How to Start an Airbnb Business in Dubai, UAE?

Start an Airbnb Business in Dubai, UAE
Table of Contents

Dubai is a global hub for tourism. The city won the Traveller Choice award for best global destination three years in a row. It received over 5.18 million tourists just in Q1 of 2024, which is about 11% higher as compared to the previous year.

Airbnb Business in Dubai – An Overview

Dubai attracts these visitors with its iconic skyline, luxurious experiences, and rich cultural attractions. As the city continues to grow in popularity among foreign tourists, the demand for diverse stay options, such as short-term rentals and Airbnb properties, has also skyrocketed.

Dubai has become one of the best destinations to start an Airbnb business. Hence, we have prepared this guide to walk you through the process of launching a successful Airbnb business in Dubai.

In this guide, we will cover steps to start Airbnb in Dubai, legal and licensing requirements, steps to set up your property, and financial management tips. Let’s dive into them.

How to Start an Airbnb Business in Dubai, UAE?

Step 1: Select a Name for your Company

Step 2: Choose for your Business Activity and Jurisdiction

Step 3: Submit your Trade License Application

Step 4: Apply for Visa

Step 5: Obtain a Trade License for your Business

Step 5: Open a Business Bank Account

Step 6: Register your Property with Dubai Tourism

Now that you understand all the steps to starting an Airbnb Business in Dubai, UAE, it is more important to elaborate on the legal requirements and licensing process for Airbnb or Homestay Businesses in Dubai.

To set up an Airbnb business, you have to fulfill some legal requirements and obtain specific trade licenses to operate seamlessly in Dubai. Let’s look at them.

Registering Your Airbnb Business

To legally operate an Airbnb or any business in Dubai, register it with the Dubai Economy and Tourism (DET). This step is crucial to ensure that your business complies with local regulations. It also safeguards the interests of both hosts and guests. You can streamline the registration process with the assistance of professional consultants who can guide you through the necessary paperwork and procedures.

Obtaining the Necessary Licenses

After registering with DET, every Airbnb business must also apply for the mandatory approvals from the Dubai Economy and Tourism Department (DET) department portals. You have to submit the required documents and pay a fee at the Dubai Tourism Office. After approval, you will become a certified vacation home Airbnb provider. 

Getting the Permit for Hosting

After getting approved, you have to obtain a hosting permit. To do that, you must visit DET’s online portal and click on the ‘Add Unit’ option to fill out the form for the property data. After submitting the required paperwork, you must wait for approval from DET (Department of Economy and Tourism In Dubai). You will receive a certificate of approval that must be displayed on the property.

You can also become a property provider without being the landlord or landlady. If you want to give property on rent to a tenant, you must get a No Objection Certificate (NOC) from the property owner and register the property on Dubai Tourism’s Holiday Homes website.

The holiday home licence or vacation home rental licence ensures that your property meets the necessary standards for guest accommodation, including amenities, safety, and quality assurance.

Document requirements and approval process for Airbnb Business

Whether you register with DET, you have to submit a set of documents while applying for the permit. As an Airbnb service provider, you must get your landlord’s permission to use the property as a vacation home rental business in Dubai and the UAE, along with the required paperwork.

You need the following documents to become an Airbnb host in Dubai:

  • Your Emirates ID card and passport copy 
  • Proof of Ejari registration (rental contract registration)
  • A landlord’s statement of no objections Title deed(using the approved DET form)
  • Copy of owner’s passport or Emirates ID
  • A current DEWA bill-not older than 3 months (under the tenant’s or owner’s name)
  • Airbnb Business License

Setting Up Your Airbnb Property

Starting an Airbnb business in Dubai, UAE involves more than just registering a company and starting to operate. You have to prepare your property to provide an exceptional experience to your guests by including amenities and facilities.

You must also ensure the property complies with Dubai’s regulations. Before listing your property, you must meet the safety and quality standards set by the DET.

These requirements include proper maintenance, fire safety measures, and essential amenities for guests’ well-being.

Meeting safety and quality standards set by DET

The DET has established strict guidelines for home rentals. Your property must adhere to these guidelines, such as specific property size, minimum furnishing requirements, and basic amenities. These standards are essential to maintaining a safe and comfortable living environment for your guests, which also helps your business in the long run. The more good reviews you have, the more business you will receive.

