Starting a business in Dubai sounds exciting – and it truly is. Because of its strong economy, tax-free income, world-class infrastructure, and simplified setup process, Dubai has become one of the most attractive places in the world to launch a business. The city offers more than just a great location; it provides access to a growing customer base, business-friendly government policies, and a variety of license options to suit different industries and budgets.
But even with all the advantages, one big question remains: “How much money do I actually need to start a business in Dubai?” The answer isn’t one-size-fits-all – it depends on your business activity, location (mainland or free zone), visa requirements, and a few other factors.
This is why we’ll break down the minimum investment to start a business in Dubai, along with some affordable business setup options and share tips on what extra costs you should be aware of.
Can You Start a Business in Dubai with a Low Investment?
Yes, you can absolutely start a business in Dubai with a low investment, and it’s more common than you might think. Dubai is not just a land of skyscrapers and multimillion-dollar enterprises; it’s also a thriving hub for startups, freelancers, and small businesses.
1. Dubai Wants Businesses of All Sizes
Dubai’s government has actively simplified registration and licensing, allowing entrepreneurs to start businesses entirely online with minimal red tape. There are over 40 free zones tailored to different industries like tech, media, and logistics, each offering benefits like 100% foreign ownership, tax breaks, and simplified customs.
2. Government Programs for SMEs & Startups
SMEs make up 95% of Dubai’s businesses, contributing roughly 40% of GDP and employment. That’s why there are strong government efforts to back them.
Initiatives include:
- Dubai Next: A crowdfunding platform for startups and innovators.
- Dubai Economic Agenda (D33): Targets 400 high-potential SMEs for global expansion, part of a broader plan to double Dubai’s economy by 2033.
- Dubai SME and the Mohammed Bin Rashid Fund: Offer financial support, training, loans, and incubation.
3. Flexible Business Structures for Low-Cost Startups
Freelancer permits are ideal for individual professionals like content creators or designers, with costs around AED 7,500 + AED 3,000–5,000 visa (~AED 12k–15k total). Flexi-desk/shared office packages are available in zones like IFZA or Meydan, which bundle workspace + license + support.
Factors That Influence the Minimum Investment in Dubai
The amount you need to invest to start a business in Dubai isn’t the same for everyone; it depends on several key factors. Here’s a breakdown of what can affect your total startup cost:
1. Type of Business Activity
Different business activities come with different licensing costs. For example:
- A consultancy or freelance business usually costs less.
- A trading or manufacturing business may require more licenses, warehouse space, or local approvals, increasing the investment.
2. Business Jurisdiction: Mainland vs Free Zone
- Mainland: Requires office space, involves additional government fees, and may need a local sponsor in rare cases.
- Free Zone: Offers more affordable packages, especially for startups and solo founders. You can get started with a flexi-desk and enjoy 100% ownership.
3. Office Space Requirements
Some business licenses (especially mainland) require a physical office space with an Ejari (tenancy contract). Free zones often allow you to start with a flexi-desk or shared workspace, which is much cheaper.
4. Visa Requirements
The number of visas you apply for will impact the total cost.
No-visa or single-visa packages are cheaper. But if you need employee visas, the cost goes up with each additional visa.
5. Type of License
Dubai offers different types of licenses based on your activity:
- Professional License: For services like consultancy or freelancing
- Commercial License: For buying/selling goods
- Industrial License: For manufacturing and production
Each comes with its own set of fees and requirements.
6. Government Fees & Approvals
Name reservation, initial approvals, notarization, and license issuance all come with fees.
Some activities may need external approvals (for example, from the Food Safety Department or Health Authority), which can add to the cost.
Minimum Investment to Start a Business in Dubai
The cost of starting a business in Dubai largely depends on the jurisdiction you choose – Mainland, Free Zone, or Offshore. Each has its own setup structure, benefits, and investment range.
1. Minimum Investment to Start a Business in Dubai Mainland
Mainland business setup usually requires a higher investment compared to other options. The trade license itself can cost between AED 12,000 to AED 30,000, and having a physical office space is mandatory in most cases. Office rent can vary depending on the size and location, but typically starts from AED 15,000 per year.
In addition to these, you’ll also need to consider visa costs (around AED 3,000 to AED 8,000 per person), and in some cases, local sponsor fees (ranging from AED 10,000 to AED 25,000 annually), although 100% foreign ownership is now allowed in many business activities.
With all these factors combined, a basic mainland setup can range from AED 20,000 to AED 70,000 or more, depending on your office requirements and the number of visas.
