Dubai South Free Zone Setup: Real Licence Fees from DACC's Own Tariff, the Al Maktoum Airport Timeline, and the Designated Zone Question (2026)

A working guide to setting up in Dubai South Free Zone: how the districts are laid out, the licence and administrative fees published in Dubai Aviation City Corporation's own tariff and what those fees exclude, the licence and entity types available, facilities and visa quotas the zone publishes no rates for, why the VAT Designated Zone answer is 'Dubai Aviation City' rather than 'Dubai South', which activities can reach the 0% corporate tax rate, the honest Al Maktoum airport timeline, and who the zone actually suits.
Dubai South Free Zone Setup: Real Licence Fees from DACC's Own Tariff, the Al Maktoum Airport Timeline, and the Designated Zone Question (2026)

Expert-reviewed by BusinessDubai Business Setup Advisors. Written with guidance from licensed UAE company-formation consultants with 10+ years of experience, and fact-checked against official government sources before publishing. Last reviewed August 8, 2026.

Dubai South is a master-planned district of roughly 145 square kilometres built around Al Maktoum International Airport (DWC), and its free zone is regulated and operated by Dubai Aviation City Corporation, a government entity created by Law No. 20 of 2006 [1]. Launched as Dubai World Central and renamed Dubai South in 2015, it holds the Logistics District on the Jebel Ali Port corridor, the Aviation District and the Mohammed bin Rashid Aerospace Hub, an eleven-building Business Park, residential communities, Humanitarian City and an exhibition district beside Expo City [1].

The airport story deserves honesty, because most pages selling this zone get it wrong. The AED 128 billion expansion is entirely real, approved on 28 April 2024, designed ultimately for 260 million passengers a year [4]. But Dubai Airports' own wording is that DWC will accommodate 150 million passengers annually over the next decade, expanding to 260 million later, and the first phase opening is reported at 2032 [3]. Traffic at that scale is a 2030s story. What is real in 2026 is construction-phase demand: contractors, freight, workforce services and accommodation.

The second thing that makes this guide different is that we can quote the zone's own numbers. Dubai Aviation City Corporation publishes a Tariff of Fees, Registration and Licensing, linked from the Dubai South regulations page, listing actual licence and administrative fees [2]. Competing pages invent "from AED X" bundles instead. Since 2013, our team has set up logistics, industrial and trading companies across the UAE, so this guide also flags what that tariff excludes, which is where founders get caught. If you are still comparing jurisdictions, start with our free zone company setup page. This is a guide, not legal or tax advice on your specific licence.

What is Dubai South, and how do the districts work?

Dubai South is a single 145 square kilometre master development with distinct functional districts, not one uniform business park [1]. The free zone sits mainly in the Logistics District and the Business Park, with aviation activity in the Aviation District. Where you sit inside it drives your facility type, your cost and, as you will see, possibly your VAT position.

DistrictScale and locationWhat it holdsFree zone registration
Logistics DistrictBetween Jebel Ali Port and DWC airportWarehouses, light industrial units, freight and distributionYes, the free zone core
Business Park11 office buildingsOffices, co-working and flexi-desks, SME headquartersYes
Aviation DistrictAbout 7 square kilometresMohammed bin Rashid Aerospace Hub, MRO and aviation servicesYes
Residential DistrictAbout 7 square kilometresThe Pulse, South Bay, Hayat, South LivingTreat as residential only
Humanitarian CityWithin the master planAid and relief logisticsNot confirmed by the zone
Exhibition DistrictAdjacent to Expo CityEvents and exhibition infrastructureNot confirmed by the zone

One honest flag. We could not find an official Dubai South page enumerating exactly which sub-districts carry free-zone company registration rights. Treat the Logistics District, Business Park and Aviation District as the free-zone-enabled areas, and do not assume the Residential District hosts free zone entities, because it does not. If your model depends on a specific plot or building, get its status confirmed in writing before you sign.

What is actually confirmed about the Al Maktoum airport expansion, and when?

The investment, the design and the approval date are confirmed. The timeline is not what most marketing implies. Al Maktoum's terminal designs were approved on 28 April 2024, the cost is AED 128 billion, and the ultimate build is designed for 260 million passengers a year [4]. The near-term figure Dubai Airports actually uses is 150 million over the next decade [3].

