AI company licence in Dubai, where clients decide
The licence is quick once the activity matches what you build. Tax and data decide the structure.
Technology and digital
- Usual route
- Either route
- Extra approval
- Licence only
- Timeline
- Days to weeks
- AML
- Not a DNFBP activity
An AI company licence in Dubai is a trade licence from DET or a free zone, with activity wording that matches what you build or advise on. No separate AI licence sits on top today. The work is in the structure: who your clients are decides the free zone tax position, and personal or health data brings rules of its own.
- Covers
- AI models, software products, APIs, consultancy and machine learning services
- Not covered
- Data centre hosting, hardware trading, AI investment advice
- Premises
- Office or flexi-desk; servers and compute are usually in the cloud
- Timeline
- Days to weeks for the licence
What an AI company licence covers
Write scope around what clients pay for: a model, a product they subscribe to, or advice on using AI.
Covered
Not covered
- Covered by General trading
- Covered by Regulated by the CMA (formerly SCA)
- Covered by Virtual asset licensing
- Covered by Data hosting activity
Tick what you plan to do. The result shows here.
We fix the wording before you apply. Send us your list on WhatsApp
A consultancy that later ships its own product needs a development activity too. We word both at the start, so the licence fits the roadmap.
AI company free zone or mainland
Both routes cover AI work. The deciding question is where your paying clients sit, because that sets the tax result.
| If most of your clients are | Likely route | Why |
|---|---|---|
| Dubai corporates and government buyers | Mainland (DET) | A DET licence bills them directly and suits public tenders |
| Companies inside UAE free zones | Free zone | Income from free zone clients can qualify for the QFZP 0% rate |
| Clients abroad, sold by subscription | Either route | Foreign clients count as outside the free zones for QFZP purposes |
| A mix of mainland and foreign clients | Either route | Ownership, visas and banking decide it more than the tax rate |
A free zone company can serve mainland clients through a DET branch licence or permit (Executive Council Resolution 11 of 2025). AI services billed outside the free zones usually count as non-qualifying income.
Several free zones license this activity; we match the zone to your visas, office and banking. Compare free zones
Three questions. The closest row is marked in the table above.
Your likely route shows here.
Starting an AI business in Dubai
The licence needs no regulator beyond DET or the free zone. AI policy now sits with the federal Artificial Intelligence and Data Authority, set up in June 2026. The federal data protection law applies whenever the product handles personal data.
Before the licence
- Activity wording and trade nameDET or the free zone authority
The licence
- Trade licenceDET or the free zone authority
Alongside the licence
- Personal data handling under PDPLYour company, as data controller
After the licence
- Corporate tax registrationFederal Tax Authority (FTA)
- Visas for founders and engineersThe licensing authority and immigration
- Business bank accountThe bank
- Dubai AI Seal (optional)Dubai Centre for Artificial Intelligence
Health and financial clients add their own data and AI rules.
The 5% line for a free zone AI company
AI services billed outside the free zones are usually non-qualifying income. Move the marker to the share of revenue that would come from those clients.
Clients abroad count as outside the free zones, which surprises most founders. We model the client mix before the zone is chosen.
5 percent of revenue, or AED 5 million if that is lower
Below the lineInside the de minimis line, qualifying income can stay at 0% if every other QFZP condition is met.
At or above itPast the line, all income for the period falls under the standard rates, and QFZP status goes for four more periods.
Move the slider to place your figure against the line.
Investor funds and compute bills
Bank viewStandard, with questions on investor funds and foreign compute bills
Banks read an AI company as a standard technology business. The file still looks unusual on paper. Funding often arrives from abroad, cloud and compute bills run large every month, and a payment processor collects subscription income. Each needs a document behind it. We put the shareholder agreement, the cloud contracts and the first client agreements into the bank file, so the review sees a product company.
AMLNot a DNFBP activity; the bank's own customer checks still apply.
Where AI founders lose time
Choosing a zone for the 0% rate
AI services to mainland and foreign clients are usually non-qualifying income. A founder who picks a free zone for the tax rate can cross the de minimis line in year one and lose the 0% rate for five periods.
A consultancy wording for a product company
Advice-only wording looks close enough at setup. Once a subscription product launches, the licence no longer covers the main income. An amendment then follows, with the bank asking why the business changed.
Health or financial data handled like any data
Patient records and banking data carry sector rules beyond the federal data protection law. A hospital or bank client will audit hosting and access before signing, so we raise it while the product is still on paper.
Questions about a AI company licence
A question about your plan? Describe your AI company plan and an advisor replies on WhatsApp.
Ask on WhatsAppIs there a special artificial intelligence licence in Dubai?
Which AI company free zone in Dubai fits a startup?
Does the UAE data protection law apply to AI companies?
What is the Dubai AI Seal for AI companies?
How long does an AI company licence take in Dubai?
Related pages
IndustryIT and software company setup in DubaiA software company license in Dubai: the activity classification, free zone or mainland, QFZP exposure on mainland clients, visas and banking.
JurisdictionDubai and UAE free zones comparedWhich is the best free zone in the UAE for you?
TaxCorporate tax and VAT for UAE companiesCorporate tax and VAT consultants in Dubai: registration, returns, QFZP and Small Business Relief, reviewed before you file.
Will your client list keep the 0% rate? worked out before the zone is chosen
Thirty minutes with a senior advisor on what you build and who pays for it. You leave with the activity wording, the route and a clear view of the free zone tax line.
On the call
- The activity wording that fits your plan
- The route, and the approvals in order
- A written scope, agreed before any work starts