2. Minimum Investment to Start a Business in Dubai Free Zone
Free Zone business setup, on the other hand, is a much more affordable option, especially for solo entrepreneurs and startups. Free zones like IFZA, RAKEZ, Ajman Free Zone, and SHAMS offer business licenses starting from as low as AED 5,500 to AED 15,000. Many of these packages include a shared desk or flexi-desk option, which helps reduce the office rental cost significantly. Visa costs are generally in the range of AED 3,000 to AED 5,000 per person, and some zones include a visa or two within the license package.
Depending on the free zone, some may require a share capital (often around AED 50,000), though this is not always enforced or blocked. Overall, the minimum investment to start in a free zone can range between AED 11,900 to AED 50,000+, based on the package, office space, and visa needs.
3. Minimum Investment to Start a Business in Offshore
Offshore company formation is the most budget-friendly setup, usually chosen by those who want to hold assets, trade internationally, or run an online business without operating inside the UAE. Offshore companies are not allowed to have a physical office or conduct business within Dubai, but they offer complete privacy, zero taxes, and low annual fees. The setup cost typically ranges from AED 5,000 to AED 15,000, depending on the offshore jurisdiction, such as JAFZA Offshore or RAK ICC.
To summarise, the minimum investment needed to start a business in Dubai can range from as little as AED 5,000 (offshore) to over AED 70,000 (mainland). Free zones offer a perfect middle ground for those looking for a cost-effective and straightforward setup with full ownership and flexible visa options.
Hidden or Additional Costs to Consider
While Dubai offers low-cost business setup options, there are some additional expenses you should be aware of beyond the initial license and visa fees.
1. Emirates ID & Medical Test
These are mandatory for all visa holders in the UAE. Combined, they usually cost around AED 1,000 to AED 1,200.
2. Bank Account Opening Fees
While opening a corporate bank account is essential, some banks charge setup fees or require minimum balance deposits (usually AED 5,000–50,000, depending on the bank and account type).
3. License Renewal Fees
Most business licenses need to be renewed yearly. Renewal costs are often similar to your first-year license fee, so it’s wise to budget for it in advance.
4. Document Attestation & Translation
For foreign shareholders, some documents may need notarization or attestation from UAE embassies or the Ministry of Foreign Affairs, costing AED 500–2,500 per document.
Pro Tip: Work with a business setup expert like AE Setup to get a clear, all-inclusive estimate upfront. We help you avoid hidden costs and choose the right setup package tailored to your budget.
Low-Investment Business Ideas in Dubai
Looking to start a business in Dubai without spending a fortune? Here are 15 smart, low-investment ideas you can explore:
1. Freelancing or Consulting
Use your expertise in writing, IT, marketing, or design. Freelancer licenses typically start from AED 7,500.
2. E-commerce Store
Sell products online through Amazon, Noon, or your own website. Licenses start from AED 5,500.
3. Social Media Management
Manage accounts and create content for small businesses. All you need is a laptop and a freelance permit.
4. Online Tutoring or Coaching
Teach school subjects, languages, or personal development. Work from home with minimal setup.
5. Digital Marketing Services
Offer SEO, Google Ads, or social media ads. Professional licenses in free zones start from AED 12,000.
6. Dropshipping Business
Sell products online without inventory. Just a license and a website are needed.
7. Event Planning
Plan small events, parties, or corporate gatherings. Start solo and grow as you build clients.
8. Handmade Products
Sell crafts, art, candles, or jewellery online. A small trade license gets you going.
9. Virtual Assistant Services
Provide remote admin, customer service, or scheduling support to busy entrepreneurs or companies.
10. Photography or Videography
Offer freelance shoots for events, businesses, or influencers. Start with basic equipment and a permit.
11. Home-Based Catering or Baking
If you love cooking or baking, start small with catering from home under a professional license.
12. Fitness Coaching or Yoga Classes
Provide personal training or online fitness sessions. Many start with a freelancer license and grow from there.
13. Translation Services
Offer document or website translation in multiple languages. No fancy setup needed, just skills and a license.
14. Pet Services (Grooming/Walking)
Start a niche pet care business. Very little overhead if you work from home or go mobile.
15. Mobile Car Wash
With Dubai’s car-loving population, a waterless or on-the-go car wash is a low-cost and high-demand idea.
Best Way to Start a Business in Dubai with Minimum Investment
You don’t need a big budget to make your business dreams a reality in Dubai. With the right approach, you can start small and grow smart. From freelancer permits to budget-friendly free zone licenses, there are plenty of low-cost options available for every type of entrepreneur.
At All Emirates Setup, we help you choose the best low-investment setup tailored to your business goals. Our packages come with free consultations, transparent cost estimates, and complete support, from business license to visa, office space, and banking. No hidden fees, no confusion – just clear, expert guidance.
Ready to get started?
Plan smart. Choose the right setup. And begin your Dubai business journey with confidence, with AE Setup by your side.