ItemFigureStatus and date
Terminal designs approvedApproved by Sheikh Mohammed bin Rashid Al MaktoumConfirmed, 28 April 2024 [4]
InvestmentAED 128 billion, about USD 35 billionConfirmed [3][4]
Capacity over the next decade150 million passengers a yearDubai Airports' near-term wording [3]
Ultimate capacity260 million passengers a yearLong-run design target, no date given [3][4]
Cargo capacity12 million tonnes a yearUltimate design target [4]
Gates and runways400 aircraft gates, 5 parallel runwaysUltimate design [4]
Site areaAbout 70 square kilometresDesign [4]
First phase openingAround 2032Reported, treat as indication not commitment
Transfer of DXB operations"in the coming years"No firm date officially confirmed [3]

On the transfer of Dubai International's operations to DWC, the official language is only that operations will be transferred in the coming years [3]. There is no confirmed date, and anyone quoting one is guessing.

What is measurably happening now is construction. Trade press reporting, which we label as trade press rather than a primary source, puts contracts worth over AED 13 billion under execution in mid-2026, with over AED 55 billion more expected to go to tender before the end of 2026 covering substructure and superstructure for the Western Passenger Terminal, three initial concourses and baggage handling. The on-site workforce is reported at about 9,000 and projected to peak near 120,000. A roughly AED 1 billion second-runway contract went to Binladin Contracting Group in 2025, and a Mitsubishi Corporation and Larsen and Toubro consortium was selected for the automated people-mover.

Real Talk: The airport is a construction-phase opportunity in 2026 and a passenger and cargo opportunity in the 2030s. Those are different businesses. If you supply contractors, plant, labour accommodation, freight or industrial services, the demand is here now. If your model needs airline traffic or belly-hold cargo volumes at DWC, you are underwriting a market that does not exist yet at that scale. Confusing the two is how people sign five-year leases on the wrong assumption.

What does a Dubai South licence actually cost?

Dubai Aviation City Corporation publishes its own Tariff of Fees, Registration and Licensing, and a new one-year licence is listed at AED 10,000, two years at AED 20,000 and three years at AED 30,000, with a new General Trading licence at AED 20,000 for one year and a new professional licence at AED 7,000 [2]. These are published fees, not broker estimates.

Licence fee itemAmount (AED)
New licence, 1 year10,000
New licence, 2 years20,000
New licence, 3 years30,000
New licence, General Trading, 1 year20,000
New professional licence7,000
Licence renewal, 1 / 2 / 3 years10,000 / 20,000 / 30,000
Late renewal fine500
Additional activity class1,000

The same tariff prices the corporate changes you will eventually need, which most zones bury until you ask.

Administrative or corporate itemAmount (AED)
Conversion between Branch and DWC-LLC2,800
Re-domicile into the zone, General Trading20,000
Re-domicile into the zone, other activities10,000
Voluntary winding-up3,500
Share transfer2,000 to 3,000
No Objection Certificates200 to 500
Certificate of Good Standing2,000

Two caveats matter more than the numbers. The tariff document is dated 2023, so confirm current fees with the registration team before budgeting, because a three-year-old schedule may have moved. And the tariff covers licence and administrative fees only. It contains no establishment card, no immigration file, no visa costs and no facility rent.

Common Mistake: Reading AED 10,000 as the cost of getting a Dubai South company running. It is a licence fee, not a setup total. Add your facility, establishment card, immigration file and per-person visa costs, none of which appear in the tariff. Brokers quote all-in bundles for a Business Park licence with one visa, or a Logistics District warehouse package, and some are reasonable, but they are consultancy figures rather than published Dubai South rates, so we will not print them here as if the zone had confirmed them. Ask any provider to itemise which line is a government fee, which is rent and which is their margin.

Quick Math: The multi-year tiers are strictly linear. One year is AED 10,000 and three years is AED 30,000, so the published schedule holds no volume discount, unlike zones that cut multi-year prices heavily. The real benefit of a three-year licence here is administrative, meaning fewer renewal cycles and no exposure to the AED 500 late-renewal fine, rather than a cash saving.

Renewals, audit files and immigration filings are the part founders underestimate, so read our post-setup services page alongside this before committing to a multi-year structure. Talk to a setup expert→

Trailers docked in rows at a freight distribution facility, seen from above

Which licence type and entity structure do you need?

