Rishad

Posted on November 30, 2024

Updated on November 20, 2025

How to Start an Airbnb Business in Dubai, UAE?

Dubai’s iconic skyline and luxurious experiences attract visitors globally. Over the past few years, the city has continued to grow in popularity. Due to these reasons, the demand for stay options like Airbnb properties has also shot up to a great extent.

Dubai is an ideal destination to start an Airbnb business to date. To prove this, we worked on an article. In this article, we give you insights into how to launch a successful Airbnb business in Dubai.

This guide is all about:

How to start an Airbnb business?
Legal and licensing requirements
Steps to set up your property, and
Financial management tips.

Without wasting any minute, explore these details with us!

Understanding the Airbnb Market

In Dubai, Airbnb is a growing industry with close to 45,000 listings. Dubai is the most profitable city to start an Airbnb business, according to the study conducted. The average daily rate in Dubai is $300 for a studio apartment. Further, Airbnb owners can get a greater return on investment and earn their money back in just 8 months. This is accounted as the fastest in the world.

Additionally, utilize tools like AirDNA to analyze:

Average nightly rates
Occupancy rates
Pricing trends for Airbnb properties in various neighborhoods.

This approach will help you identify prime locations for your Airbnb business. While ensuring you cater to your target audience’s preferences.

How to Start an Airbnb Business in Dubai?

This is how you can start your Airbnb business in Dubai, UAE. We have mentioned all the steps to help you understand what you need to begin:

Select Company Name
Choose Business Activity and Jurisdiction
Submit your Trade License Application
Apply for a Visa
Obtain a Trade License
Open a Business Bank Account
Register your Property

It is advisable to research to get an understanding of the market before starting an Airbnb business. Start by analyzing the demand for short-term rental properties in Dubai. For this, take into account factors such as peak travel seasons, tourist destinations, and the preferences of visitors.

Licensing Requirements for Dubai Airbnb Business

Fulfill some legal requirements and obtain a specific license to set up an Airbnb business. Get started to operate seamlessly in Dubai. Let’s look at them:

Airbnb Business Registration

Register your business with the Dubai Economy and Tourism to legally operate an Airbnb or any business in Dubai. Don’t think about avoiding this step, as it ensures that your business complies with local regulations. A way to safeguard the interests of hosts and guests.

Obtain the Licenses

After registration, apply for the mandatory approvals from the DET department portals. Just submit the required documents and pay a fee at the Dubai Tourism Office. You will become a certified vacation home Airbnb provider after receiving approval.

Hosting Permit

Obtain a hosting permit after getting approved. For this, visit DET’s online portal and click on the ‘Add Unit’ option. Here, you’ll see a form. Fill out the form for the property data. After submission, wait for approval from DET. You’ll receive an approval certificate that must be displayed on the property.

Documents Needed for Airbnb Business in Dubai

The following documents are a must to have to become an Airbnb host in Dubai:

Your Emirates ID card and passport copy
Proof of Ejari registration
A landlord’s statement of no objections to the Title deed
Copy of the owner’s passport or Emirates ID
A current DEWA bill, not older than 3 months
Airbnb Business License

Setting up an Airbnb Business Simplified

Starting an Airbnb business in Dubai involves several steps. For instance, prepare your property to provide an exceptional experience to your guests. However, ensure the property complies with Dubai’s regulations. Meet the safety and quality standards set by the DET before listing your property.

Safety and quality standards

The DET has established strict guidelines for home rentals. The property must adhere to these guidelines. These may include property size, furnishing requirements, and basic amenities. These standards are essential. It helps maintain a safe living environment for your guests. Also, helps your business in the long run.

Preparing the property

Creating an inviting and welcoming atmosphere for your guests is another important thing. Think bigger than basic amenities and furniture. For this, invest in high-quality furnishings, decor, and amenities. This way, you can capture the attention of your target audience.

Additionally, all these things must align with your guests’ preferences. This, in turn, ensures the best customer service experience. Consider adding personal touches, like locally sourced artwork or a welcome basket. They create a huge impression on the right user.

Creating Airbnb listings

The better you show, the more you will benefit. Try to give your potential guests the best first impression of your property the best. They will see your property first through the Airbnb listing you post. So, it must look appealing and attractive.

You can hire a professional photographer to capture high-quality images. The pictures showcase the best features and areas of your property.

Costs of Starting an Airbnb Business in Dubai

Start an Airbnb business in Dubai? Then, you must ensure effective financial management from the beginning. We are going to unwrap them one by one.

Initial Start-up Costs

Budgeting beforehand is essential, and start it well before you launch your Airbnb business. Allocate a budget for the initial setup costs. These costs include:

Licences and permits
Furnishing and decorating your property
Investing in professional photography
Covering any legal or administrative fees.

Monitoring income and expenses

Implement financial tracking systems right after you start generating sales. This way, you monitor your income and expenses to make informed business decisions.

Hard for you to do? Getting a financial management consultant can take a lot of stress away from you.

Fulfilling Tax Obligations

In Dubai, Airbnb hosts are subject to various tax regulations. These are the Tourism Dirham fee and Value Added Tax (VAT). Consult with a professional accountant or corporate tax advisor to comply with all relevant tax obligations. Failure to comply with your tax obligations can result in penalties or fines.

Cost Breakdown for Starting an Airbnb Business in Dubai

Expense Category	Estimated Cost (AED)	Estimated Cost (USD)	Notes
Licensing & Regulations	16,896	4,600	DET licensing fees
Property Setup & Furnishing	202,014 – 275,474	55,000 – 75,000	Interiors, amenities, and rent
Marketing & Promotion	18,365 (starting)	5,000/month	Photography + ads
Platform Fees	~3%	Varies	Airbnb service fee
Utilities & Maintenance	1,102 – 2,572/month	300 – 700	DEWA, internet
Legal & Administrative	1,102 – 2,572	100 – 300	Police clearance, documentation
Ongoing Cleaning Services	735 – 1,836/month	200 – 500	Guest turnovers
Additional Costs	Variable	Variable	Visa, staffing, emergencies

Note:

These are estimated costs, and the actual expenses may vary based on factors such as property size, location, staff requirements, and the scale of operations.
Consulting with professional advisors can help you develop a more tailored budget for your specific Airbnb business in Dubai.

Hire Connect Business Center to Start Your Business Today

Looking to start your Airbnb business, there’s no better option than Connect Business Center. The team will take the lead, from obtaining the necessary licenses to setting up your brand-new Airbnb business.

We understand how the Airbnb business model works well, so you’ll get the maximum benefit from your business. Let professionals handle setting up your business while you take care of fulfilling other business needs!