Table of Contents
Frequently Asked Questions
What does activity code 7730.83 permit in Dubai
Activity code 7730.83 covers the leasing of aircraft, engines, avionics, ground support equipment, and aviation requisites to airlines, operators, and MRO facilities. The scope spans the full aviation supply chain on a B2B basis.
The licence supports both dry lease (aircraft only) and wet lease (aircraft with crew) structures. Wet lease operations require additional approvals from the UAE General Civil Aviation Authority (GCAA) beyond the standard business licence.
Requisites covered include spare parts, tooling, flight simulators, and ground handling equipment — making the activity broad enough for most aviation leasing business models.
Should I set up on the Dubai mainland or in a free zone for aircraft leasing
A mainland licence issued by the Dubai Department of Economy and Tourism (DET) gives unrestricted access to UAE-based airlines, government entities, and airport operators. It is the cleaner structure if your primary clients are UAE carriers or airport authorities.
Free zone incorporation — Meydan Free Zone in particular — offers 100% foreign ownership, faster setup timelines, and lower entry costs. It suits companies structuring cross-border agreements or targeting international operators rather than UAE-domiciled entities.
PCFC-linked free zones near Dubai's cargo and logistics hubs offer a proximity advantage specifically for ground equipment leasing where physical asset management is operationally important.
Is 100% foreign ownership allowed for an aircraft leasing company in Dubai
Yes. 100% foreign ownership is permitted for the Aircraft & Requisites Leasing activity under the current UAE Commercial Companies Law. This applies to both mainland and free zone structures.
Free zones such as Meydan have historically offered this as a headline benefit, but mainland reforms now extend full foreign ownership to most commercial activities including aviation leasing, removing the previous requirement for a local Emirati partner.
How does UAE Corporate Tax apply to aircraft leasing income
UAE Corporate Tax at 9% applies to taxable income above AED 375,000. Leasing income is generally taxable under this regime unless qualifying free zone conditions are met.
Companies should confirm their tax position with the Federal Tax Authority (FTA) before structuring their entity, as the qualifying free zone rules carry specific substance and activity requirements that not all leasing structures will satisfy.
Does VAT apply to aircraft lease payments in Dubai
VAT at 5% applies to lease payments on equipment under the standard UAE VAT framework. However, aircraft leasing for international transport may qualify for zero-rating, which would significantly affect how you invoice clients.
Zero-rating is not automatic — it requires verification with a registered tax agent before you begin invoicing. Applying the wrong VAT treatment creates compliance risk, so this should be resolved during the pre-launch phase of your setup.
What are the key steps to obtain an Aircraft and Requisites Leasing licence in Dubai
The process begins with confirming activity code 7730.83 covers your intended operations, cross-referencing on the official UAE government portal. If your scope includes multiple leasing categories, a setup adviser can help avoid activity mismatches.
Next, choose your jurisdiction — mainland (DET) for direct UAE client contracts or Meydan Free Zone for foreign founders targeting international operators — and determine your legal structure (LLC, sole establishment, or free zone company).
You then reserve your trade name and submit for initial approval. The relevant authority reviews activity compatibility at this stage; rejections are rare but can occur if the name conflicts with an existing registration.
What is the size and growth outlook of the aircraft leasing market relevant to Dubai
The UAE aviation market is valued at over USD 20 billion, with aircraft leasing representing a growing share of that figure, according to IMARC Group. Dubai accounts for the majority of UAE aviation traffic and aviation is confirmed as a priority sector by Invest in Dubai.
Globally, the aircraft leasing market is projected to grow steadily through 2030 (Mordor Intelligence), underpinned by airline fleet expansion and the structural preference for leasing over ownership. Dubai International Airport remains the world's busiest airport for international passenger traffic, with the UAE handling over 120 million passengers in 2023.
What additional regulatory approvals are needed for wet lease operations in Dubai
Wet lease operations — where aircraft are leased together with crew — require approvals from the UAE General Civil Aviation Authority (GCAA) in addition to the standard 7730.83 business licence from the DET or relevant free zone authority.
The GCAA governs operational safety standards, crew certification, and airworthiness requirements. Founders planning wet lease structures should engage with GCAA requirements before finalising their entity structure, as the additional approvals can affect timelines and compliance costs.
Aircraft & Requisites Leasing License in Dubai
Dubai sits at the centre of one of the world's busiest aviation corridors, making it a logical base for aircraft and requisites leasing operations targeting airlines, charter operators, and MRO businesses across the Middle East, Africa, and South Asia.
This guide covers what the Aircraft & Requisites Leasing licence (activity code 7730.83) covers, where to set up, the step-by-step process, and what it realistically costs — so you can make a commercially sound decision.
What the Aircraft & Requisites Leasing Licence Covers
Activity code 7730.83 permits the leasing of aircraft, engines, avionics, ground support equipment, and aviation requisites to airlines, operators, and MRO facilities. The scope is broad enough to support B2B leasing across the full aviation supply chain.
The licence covers both dry lease (aircraft only) and wet lease (aircraft with crew) structures, though wet lease operations require additional approvals from the UAE General Civil Aviation Authority (GCAA). Requisites include spare parts, tooling, flight simulators, and ground handling equipment.
