Can I run Airbnb / short-term rentals on a Dubai property, and what licence do I need?

Short-term rental in Dubai is fully legal and well-regulated. The regulator is the Department of Economy and Tourism (DET), under the Holiday Homes scheme that has been in force since 2016 and is one of the most mature short-term-let frameworks in the GCC. Any owner, individual or corporate, can rent a residential unit by the night, but only after registering each unit with DET and paying the per-unit annual fee.

What licences and fees apply

• DET Holiday Homes permit: AED 1,520 per unit per year (renewed annually)
• Knowledge & Innovation fee: AED 10 per unit
• Tourism Dirham levied per occupied room-night: AED 10–15 depending on classification
• Trade licence: required only if operating 4+ units commercially (~AED 6,000)
• DEWA registration in operator's or owner's name

Self-managed vs operator route

Owners choose between self-management (own DET licence, list directly on Airbnb/Booking.com, handle cleaning) and operator route (a licensed Holiday Homes operator runs everything in exchange for 18–25% of gross revenue). Operators handle DET compliance, dynamic pricing, guest screening, and cleaning rotations.

Realistic yield maths

• Gross daily rate (1BR Marina, 2026): AED 600–900
• Occupancy: 65–80% (location dependent)
• Operator share or self-managed cost (cleaning, listing, utilities): 30–40% of gross
• Net yield on capital: 8–12% typical, 12–15% in prime micro-locations
• vs traditional 12-month let: 5–7% net

Risks to model

• Seasonality: May–September drop in occupancy (30–50%)
• Developer-level restrictions: a handful of buildings (Burj Khalifa Residences, some Emaar towers) restrict daily lets at HOA level, check before purchase
• Furnishing capex: AED 80,000–150,000 for a turnkey 1BR fit-out
• Wear-and-tear: refurbishment cycle ~3 years on STR vs ~7 on long let