Preparing the property

Meeting the safety and quality standards is not enough. It would help if you also focused on creating an inviting and welcoming atmosphere for your guests. To do so, you have to think bigger than basic amenities and furniture. Invest in high-quality furnishings, decor, and amenities to capture the attention of your target audience.

All these things must align with your guests’ preferences to ensure the best customer service experience. You can also consider adding personal touches, such as locally sourced artwork or a welcome basket. These things may seem trivial, but they can create a huge impression on the right user.

Creating an attractive Airbnb listing with photos and descriptions

All your potential guests will have the first impression of your property through the Airbnb listing you post. Therefore, it is crucial to ensure it looks appealing and attractive.

Hire a professional photographer to capture high-quality images that showcase the best features and areas of your property. Use various angles to portray the elegance, and make sure to include pictures of the latest amenities and other facilities the guests will have access to.

Write engaging descriptions that highlight the unique selling points and all the best features of your property. Last but not least, ensure your listing is optimised for relevant keywords to improve visibility on the platform.

Understanding the Airbnb Market

Before starting an Airbnb business, you must conduct thorough research to get a deep understanding of the market. You can start by analysing the demand for short-term rental properties in Dubai. To do so, you must take into account factors such as peak travel seasons, popular tourist destinations, and the preferences of visitors.

Airbnb is a growing industry in Dubai, with close to 45,000 listings. According to a study by CIA Landlords, Dubai is the most profitable city to start an Airbnb business, with an average daily rate of $300 for a studio apartment. Not only that, the study further explores that Airbnb owners in Dubai can earn their INVESTED MONEY BACK in just 8 months, the fastest in the world.

You can also utilize tools like AirDNA to analyze average nightly rates, occupancy rates, and pricing trends for Airbnb properties in various neighborhoods. This data-driven approach will help you identify prime locations for your Airbnb business and ensure you cater to the preferences of your target audience.

Marketing and Promotion Strategies

Starting a business is just the first step. Sales is the second and most important step. You have to focus on marketing and promotion of your Airbnb property to reach the target market and start receiving guests. Here are a few strategies you can implement to generate sales for your Airbnb business in Dubai.

Building an online presence

More than 86% of the world’s population owns a smartphone today. With Gen Z, the number of smartphone users goes up to 98%. It is mandatory to have a strong online presence if you want to attract potential guests to your Airbnb property. Create a website with all the details required for your target audience. Build a social media presence on all major platforms, such as Meta, LinkedIn, and X.

Use these platforms to post updates, promotions, and positive guest reviews you receive. You can build a Google My Business profile and take reviews from your guests there. Engage with online communities and forums related to travel and hospitality to increase your visibility and reach a wider audience.

Working with local tourism companies

Partnering with local tourism companies can be an effective way to promote your Airbnb business and reach a broader range of potential guests. These companies often have extensive networks and can help promote your property through their marketing channels, such as brochures, travel packages, and online platforms.

Many tourism companies also provide stay-along-with-travel services to their guests. For a percentage of the margin, they can offer your place to their customers for a stay in Dubai. Your margin may go down a little, but your sales will spike that way.

Effective Pricing Strategies

Adjusting your pricing as per market demand and seasonality is one of the key strategies to remain competitive and keep generating revenue. The right prices are essential for maximising occupancy rates and revenue.

Conduct thorough market research to understand the pricing trends in your area, taking into account factors such as location, property size, and amenities offered.

Offer seasonal discounts and other benefits for booking a stay at your place, such as for a 5-day booking, offer free stay for the sixth night.

Using Effective Tools

You can utilise tools like AirDNA or dynamic pricing tools to further optimise your pricing and marketing strategy. These tools help you understand the demand and supply in your locality as well as the minimum and maximum rental prices.

There are even tools that analyse real-time market data and adjust your nightly rates automatically based on demand. Utilizing these tools ensures that the cash flow does not stop, allowing you to get maximum benefits during peak periods and remain competitive during slower seasons.