Dubai Aviation City Corporation is the registration authority, and the licence types it issues include General Trading, Logistics, Industrial, Aviation and Education, plus a freelance licence for solo creative, media and technology professionals [1][2]. Your licence choice drives permitted activities, facility requirement and, for logistics, your corporate tax position.

LicenceWhat it coversTypical tenant
General TradingTrading across multiple product categoriesImporters with broad product lines
LogisticsStorage, transport, distribution, sorting, forwarding, clearing, inventory managementFreight forwarders, 3PLs, customs brokers
IndustrialLight manufacturing and assemblyFabricators, packagers, assemblers
AviationAviation-related activity, including MBRAH tenantsMRO providers, aviation services, parts
EducationEducation and training activityTraining providers
Freelance licenceOne individual practising in their own nameCreative, media and tech professionals

Service and e-commerce licence naming and scope should be treated as indicative, because we could not confirm those categories on dubaisouth.ae itself. If your activity is a pure service or an online retail model, ask the registration team to confirm in writing which category applies and what facility it requires.

EntityKey featuresSuits
DWC-LLCThe free zone company form, described as allowing up to 6 shareholders and 7 directorsNew ventures, joint ventures, UAE trading arms
BranchBranch of a foreign or UAE company, no separate share capitalGroups extending an established entity
Freelancer permitIndividual permit in the professional's own nameSolo consultants and creators

The Branch route is underused. If you already run an operating company abroad with audited accounts and a trading history, a branch often reads better to banks and to large logistics counterparties than a new DWC-LLC with no history. And if you get the structure wrong, the tariff prices the fix at AED 2,800 to convert between a Branch and a DWC-LLC [2]. Our free zone company setup page sets out how these structures compare across zones, and if your customers are UAE consumers or government bodies you should weigh a mainland company setup instead.

What facilities exist, and why is there no published rate card?

Dubai South offers co-working and flexi-desk space, dedicated offices across the Business Park's eleven buildings, warehouses and light industrial units in the Logistics District, aviation facilities in the Aviation District and MBRAH, and land plots [1]. The cheapest realistic entry is a flexi-desk or co-working licence in the Business Park, or a freelancer permit.

Here is the part other guides skip. There is no facility price list published on dubaisouth.ae: no desk rate, no per-square-foot warehouse rate, no office schedule. That absence is itself information. Leasing is quote-driven and negotiated case by case rather than sold off a rate card, which suits large tenants taking plots and is genuine friction for a cost-conscious SME that wants to compare two numbers.

So you cannot benchmark Dubai South against DMCC or RAKEZ from a website. Run a live enquiry, get a written quotation with the term, escalation clause and service charges spelled out, then compare. Ask whether the rate includes service charges and chiller, because in warehousing that gap can be large.

How does the visa quota work, and why must you get it in writing?

There is no official visa-quota table published on dubaisouth.ae. What circulates online is consultancy-sourced and unverified: roughly one visa per 9 square metres of Business Park office, one to three visas on a flexi-desk, up to five or six on a dedicated office, and proportionally more for warehouses. Treat all of it as indicative only.

Facility typeCommonly quoted quotaSource status
Flexi-desk or co-workingAbout 1 to 3 visasConsultancy-sourced, unverified
Dedicated Business Park officeUp to about 5 or 6 visasConsultancy-sourced, unverified
Office space generallyAbout 1 visa per 9 square metresConsultancy-sourced, unverified
Warehouse or industrial unitScales with area, higher than officeConsultancy-sourced, unverified

This matters more than it sounds, because quota is a hiring constraint rather than a paperwork detail. A logistics operation that needs twelve warehouse staff and gets a quota for six has a business problem, and the fix usually means leasing more space mid-term at whatever rate is then available. The mechanics are covered in our guide to how free zone visa quotas work.

Pro Tip: Get your visa quota stated in writing in the lease or offer letter, as a number, before you sign. Not "subject to approval", and not a verbal figure from a leasing agent. If you plan to grow headcount, ask what the quota becomes at the next unit size up and what moving costs. We have seen founders take the cheapest desk, hire on the assumption of open-ended quota, then discover the ceiling at the worst possible moment.

Is Dubai South a VAT Designated Zone?

The precise answer is one no competitor gives. The Federal Tax Authority's published list of Designated Zones names Dubai Aviation City, active from 1 January 2018 with no removal date [5]. It does not name "Dubai South" or "Dubai World Central" by those names. So the accurate statement is that Dubai Aviation City, the VAT Designated Zone underlying Dubai South, has held Designated Zone status since 1 January 2018.

