How to Set Up a Business in Internet City UAE?

Internet City UAE: What It Is and How to Set Up

If you're eyeing a tech, media, or software business in Dubai, Internet City UAE keeps coming up — and for good reason. It's the region's largest ICT free zone, home to Microsoft, Google, Meta, IBM, and roughly 1,600 other companies. Here's what it actually means to set up there.

Quick answer

Internet City UAE (officially Dubai Internet City, or DIC) is a free zone launched in 1999, regulated by the Dubai Development Authority (DDA) under Dubai Law No. (15) of 2014. It offers 100% foreign ownership, zero personal income tax, and licences targeted at ICT, software, e-commerce, and internet services. Setup runs roughly AED 15,000–50,000+ depending on package, plus visa and office costs. You get a strong tech ecosystem near Sheikh Zayed Road — but you can only trade inside the UAE mainland through a local distributor or a dual-licence arrangement.

What Internet City UAE actually is

Dubai Internet City sits off Sheikh Zayed Road between Dubai Marina and Al Barsha, sharing a campus with Dubai Media City and Dubai Knowledge Park. Together they form TECOM's cluster of creative and tech free zones.^[1]

It's a free zone. That matters. Free zones in the UAE give you full foreign ownership, customs exemptions, and freedom to repatriate capital — governed federally by Federal Decree-Law No. 8 of 2004 on Financial Free Zones and, for DIC specifically, by DDA regulations.^[2]

The zone is designed for a specific set of activities: software development, IT services, telecommunications, e-commerce, cloud computing, AI, cybersecurity, digital marketing, and adjacent internet-based businesses. If your model doesn't fit one of those baskets, you're probably looking at the wrong free zone.

Licence types and setup costs

DIC issues several licence categories under the DDA framework. The common ones:

• Commercial licence — for trading IT products and services
• Service licence — for consultancy, software services, ICT solutions
• Freelance permit (GoFreelance) — for individual practitioners in tech, media, or education

Costs (2024–2025 published guidance):

• Freelance permit: from around AED 7,500/year plus establishment card
• Commercial/service licence: from roughly AED 15,000, scaling up with activity count and office footprint
• Flexi-desk (shared workspace): typically AED 15,000–25,000/year
• Dedicated office: market rate, usually AED 100+/sq ft in the DIC towers
• Establishment card: AED 2,000
• Visa quota tied to office size — a flexi-desk usually gets you 1–4 visas^[3]

Honestly, the sticker price is only half the story. Factor in medical tests, Emirates ID, visa stamping (roughly AED 3,000–5,000 per visa), and mandatory health insurance under Dubai Health Insurance Law No. 11 of 2013.

Watch out: DIC's headline "starter" packages sometimes exclude the establishment card, immigration file setup, and share capital deposit. Always ask for the all-in number before you sign.

Ownership, tax and the mainland trading question

Since Federal Decree-Law No. 32 of 2021 on Commercial Companies, most mainland activities also allow 100% foreign ownership — so DIC's ownership advantage is less unique than it was. What still sets it apart: the ecosystem, the regulatory framework tailored to ICT, and the tax treatment.

On tax: the UAE's Federal Decree-Law No. 47 of 2022 introduced 9% corporate tax from June 2023. Qualifying Free Zone Persons (QFZPs) in DIC can access a 0% rate on qualifying income — but only if they meet the substance requirements, don't earn "excluded" income from mainland customers, and maintain proper transfer pricing documentation.^[4] Most DIC companies that serve UAE mainland clients end up paying the 9%. Get this wrong and the Federal Tax Authority (FTA) will reclassify you.

Trading into the mainland from DIC requires either a local distributor, a dual licence (via DED), or a branch on the mainland. You can't just invoice a Dubai mainland client for physical goods and call it done.

How to actually set up in Internet City

The process, in order:

1. Choose your activity and licence type from the DDA activity list. If you're doing something novel — say, tokenised carbon credits — check with DDA that it's approved.
2. Reserve a company name through the DDA portal (AXS platform). Avoid religious or governmental references; standard UAE naming rules apply.
3. Submit initial application with passport copies, business plan, and shareholder details. Some regulated activities (fintech, telecoms) need additional approvals from TDRA or the Central Bank.
4. Sign the lease — flexi-desk, co-working, or dedicated office within the DIC campus.
5. Receive initial approval and MOA, pay licence fees, collect your commercial licence.
6. Open the immigration file, apply for establishment card, then visas.
7. Open a corporate bank account — this is where timelines slip. Emirates NBD, Mashreq, and WIO all serve DIC companies, but expect 4–8 weeks and detailed source-of-funds questions.

Realistic total timeline: 3–6 weeks for the licence, plus 2–8 weeks for banking. Anyone promising "48 hours" is selling you the licence only.

For a broader comparison of free zone options, see our answers on UAE business setup.

Is DIC right for you?

Pick DIC if you're building a tech or internet-first business, want proximity to major global players, and expect to serve international or free-zone clients. The networking value alone — being in the same tower as Google or Oracle — is real.

Skip it if your revenue will come mostly from UAE mainland retail customers, if you need low-cost warehousing, or if your activity is manufacturing, trading physical goods, or professional services outside ICT. Cheaper free zones (IFZA, RAKEZ, SHAMS, Meydan) will do the job for a fraction of the cost if you don't need the DIC brand.

One more thing: DDA free zones have historically been stricter on activity scope than some emerging zones. If you want to pivot your business in year two, expect to add activities and pay for it.

Want to compare licence structures? Our guide on corporate tax for free zone companies breaks down the QFZP rules in more detail.

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