Dubai’s strategic location has made it a magnet for international entrepreneurs. When you’re considering opening doors to Middle Eastern and Asian markets, setting up a business in Dubai Airport becomes a natural choice. The Dubai Airport Freezone, known as DAFZA, has facilitated business ventures since 1996. What makes this location particularly appealing is the combination of benefits: direct access to one of the world’s busiest airports, 100% ownership, complete tax exemptions, and a streamlined setup process that eliminates the need for months of paperwork.
The proximity to Dubai International Airport significantly impacts how your business operates, particularly if you are involved in trading, logistics, pharmaceuticals, or technology. Companies focused on import-export find the location invaluable, while service providers and startups benefit from professional infrastructure and international credibility. Unlike mainland Dubai, where you’d need a local sponsor, setting up a business in Dubai Airport gives you complete control and ownership of your venture from day one.
Currently, DAFZA hosts over 3,100 registered companies with a workforce exceeding 20,000 professionals across more than 20 sectors. In this article, we’ll walk you through everything you need to know, from company structures to documentation requirements and realistic costs.
Understanding DAFZA: What It Really Is
Dubai Airport Freezone Authority, or DAFZA, is a special economic zone established by the Dubai government within the boundaries of Dubai International Airport. The key distinction that matters for your business is this: DAFZA operates under its own regulatory framework separate from mainland Dubai, which gives it several advantages that directly benefit companies choosing to set up business in Dubai Airport.
The free zone’s location provides something unique. Your office, warehouse, or manufacturing facility sits adjacent to one of the world’s busiest airports, which means customs clearance, cargo processing, and international shipping become significantly faster compared to other locations. For companies dealing with perishable goods, electronics, or time-sensitive products, this proximity translates into actual cost savings and competitive advantages. The zone is also connected to major seaports in the UAE, creating a dual logistics advantage that’s rare in the region.
What sets up a business in Dubai Airport apart from other free zones is the professional ecosystem that has developed there. You’re not just renting office space; you’re joining a community of established companies and professionals who understand international operations. This matters because banks recognize DAFZA companies immediately, government approvals come faster, and the regulatory environment is transparent and predictable. The zone offers administrative support, government services, and business facilities all in one location, eliminating the need to commute between different government offices.
Types of Company Structures
When you start the process of setting up a business in DAFZA, you’ll need to choose which legal structure best fits your situation. DAFZA offers three primary options, each tailored to distinct business scenarios.
1. Freezone Company (FZCO)
The Freezone Company is the most common structure when setting up a business in the Dubai Airport. This structure works similarly to a limited liability company in other jurisdictions. A Free Zone Company can have between 1 and 50 shareholders, who can be individuals or other companies. The minimum share capital requirement is just AED 1 per shareholder (approximately $0.27), which means you’re not required to deposit significant capital to get started.
What makes the FZCO attractive for setting up a business in Dubai Airport is its flexibility. You can structure ownership as you see fit among your partners. If you’re a solo entrepreneur, you can be the sole shareholder. If you have multiple business partners, each can hold their percentage of shares clearly documented. The company structure enables professional operations while maintaining straightforward ownership records.
The FZCO structure also allows you to add new shareholders later as your business grows easily, or if you bring in investors. You’ll maintain corporate governance records, but the requirements are straightforward and don’t create unnecessary administrative burden.
2. Public Limited Company (PLC)
A Public Limited Company in DAFZA is suitable for businesses that may eventually seek public investment or plan to list their shares on a securities exchange. There’s no limit on the number of shareholders a PLC can have, which makes it suitable for larger operations or companies planning significant expansion.
The PLC structure is less commonly chosen when setting up a business in Dubai Airport compared to the FZCO structure, mainly because most companies don’t initially plan for public markets. However, if your business model includes venture capital funding or plans to offer shares to multiple investors, this structure provides the framework to support that growth.
3. Branch Office
If you already have an established company operating elsewhere and want to set up business in Dubai Airport as an extension of that parent company, you can establish a branch. The branch operates under the same name and engages in the same business activities as the parent company, and it doesn’t require separate share capital.
Setting up a business in Dubai Airport as a branch is straightforward when you already have a company in good standing. You’ll provide documentation from your parent company, appoint a manager or representative for the Dubai branch, and complete the registration. This structure is well-suited for companies that already have established operations and wish to establish a regional office or hub in Dubai.
Types Of Licenses
The type of license you obtain directly determines what business activities you can legally conduct. When you’re setting up a business in Dubai Airport, you’ll choose from licenses tailored to your specific industry or business model.
1. Trade License
If your business involves buying, selling, importing, or exporting physical goods, a Trade License is what you need. This covers everything from electronics and textiles to machinery and consumer goods. The license permits you to engage in activities such as importing, exporting, re-exporting, distributing, and warehousing specified products. The annual cost is approximately AED 15,000 ($4,110).