Because Dubai South Free Zone is operated by Dubai Aviation City Corporation and descends from the same footprint, it is reasonable to treat Dubai Aviation City as the legal Designated Zone identity underlying Dubai South's free zone [1][5]. But we could not confirm from any official source whether the entire current Dubai South free zone footprint, meaning the Business Park, the Logistics District and the rest, sits inside the customs-fenced Dubai Aviation City boundary, or only part of it. A Designated Zone is a customs-controlled area with a defined physical perimeter, so "the free zone" and "the fenced Designated Zone" are not automatically the same shape.

Real Talk: We will not tell you flatly that Dubai South is a Designated Zone, because the FTA list does not say that and your unit's position inside the customs perimeter is a factual question about your address. Get written confirmation for the specific unit you are leasing. It changes your VAT treatment on goods, and it can also affect whether a distribution business reaches the 0% corporate tax rate. This is a five-minute question at the leasing stage and an expensive one after a VAT audit.

Do not confuse this with Dubai Airport Free Zone, DAFZA, a separate and unrelated zone near Dubai International Airport that also appears on the Designated Zone list [5]. They are different jurisdictions with different regulators.

What does Designated Zone status actually change?

Less than most people assume, and only for goods. Designated Zone status is a VAT concept that can put certain supplies of goods outside the scope of UAE VAT. It does not create a general tax-free bubble, it does not cover services, and it does not remove your registration obligations.

TransactionTreatment in a Designated Zone
Services supplied in the zoneStandard-rated at 5%, no relief
Goods moved from the mainland into the zoneA local supply, not an export
Certain goods transactions inside or between zonesCan fall outside the scope of VAT, subject to conditions
VAT registrationNormal rules, mandatory at AED 375,000, voluntary at AED 187,500

The trap is services. A consultancy, agency or IT support business inside a Designated Zone charges 5% VAT like anyone else. The mechanics are in our guide to Designated Zones and VAT, worth reading before you choose a unit if your model is goods-heavy.

Can a Dubai South company get the 0% corporate tax rate?

Yes, if it meets the Qualifying Free Zone Person conditions and earns qualifying income. Ministerial Decision No. 229 of 2025 sets out the Qualifying Activities, and several map onto Dubai South's tenant base: manufacturing of goods or materials, processing of goods or materials, logistics services, distribution of goods or materials in or from a Designated Zone, and financing and leasing of aircraft [6].

Qualifying ActivityRelevance to Dubai SouthDepends on Designated Zone status?
Manufacturing of goods or materialsIndustrial licence holdersNo
Processing of goods or materialsPackagers, assemblers, processorsNo
Logistics services, Article 2(3)(m)Freight forwarders, 3PLs, customs brokersNo
Distribution of goods or materials, Article 2(1)(l)Traders and distributors taking titleYes
Financing and leasing of aircraftAviation District and MBRAH lessorsNo

The distinction between logistics and distribution is the most commercially useful point here. Logistics services under Article 2(3)(m) means storing and transporting goods on behalf of another person without taking title, and the definition expressly includes cargo handling, warehousing, container storage, transport agency, customs brokerage, order and inventory management, freight forwarding and brokerage [6]. It qualifies regardless of Designated Zone status, which is a clean fit for a Logistics District 3PL that never owns the cargo.

Distribution under Article 2(1)(l) is stricter. It requires the goods to enter the State through the Designated Zone, and to be supplied only to a customer who resells, processes or alters them, or to a public benefit entity [6]. So if you take title and distribute, your 0% position depends directly on the boundary question above and on your physical routing. Two businesses in adjacent units can have different answers.

De minimis gives limited room: non-qualifying revenue must not exceed 5% of total revenue or AED 5,000,000, whichever is lower, and a breach costs Qualifying Free Zone Person status for the current tax period and the following four [6]. Every Qualifying Free Zone Person needs audited financial statements regardless of size under Ministerial Decision No. 84 of 2025 [7]. The full mechanics are in our guide to the qualifying free zone person and the 0% rate.

That audit requirement surprises cost-conscious founders, because there is no small-company exemption. Our post-setup services team runs the annual audit, tax filing and VAT return cycle for zone companies, and it is cheaper to set the bookkeeping up correctly in month one than to rebuild it in month eleven.

