Table of Contents
Frequently Asked Questions
What does the Provision of Time-Share Exchange Services licence (activity code 7990.02) actually authorise a business to do
Activity code 7990.02 authorises businesses to facilitate the exchange of time-share entitlements — connecting owners of time-share units across different resorts or properties so they can swap usage rights within an organised network.
It is important to note that this is exchange facilitation, not the direct sale of time-share units or property brokerage. Operators must ensure their business model reflects this distinction when applying.
Who is this licence most suited for
The licence is best suited for operators whose business sits at the intersection of hospitality and real estate exchange services. This includes international time-share exchange networks, hospitality groups running fractional ownership programmes, real estate developers offering branded residence products, and technology platform operators building exchange marketplaces.
The activity also aligns well with Dubai's expanding short-term rental market and its growing inventory of branded residences and resort-style developments, making it commercially relevant for a broad range of hospitality-linked businesses.
Which authority issues this licence and are there free zone options available
For mainland operations, the licence is issued by the Dubai Department of Economy and Tourism (DED). Free Zone authorities — including Meydan Free Zone — are also available as an alternative jurisdiction.
Free Zone registration is particularly suitable for operators whose service model is remote, platform-based, or focused on international clientele rather than direct UAE consumer engagement. Mainland registration is the better choice for businesses needing direct access to UAE-based clients or government contracts.
What are the key differences between setting up on the mainland versus in a free zone for this activity
Mainland (DED) registration provides direct access to UAE-based clients and eligibility for government contracts, but may involve additional ownership structure considerations depending on the applicant's nationality.
Free Zone registration — such as through Meydan Free Zone — offers benefits including 100% foreign ownership, lower setup costs, and a structure better suited to internationally-focused or platform-based service delivery. The right choice depends on your target client base and operational model.
Is there a dedicated sector regulator for time-share exchange services in the UAE
No. Time-share exchange services do not fall under a dedicated sector regulator in the UAE. There is no equivalent of the Central Bank of the UAE (for financial services) or the Dubai Health Authority (for healthcare) overseeing this activity specifically.
General commercial law applies alongside DED conduct guidelines and UAE consumer protection regulations administered by the Ministry of Economy. Operators should pay careful attention to consumer-facing obligations including disclosure requirements, contract terms, and cancellation rights before launching.
What are the VAT obligations for businesses holding this licence
Standard 5% VAT applies to this activity. VAT registration with the Federal Tax Authority (FTA) is mandatory once annual turnover exceeds AED 375,000.
If you expect to reach that threshold quickly, it is advisable to register before commencing operations. Penalties apply for late registration, so proactive compliance is strongly recommended from the outset.
What is the step-by-step process for obtaining this licence
The setup process follows a clear sequence. First, choose your jurisdiction — mainland (DED) or a free zone such as Meydan — based on your business model and target market. Second, reserve your trade name via the DED e-Services portal or your chosen free zone authority, ensuring it does not conflict with existing registered entities.
Third, define your business activity and confirm that activity code 7990.02 is listed on your application. Some jurisdictions permit bundling with complementary activities such as travel agency services or property-related activities, which may be relevant depending on your wider business scope.
What is the broader market context for launching a time-share exchange services business in Dubai
Dubai recorded over 17 million international visitors in 2023, according to the Department of Economy and Tourism, underscoring the scale of hospitality demand in the emirate. This visitor volume drives ongoing growth in branded residences, resort-style developments, and fractional ownership products — all of which create natural demand for structured exchange mechanisms.
According to Invest in Dubai, the emirate continues to position itself as a hub for hospitality investment and tourism-linked commercial activity, making this an opportune time for operators in the time-share exchange space to establish a presence.
Apply for a Provision of Time-Share Exchange Services License in Dubai
Dubai's hotels and property market keep pulling in international operators, and the Provision of Time-Share Exchange Services license sits right where the two meet.
This guide covers what activity code 7990.02 allows, who it suits, the setup steps in order, and the rules you need to understand before you put money in.
Key Stats at a Glance
What This License Covers
Code 7990.02 lets you arrange the exchange of time-share entitlements. In plain terms, you connect owners of time-share units at different resorts so they can swap usage rights inside an organised network.
Read that carefully, because the boundary is narrow. You help owners swap what they already hold. You do not sell time-share units, and you do not broker property. Make sure your business model matches the code before you apply.
