DAFZA issues five distinct license types, each mapped to activity clusters. Choosing the wrong license type at setup causes expensive re-application later, so understanding the distinctions matters upfront.
License Type 1: Trading License
For import, export, distribution, storage, and re-export of physical goods. Base fee: AED 22,500 ($6,125) for 1 activity. Additional activities within trading: AED 4,000 ($1,090) each. Warehousing rights: automatic if you lease Cargo Village space.
License Type 2: Service License
For consultancy, marketing, IT services, HR services, business advisory. Base fee: AED 22,500 for 1 activity. Additional service activities: AED 4,000 each. Cross-license activity (e.g., trading + consultancy) requires a separate license — no combined license.
License Type 3: Industrial License
For assembly, packaging, quality control, light manufacturing. Base fee: AED 25,000 ($6,800) for 1 activity, and requires warehouse or industrial unit lease ($15,000+ additional). Only issued if you lease appropriate physical premises.
License Type 4: E-commerce License
Newer license (introduced 2021) specifically for online-only retail operations. Base fee: AED 20,500 ($5,585). Restrictions: cannot maintain physical retail store; must have online payment gateway integrated within 90 days of license issue.
License Type 5: Aviation Services License
Specific to aircraft leasing, MRO (maintenance/repair/overhaul), aviation training, ground handling. Base fee: AED 35,000+ ($9,525+) and requires GCAA (General Civil Aviation Authority) approval before DAFZA will issue.
Renewal — What Happens Every Year
All DAFZA licenses renew annually at 90% of initial license cost. Plus: office lease renewal (varies by tier), visa renewals coming due, mandatory audit ($600-1,500). Late renewal penalty: AED 250/day from day 1, license suspended at day 30, cancelled at day 90.
Adding Activities Mid-Year
You can add activities within the same license type at any time by paying the per-activity fee (AED 4,000-4,500) and submitting a Certificate of Amendment application (2-3 day turnaround). Adding a cross-category activity (e.g., adding manufacturing to a trading license) requires a fresh license application.