A wide-body aircraft under maintenance in a hangar, the kind of work an aviation district is built around

Does aviation MRO qualify for the 0% rate?

This is the question the Aviation District audience needs and nobody answers. Aircraft maintenance, repair and overhaul is not named in the Article 2(1) list of Qualifying Activities in Ministerial Decision No. 229 of 2025. Financing and leasing of aircraft is named [6]. That gap is real.

An MRO business might reach a qualifying position another way, for example by characterising specific work as processing of goods or materials, but that is an argument about facts and contracts rather than a settled answer. So MRO eligibility as a Qualifying Free Zone Person is unclear, and any provider telling you an Aviation District MRO automatically enjoys 0% is telling you something the decision does not say.

Pro Tip: If you are setting up an MRO, a hangar operation or an aviation parts business, get a written corporate tax opinion on your activity mix before you sign a hangar lease, not after your first filing. The difference between 0% and 9% on MRO margins is a material line in the plan. Talk to a setup expert→

Does the 51% revenue test apply to logistics or distribution?

No, and this myth is repeated constantly. The 51% concentration test sits inside Trading of Qualifying Commodities at Article 2(3)(c) of Ministerial Decision No. 229 of 2025 [6]. It is not a condition of the distribution activity and not a condition of logistics services.

Common Mistake: Believing a Dubai South logistics or distribution company must derive 51% of revenue from some particular source to keep the 0% rate. It does not. The tests that actually apply are the qualifying activity definition, the de minimis threshold of 5% of revenue or AED 5,000,000 whichever is lower, adequate substance in the zone, transfer pricing compliance and audited financial statements [6][7]. Planning around a 51% rule that belongs to a different activity means structuring for the wrong constraint entirely.

Who is Dubai South right for, and who should look elsewhere?

Dubai South suits goods businesses that benefit from the Jebel Ali to airport corridor, industrial and manufacturing operations, aviation-adjacent firms, and anyone selling into the airport construction programme. It suits client-facing service firms and cost-comparison shoppers far less well.

ProfileVerdictWhy
Freight forwarder or 3PLStrong fitCorridor position, and logistics services qualify regardless of Designated Zone status
Light manufacturer or packagerStrong fitIndustrial units and land, manufacturing is a Qualifying Activity
Contractor or industrial supplierStrong fit nowLive construction-phase demand at the airport
Aviation services and aircraft leasingGood fit, with a tax caveatMBRAH cluster, but check the MRO question
Distributor taking title to goodsConditionalDepends on the Designated Zone boundary and routing
Client-facing consultancy or agencyWeak fit40-plus kilometres from central Dubai, and services are standard-rated anyway
Cost-focused solo founderWeak fitNo published facility rates or visa table to compare against

The case against is threefold. The airport's scale-up is a 2030s story, so the location premium is partly forward-priced. The district sits roughly 40-plus kilometres from central Dubai, a real cost in staff commute, recruitment and client-facing convenience. And Dubai South publishes far less operational detail than mature zones like DMCC or RAKEZ, with no facility rate card and no visa-quota table, which points to a bespoke, quote-driven leasing process.

Based on our experience, distance is the factor founders underweight and then complain about. If your team is Dubai-based and your clients want to meet you, a Business Park desk 40-plus kilometres out costs you in cancelled meetings and staff turnover, and a central address on a mainland company setup serves that model better. If your business is pallets, containers and trucks, the same distance is an advantage, because your goods move between the port and the airport rather than between meeting rooms.

For the alternatives most Dubai South candidates weigh it against, see our guides to JAFZA free zone setup, logistics company setup and the Dubai CommerCity ecommerce free zone.

Not sure whether Dubai South, JAFZA or a mainland licence fits your model? Our advisors map the structure, costs and timeline against what your business actually moves.

Get a free consultation

What incentives has Dubai South announced?

Dubai South has announced a package of incentives under its "Dubai South in Motion" initiative, in line with the Dubai Free Zones Council, covering support for new company formation, licence-renewal facilitation and exemption from late-renewal fines, with a quote from Group CEO Nabil Al Kindi [8]. On the published announcement, that is the extent of what is confirmed.

