Start an Other Telecommunications Services Business in Dubai

The global telecommunications sector is undergoing rapid transformation, and Dubai sits at the centre of that shift. With world-class infrastructure, a strategic geographic position connecting East and West, and a regulatory environment designed to attract international capital, the emirate offers an exceptional base for businesses operating across the full spectrum of telecoms activities. Whether you are planning to offer satellite communications, internet exchange services, or other specialised connectivity solutions, establishing your operations in Dubai has never been more accessible.

This guide covers everything you need to know about launching an Other Telecommunications Services business under Activity Code 6190 at the Dubai South Business Hub Free Zone, including licence details, setup costs, compliance requirements, and the broader market opportunity.

Understanding Activity Code 6190: Other Telecommunications Activities

Activity Code 6190 falls under the ICT category and is classified within the International Standard Industrial Classification (ISIC) framework as "Other Telecommunications Activities." This activity covers a broad range of services that do not fall neatly under wired or wireless telephony, including but not limited to:

• Satellite telecommunications services

• Internet exchange point operations

• Provision of specialised telecommunications infrastructure

• Resale of telecommunications capacity and bandwidth

• Provision of access to the internet via infrastructure owned or leased by the operator

• Monitoring and remote management of communications networks

The licence type is a Business Licence, which permits the holder to carry out commercial activities related to these services within and from the Dubai South free zone jurisdiction.

Dubai and UAE Market Context

The UAE telecommunications market is one of the most advanced in the Arab world. The country consistently ranks among the top globally for mobile penetration, with rates exceeding 190 per cent, and internet penetration standing above 99 per cent of the population. The UAE government's broader digital economy agenda, including the UAE Digital Economy Strategy launched in 2022, targets doubling the digital economy's contribution to GDP from 9.7 per cent to 19.4 per cent within a decade.

Dubai South, home to Al Maktoum International Airport and the Expo City district, is one of the UAE's most ambitious urban and commercial developments. Its Business Hub Free Zone is purpose-built to attract ICT, logistics, aviation, and trade companies, offering streamlined licensing, 100 per cent foreign ownership, and zero corporate and personal income tax on qualifying activities.

Key Stats at a Glance

• UAE internet penetration: above 99 per cent of the population

• UAE mobile penetration: over 190 per cent

• Digital economy target: 19.4 per cent of GDP by 2031

• Corporate tax rate for qualifying free zone entities: 0 per cent

• Foreign ownership permitted: 100 per cent

• Dubai South Business Hub: direct access to Al Maktoum International Airport

• Activity Code: 6190 | Licence Type: Business Licence | Category: ICT

Who Is This Licence Suited To?

The Other Telecommunications Services licence is ideally suited to a diverse range of operators and entrepreneurs, including:

• International telecoms companies seeking a regional hub to serve the Middle East, Africa, and South Asia

• Technology startups building next-generation connectivity platforms

• Satellite communications providers expanding their footprint in the GCC

• Bandwidth resellers and managed service providers

• Enterprises requiring a licensed entity to resell or redistribute telecoms capacity

Setup Costs and Steps

Setting up at Dubai South Business Hub Free Zone involves a structured and straightforward process. Typical costs and steps include the following:

Estimated Costs

Costs vary depending on office type, visa quota, and any additional regulatory approvals required. It is advisable to obtain a tailored quote from the free zone authority directly.

Step-by-Step Setup Process

• Step 1: Choose your business activity and confirm Activity Code 6190 applies to your intended operations

• Step 2: Submit your application to Dubai South Business Hub Free Zone with the required documentation

• Step 3: Obtain initial approval and select your office or flexi-desk package

• Step 4: Pay licence and registration fees

• Step 5: Receive your Business Licence and company incorporation documents

• Step 6: Apply for residence visas for shareholders and employees

• Step 7: Open a corporate bank account with a UAE-registered bank

Licensing and Compliance Requirements

Beyond the standard Business Licence from Dubai South, operators providing certain telecoms services may be required to obtain additional approvals from the Telecommunications and Digital Government Regulatory Authority (TDRA), which governs the UAE's telecoms sector. Depending on the nature of services offered, a service provider licence or spectrum authorisation from the TDRA may be necessary.

