Dubai has become one of the world’s most dynamic short-term rental markets, attracting both business travelers and tourists seeking high-quality stays. With its booming tourism sector and government support for holiday homes, starting an Airbnb business in Dubai presents a lucrative opportunity for entrepreneurs and property investors alike.
At Spectrum, we specialize in guiding investors, startups, and entrepreneurs through the regulatory and operational steps of setting up a successful Airbnb company in Dubai.
Why Start an Airbnb Business in Dubai?
• Tourism Growth – Dubai welcomed over 17 million international visitors in 2023, with projections continuing to rise in 2025.
• Strong Rental Yields – Short-term rentals often generate higher returns compared to long-term leases.
• Supportive Regulations – Dubai’s Department of Economy and Tourism (DET, formerly DTCM) regulates the short-term rental industry, making it transparent and investor-friendly.
• World-Class Infrastructure – From business hubs to tourist attractions, Dubai’s demand for flexible accommodation is consistent year-round.
Step-by-Step Process to Start an Airbnb Company in Dubai
1. Choose Your Business Structure
You can operate as:
• Individual License Holder – For a single property.
• Company Setup – Through a Free Zone or Mainland structure if managing multiple units.
At Spectrum, we recommend a company setup if you plan to scale, as it provides legal protection, easier bank account opening, and broader opportunities.
2. Obtain a Trade License
To operate legally, you must apply for a trade license from either the Dubai Department of Economy and Tourism (DET) (mainland) or through a Free Zone.
• Mainland option → ideal if targeting multiple properties across Dubai.
• Free Zone option → beneficial for foreign investors seeking 100% ownership and simplified incorporation.
3. Apply for a Holiday Home Permit
The DET requires all property owners and operators to register their units as holiday homes. You’ll need:
• Passport copy / Emirates ID
• Title deed or tenancy contract
• Ejari registration
• Property details and photos
Permits must be renewed annually, and each property requires its own permit.
4. Comply with Regulatory Guidelines
Airbnb hosts must meet DET standards, including:
• Minimum furnishing and safety requirements
• Guest registration and reporting through the DET portal
• Display of license/permit number on all listings
Failure to comply may result in fines or suspension.
5. Market Your Property on Airbnb and Other Platforms
Once registered, you can list your property on Airbnb, Booking.com, and other short-term rental platforms. At Spectrum, we also advise optimizing listings with professional photography, dynamic pricing strategies, and guest experience enhancements.
6. Manage Operations
Decide if you will self-manage or hire a property management company. Management services include guest check-in, cleaning, maintenance, and 24/7 support—crucial for positive reviews and repeat bookings.
Benefits of Working with Spectrum
• Expert guidance on company formation in mainland or Free Zones.
• Step-by-step assistance in obtaining holiday home permits.
• Compliance and documentation support to avoid legal hurdles.
• Access to property management partnerships for seamless operations.
At Spectrum, we help you establish and scale your Airbnb business in Dubai with complete compliance and efficiency. Whether you’re an investor with one unit or an entrepreneur building a short-term rental empire, we’ll ensure you are set up for success.
Spectrum’s FAQ on Airbnb Business in Dubai
1. Do I need a license to operate an Airbnb in Dubai?
Yes. You must have a trade license and a holiday home permit issued by Dubai’s Department of Economy and Tourism.
2. Can foreigners start an Airbnb company in Dubai?
Absolutely. Foreigners can establish 100% ownership through Free Zones or set up a mainland company with Spectrum’s guidance.
3. What is the cost of starting an Airbnb business?
Costs vary depending on license type, Free Zone or mainland jurisdiction, and number of properties, but typically range between AED 15,000 – AED 30,000 for initial setup.
4. Can I rent an apartment and sublet it on Airbnb?
Yes, but only with landlord approval and proper registration through DET. Unauthorized subletting is prohibited.
5. Is Airbnb profitable in Dubai?
Yes. With high tourist demand and premium rental yields, Airbnb properties often outperform traditional leases, especially in prime areas like Dubai Marina, Downtown, Jumeirah Beach, and Business Bay.