The trade license is the most commonly issued when companies set up a business in Dubai, primarily because many businesses operate in the trading and logistics sectors. The license is straightforward to obtain and provides clear parameters around what you can and cannot do.
2. Service License
For companies that provide services rather than sell physical products, a Service License allows you to operate within DAFZA and potentially on the mainland through dual licensing arrangements. This category encompasses consulting firms, IT service providers, marketing agencies, legal services, accounting firms, and other similar professional service businesses. The annual cost is also approximately AED 15,000 ($4,110).
Setting up a business in Dubai Airport with a service license provides flexibility, as service businesses often serve clients both within the free zone and across the UAE mainland. DAFZA’s regulatory framework allows for this dual operation more easily than some other free zones.
3. Industrial License
If your business involves the manufacturing, assembly, packaging, or processing of goods, an Industrial License is required when setting up a business in Dubai Airport. This applies to light manufacturing operations—companies that transform raw materials or components into finished products. The annual cost is approximately AED 15,000 ($4,110).
Specific facility requirements accompany industrial licenses. DAFZA provides designated warehousing and manufacturing space, and your operations must comply with safety and environmental standards. For companies in pharmaceutical manufacturing, food processing, or electronics assembly, this license structure is essential.
4. General Trading License
The General Trading License offers the broadest scope when you’re setting up a business in Dubai Airport. This license enables you to engage in a wide range of trading activities, encompassing multiple product categories or adjusting your product mix without requiring license modifications. The annual cost is approximately AED 50,000 ($13,700).
While more expensive than a standard Trade License, the General Trading License offers flexibility if your business model encompasses diverse product lines or if you anticipate changes to your product mix. Many companies planning growth choose this option to avoid license amendments as they expand.
5. E-Commerce License
For companies operating primarily online and shipping goods internationally, DAFZA offers specialized e-commerce licenses. These are increasingly popular as more businesses build global digital operations from Dubai. Setting up a business in Dubai Airport with an e-commerce license streamlines customs and international shipping processes, making it easier to manage and operate.
Calculating the Real Costs of setting up a business in Dubai Airport
Let’s get specific about money, because this is where decisions often come down. When you’re setting up a business in Dubai Airport, you’ll face both one-time setup costs and annual recurring costs. Understanding both gives you a realistic budget.
One-Time Setup Costs
When you first establish your company, you’ll encounter several one-time expenses. The registration fee for a Freezone Company (FZCO) is AED 7,000 (approximately $1,918). This is a single payment that covers your initial company registration and documentation.
Your trade license is the next significant cost. Depending on which license type you choose—whether it’s Trade, Service, Industrial, or General Trading—you’ll pay between AED 15,000 and AED 50,000 for your first year. This is technically an annual fee (it renews yearly), but it’s part of your initial setup cost because you must obtain it before you can legally operate.
Setting up a business in Dubai Airport also requires office space, and this is where location and size dramatically affect your total investment. Office rental in DAFZA ranges from AED 1,850 per square meter on a 3-year lease to AED 1,950 per square meter on a 1-year lease, plus a 12.5% service charge. If you rent a typical 50 square meter office on a 3-year lease, you’re looking at approximately AED 100,000 to AED 120,000 annually (including service charges), or roughly AED 8,300 to AED 10,000 monthly.
Some businesses start with smaller shared desks or co-working spaces within DAFZA, which can cost between AED 3,000 and AED 5,000 per month, significantly reducing your initial investment.
Employee visas represent another component. When setting up a business at Dubai Airport, if you plan to hire staff, the visa costs for each employee range from AED 3,000 to AED 5,000. The number of visas you’re entitled to depends on your office size and the nature of your business.
Annual Recurring Costs
After your initial setup, your annual costs become more predictable. Your license renewal falls due each year and costs the same as your initial license—between AED 15,000 and AED 50,000, depending on your license type.
Office rent continues annually. If you’re paying AED 1,850 per square meter, plus service charges, for a 50 square meter office, that’s approximately AED 92,500 to AED 93,750 annually.
Employee visas require renewal every three years, typically costing AED 3,000 to AED 5,000 per person per renewal.
Realistic Budget Scenarios for Setting up a Business in Dubai Airport
Scenario 1: Solo Entrepreneur with Shared Desk
- Registration fee: AED 7,000
- Trade License (first year): AED 15,000
- Shared desk (annual): AED 36,000 (approximately AED 3,000 monthly)
- Total First Year: Approximately AED 58,000 ($15,800)
- Annual Recurring: Approximately AED 51,000 ($13,900)
Scenario 2: Small Team with Private Office
- Registration fee: AED 7,000
- Service License (first year): AED 15,000
- Office space, 50 sqm on 3-year lease (annual): AED 110,000
- 2 employee visas: AED 6,000
- Bank account setup assistance: AED 2,000
- Total First Year: Approximately AED 140,000 ($38,100)
- Annual Recurring: Approximately AED 131,000 ($35,700)
Scenario 3: Trading Company with Warehouse
- Registration fee: AED 7,000
- General Trading License (first year): AED 50,000
- Warehouse space, 100 sqm on 1-year lease (annual): AED 195,000
- 5 employee visas: AED 15,000
- Total First Year: Approximately AED 267,000 ($72,800)
- Annual Recurring: Approximately AED 260,000 ($70,900)
These figures give you a framework. Your actual costs will depend on your specific needs, the number of employees you hire, and the size of your operations.
