Starting a Coworking Space / Business Center - License Cost & Approvals in Dubai

So you’ve been thinking about starting a business center or coworking space in Dubai?

You’re not alone. In fact, we recently worked with an entrepreneur from the USA who came to us with the exact same idea. He had questions about the license, the profit potential, how to get clients, and - most importantly - what the legal process looks like. We helped him through every step, and now he’s running a fully occupied business center in Business Bay, Dubai.

If you’re reading this, you’re probably in the same boat.

The good news? You’re in the right place. In this article, we’ll walk you through everything you need to know about starting a business center with real examples, profit potential, legal steps, and how to make this business work in a competitive market like Dubai.

Let’s start with the basics.

What Is a Business Center?

Think of it this way - you lease one big office space, divide it into smaller office units, and rent them out to other businesses.

Simple, right?

That’s the core idea behind a business center or coworking space. It’s a furnished, ready-to-move-in office environment where startups, freelancers, and even established businesses can operate without the hassle of setting up their own office from scratch.

The business model is based on convenience. You provide the space, internet, reception desk, maybe even coffee - and they pay monthly or yearly to use it.

But here’s what you need to know…

Why Some Business Centers Struggle (And Why That Matters)

About 8 years ago, this model was booming. Entrepreneurs would lease a huge office space on a 6-cheque plan, do the fit-out, and sublease the smaller units.

But some failed. Why?

Because they underestimated how hard it is to fill up the space. Take Adam, for example. He leased a large office with 6 post-dated cheques, paid the first one, but couldn’t rent out enough units in time. Result? Missed cheques. Losses. Business shutdown. Landlords weren’t happy.

Today, many property owners are cautious about leasing to new business centers - unless the owner has a strong background or clear plan.

That’s why doing it right from day one matters more than ever.

Is Starting a Business Center in Dubai Profitable?

Yes - and here’s the math to prove it.

Let’s say you lease a large, pre-fitted office space of 10,000 sqft in Business Bay for AED 1.5 million/year.

That space can hold 35 private offices. You rent each for AED 50,000/year. That gives you AED 1.75 million/year in revenue - already over the lease amount.

But that’s just one revenue stream. Here’s where it gets interesting:

Additional Revenue Streams

Virtual Offices Ejari

With 10,000 sqft, you can offer around 75 virtual office addresses. At AED 4,500/year, that’s another AED 337,500 in revenue.

Commission on Office Rentals

You also earn commission from leasing. If you charge AED 2,000 per office deal, that’s an extra AED 70,000/year - enough to cover your staff salary.

Conference Room Rentals

Offer meeting rooms by the hour or day. Businesses pay extra for that convenience.

Now you see why the business model works? When set up properly, it generates multiple income streams and stable cash flow.

Legal Requirements for a Business Center License in Dubai

Let’s talk about getting licensed.

Business Activity Code: 6810007

This is for “Business Center” under a Professional License.

Activity Description

Includes providing fully furnished, tech-supported office units. It covers services like mail handling, reception, internet, meeting rooms, and more. It also includes document clearing services.

Important condition: Any company using your center must not occupy the same space for more than 4 years unless otherwise permitted.

Minimum Requirements

Minimum Space: 5000 sqft is minimum requirement to get the license but to make the business profitable the ideal space should be 10,000 sqff.

Location: Dubai Mainland

License Type: Professional

Market Fee: 5% of your annual rental

Approval Required: Dubai DED

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Once your setup is done, you’ll also need an Ejari contract, office layout, and furniture standards approved during the inspection.

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Where to Set Up Your Business Center

Here are the most in-demand locations:

Business Bay –

Central and premium, high footfall

Sheikh Zayed Road –

Popular with SMEs and service companies

Downtown Dubai –

Prestigious location for premium clients

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You’ll find both shell & core (empty spaces) and fully fitted units here. Shell & core spaces often come with a 3-month rent-free period for fit-out.

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Market Research is Your Secret Weapon

You can’t afford to guess your pricing or location. You need solid data.

At COFTT, we’ve helped entrepreneurs research:

a. Competitor pricing
b. Area demand
c. Lease terms
d. Target customer segment
e. Marketing channels

Without research, you’re flying blind.

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Want to dig deeper into your competitors and pricing benchmarks? Reach out - we’ll guide you through a tailored market research strategy.

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How to Market Your Business Center Like a Pro

Setting up your coworking space is just the beginning - the real challenge is filling it up with paying clients. And that’s where smart marketing comes in. If you get this part right, your office units will stay booked all year round. So how do you do it?

Now comes the fun part - getting clients.

Here’s what works:

Let’s break it down in simple terms:

Local SEO: Your First Foot in the Door

Imagine someone in Dubai searching for “affordable offices in Business Bay” or “shared office Downtown.” If your business doesn’t show up, you’ve already lost the customer.

Start with these:

Google My Business:

List your business center with accurate address, photos, timings, and a contact number.

Use local keywords: Like “Business center in Dubai Marina” or “Virtual office Dubai Sheikh Zayed Road” across your website.

Collect reviews: Ask happy clients to drop reviews—more stars mean more visibility and trust.

Result? You show up when people are actively searching for what you offer.

Lead Generation Ads: Bring Clients Straight to You

Don’t wait for people to find you. Go get them - with Facebook and Google Ads.

On Google, run search ads for keywords like “small office for rent in Dubai” or “flexible coworking space Business Bay.”

On Facebook/Instagram, use image or video ads to show off your interiors, packages, or special offers. Target entrepreneurs, freelancers, and startups based in the UAE.

Want leads daily? This is how you do it.

Referral Network: Don’t Ignore the Brokers

This one’s old-school - but still gold.

Offer real estate agents, consultants, and PROs a commission (say AED 1000–1500 per deal) to bring in office rental clients. These people already have client pipelines - why not make them work for you?

You’ll be surprised how fast word spreads in the business community.

Get a professional website with an easy interface, WhatsApp chat, booking form, payment gateway, and office photos. Make the experience smooth, and clients will come back - even refer others.

The Magic Formula: Brand + Clarity + Value

At the end of the day, people pay for:

a. A brand they can trust

b. A clear offer that solves their problem

c. A price that makes sense

So polish your brand, sharpen your messaging, and back it with great service. Do this - and you won’t just have a coworking space, you’ll have a revenue machine.

COFTT Can Help You Launch Business Center Right

We’re not just consultants - we’re your setup partner. At COFTT, we help you with:

a. Business center licensing
b. Fit-out approvals
c. Office leasing and negotiations
d. Market research
e. Business strategy
f. Marketing setup

So whether you’re in the UK, USA, Europe, India or anywhere in the world, we’ve got you covered in Dubai. Starting a coworking space or business center in Dubai isn’t just about renting office space - it’s about building a business that runs itself with the right systems in place.

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If you plan well, research right, and market smart - you’ll create a profitable venture with multiple revenue streams. Contact COFTT today and let’s build it the right way.