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Drone trading in Dubai: company and requirements

How to set up a drone (UAV) trading company in Dubai: official activity 5190-17, AED 50,000 share capital, the role of the DCAA and VAT for the sector.

Marina Ramirez Lorca
by Marina Ramirez Lorca Founder and Managing Director of LorcaBase

Published on
4 min read

The drone has gone from tech gadget to working tool: infrastructure inspection, surveying and mapping, aerial imagery for construction and real estate, precision agriculture. In the Gulf — with construction megaprojects, kilometres of coastline and an energy industry — demand for professional equipment, and for suppliers who back it with serious support, grows every year.

For the international distributor or integrator, that opportunity has its own official activity in the DMCC listing, within its Aviation sector: Unmanned Aerial Vehicles (Drone) Trading. This guide breaks it down: what it covers, why the civil aviation authority appears, and how to set up the structure without surprises.

The official activity: what it allows

The activity, code 5190-17, covers the resale of unmanned aerial vehicles (UAV) and drones controlled by the remote control of a pilot on the ground, intended for the uses the listing itself enumerates:

ConditionDetail
Activity code5190-17
Licence typeTrading
Minimum share capitalAED 50,000
SpaceAny type within the free zone
Territorial restrictionNo restriction
Sector regulatorDCAA — Dubai Civil Aviation Authority

The profile it describes is the professional drone — the working equipment of surveyors, inspectors and aerial imaging teams — and it fits both the pure distributor and the integrator who sells the equipment with training and service.

A drone is an aircraft: the role of the DCAA

What sets this activity apart from ordinary retail is the sector regulator: the Dubai Civil Aviation Authority. For the authority, a drone is an aircraft, and that organises the business on two planes:

  1. Selling is a commercial activity under your trading licence, with any sector approvals that apply to your specific operation handled with the authority during the process.
  2. Flying is a separate framework — and it is your customer’s: in Dubai and across the UAE, drone use requires equipment registration, operator permits and respect for authorised flight zones. The professional seller who explains that boundary at the counter sells more and avoids problems: the customer who crashes their drone in a restricted zone does not come back, while the one who operates legally returns and expands their fleet.

That boundary is also a commercial argument: corporate buyers — inspection fleets, surveying firms, production companies — value the distributor who knows the regulatory framework as well as the catalogue.

Taxation of the drone trade

There are no exotic perimeters here: drones are taxed as general goods. Sales in the local market carry 5% VAT, and exports outside the UAE can qualify for the 0% rate if the conditions of the regulations are met — relevant if your model serves customers in Africa or the Middle East from Dubai. VAT registration is mandatory once annual turnover exceeds AED 375,000.

On profits, Corporate Tax at 9% above AED 375,000, with the qualifying free zone regime as a possible route to 0% subject to its conditions. And well-kept trading accounting: inventory by model and serial number, margins by channel (direct sales, B2B, export) and the 5%/0% classification defined before the first invoice.

Steps to set up the company

  1. Activity and scope: confirm that 5190-17 covers your operation and consider complementary activities (training, technical service) if your model includes them.
  2. Structure and capital: a company with share capital of AED 50,000.
  3. Incorporation in the free zone and a space as the registered address — from flexi desk to warehouse, depending on stock.
  4. Sector approvals that apply to your case, handled with the authority during the process.
  5. Banking and payment gateways for B2B sales and, where applicable, online.
  6. VAT and accounting from day one, with inventory by serial number.

Conclusion

Drone trading in Dubai comes with a simple entry structure and a buying market on the other side of the counter: a specific official activity, reasonable capital, no territorial restriction and the civil aviation authority as the named regulator. The differentiating key is not the licence but the positioning: the distributor who masters the boundary between selling and flying — and explains it to every customer — becomes the go-to supplier for the region’s professional fleets.

References

Sources and references

References used to contextualise this page and its main data points.

DMCC — Dubai Multi Commodities Centre (portal oficial)

https://dmcc.ae/

DCAA — Dubai Civil Aviation Authority (portal oficial)

https://www.dcaa.gov.ae/

Federal Tax Authority: VAT

https://tax.gov.ae/en/taxes/vat.aspx

Federal Decree-Law No. 47 of 2022 on Corporate Tax

https://mof.gov.ae/wp-content/uploads/2022/12/Federal-Decree-Law-No.-47-of-2022-EN.pdf

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FAQ

Frequently asked questions

What exactly does the drone trading activity cover?
The resale of unmanned aerial vehicles (UAV) and drones controlled by the remote control of a pilot on the ground, intended for surveying, still imagery and video, mapping and inspection — the literal definition in the official listing. This is the professional end of the drone market: the working tool, not the toy.
Can my customers just fly the drone, or do they need permits?
Flying is a separate world: in Dubai and across the UAE the use of drones is regulated — equipment registration, operator permits and authorised flight zones, under the civil aviation authority. You sell the equipment; whoever operates it must comply with their own framework. Informing the customer clearly about that boundary is also good commercial practice.
What role does the DCAA play in this licence?
The listing names the Dubai Civil Aviation Authority (DCAA), the emirate's civil aviation authority, as the activity's regulator: in its eyes, the drone is an aircraft. Buying and selling is a commercial activity, but any sector approvals that apply to your operation are handled with the authority during the process.
What capital does the licence require and what VAT applies?
A Trading licence with a minimum share capital of AED 50,000, any type of space as the registered address and no territorial restriction. On VAT, local sales are taxed at the standard 5% and exports outside the UAE can qualify for 0%; VAT registration is mandatory from AED 375,000 in annual turnover.
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