Airbnb business in Dubai [2024 Guide]

Dubai is one of the most popular holiday destinations in the world. The United Arab Emirates government recently allowed people in Dubai to host on Airbnb, opening up some exciting business opportunities.

You will need to follow Dubai Tourism’s Holiday Homes Operators’ guidelines before you are allowed to legally lease out homes on a short-term basis on the home-hosting platform as an Airbnb business in Dubai.

To ensure you are aware of the various rules and possibilities, this article covers the following subjects:

  • Airbnb business in Dubai – An overview
  • Is Airbnb profitable in Dubai?
  • How to start an Airbnb business in Dubai?
  • Cost of starting an Airbnb business in Dubai
  • Business setup in Dubai with Trade License Zone

Airbnb business in Dubai – An overview

Dubai is the fourth most visited city in the world – and that means many travellers are looking for various accommodation types to suit their travel needs and budgets.

Since 2018, the UAE government has allowed people to rent or lease out homes on Airbnb, establishing a niche: the Airbnb business sector. You can rent your home even if you’re a tenant and don’t own the apartment or house. Individuals can rent out eight Airbnb-listed properties, and by registering a business with the Dubai Department of Economic Development (DED), they can rent out and manage many more.

This ensures that homeowners and tenants (called Airbnb hosts) meet the required quality standards and codes of conduct and offer levels of amenities, safety, health, insurance and services that the UAE’s hospitality sector is recognised for. Dubai Tourism carries out regular inspections to ensure those quality standards are being maintained. However, to receive these inspections, homeowners or registered tenants must register the properties they wish to lease on Airbnb through the Dubai Tourism Holiday Homes Operator system.

Is Airbnb profitable in Dubai?

Airbnb is a worldwide phenomenon that has disrupted the accommodation market. As an individual, you can rent out your home to earn extra money and pay off your mortgage quicker – or start a real estate business through Airbnb. Short-term rentals and leases in Dubai are incredibly popular year-round, too.

The market continues to grow each year, and the Airbnb platform’s use is widely used by travellers seeking more options to suit their needs better. A well-managed property (or properties) makes for a lucrative business venture in Dubai.

How to start an Airbnb business in Dubai?

As with any other business startup in the UAE, you must first register a company to trade legally in Dubai. These are the six steps to start an Airbnb business in Dubai.

Step 1: Partner with Trade License Zone

The first step in starting an Airbnb business in Dubai is to partner with Trade License Zone. Our expert company formation specialists will help you manage all aspects of the business license application and company registration process and communicate with the relevant government and municipal authorities on your behalf.

Step 2: Select your company name

The UAE government has strict regulations on company names. Business names must not include offensive or blasphemous language or references to Allah or Islam, avoid names of well-known brands, and contain no abbreviations when using your name.

Trade License Zone will help you choose and register your Airbnb business with the UAE’s Registry Office.

Step 3: Choose your business jurisdiction and business activities

As mentioned, your trading license enables you to trade legally in the UAE. Different business licenses are available, but you must specify the business activities you wish to conduct.

The business activities you select are the only business activities you may carry out in the UAE. If caught conducting business without the correct business activities, you may face severe penalties from Dubai’s authorities.

For any help with this crucial step, contact Trade License Zone’s experienced staff to help you navigate this somewhat tricky process.

Step 4: Submit your trade license application

Once you’ve completed the above steps, you can submit your trade license application to the DED. Trade License Zone can help you with this critical step to avoid errors, delays, or rejections.

Step 5: Apply for your visas and open your corporate bank account

Once your diamond trading business license has been granted and you’ve made payment for its issuance, you can apply for your UAE residency visa to live and work in Dubai. This trade license may entitle you to sponsor the visas of family and staff, depending on the conditions of the specific trade license. The final part of this step before you begin trading in Dubai is opening your corporate bank account. It’s that straightforward.

Step 6: Register your property with Dubai Tourism

For this important step, you must create an online account on Dubai Tourism’s Holiday Homes Operator website. You’ll need to register yourself as the manager for the property – or assign a suitable third party as manager – and upload a valid Emirates ID card or passport copy. Among the required documents, you will need a copy of the property’s title deed and proof of Ejari registration.

Once your account has been processed, Dubai Tourism will send you payment details to complete the registration process. Costs start at AED 1,590. Once paid, your final license will be issued along with the Holiday Homes Operator website account details.

Cost of starting an Airbnb business in Dubai

Starting an Airbnb business in Dubai costs from AED 15,000 to AED 30,000. The price varies according to the trade license type, government and municipal approvals, Dubai Tourism fees, and more.

Trade License Zone can help you with this step: we will send you a free quote. We can assist and guide you through the entire process.

Business setup in Dubai with Trade License Zone

Business setup in the UAE is straightforward when you partner with Trade License Zone. While the UAE government streamlined the trade license application and company registration processes, our experts will save you time and money and eliminate the frustration of unnecessary delays or rejections.

The specialists at Trade License Zone can get you started with your Airbnb business in Dubai as soon as you provide us with some basic documentation and information. Our team will then take care of the rest for you: we’ll manage your business setup, communicate with all relevant government departments and authorities, visa amendments and applications, and corporate bank accounts, and report back to you when you’re ready to start trading. It really is that simple.

Contact us to get a personalized quotation based on your business activity