Be careful how you use it. The announcement page carries no date, no eligibility criteria and no fee figures [8], so we cannot tell you when the window opened, whether it closes, or what it is worth. The late-renewal fine exemption is the most concrete element, and the tariff prices that fine at AED 500 [2]. Ask the registration team whether the incentives are currently live and what they mean for your licence, in writing, before factoring anything into a budget.

Can a Dubai South company open a corporate bank account?

Yes, on the same terms as any other UAE free zone company, which depends far more on your business than on your zone. UAE banks assess the activity, shareholder profile, source of funds, counterparty countries and whether you have real substance and a genuine local footprint.

Goods businesses with warehouse space, staff and verifiable trade documentation usually have a smoother path than a flexi-desk company with an offshore shareholder and no local presence, because the bank can see the operation. A branch of an established foreign company with audited accounts often clears onboarding faster than a brand-new DWC-LLC. Expect to be asked for a tenancy contract, so finish the facility and visa work before you start the bank application.

Real Client Stories

These are real examples from businesses we have helped set up. Names and details have been changed for privacy.

A freight forwarder in the Logistics District

A European forwarding group wanted a UAE arm handling ocean-to-air transhipment between Jebel Ali and DWC. We registered a DWC-LLC on a Logistics licence, and the real work was tax rather than licensing: because the company never takes title to cargo and only stores and transports for clients, it sits inside the logistics services definition at Article 2(3)(m), which qualifies regardless of Designated Zone status [6]. The operations director's takeaway: "Once we understood that not owning the goods was what protected our 0%, we stopped trying to buy and resell as a side line."

A light industrial packager on an Industrial licence

A packaging and co-packing business needed a unit with power and loading access, and wanted a comparison against a mainland industrial address. With no published rate card, we ran a live enquiry, got a written quotation with term, escalation and service charges itemised, then benchmarked it against two other zones. Their founder's advice: "Nobody gives you a number until you ask properly. Do not judge this zone by the website, and do not sign until the service charges are in writing."

An aviation parts and services company in the Aviation District

A group building an aircraft parts and support operation near MBRAH assumed its whole activity mix would fall under 0%. We flagged that MRO work is not named in the Article 2(1) Qualifying Activities list while aircraft financing and leasing is, and they took a written tax opinion before signing their facility [6]. Their CFO's view: "We would have modelled 0% across the board and been wrong on part of the revenue. Finding that out before the lease was worth every dirham of the advice."

Setting up in Dubai South with the right expectations

Dubai South is a strong home for goods, industrial and aviation-adjacent businesses, and a poor one for a client-facing service firm that needs a central Dubai address. The zone's own tariff gives you real licence numbers to plan with, at AED 10,000 for a one-year licence, provided you remember it excludes facilities, establishment cards, immigration files and visas [2]. Settle two things in writing before you sign: your visa quota, and whether your unit sits inside the Dubai Aviation City Designated Zone perimeter. One governs hiring, the other governs your VAT and possibly your corporate tax.

On the airport, be a realist. The AED 128 billion programme is real, approved and under construction, and it will reshape this district [3][4]. It is also a 2030s demand story, with a first phase reported around 2032 and no announced date for the transfer of Dubai International's operations [3]. Buy into Dubai South today for the corridor, the industrial land, the qualifying-activity fit and the live construction economy, and treat the passenger figures as upside your business case does not need.

Since 2013, BusinessDubai.ae has completed 700+ company registrations across the UAE, including logistics, industrial and aviation-adjacent setups, with itemised pricing and no invented bundle prices. We will tell you honestly whether Dubai South earns its place in your plan or whether JAFZA, another free zone or a mainland licence is the better call. Talk to a setup expert→

Ready to move? We handle the DACC licence application, facility, establishment card, visas and the corporate tax and VAT setup end to end.

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Frequently Asked Questions

What is Dubai South?

Dubai South is a master-planned district of roughly 145 square kilometres built around Al Maktoum International Airport, containing a free zone, logistics and aviation districts, a business park and residential communities. It launched as Dubai World Central and was renamed in 2015 [1].

Who regulates Dubai South Free Zone?

Dubai Aviation City Corporation, a Dubai government entity established by Law No. 20 of 2006, is the regulator and operator. "Dubai South Free Zone" is its free-zone trading name, and DACC is the registration authority that issues your licence [1][2].

How much does a Dubai South licence cost?