The Setup Process Step-by-Step
Setting up a business in Dubai Airport follows a predictable timeline.
Week 1: Prepare your documentation, including certified copies of your passport, bank statements (dated within the last 6 months), and a business plan. Draft your Memorandum of Association (MOA) and submit your initial approval application to DAFZA with your proposed company name, MOA, passport copies, and bank references. Simultaneously, start reviewing office options within DAFZA.
Week 2: DAFZA processes your initial application (2-3 business days). Once approved, secure your office space and sign the lease agreement.
Week 3: Submit final approval documentation, including the signed office rental agreement, notarized owner declarations, and power of attorney documents. DAFZA issues your trade license.
Week 4: Open your corporate bank account with any UAE bank. Once your account is open, proceed with visa sponsorship for employees if needed. You’re now operational.
Total Timeline: 4 to 5 business days for approvals, plus 1 to 2 weeks for office preparation and banking. You can be operational within 3 to 4 weeks from initial submission.
Documentation You’ll Need
- For Initial Approval: Certified passport copies (valid 6+ months), bank statements (last 6 months), bank reference letter, business plan, and notarized/attested Memorandum of Association.
- For Final Approval: Signed office rental agreement, notarized owner declarations, notarized power of attorney documents (if applicable), and specimen signature document.
Employee Visas and Sponsorship
DAFZA allocates employee visas based on office size and business type. Offices under 40 square meters are entitled to one employee per 12.5 square meters. Offices of 40 square meters or larger get one employee per 8.33 square meters. Warehouses typically get 20 visa allocations.
Employee visa applications require employment offer letters, passport copies, educational certificates, and medical clearance. Processing takes 2 to 4 weeks through DAFZA and the Ministry of Human Resources. Visas cost between AED 3,000 and AED 5,000 per person and are valid for a period of 3 years.
Dual Licensing: Operating Beyond the Free Zone
One advantage of setting up a business in Dubai Airport is dual licensing for certain activities. This allows service-based companies to operate both within DAFZA and on the mainland Dubai without the need to establish a separate company.
This arrangement particularly benefits consulting firms, IT service providers, and professional service companies that need to serve clients throughout the UAE. A dual license offers you the advantages of DAFZA—tax exemptions, 100% ownership, and no local sponsor—while providing access to the much larger mainland market.
Industries That Thrive in DAFZA
→ Trading and Logistics: Import-export companies save thousands annually compared to mainland operations due to airport proximity and streamlined customs procedures.
→ E-Commerce: Digital businesses benefit from DAFZA’s shipping advantages and international credibility while serving customers globally.
→ Pharmaceuticals and Cold Chain: Temperature-sensitive products, such as pharmaceuticals, find DAFZA’s regulated environment and rapid customs clearance essential.
→ Technology and IT Services: Software companies and IT consultants operate from DAFZA for professional infrastructure and international banking relationships.
→ Aviation and Aerospace: Companies providing parts or services to aviation find direct airport adjacency invaluable.
Common Mistakes When Setting Up a Business in Dubai Airport
- Incomplete Documentation: Ensure all documents are certified, attested, and notarized correctly before submission to avoid delays.
- Wrong License Type: Select the license that genuinely covers your intended activities to avoid operational restrictions.
- Undersized Office: Choosing a space that is too small limits your visa quota and expansion potential.
- Overlooking VAT: If annual revenue exceeds AED 375,000, you must register for VAT with the Federal Tax Authority.
- Misunderstanding Dual Licensing: Service businesses are eligible for dual licensing, while trading businesses are typically not.
- Underestimating Visa Timeline: Employee visas take 2 to 4 weeks, so start the process early if you need staff immediately.
Professional Support and Services
While setting up a business in Dubai Airport is relatively straightforward, many entrepreneurs benefit from professional guidance. Business setup consultants charge between AED 2,000 and AED 5,000 for comprehensive services, which include document preparation, compliance, bank coordination, office identification, visa processing, and ongoing support.
Conclusion
Setting up a business in Dubai Airport Free Zone through DAFZA is one of the most practical ways for foreign entrepreneurs to establish operations in the Middle East. You get 100% ownership, tax exemptions, quick setup, airport proximity, and professional infrastructure—genuine advantages that matter for your bottom line.
The entire process is straightforward once you understand the requirements and timelines. Investment typically ranges from AED 50,000 to AED 150,000+, depending on how large you want to operate. If you’re in import-export, e-commerce, services, or technology, DAFZA makes financial and practical sense in 2025.
