How to Get an IT Infrastructure Business License in Dubai

Dubai's digital economy is expanding at pace, and businesses that secure an IT infrastructure licence at Dubai South Business Hub Free Zone are positioning themselves at the centre of one of the world's fastest-growing technology markets. This guide explains exactly what the IT Infrastructure Business Licence (Activity Code 6311.99) covers, who it suits, what it costs, and how to complete the setup process at Dubai South.

Key Stats at a Glance

• Activity Code: 6311.99 | Category: ICT | Licence Type: Business Licence

• 100% foreign ownership permitted at Dubai South Free Zone

• 0% corporate tax on qualifying free zone income

• No import or export duties within the free zone

• Typical setup timeline: 2 to 4 weeks from document submission

• UAE VAT registration required once taxable turnover exceeds AED 375,000

• Strategic location: adjacent to Al Maktoum International Airport and Jebel Ali Port

• GCC ICT market projected to grow significantly through 2031 under national digital transformation agendas

Dubai's IT Infrastructure Market: Why Now and Why Dubai South

The UAE's ICT sector continues to be a meaningful contributor to national GDP, underpinned by ambitious government targets set out under UAE Vision 2031. The national agenda prioritises digital transformation across public services, healthcare, logistics, and smart city development, creating sustained and growing demand for IT infrastructure expertise across the region.

Dubai South Business Hub Free Zone occupies a strategically exceptional location. Positioned adjacent to Al Maktoum International Airport and in close proximity to Jebel Ali Port, the world's largest man-made harbour, it serves as a natural gateway for both technology services and the physical distribution of IT hardware across the GCC and beyond.

For international businesses, the commercial case is compelling. Dubai South offers 100% foreign ownership with no requirement for a local sponsor, zero corporate tax on qualifying free zone income, and no import or export duties within the zone. These advantages, combined with growing regional demand for data centre, network, and cloud infrastructure services, make this an opportune moment to establish an IT infrastructure operation in Dubai.

What the IT Infrastructure Business Licence Covers

Activity Code 6311.99 falls under the ICT category and encompasses data processing, hosting, and related activities not classified elsewhere within the standard industrial classification framework. In practical terms, this licence is broad enough to support a wide range of IT infrastructure operations.

Permitted activities under this licence include IT infrastructure design, deployment, management, maintenance, and consultancy. Businesses may also supply hardware, provide network integration services, deliver cloud infrastructure solutions, and offer managed IT services to clients across the UAE and the wider GCC. The licence additionally supports the re-export of IT equipment and components under the free zone framework, which is a significant advantage for businesses involved in regional distribution.

Who This Licence Is Best Suited For

The IT Infrastructure Business Licence is well suited to a broad range of operators, including:

• System integrators, network engineers, and managed service providers seeking a UAE base of operations

• International IT firms entering GCC markets through a free zone entity with full foreign ownership

• Entrepreneurs and SMEs offering data centre design, cloud infrastructure planning, or IT consultancy services

• Technology distributors looking to leverage Dubai South's proximity to major logistics hubs for regional supply chain operations

Setup Costs and Steps at Dubai South Business Hub

Licence fees at Dubai South Business Hub Free Zone are subject to the authority's current pricing schedule, which is updated periodically. As a general guide, free zone business licences in Dubai typically start from approximately AED 10,000 to AED 15,000 per year for the licence itself, with additional costs for office packages, visa allocations, and registration fees. Applicants are strongly advised to confirm current fee schedules directly with the authority or through an authorised business setup adviser before proceeding.

Dubai South offers flexible facility options to accommodate different operational scales. These include flexi-desk arrangements suited to lean startups, shared office spaces for growing teams, and dedicated office or warehouse units for businesses requiring a larger physical footprint. The chosen office package directly influences the number of employment visas available to the entity.

The setup process follows a clear sequence:

• Select the business activity (6311.99) and confirm the preferred legal structure, typically a Free Zone Limited Liability Company (FZ-LLC)

• Submit the application to the Dubai South Business Hub Free Zone authority

• Provide all required Know Your Customer (KYC) documentation

• Pay the applicable licence and facility fees

• Receive the business licence, typically within two to four weeks of complete document submission

Share capital requirements vary by legal structure and are determined at the time of application. There is generally no minimum paid-up capital requirement for a standard FZ-LLC at Dubai South, though this should be confirmed with the authority.

Documents Required

The standard documentation required for an IT Infrastructure Business Licence application at Dubai South includes:

• Passport copies for all shareholders and directors

• Emirates ID copies for any UAE-resident applicants

• A business plan or activity description where requested by the authority

• A no-objection letter from the current employer if the applicant is an existing UAE resident on an employment visa

• Completed application forms as specified by the free zone authority

Licensing and Compliance Requirements

For standard IT infrastructure consultancy and managed services, the primary regulatory step is approval from the Dubai South Business Hub Free Zone authority. In most cases, no separate approval from the Telecommunications and Digital Government Regulatory Authority (TDRA) is required. However, businesses intending to operate telecommunications networks or provide licensed telecommunications services should seek specific regulatory guidance, as those activities attract additional oversight.

All UAE-registered entities must comply with UAE Federal Decree-Law No. 47 of 2022 on corporate taxation. Free zone entities benefit from a 0% corporate tax rate on qualifying income, provided they meet the conditions set out in the legislation. Entities whose income exceeds the relevant threshold or that do not meet qualifying criteria will be subject to the standard 9% rate.

Annual licence renewal is required, and depending on the entity type and turnover, audited financial statements may be necessary. Businesses that process personal data belonging to clients or employees must also comply with UAE Federal Decree-Law No. 45 of 2021 on personal data protection. Where applicable, registration with the UAE Financial Intelligence Unit for anti-money laundering purposes may also be required.

