How to Get a Camping Grounds, Recreational Vehicle Parks and Trailer Parks Business License in Dubai

Steven Thama

Steven Thama

Steven Thama

9 min read
9 min read

Last Updated on

Last Updated on

Topic Summary

  1. Understand Activity Code 5520 Scope

    Activity code 5520 covers short-stay outdoor accommodation including camping grounds, RV parks, and trailer parks, distinct from hotels. It includes leasing pitches and providing amenities like electricity hookups and sanitation facilities.

  2. Check Eligibility and Ownership Rules

    UAE nationals, GCC nationals, and foreign investors can all conduct this activity. Mainland setups may allow up to 100% foreign ownership depending on DED classification, while free zones offer full ownership as standard.

  3. Choose Mainland or Free Zone Setup

    Mainland licensing through Dubai Economy and Tourism lets you operate anywhere in Dubai but involves more regulatory oversight and Emiratisation rules. Free zones like Dubai South Business Hub offer simplified incorporation and full foreign ownership.

  4. Select the Right License Type

    Operators need a Commercial or Tourism Activity License suited to accommodation and outdoor hospitality services. The license type chosen affects regulatory requirements and approval processes.

  5. Register for VAT Compliance

    Businesses exceeding AED 375,000 in annual turnover must register for VAT. Staying compliant from the start helps avoid penalties as the business scales.

  6. Consider Dubai South Business Hub

    This free zone is highlighted as a practical starting point for entrepreneurs in the camping and RV park sector. It offers streamlined setup processes suited to foreign investors entering the hospitality market.

  7. Tap Into Eco-Tourism Demand

    Dubai's push for sustainable tourism and outdoor recreation creates strong opportunities for camping and glamping operators. Rising domestic and international interest in nature-adjacent lodging supports long-term business growth.

As Dubai accelerates its outdoor tourism and leisure economy, activity code 5520 — covering camping grounds, recreational vehicle parks, and trailer parks — presents a growing opportunity for entrepreneurs entering the UAE hospitality and recreation sector. This guide explains what the 5520 business activity covers, who can operate it, how to obtain the right license in Dubai, and why a free zone like Dubai South Business Hub can be a practical starting point for foreign investors and local entrepreneurs alike.

📊 Key Facts at a Glance: Activity Code 5520 in Dubai

  • Activity Code: 5520 — Camping Grounds, RV Parks & Trailer Parks

  • Sector: Accommodation / Outdoor Hospitality

  • License Type: Commercial / Tourism Activity License

  • Ownership: Up to 100% foreign ownership available in free zones

  • VAT Threshold: AED 375,000 annual turnover (registration mandatory above threshold)

  • Key Regulator (Mainland): Dubai Economy and Tourism (DET)

What Does Activity Code 5520 Cover in Dubai?

Under the UAE Standard Industrial Classification, activity code 5520 encompasses the provision of short-stay outdoor accommodation. This includes the operation and management of camping grounds, recreational vehicle (RV) parks, and trailer parks — facilities that cater to guests seeking open-air or nature-adjacent lodging experiences. The classification is distinct from traditional hotel or serviced apartment activities, focusing instead on land-based outdoor accommodation infrastructure.

In practical terms, this activity covers the leasing of pitches or plots to campers, RV owners, and trailer users on a nightly, weekly, or seasonal basis. It may also extend to the provision of shared amenities such as sanitation facilities, electricity hookups, communal cooking areas, and recreational spaces associated with the site.

This activity is particularly relevant to Dubai's growing eco-tourism and adventure travel market. With the UAE government actively promoting outdoor recreation and sustainable tourism experiences, operators in this segment are well-positioned to benefit from rising domestic and international demand for non-traditional accommodation formats, including glamping and nature retreats. You can explore a full list of business activities in Dubai to understand how activity 5520 sits alongside other hospitality and tourism classifications.

Who Can Conduct This Activity?

Activity code 5520 is open to UAE nationals, GCC nationals, and foreign investors. The ownership structure available to you will depend on whether you choose a mainland or free zone setup:

  • Mainland: Since the UAE's 2021 commercial companies law reforms, foreign investors can hold up to 100% ownership in many mainland activities, though specific activities may still require local partnership depending on DED classification.

  • Free Zone: Full foreign ownership (100%) is available as standard across most free zone jurisdictions, making this route particularly attractive for international entrepreneurs.

  • Permitted corporate structures include Limited Liability Companies (LLCs), sole establishments, and free zone entities depending on the jurisdiction selected.

Business Setup Options for Camping and RV Park Operators in Dubai

When planning to start your business in the outdoor hospitality sector, the first strategic decision is choosing between a mainland DED license and a free zone license. Each has distinct trade-offs that operators in activity 5520 should evaluate carefully.

Mainland licensing through Dubai Economy and Tourism (DET) allows you to operate directly within Dubai's territory without restrictions on where you conduct business. This is important for operators who intend to manage a physical camping site on Dubai mainland land. However, mainland entities are subject to broader regulatory oversight, Emiratisation obligations, and potentially more complex approval chains.

Free zone licensing offers streamlined incorporation, full foreign ownership, and simplified administrative processes. The trade-off is that free zone companies technically operate within their designated zone and may require additional approvals or local service agents to conduct activity on mainland land parcels.