The demand context is structural: UAE aviation handled over 120 million passengers in 2023, with Dubai International remaining the world's busiest international airport. Leased assets — from engines to ground equipment — are a permanent feature of how airlines manage their fleets and operations.
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Explore Over 2,500+Key Stats at a Glance
- UAE aviation market valued at over USD 20 billion; aircraft leasing is a growing share — IMARC Group
- Dubai accounts for the majority of UAE aviation traffic; aviation confirmed as a priority sector — Invest in Dubai
- Global aircraft leasing market projected to grow steadily through 2030 — Mordor Intelligence
- Dubai International Airport: world's busiest for international passenger traffic
- 100% foreign ownership permitted for this activity under current UAE Commercial Companies Law
Mainland vs Free Zone: Choosing the Right Jurisdiction
A mainland licence issued by the Dubai Department of Economy and Tourism (DED) gives you direct access to UAE-based airlines, government entities, and airport operators without restrictions on local market activity. If your primary clients are UAE carriers or airport authorities, mainland is the cleaner commercial structure.
Free zone incorporation — Meydan Free Zone in particular — offers 100% foreign ownership, faster setup timelines, and lower entry costs. It suits leasing companies structuring cross-border agreements or targeting international operators rather than UAE-domiciled entities.
PCFC-linked free zones near Dubai's cargo and logistics hubs offer a proximity advantage for ground equipment leasing operations where physical asset management matters.
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Calculate NowTax and Compliance Considerations
UAE Corporate Tax at 9% applies to taxable income above AED 375,000. Leasing income is taxable unless qualifying free zone conditions are met. Confirm your position with the Federal Tax Authority (FTA) before structuring your entity.
VAT at 5% applies to lease payments on equipment. Aircraft leasing for international transport may qualify for zero-rating — this requires verification with a registered tax agent before invoicing clients.
Step-by-Step Licence Setup Guide
Step 1 — Confirm your activity code. Verify that 7730.83 covers your intended operations. Cross-reference on the official UAE government portal and consult your setup adviser if your scope includes multiple leasing categories.
Step 2 — Choose your jurisdiction. Mainland (DED) for direct UAE client contracts; Meydan Free Zone for foreign founders targeting international operators. Determine your legal structure — LLC, sole establishment, or free zone company.
Step 3 — Reserve your trade name and submit initial approval. The relevant authority reviews activity compatibility at this stage. Rejections here are rare but can occur if the name conflicts with an existing registration.
Step 4 — Prepare incorporation documents. Passport copies, Emirates ID (if UAE-resident), NOC if currently employed, Memorandum of Association, and a lease agreement for your office space.
Step 5 — Secure office space. Free zone applicants can use a flexi-desk. Mainland requires a tenancy contract registered with Ejari. Office size affects your visa quota.
Step 6 — Submit your application and pay government fees. Free zone licences are typically issued within 3–7 working days once documents are complete.
Step 7 — Open a corporate bank account. Aviation leasing companies may be asked to demonstrate asset ownership or present executed lease agreements during bank onboarding. Prepare commercial documentation accordingly.
Step 8 — Register with the GCAA if applicable. Wet lease operations or direct aircraft management require a separate registration with the UAE General Civil Aviation Authority. This is a regulatory requirement that sits above and beyond the trade licence.
Dubai Trade License from AED 12,500
Get Your LicenseCosts, Timelines, and Ongoing Requirements
Meydan Free Zone licence packages for this activity start from approximately AED 12,500–AED 20,000 per year, inclusive of the licence and a flexi-desk. This is one of the more cost-efficient entry points available for activity code 7730.83.
Mainland DED licences carry higher costs — budget AED 15,000–AED 30,000 or more, depending on office space, activity approvals, and notarisation fees. External legal and PRO costs add to this figure.
- Annual licence renewal is mandatory; late renewal attracts penalties and can affect visa status
- Visa allocations in free zones are tied to your office package; mainland allocations are based on office size
- MOHRE registration is required before hiring any staff in the UAE
Shareholder and Ownership Rules
100% foreign ownership is permitted for this activity under the UAE Commercial Companies Law amendments. There is no requirement for a local sponsor or Emirati partner on the mainland for this activity category. Free zone entities permit full foreign ownership by default.
Conclusion
An Aircraft & Requisites Leasing licence in Dubai is a commercially credible structure for operators targeting the Middle East aviation market — whether you are leasing engines, ground equipment, or full aircraft. The choice between mainland and free zone comes down to your client base and tax position. Setup is straightforward if the documentation is clean and the jurisdiction is matched to your business model.
Speak to a Meydan Free Zone adviser to confirm the right licence structure for your leasing operation and get a cost breakdown before committing.
References
- IMARC Group (imarcgroup.com)
- Invest in Dubai (investindubai.gov.ae)
- Mordor Intelligence (mordorintelligence.com)
- Dubai Department of Economy and Tourism (DED) (eservices.dubaided.gov.ae)
- PCFC-linked free zones (pcfc.ae)
- Federal Tax Authority (FTA) (tax.gov.ae)
- official UAE government portal (u.ae)
- MOHRE registration (mohre.gov.ae)