Why Dubai Is Well-Positioned for IT Infrastructure Business

The UAE consistently ranks among the top countries globally for ease of doing business and digital infrastructure readiness, reflecting years of deliberate investment in connectivity, regulatory reform, and innovation ecosystems. For IT infrastructure businesses, this translates into a mature operating environment with reliable power, high-speed internet connectivity, and access to a broad base of enterprise and government clients.

Geographically, Dubai sits at the crossroads of emerging markets across Africa, South Asia, and the broader Middle East, regions where demand for modern IT infrastructure is accelerating rapidly. A Dubai South entity provides a credible, well-regulated base from which to serve these markets efficiently.

The pipeline of smart city projects, healthcare digitisation programmes, and government cloud migration initiatives across the GCC is substantial and growing. Alongside this, Dubai's multilingual technology workforce and its established ecosystem of global technology vendors and distributors make it easier for incoming businesses to recruit, partner, and scale.

Frequently Asked Questions

How much does an IT Infrastructure Business Licence at Dubai South cost?

Indicative licence fees for a business licence at Dubai South typically begin in the range of AED 10,000 to AED 15,000 per year, though the total cost of setup will include office package fees, registration charges, and visa fees. Visa costs generally range from AED 3,000 to AED 5,000 per visa depending on the package. All fees are subject to change, and applicants should confirm current pricing directly with the Dubai South Business Hub Free Zone authority or an authorised adviser before submitting an application.

Can a foreign national own 100% of the company?

Yes. Dubai South Business Hub Free Zone permits 100% foreign ownership of all registered entities. There is no requirement to appoint a UAE national as a local sponsor or partner. This applies to both individual shareholders and corporate shareholders based outside the UAE, making it a straightforward option for international investors and entrepreneurs.

Are any additional government approvals needed beyond the Dubai South licence?

For standard IT infrastructure consultancy, managed IT services, network integration, and cloud infrastructure activities under Activity Code 6311.99, the Dubai South Free Zone authority approval is typically the only regulatory requirement. Businesses planning to provide licensed telecommunications services or operate spectrum-dependent networks may require additional approval from the TDRA. It is advisable to discuss the specific scope of planned activities with a business setup adviser to identify any additional approvals that may apply.

How long does the licensing process take?

The typical timeline from complete document submission to licence issuance at Dubai South is two to four weeks. This timeframe assumes that all required documentation is submitted accurately and that no additional queries are raised by the authority. Delays can occur if documents are incomplete or if additional approvals are needed, so preparing a thorough application from the outset is recommended.

What profit margins can IT infrastructure businesses expect in Dubai?

Profit margins in the IT infrastructure sector vary considerably depending on the service type and contract scale. Managed service providers in the GCC typically achieve gross margins in the range of 30% to 50% on recurring service contracts, while hardware supply and integration projects may carry lower gross margins of 15% to 25%. High-value consultancy and cloud architecture services can command margins above 50%. Actual margins will depend on pricing strategy, operational efficiency, and the competitive landscape within the specific service segment.

Can I re-export IT equipment and hardware through Dubai South?

Yes. The re-export of IT equipment and components is permissible under the Dubai South Free Zone framework. The zone's position adjacent to Al Maktoum International Airport and in close proximity to Jebel Ali Port provides outstanding logistical infrastructure for regional distribution. Businesses can import equipment into the free zone and re-export it to markets across the GCC, Africa, and South Asia without incurring import or export duties within the zone.

What facility or office space do I need to obtain this licence?

Dubai South Business Hub Free Zone offers a range of facility options. A flexi-desk arrangement is the most cost-effective entry point and is suitable for businesses that do not require a permanent staffed office. Shared office spaces and dedicated offices are available for businesses requiring more substantial premises. The chosen facility type determines the number of employment visas that can be allocated to the entity, with larger office packages supporting higher visa quotas. Businesses with physical inventory or equipment may also consider warehouse or storage units within the zone.

Do I need to register for VAT as an IT infrastructure business in Dubai?

UAE VAT registration is mandatory once a business's taxable turnover reaches or exceeds the mandatory registration threshold of AED 375,000 in any twelve-month period. Once registered, the business must charge VAT at 5% on applicable supplies made within the UAE. Free zone businesses supplying services to clients outside the UAE may be able to zero-rate certain supplies, but this depends on the nature of the supply and the residency of the recipient. Businesses approaching the threshold should seek advice from a UAE tax adviser to ensure timely and compliant registration.

Conclusion

An IT Infrastructure Business Licence under Activity Code 6311.99 at Dubai South Business Hub Free Zone offers full foreign ownership, a clear and efficient setup process, and direct access to a rapidly growing regional technology market. The combination of zero corporate tax on qualifying income, no import or export duties, and a strategic location between major air and sea logistics hubs makes Dubai South a compelling base for IT firms and entrepreneurs targeting the GCC and beyond.

Speak with a Dubai South-authorised business setup adviser to confirm current fee schedules and begin your licence application today.

References and Citations

• UAE Government Portal: Digital UAE and Vision 2031 Digital Transformation Initiatives

• Dubai South Business Hub Free Zone: Official Overview

• UAE Ministry of Finance: Federal Decree-Law No. 47 of 2022 on Corporate Tax

• Telecommunications and Digital Government Regulatory Authority (TDRA): Regulatory Framework

• UAE Federal Decree-Law No. 45 of 2021 on Personal Data Protection

• Federal Tax Authority UAE: VAT Registration Requirements and Thresholds

• UAE Financial Intelligence Unit: AML Registration and Compliance Obligations

• World Bank: UAE Country Overview and Ease of Doing Business Data