybersecurity, cloud services, or blockchain for faster growth.
4. Hire Local Talent: Tap into the UAE’s diverse, skilled workforce through platforms like Bayt or LinkedIn.
5. Stay Compliant: Ensure timely license renewals and compliance with the UAE’s corporate tax laws.

How Shuraa Can Help You Set Up Your IT Company!

IT company in Dubai is a smart choice. The city is full of opportunities, support for tech businesses, and a fast-growing digital economy. The industry has picked up pace in recent years and is now about to reach its prime. All you need to do now is make another great choice for a convenient business setup in the UAE.

At Shuraa Business Setup, we can guide you through everything – choosing the right Free Zone or Mainland option, handling your license, setting up your company, getting visas, and taking care of all the paperwork.

Book a free consultation today and let Shuraa make your IT business in the UAE simple and stress-free.

Commonly Asked Questions

*Disclaimer: The information in this post is for general guidance only and may change due to updates in government policies or regulations.