Computer System Housing Services Business License in Dubai: Cost and Requirements

As digital infrastructure demand surges across the Middle East, businesses that provide computer system housing services are finding the UAE an increasingly attractive base of operations. Dubai, in particular, has positioned itself as a regional technology hub, offering world-class connectivity, stable regulatory frameworks, and purpose-built free zones designed for ICT enterprises. For entrepreneurs and established operators alike, securing a Computer System Housing Services business licence at Dubai South Business Hub Free Zone is a practical and commercially sound step into one of the fastest-growing markets in the world.

This guide covers everything you need to know about Activity Code 6311.96, including what the licence covers, who it suits, the costs involved, and the steps required to get your business operational.

What Is Computer System Housing Services (Activity Code 6311.96)?

Computer System Housing Services falls under the ICT category and is classified under Activity Code 6311.96. The licence authorises businesses to provide co-location and managed hosting environments where clients can house their servers, networking equipment, and related hardware within a secure, climate-controlled facility.

Licensed activities typically include:

• Co-location of servers and IT hardware for third-party clients

• Provision of physical rack space, power, and cooling infrastructure

• Managed connectivity and network access services

• Remote hands and on-site technical support for housed equipment

• Disaster recovery and business continuity hosting solutions

• Secure storage and monitoring of client hardware assets

The licence type is a Business Licence, which permits commercial operations within the Dubai South Business Hub Free Zone and, where applicable, broader UAE and international markets.

Who Is This Licence Suited To?

This licence is particularly well suited to data centre operators, managed service providers, telecommunications companies, cloud infrastructure firms, and IT outsourcing businesses. It also appeals to regional enterprises looking to establish a UAE presence to serve Gulf Cooperation Council (GCC) clients, as well as international operators seeking a tax-efficient jurisdiction with strong logistics links to Asia, Africa, and Europe.

Startups entering the co-location space and established operators expanding their regional footprint will both find the Dubai South Business Hub Free Zone a commercially viable and strategically located option.

Why Dubai Is Well-Positioned for Computer System Housing Services

Dubai consistently ranks among the top global cities for digital infrastructure readiness. The UAE's National Digital Economy Strategy targets doubling the digital economy's contribution to GDP, creating sustained demand for data hosting and co-location services. Dubai South, specifically, benefits from its proximity to Al Maktoum International Airport and the Expo City precinct, providing excellent logistics and connectivity advantages.

Key market advantages include:

• Zero corporate and personal income tax within free zone structures

• 100% foreign ownership permitted for free zone licence holders

• Access to a rapidly expanding GCC data centre market projected to grow significantly through 2030

• Robust legal framework aligned with international commercial standards

• High-quality power and telecoms infrastructure supporting uninterrupted operations

Key Stats at a Glance

• Activity Code: 6311.96

• Licence Type: Business Licence

• Category: ICT

• Free Zone: Dubai South Business Hub

• Foreign Ownership: 100% permitted

• Corporate Tax Rate (Free Zone): 0% on qualifying income

• GCC Data Centre Market: Among the fastest-growing globally

• UAE Digital Economy Target: Doubling GDP contribution by 2031

Licensing Requirements and Compliance

To obtain a Computer System Housing Services business licence at Dubai South Business Hub Free Zone, applicants must meet the following standard requirements:

• Completed application form submitted to the free zone authority

• Passport copies of all shareholders and directors

• Proof of residential address for shareholders

• Business plan outlining proposed operations

• Selection of a registered office address or facility within the free zone

• Payment of applicable licence and registration fees

Depending on the scale of operations, additional approvals from the Telecommunications and Digital Government Regulatory Authority (TDRA) may be required for businesses providing network connectivity as part of their housing services. Operators should confirm the full scope of their intended activities with the free zone authority during the application process.

Setup Costs and Steps

The cost of establishing a Computer System Housing Services business in Dubai South Business Hub Free Zone varies based on the chosen office package, number of visas required, and specific operational needs. Typical costs to consider include:

The general steps to set up are as follows:

• Step 1: Choose your business activity and confirm it aligns with Activity Code 6311.96

• Step 2: Submit your application and supporting documents to Dubai South Business Hub Free Zone

• Step 3: Receive initial approval and select your office package

• Step 4: Pay the required fees and finalise your licence agreement

• Step 5: Obtain your business licence and proceed with visa applications and bank account opening

The typical timeline from application to licence issuance is between five and fifteen working days, subject to document completeness and any required third-party approvals.

Frequently Asked Questions

How much does a Computer System Housing Services licence cost in Dubai?

Licence fees at Dubai South Business Hub Free Zone typically range from AED 10,000 to AED 20,000 per year, depending on the package selected. Additional costs for office space, visas, and registration fees apply. Total first-year setup costs commonly fall between AED 20,000 and AED 45,000.

Can a foreign national own 100% of the business?

Yes. Free zone licences in Dubai, including those issued by Dubai South Business Hub, permit 100% foreign ownership. There is no requirement for a UAE national sponsor or partner within the free zone structure.

Are there any additional government approvals required?

Businesses providing network connectivity alongside housing services may require approval from the Telecommunications and Digital Government Regulatory Authority (TDRA). The free zone authority will advise on any activity-specific approvals during the application process.

How long does it take to get the licence?

The standard processing timeline is between five and fifteen working days from the submission of a complete application. Delays may occur if additional approvals from external regulatory bodies are required.

What profit margins can computer system housing businesses expect?

Co-location and managed hosting businesses typically operate on gross margins of 40% to 60%, depending on facility utilisation rates, energy costs, and service pricing. The UAE's relatively stable energy costs and premium pricing environment support healthy margins for well-managed operators.

Can a Dubai-licensed business re-export services to other countries?

Yes. A free zone business licence in Dubai permits the provision of services to international clients. Computer system housing operators can serve clients across the GCC, wider Middle East, Africa, and beyond from their Dubai South base, subject to any applicable regulations in the client's jurisdiction.

What facility requirements apply to computer system housing operations?

Operators housing third-party equipment must ensure their facilities meet appropriate standards for physical security, power redundancy, cooling, and fire suppression. Where operators lease space within an existing data centre, the facility's certifications will generally apply. Businesses building their own infrastructure should align with Uptime Institute Tier standards as a benchmark.

Is this licence suitable for a startup or only for established operators?

The licence is available to both startups and established businesses. Free zone structures in Dubai are designed to be accessible to new entrants, with flexi-desk and virtual office options reducing initial overhead. Startups focusing on managed hosting or reselling co-location capacity can operate effectively under this licence from day one.

Conclusion

Securing a Computer System Housing Services business licence at Dubai South Business Hub Free Zone offers ICT entrepreneurs and operators a credible, tax-efficient, and strategically located platform to serve a rapidly growing regional market. With 100% foreign ownership, a straightforward application process, and Dubai's well-established digital infrastructure ecosystem, the opportunity to build a profitable and scalable housing services business is well within reach.

If you are ready to explore your options or would like expert guidance on the application process, speak with a licensed business setup consultant familiar with Dubai South Free Zone requirements to ensure your application is accurate and efficient from the outset.

References

• Dubai South Official Website

• Telecommunications and Digital Government Regulatory Authority (TDRA)

• UAE Digital Economy Strategy - Official UAE Government Portal

• UAE Ministry of Finance - Corporate Tax Information

• Uptime Institute Tier Standards