How to start a software company in Dubai

With its business-friendly policies, easy access to funding and thriving digital exosystems like Dtec, it’s no surprise that software companies are flourishing in Dubai. The software market in the UAE is projected to grow by 5.26%, resulting in a staggering market volume of USD 2.48 bn in 2029, with Dubai accounting for a significant portion of this market. Whether you’re developing SaaS solutions, AI-driven applications or enterprise software, Dubai offers the perfect environment for growth and success.

In this guide, we will walk you through the step-by-step process of how to start a software company in Dubai. We will explore these areas:

• How to start a software company in Dubai: step-by-step
• Benefits of starting a software business in Dubai
• Cost of starting a software business in Dubai.
• How to scale a software business in Dubai
• Why choose Dtec?

How to start a software company in Dubai: Step-by-step

Entrepreneurship is thriving in the UAE for several reasons, but supportive regulations and lack of bureaucracy are a driving factor. With no unnecessary red tape, setting up a successful business in Dubai is easier than in many other global business hubs. That said, it still requires careful planning and a good understanding of legal requirements. Here’s what to expect in five simple steps:

Step 1: Choose a jurisdiction

Decide whether you want to register your business on the mainland or in a free zone. Free zones like Dubai Silicon Oasis, home to Dtec, offer specific advantages for tech businesses, including 100% foreign ownership, tax exemptions and access to the latest innovations and products in the industry.

Step 2: Register your trade name

Choose a unique company name that complies with UAE naming regulations, avoiding abbreviations and religious, political or potentially offensive terms. It should also accurately reflect your business operations.

Step 3: Secure your visas and approvals

To legally operate a business in the UAE, all businesses must hold a valid business license. As a software company, you will either need a Professional License (for consulting and development services) or a Commercial License (for selling software products).

Step 4: Choose your office space

If you have chosen to run your business from a free zone, you may be able to benefit from flexi-desk options, which are more cost-effective. Mainland businesses typically require a physical office lease.

Step 5: Open a corporate bank account

You’ll need to ensure your company meets the requirements and that you hold all necessary documents for the UAE bank compliance checks. You may also need to register for VAT if your turnover exceeds AED 375,000 per year.

Once you have completed these five steps, you’re ready to start hiring and doing business.

It’s worth keeping in mind that while Dubai has put in specific measures to make starting a business easier, there are still some challenges that need to be navigated, which can prove tricky without on-the-ground insights and expertise. Dtec has helped countless entrepreneurs launch successful businesses in the sector, and we’re always on hand to answer any questions you may have along the way.

Benefits of starting a software business in Dubai

Dubai offers many advantages for software startups, making it one of the best locations for tech entrepreneurs. Some key benefits include:

Tech-friendly infrastructure

Dubai boasts one of the world’s most advanced digital ecosystems, with 5G connectivity, smart city initiatives and AI-driven support that is driving demand for software solutions. Dubai’s cloud computing market is also growing rapidly, offering cutting-edge infrastructure for software startups looking to scale efficiently.

Easy access to funding

Dubai is home to numerous venture capital firms, angel investors and government grants. Tech startups can secure early-stage funding and gain access to mentorship from leading industry experts, easily and more efficiently.

100% foreign ownership in free zones

Unlike many global tech hubs, Dubai allows expatriates to own 100% of their company in designated free zones without needing a local sponsor. This arrangement simplifies the company formation process and provides full control over business operations.

Government support

Initiatives like Dubai’s Artificial Intelligence and Blockchain Strategy provide software startups with the mentorship and financial backing they need to succeed. Other incentives, including long-term visas and investment opportunities, make it easier for software developers to establish a business, thanks to lower overheads.

Global connectivity

Dubai is a gateway to the Middle East, Africa, and South Asia (MEASA) market, giving software companies access to over 3 billion potential customers. This strategic location, combined with world-class logistics and direct international flight connections, makes it easier to drive new business and expand across global markets.

Cost of starting a software business in Dubai

Costs vary depending on the business structure and location of your software company. Generally speaking, setting up a software company in Dubai generally costs around AED 20,000.

Entrepreneurs can expect to pay AED12,000-20,000 for business license fees, AED5,000-15,000 for a flexi desk and AED3,000-5000 per visa. You’ll also need to pay around AED5,000-1000 to open your corporate bank account, as many banks require a minimum deposit. Legal and registration fees vary but can cost anything between AED3,000-7000.

Free zones like DSO tend to offer the most cost-effective business setup options, with packages that cover licenses, workspaces and visas.

How to scale a software business in Dubai

Businesses looking to scale in Dubai need to leverage the city’s expensive network, digital ecosystem and financial opportunities. Here are three tips to help you scale your business.

Leverage networking events

Dubai hosts countless networking opportunities for software company entrepreneurs. Dtec hosts over 100 events a year for startups, offering prime opportunities to connect with investors, partners and clients. Entrepreneurs can also find mentorship, funding, and office space opportunities here.

Tap into the MEASA market

Dubai is uniquely positioned between Europe, Asia and Africa. Software company entrepreneurs can leverage this gateway with easy expansion into neighbouring Saudia Arabia, India and Africa, where demand for software solutions is rising.

Hire and retain top talent

The UAE offers a Golden Visa program that allows tech professionals to stay in the country for either five or ten years. This makes it easier to attract skilled developers and engineers from across the world.

Why choose Dtec?

If you still have questions about how to start a software company in Dubai, you’re in the right place. Dtec (Dubai Technology Entrepreneur Campus), a Dubai Silicon Oasis Authority initiative, is the ideal partner to guide you through the process.

As the largest technology innovation hub in the MENA region, we provide the perfect platform for entrepreneurs looking to launch and scale software companies in Dubai. From flexible office spaces to visa processing to 100% business ownership, our solutions are tailored to your unique requirements and circumstances.

Plus, with Dtec, you’re never alone. Hundreds of startups, SMEs and technology entrepreneurs operate under one roof, with access to regular networking events, industry meetups and partnership opportunities. We also offer access to vital accelerator programmes and funding options to help turn ideas into successful ventures.

To find out more about how Dtec can help or to get in touch with our team of advisors today, visit our website.