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Quantum computing company in Dubai: licence

Quantum computing company in Dubai: licence with the 3 activities of the AI / Quantum Tech group in RAK DAO — R&D, software and secure communications.

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

Published on
5 min read

Quantum computing is living through the moment when the advantage gets decided: the algorithms that optimise portfolios, simulate molecules or will break today’s encryption are being written now, and the countries that want to capture that talent compete to offer it a framework to incorporate in. The UAE has made its move, and for the sector’s founder the question is once again the usual one: which company to set up, with which licence and with which official activity.

The answer sits in the AI / Quantum Tech group of the official activity list of RAK DAO / Innovation City, the Ras Al Khaimah free zone specialised in digital assets, Web3 and artificial intelligence. The group gathers three activities covering the sector’s spectrum — research, applications and security — all with a low risk rating and combinable under a single licence. This guide breaks them down one by one: what each activity allows, where its limits sit and how the whole is taxed.

The activity group: general map

ActivityRisk ratingAdditional cost
Quantum Computing R&DLowAED 8,899
Quantum Software SolutionsLowAED 8,899
Quantum Secure CommunicationsLowAED 8,899

The costs are additional to the free zone licence and come from the official list — like any published fee, it pays to confirm them with the authority before budgeting. That all three activities share a low risk rating and the same cost simplifies the design: the choice depends only on your model, not on the processing.

The three activities, one by one

Quantum computing R&D (Quantum Computing R&D)

It covers the research and development of quantum hardware and algorithms, plus the provision of expert knowledge in quantum software. The official entry marks the limit clearly: no commercial sale of devices — the company sells research and expertise, not machines. Its declared scope positions Ras Al Khaimah as a research hub in next-generation computing, in a field that today has no dedicated regulatory body.

Quantum software (Quantum Software Solutions)

It covers the development of applications built on quantum algorithms — optimisation, simulation, encryption — which clients run on quantum cloud platforms. It is the most commercial activity in the group: it does not require owning a quantum computer, because the model relies on quantum computing as a third-party service, and its declared scope fills the quantum software gap, complementing the UAE’s national AI strategy with the quantum dimension.

Quantum secure communications (Quantum Secure Communications)

It covers building quantum-resistant encryption tools and communication protocols — such as quantum key distribution (QKD) software — to protect data against future threats. Its declared scope connects it with Web3 cybersecurity and future-proof solutions, with an important practical nuance: as it is software, no telecommunications licence is needed.

The limits of the group

The three entries draw the same perimeter: research, software and services yes; commercial devices and network operation no. The researcher does not sell machines. The developer runs on third-party cloud platforms. The security specialist delivers software and protocols, not network operation. If the model crosses those lines — commercialising quantum hardware, operating communications infrastructure — the structure needs more pieces, and it is best to design them before incorporating. For the intensive classical-computing layer — selling computing power as a service — the same list has its own activity, which we analyse in the guide to the high-performance computing company; and the artificial intelligence activities of the same list — chips, edge, ethics — in the guide to the artificial intelligence company.

Taxation of the quantum company

The framework is that of any services and technology company in the Emirates. On VAT, services to local clients are taxed at 5% and supplying clients outside the country can qualify for the 0% rate under the conditions of the regulations — and in a sector where the natural client is the laboratory, the bank or the global technology firm, exported services are the typical case. VAT registration is mandatory once you exceed AED 375,000 of annual taxable turnover. On profits, Corporate Tax at 9% above AED 375,000. For a company mixing funded research, software licensing and projects, the accounting that classifies every flow from the first invoice prevents the problem where it usually starts.

Steps to set up the company

  1. Activities and scope: choose from the group the ones that cover your actual model — and combine them under the same licence if you do more than one thing (R&D + software, software + security).
  2. Structure: a company in the free zone with the activities added, each with its own additional cost, to be confirmed with the authority.
  3. File: shareholders’ KYC and a description of the model — with a low risk rating on all three activities, the process is among the lightest in the catalogue.
  4. Incorporation and space, from a flexi desk to an office, depending on the team.
  5. Visas for the founder and the technical team.
  6. VAT and accounting from the start, with the 5%/0% classification defined before the first invoice.

Conclusion

The AI / Quantum Tech group turns a frontier sector into an orderly procedure: the researcher, the developer and the quantum security specialist each have an official activity with a published name, low risk rating and cost, combinable under a single licence in a free zone built for their ecosystem. The limits come written into the entries themselves — research without selling devices, develop on the cloud, secure without operating networks — and within that perimeter the structure is simple and fast. In a field where the advantage is measured in years of head start, having the company ready before the market is, precisely, the play.

References

Sources and references

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

RAK DAO / Innovation City: portal oficial

https://innovationcity.com/

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

Which activities does the Quantum Tech group include?
Three, according to the official list: Quantum Computing R&D (research and development of quantum hardware and algorithms), Quantum Software Solutions (applications built on quantum algorithms to run on quantum cloud platforms) and Quantum Secure Communications (quantum-resistant encryption tools and communication protocols). All three carry a low risk rating and can be combined under a single licence.
Can I sell quantum computers with these activities?
No: the R&D activity's own entry excludes the commercial sale of devices. The group's perimeter is research, software and services — the company sells knowledge, applications and protocols, not quantum hardware. Commercialising devices would be a different conversation, with different requirements.
Do secure communications require a telecommunications licence?
According to the declared scope of Quantum Secure Communications, no: as it is software — encryption tools and protocols, such as quantum key distribution (QKD) software — no telecommunications operator licence is needed. Operating communications networks as a service would indeed fall outside the perimeter.
How much does it cost to add these activities to the licence?
All three carry the same additional cost in the official list: AED 8,899 each, added on top of the free zone licence cost. Like any published fee, it pays to confirm it with the authority before budgeting.
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