Dubai South Business Hub Free Zone

Dubai South Business Hub Free Zone is positioned within the Dubai South district, adjacent to Expo City and the Al Maktoum International Airport corridor — one of the UAE's most strategically developing areas. The free zone supports a range of tourism and recreation-related business activities, making it a practical option for entrepreneurs registering under activity code 5520.

Key advantages for early-stage operators include flexible office and flexi-desk workspace solutions, a straightforward company incorporation process, and access to residency visa packages tied to the business license. For guidance on immigration documentation related to your setup, refer to the Dubai South Business Hub resource on finding your immigration file number in the UAE.

Licensing Requirements and Key Approvals

Obtaining a license for activity code 5520 involves securing the correct license category — typically a commercial or tourism activity license — from your chosen jurisdiction. For mainland operators, this process is managed through the Dubai Economy and Tourism (DET) department, which oversees hospitality and accommodation-related trade licenses in Dubai.

Depending on the nature and scale of your operation, secondary approvals may be required. Physical camping or RV park sites will involve land use and zoning considerations, requiring coordination with relevant land authorities and potentially Dubai Municipality. No-objection certificates (NOCs) from site landowners or master developers may also be necessary before a license is granted.

Operators whose annual turnover exceeds AED 375,000 are required to register for VAT in the UAE. Full guidance on VAT registration thresholds and obligations is available from the Federal Tax Authority.

Typical Documentation Required

Regardless of jurisdiction, most applications for activity 5520 will require the following:

  • Passport copies and current visa status documentation for all shareholders and managers

  • A business plan or detailed activity description outlining the nature of your camping or RV park operation

  • A tenancy agreement or registered address confirmation (Ejari for mainland setups)

  • Coordination with the ICP (Federal Authority for Identity, Citizenship, Customs & Ports Security) for residency visa processing tied to the business license

  • Any site-specific documentation required by land authorities if operating a physical outdoor facility

Key Considerations Before Starting This Business in Dubai

Before committing to a structure, operators should carefully assess the following factors unique to activity code 5520:

  • Land availability and zoning: Camping grounds and RV parks require suitable outdoor land parcels. Identifying appropriately zoned land in or near Dubai is a critical early step.

  • Regulatory evolution: Dubai's regulatory environment for outdoor hospitality is actively developing. Always verify current requirements directly with the relevant authorities before proceeding.

  • Emiratisation and labour obligations: Mainland businesses must comply with workforce nationalisation requirements administered by the Ministry of Human Resources and Emiratisation (MOHRE).

  • Insurance and guest safety: Outdoor accommodation operators should secure appropriate liability insurance and adhere to guest safety standards relevant to open-air hospitality environments.

  • Market positioning: Glamping, eco-tourism, and adventure tourism are high-growth segments within the UAE's broader tourism strategy, offering strong differentiation opportunities for new entrants.

Financial and Operational Planning

Startup costs for this activity will vary depending on your jurisdiction, license type, visa allocation, and site development requirements. To get an early estimate of your licensing costs, you can use the business setup cost calculator provided by Dubai South Business Hub Free Zone.

Revenue model considerations should include nightly and weekly accommodation rates, seasonal demand fluctuations, and ancillary income streams such as equipment rental, guided tours, or food and beverage services. Setting up a corporate bank account in the UAE is a standard requirement following company incorporation and is essential for managing operational finances.

Can a foreigner own 100% of a camping grounds business in Dubai?

Yes. In a free zone, 100% foreign ownership is standard. On the mainland, recent legislative reforms have expanded foreign ownership rights across many commercial activities, though you should confirm the specific ownership rules applicable to activity 5520 with the DET or a registered business setup advisor.

Is a free zone license sufficient to operate a physical camping site in Dubai?

A free zone license establishes your company's legal entity and enables you to conduct business activities. However, operating a physical site on Dubai mainland land may require additional approvals, NOCs, or a local service agent arrangement. Always verify the operational requirements with the relevant land and regulatory authorities before signing any site agreements.

What government bodies regulate outdoor hospitality in Dubai?

Dubai Economy and Tourism (DET) is the primary authority for mainland hospitality licensing. Dubai Municipality may be involved in site approvals and zoning. The Federal Tax Authority governs VAT obligations, and MOHRE oversees labour and workforce compliance for mainland businesses.

How long does it typically take to obtain a business license for activity 5520?

Timelines vary depending on the jurisdiction and completeness of your application. Free zone incorporations are generally faster than mainland processes. For the most accurate current timeline, contact Dubai South Business Hub Free Zone directly or consult the relevant licensing authority.

Do I need a separate tourism license in addition to my trade license?

This depends on the specific nature of your operation. If your camping or RV park business includes packaged tourism services or guided experiences, additional approvals from Dubai Economy and Tourism may be required. It is advisable to confirm the exact licensing structure with a qualified business setup consultant before proceeding.

Conclusion

Licensing a camping grounds, RV park, or trailer park business in Dubai under activity code 5520 requires choosing the right jurisdiction, securing the correct license type, and aligning with relevant regulatory bodies. Free zone options like Dubai South Business Hub Free Zone offer a streamlined path for foreign investors seeking full ownership and efficient incorporation, while mainland structures provide direct operational access to Dubai's broader territory.

Contact Dubai South Business Hub today to explore how activity code 5520 can be licensed within their free zone framework and take your first step toward establishing an outdoor hospitality business in one of the world's most dynamic tourism destinations.

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