Who This Suits
- International time-share exchange networks
- Hospitality groups running fractional ownership programmes
- Property developers offering branded residence products
- Technology platform operators building exchange marketplaces
If your business sits anywhere in that space, this is the right code.
The activity fits Dubai well. The city's short-term rental market keeps expanding, and the stock of branded residences and resort-style developments keeps growing. Structured exchange is a natural by-product of that. Invest in Dubai sets out how the emirate positions itself as a hub for hospitality investment and tourism-linked business.
The Regulatory Picture
Time-share exchange services do not have a dedicated regulator in the UAE. There is no equivalent of the Central Bank of the UAE for financial services or the Dubai Health Authority for healthcare.
What applies instead is general commercial law, DET conduct guidelines, and UAE consumer protection rules administered by the Ministry of Economy.
That is not a free pass. It means the consumer-facing side deserves more attention, not less.
Disclosure
Be clear about what a member is buying and what they are not.
Contract terms
Write them so an ordinary customer can follow them.
Cancellation rights
Know the rules and build them into your terms before you sell anything.
VAT
You must register with the Federal Tax Authority once annual turnover passes AED 375,000. If you expect to hit that quickly, register before you start. There are penalties for registering late.
Mainland or Free Zone
Mainland lets you deal directly with UAE consumers and government entities without restriction. A free zone license keeps your trade inside the zone or international, so serving mainland clients directly needs a local service agent or a dual-license setup.
Meydan Free Zone gives you full foreign ownership, fast setup, and competitive annual costs. For exchange platform operators whose members are mostly international, or who run everything digitally, it is a practical and cost-efficient choice.
Mainland needs a physical office with a valid Ejari-registered lease. Budget for that when you compare first-year totals.
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Step-by-Step Setup Guide
- Step 1, choose your jurisdiction: Mainland DET for direct access to UAE consumers and government contracts. Meydan Free Zone for full foreign ownership, lower setup costs, and international delivery.
- Step 2, book your trade name: Submit through the DET e-Services portal or your free zone authority. The name must not clash with a registered company.
- Step 3, define your activity: Confirm code 7990.02 is on your application. Some jurisdictions let you bundle related activities such as travel agency services or property management, so ask at this point.
- Step 4, prepare your setup documents: Passport copies for all shareholders and directors, a No Objection Certificate where it applies, the Memorandum of Association, and a lease for your registered office.
- Step 5, submit the application: Through the DET e-Services portal or your free zone system. Government fees are paid here.
- Step 6, get initial approval and collect your license: For mainland, sign your tenancy contract and complete Ejari registration before the license is issued. Free zone operators follow the zone's own tenancy process.
- Step 7, handle post-license registrations: Register for VAT with the FTA if it applies, then open your corporate bank account. Allow more time for the bank than for the license.
What It Costs and How Long It Takes
Mainland fees
For a mainland DET license, budget AED 15,000 to AED 30,000 or more in first-year government fees, before office rent. The final figure moves with activity code, office size, and visa numbers.
Free zone packages
Free zone packages start from around AED 12,500 to AED 18,000 all in for a flexi-desk setup, covering the license and one visa allocation.
Timelines
Free zone setup usually completes in 3 to 7 working days if your documents are complete. Mainland DET processing runs 7 to 15 working days.
The real bottleneck
Neither of those is your bottleneck. The bank account is. Allow 4 to 8 weeks to get a corporate account live, and pick a bank that already works with hospitality, property, or tourism businesses. They will be far more comfortable with your model during onboarding.
Visa allocation
Visa allocation follows office space. A flexi-desk typically supports 1 to 3 visas. A dedicated office unlocks a higher quota, so factor that in at the start.
Market Opportunity
Dubai recorded over 17 million international visitors in 2023, according to Visit Dubai and the Department of Economy and Tourism. That is the base everything else sits on.
Those numbers keep pulling developers towards branded residences, resort-style projects, and fractional ownership. Each one creates owners who would rather swap what they hold than use the same unit every year.
Invest in Dubai continues to position the emirate as a hospitality investment hub. For an exchange operator that means inventory and members growing at the same time.
Conclusion
The Provision of Time-Share Exchange Services license is a focused, workable activity for operators looking to tap Dubai's hospitality and fractional property market.
The regulatory path is simpler than financial services or healthcare. The decisions that matter are jurisdiction, office type, and VAT readiness. Get those right at the start and the setup is clean.
Speak to the Meydan Free Zone team to confirm the right jurisdiction for your business model and get an accurate cost breakdown before you commit.
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