All businesses operating in free zones must also comply with UAE Federal Law requirements, including anti-money laundering (AML) regulations, economic substance regulations (ESR) where applicable, and corporate tax registration with the Federal Tax Authority following the introduction of the UAE Corporate Tax Law in 2023.

Why Dubai Is Well-Positioned for Telecommunications Businesses

Dubai offers a combination of advantages that few jurisdictions worldwide can match for telecoms operators:

• Infrastructure: The UAE has invested heavily in fibre optic networks, submarine cable landing stations, and data centre capacity, making it a genuine regional connectivity hub

• Location: Dubai sits within a four-hour flight of over two billion people, bridging markets across the GCC, South Asia, East Africa, and Central Asia

• Regulatory clarity: The TDRA provides a clear and transparent licensing framework, reducing uncertainty for new entrants

• Tax efficiency: Free zone entities benefit from zero corporate tax on qualifying income and no personal income tax

• Talent pool: Dubai attracts skilled ICT professionals from around the world, supported by competitive visa and residency schemes

Frequently Asked Questions

1. What is the total cost to set up an Other Telecommunications Services business at Dubai South?

Total setup costs typically start from approximately AED 25,000 to AED 35,000 for a basic package including the licence, registration fees, and a flexi-desk arrangement. Costs increase depending on office size, visa quota, and any sector-specific regulatory approvals required.

2. Can a foreign national own 100 per cent of the company?

Yes. Companies established within the Dubai South Business Hub Free Zone benefit from 100 per cent foreign ownership, with no requirement for a local UAE national sponsor or partner.

3. Are there any additional regulatory approvals needed beyond the free zone licence?

Depending on the specific services offered, you may need to obtain a licence or authorisation from the Telecommunications and Digital Government Regulatory Authority (TDRA). This is particularly relevant for businesses providing public-facing connectivity or reselling bandwidth to third parties.

4. How long does the setup process take?

For straightforward applications, the process from submission to receiving your Business Licence typically takes between five and fifteen working days. Additional time should be factored in for TDRA approvals if required.

5. What profit margins can telecoms businesses expect in the UAE?

Margins vary considerably depending on the service type. Bandwidth resellers and managed service providers in the UAE often report EBITDA margins of between 20 and 40 per cent, supported by strong demand from enterprise clients and limited price competition in certain specialised segments.

6. Can the business re-export telecommunications equipment or services from Dubai?

Yes. Dubai South's proximity to Al Maktoum International Airport and its free zone status make it well-suited for re-export activities. Businesses may trade and re-export telecommunications equipment and technology solutions to regional markets, subject to applicable export control regulations.

7. What facility requirements are needed for this type of business?

A flexi-desk or virtual office arrangement is generally sufficient to obtain and maintain the Business Licence. However, businesses that require physical server infrastructure, network equipment, or data centre space may need to lease dedicated commercial or warehouse units within the free zone or arrange co-location services with a licensed UAE data centre provider.

8. Is the Dubai South Business Hub Free Zone suitable for small and medium-sized telecoms businesses?

Absolutely. The free zone is designed to accommodate businesses of all sizes, from sole proprietors and startups to large multinational corporations. Flexible licence packages and scalable office solutions make it accessible for smaller operators looking to establish a regional presence without significant upfront capital expenditure.

Conclusion

Establishing an Other Telecommunications Services business in Dubai under Activity Code 6190 at the Dubai South Business Hub Free Zone offers a compelling combination of regulatory clarity, tax efficiency, world-class infrastructure, and strategic market access. With the UAE's digital economy agenda accelerating and demand for specialised connectivity solutions growing across the region, now is an opportune moment to position your business in one of the world's most dynamic ICT markets.

If you are ready to take the next step, consulting with a registered business setup specialist familiar with Dubai South's licensing framework will help you navigate the process efficiently and ensure full compliance from day one.

References and Further Reading

• Dubai South Official Website

• Telecommunications and Digital Government Regulatory Authority (TDRA)

• UAE Digital Economy Strategy - UAE Government Portal

• UAE Corporate Tax - Ministry of Finance

• UAE Ministry of Economy