DACC's published tariff lists a new licence at AED 10,000 for one year, AED 20,000 for two years and AED 30,000 for three years, with General Trading at AED 20,000 for one year and a new professional licence at AED 7,000 [2]. The tariff is dated 2023, so confirm current fees.

Is AED 10,000 the total cost of setting up in Dubai South?

No. The tariff covers licence and administrative fees only, with no establishment card, immigration file, visa or facility rent costs [2]. AED 10,000 is a licence fee, not a setup total.

Does Dubai South publish office and warehouse rates?

No. There is no facility price list on dubaisouth.ae for desks, offices or warehouses. Leasing is quote-driven, so you need a live enquiry and a written quotation stating term, escalation and service charges before you can compare zones.

How many visas can a Dubai South company get?

There is no official visa-quota table published by the zone. Figures circulating online, such as roughly one visa per 9 square metres of office or one to three on a flexi-desk, are consultancy-sourced and unverified. Get your quota stated as a number in writing before signing a lease.

What is the licence renewal cost in Dubai South?

The tariff prices renewal on the same tiers as a new licence: AED 10,000 for one year, AED 20,000 for two and AED 30,000 for three, with a late-renewal fine of AED 500 [2]. Facility rent and visa renewals are separate.

Is Dubai South a VAT Designated Zone?

The FTA list names Dubai Aviation City, active from 1 January 2018, not "Dubai South" or "Dubai World Central" by those names [5]. Dubai Aviation City is the Designated Zone identity underlying Dubai South, but whether your specific unit sits inside the customs-fenced perimeter needs written confirmation.

Why does Designated Zone status matter for my unit specifically?

Because a Designated Zone is a customs-controlled area with a physical perimeter, and your VAT treatment on goods depends on whether your unit sits inside it. For a distributor it can also decide the 0% corporate tax rate, since that activity requires goods to enter the State through the Designated Zone [6].

Is Dubai South the same as DAFZA?

No. Dubai Airport Free Zone, DAFZA, is a separate and unrelated zone near Dubai International Airport with its own regulator, and it also appears on the Designated Zone list [5]. Dubai South sits around Al Maktoum International Airport and is operated by DACC.

Do services in a Designated Zone escape VAT?

No. Services supplied in a Designated Zone are standard-rated at 5%. The relief attaches to certain supplies of goods on conditions, so a consultancy, agency or IT firm inside the zone charges VAT like any mainland business once registered.

Does a Dubai South company still need to register for VAT?

Yes, on the normal rules. Registration is mandatory once taxable supplies exceed AED 375,000 and voluntary from AED 187,500. Designated Zone status changes the treatment of certain goods transactions, not your registration obligation.

Can a Dubai South company get 0% corporate tax?

Yes, if it meets the Qualifying Free Zone Person conditions and earns qualifying income. Qualifying Activities relevant here include manufacturing, processing of goods, logistics services, distribution in or from a Designated Zone, and financing and leasing of aircraft [6].

Do logistics services qualify for 0% even without Designated Zone status?

Yes. Logistics services under Article 2(3)(m) means storing and transporting goods for another person without taking title, including cargo handling, warehousing, customs brokerage, freight forwarding and inventory management, and it qualifies regardless of Designated Zone status [6].

What is the difference between logistics services and distribution for tax?

Logistics services means handling goods you do not own, and qualifies without reference to Designated Zone status. Distribution under Article 2(1)(l) means you take title, requires goods to enter the State through the Designated Zone, and requires supply only to a reseller, processor or public benefit entity [6].

Does aviation MRO qualify as a Qualifying Activity?

Unclear, and you should not assume it does. MRO is not named in the Article 2(1) Qualifying Activities list in Ministerial Decision No. 229 of 2025, while financing and leasing of aircraft is [6]. Get a written tax opinion on your activity mix before committing to a hangar lease.

Is there a 51% revenue rule for Dubai South logistics companies?

No. The 51% concentration test sits inside Trading of Qualifying Commodities at Article 2(3)(c), not inside the logistics or distribution activities [6]. The tests that apply to you are the activity definition, de minimis, substance, transfer pricing and audited accounts.

What is the de minimis threshold for a Qualifying Free Zone Person?

Non-qualifying revenue must not exceed 5% of total revenue or AED 5,000,000, whichever is lower [6]. Breaching it costs Qualifying Free Zone Person status for the current tax period and the following four, so the 0% rate is something you maintain rather than own.