Other tools are global online property listing platforms such as booking.com, bayut.com, dubizzle.com, agoda.com, and more that you can use to register your property. Listing on these platforms for your property will help you start the immediate rental process.

Financial Management and Costs of Starting an Airbnb Business in Dubai, UAE

If you start an Airbnb business in Dubai, you must ensure effective financial management from the beginning for long-term growth and success. Also, you must endure various costs as an initial investment. Let’s go through all of them one by one.

Budgeting for initial setup costs

Financial management starts before you launch your Airbnb business. You must allocate a budget for the initial setup costs. These costs include licences and permits, furnishing and decorating your property, investing in professional photography, and covering any legal or administrative fees.

Tracking income and expenses

As you start generating sales and your business grows, it’s important to implement efficient financial tracking systems. You must be able to track and monitor your income and expenses accurately to make informed business decisions. Having a financial management consultant can take a lot of stress away from you. Having an accurate depiction of your financial statements also ensures compliance with tax obligations.

Adhering to tax obligations

Airbnb hosts in Dubai are subject to various tax regulations, including the Tourism Dirham fee and Value Added Tax (VAT). Therefore, you must consult with a professional accountant or corporate tax advisor to ensure you are complying with all relevant tax obligations. Non-compliance in adhering to your tax obligations can result in penalties or fines.

Estimated costs for various aspects of the business

The cost of starting an Airbnb business in Dubai ranges between starts from $10,000; however, it may vary significantly depending on the size and location of your property, number of staff requirement, marketing spends and all the operational cost.

However, here’s an approximate breakdown of the expenses you may encounter:

  • Licensing and Regulations: Cost of Tourism License from DET – AED 16,896 ($4600)
  • Property Setup and Amenities: Furnishing, decor, rent of the office, and essential amenities starting from AED 2,02,014 – AED 2,75,474 (starting from $55000 – $75,000)
  • Marketing and Promotion: Professional photography, online advertising depending on the budget of the client starting from AED 18,365 $5,000/month
  • Platform Fees: Airbnb service fees (typically around 3% of the booking subtotal)
  • Utilities and Maintenance: Electricity, water, internet, and regular maintenance AED 1102 – AED 2572 ($300 – $700 per month)
  • Legal and Administrative: Good Conduct Certificate from Dubai Police AED 1102 – AED 2572 ($100 – $300)
  • Ongoing Expenses: Cleaning and maintenance services AED 735 – AED 1836 ($200 – $500 per month)

Note*: It is important to note that these costs are just estimates, and the cost breakdown for your specific business may look quite different. Ideally, the costs vary based on your specific circumstances and property requirements. 

Also the visa required for business, and other operational costs would be an additional.

Consulting with professional advisors can help you develop a more accurate budget tailored to your unique business needs.

Assistance from Avyanco Consultancy

Starting your Airbnb business in Dubai, UAE can be a profitable venture if done right. However, fulfilling all the legal requirements, such as obtaining a proper licence and certification without making any error during online submission or documentation, is quite challenging. Preparing finances and managing your listing can be another difficult task for you.

That’s where the expertise of Avyanco Consultancy can prove invaluable for your business setup in Dubai. We assist you from the initial stages of research to maintaining compliance with regulatory requirements post-registration. We help you obtain necessary licences from DET with proper paperwork, avoiding any delays or rejections.

Avyanco Business Setup Consultancy stays with you at each step of the process to ensure a seamless business incorporation experience for you without getting overwhelmed by so many legal requirements. Partner with us and get access to our team of experienced business consultants with years of experience and expertise.

Book a meeting with business consultants in Dubai, UAE today to schedule a consultation and take the first step towards launching your Airbnb business in Dubai.


I hope our guide uncovered your queries and you discovered what you were seeking! We prepared more business setup blogs and guides to explore more opportunities ahead.

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About the Author

Founder and CEO of Avyanco Group of Companies; Business Setup Consultancy, Avyanco Tax and Accounting LLC, and Avyanco Auditing LLC.

He keeps a varied portfolio with core expertise in investment management, corporate structuring, commercial law, business consultancy, lead management, business planning and market research. Aspire to help potential entrepreneurs and investors to come ahead and form their companies in highly emerging economies like UAE.
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