Does a small Dubai South company need audited accounts?

Yes, if it wants Qualifying Free Zone Person status. Every Qualifying Free Zone Person must prepare audited financial statements regardless of size under Ministerial Decision No. 84 of 2025, so there is no small-company exemption to rely on [7].

What licence types does Dubai South issue?

Published licence types include General Trading, Logistics, Industrial, Aviation and Education, plus a freelance licence for solo creative, media and tech professionals [1][2]. Service and e-commerce licence naming and scope are indicative only, because we could not confirm them on dubaisouth.ae.

What company structures are available in Dubai South?

A DWC-LLC, the free zone company form described as allowing up to six shareholders and seven directors, a Branch of a foreign or UAE company, and an individual freelancer permit [1]. Converting between a Branch and a DWC-LLC is priced at AED 2,800 in the tariff [2].

Can I re-domicile an existing company into Dubai South?

Yes. The tariff prices re-domiciliation at AED 20,000 for General Trading and AED 10,000 for other activities [2]. Whether it is the right move depends on your banking history and tax position, so review both before moving an operating entity.

When will Al Maktoum International Airport open its expanded terminal?

The first phase opening is reported at around 2032. Dubai Airports' own wording is that DWC will accommodate 150 million passengers annually over the next decade, eventually expanding to 260 million [3]. Treat 260 million as a long-run design target, not a near-term figure.

When will Dubai International Airport move to Al Maktoum?

No firm date has been officially confirmed. The official language is only that operations at Dubai International will be transferred in the coming years [3]. Any specific migration year you see quoted is speculation, so do not underwrite a lease on it.

Is the airport expansion a reason to set up in Dubai South now?

It is a reason if you serve construction. Contractors, freight, plant, workforce services and accommodation see demand today, backed by an AED 128 billion programme approved on 28 April 2024 [4]. If your model needs airline traffic at DWC, that is a 2030s market.

How far is Dubai South from central Dubai?

Roughly 40-plus kilometres, a genuine cost in staff commute time and client-facing convenience against a DIFC, Downtown or Business Bay address. For a goods business moving containers between Jebel Ali and the airport, the same location is an operational advantage.

Which districts of Dubai South can host a free zone company?

Treat the Logistics District, Business Park and Aviation District as the free-zone-enabled areas. The Residential District does not host free zone entities. No official page enumerates registration rights district by district, so confirm the status of your specific building or plot in writing.

What incentives is Dubai South currently offering?

Dubai South announced a package under its "Dubai South in Motion" initiative, in line with the Dubai Free Zones Council, covering support for new company formation, licence-renewal facilitation and exemption from late-renewal fines [8]. The announcement carries no date, criteria or fee figures, so confirm what is live.

References

[1] Dubai South: free zone overview, districts, licence types and company structures. Dubai South free zone

[2] Dubai Aviation City Corporation: Tariff of Fees, Registration and Licensing (dated 2023), listing licence, renewal, conversion, re-domiciliation and administrative fees. DACC registration and licensing fees

[3] Dubai Airports: statement on the phase two expansion of DWC Al Maktoum International Airport, including the 150 million passenger figure over the next decade and the transfer of Dubai International operations "in the coming years". Dubai Airports statement

[4] UAE Government Media Office, 28 April 2024: approval of the Al Maktoum terminal designs, AED 128 billion cost, 260 million passenger and 12 million tonne capacity, 400 gates, five runways. Al Maktoum International Airport

[5] Federal Tax Authority: List of Designated Zones, naming Dubai Aviation City with effect from 1 January 2018, and separately Dubai Airport Free Zone. FTA list of Designated Zones

[6] Ministry of Finance: Ministerial Decision No. 229 of 2025 on Qualifying Activities and Excluded Activities, including logistics services at Article 2(3)(m), distribution at Article 2(1)(l), Trading of Qualifying Commodities at Article 2(3)(c), and de minimis. Ministerial Decision No. 229 of 2025

[7] Ministry of Finance: Ministerial Decision No. 84 of 2025 on audited financial statements, which applies to every Qualifying Free Zone Person. Ministerial Decision No. 84 of 2025

[8] Dubai South: new incentives to sustain economic momentum, under the "Dubai South in Motion" initiative, including exemption from late-renewal fines. The announcement page carries no date or eligibility criteria. Dubai South incentives

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