Business Setup in DIAC Dubai 2026: Complete Guide
Dubai International Academic City (DIAC) is the MENA region’s largest free zone built exclusively for the education sector. Established in 2007 and managed by TECOM Group PJSC, DIAC provides purpose-built campuses, commercial offices, co-working spaces, and a thriving academic ecosystem for universities, professional training companies, ed-tech businesses, and education support services. If you want to set up an education-related company in Dubai, DIAC’s combination of sector-specific infrastructure, a captive audience of 28,000+ students, and access to globally recognised academic partners makes it the natural home for your business.
Setting up in DIAC means more than obtaining a licence. You join a community that includes Heriot-Watt University, University of Birmingham Dubai, Amity University Dubai, BITS Pilani Dubai Campus, Murdoch University, Middlesex University, and Manchester Business School, among others. Through TECOM Group’s axs digital services platform, you access over 200 corporate and government services, covering trade name reservations, visa processing, licence renewals, and KHDA applications, all through one integrated portal.
This guide covers everything you need to know about company formation in DIAC: entity types, the step-by-step registration process, documents required, office and facilities options, visa allocation, costs confirmed from official sources, and the key regulatory steps for education businesses including KHDA approvals.
What is Dubai International Academic City (DIAC) and who regulates it?
Dubai International Academic City is the world’s largest purpose-built academic free zone, dedicated specifically to higher education and knowledge-sector businesses. It was established in 2007 as part of the TECOM Group portfolio. TECOM Group PJSC, listed on the Dubai Financial Market (DFM), is the developer, operator, and licensing authority for DIAC and nine other strategic business districts across Dubai. According to TECOM Group’s official figures, its 10 districts collectively serve more than 12,200 customers and are home to over 147,000 professionals.
DIAC’s mandate is clear: to support institutions and businesses that contribute directly to education and human development. Unlike generalist free zones where almost any commercial activity is permitted, DIAC focuses on higher education institutions, professional training companies, eLearning platforms, academic research organisations, ed-tech startups, and educational support services. This sector focus creates a highly targeted community and a natural student and academic talent pipeline.
Who established DIAC and what authority does it carry?
TECOM Group PJSC is the licensing and regulatory authority for DIAC. Businesses operating under a DIAC free zone licence are subject to TECOM Group’s free zone regulations. TECOM Group also manages the axs digital services portal: its award-winning one-stop-shop for over 200 corporate and government services, through which all DIAC licensing, visa, and regulatory transactions are processed.
What is DIAC’s relationship with KHDA?
For businesses offering accredited academic programmes or regulated training within Dubai, the Knowledge and Human Development Authority (KHDA) is an additional regulatory layer. KHDA is Dubai’s government authority responsible for the quality and growth of private education. Any institution operating at DIAC that delivers formal academic programmes, degrees, diplomas, or professional certifications may require a separate KHDA licence or approval. KHDA fees and requirements vary by the type, level, and scope of the educational activity and are in addition to TECOM Group’s free zone registration fees. Businesses should factor KHDA approval timelines, which can take several months, into their overall setup planning.
What types of companies and business activities are allowed in DIAC?
DIAC is purpose-built for education and knowledge-sector businesses. The free zone accommodates a broad but focused range of entity types and activities, all connected to the creation, delivery, or support of education and learning.
Higher education institutions and universities
Full university branch campuses are DIAC’s flagship offering. Globally recognised institutions can establish purpose-built campuses within DIAC, offering bachelor’s, postgraduate, and doctoral programmes to the UAE’s diverse student population. DIAC provides built-to-suit campus spaces with lecture halls, laboratories, student accommodation options, and retail amenities within the same ecosystem.
Professional training and corporate learning companies
Professional training providers, corporate learning and development companies, vocational training centres, language schools, and examination and assessment centres all find a natural home at DIAC. The presence of 28,000+ students and thousands of academic professionals creates an immediate market for test preparation, language coaching, professional certifications, and skills training services.
Ed-tech and eLearning businesses
Ed-tech startups and established eLearning platform operators can register as Free Zone LLCs at DIAC. The free zone’s academic community provides a ready user base and potential partnership ecosystem. Through TECOM Group’s in5 incubation programme, early-stage ed-tech ventures can access mentorship, investor introductions, and subsidised workspace to accelerate their growth.
Education support services and consultancies
Academic publishers, educational consultancies, student recruitment agencies, curriculum developers, e-learning content producers, research organisations, and academic software providers are all eligible to register at DIAC. The free zone also accommodates hospitality and retail businesses that serve the academic community, from campus catering and student housing operators to bookshops and stationery suppliers.
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What are the steps to set up a company in DIAC?
Company formation at DIAC follows a structured process managed through TECOM Group’s axs digital services platform. The process applies whether you are forming a new Free Zone LLC or registering a branch of an existing UAE or foreign company.
Step 1: Determine your entity type and business activity
The first decision is your legal structure. DIAC offers three main entity types: a Free Zone LLC (for new businesses), a branch of an existing UAE company, or a branch of a foreign company. If you are an individual professional in education, media, or technology, the GoFreelance permit (issued under TECOM Group’s Dubai Knowledge Park community) is also available. Your entity type will determine your liability structure, capital requirements, and the range of activities you can undertake. Confirm with the TECOM Group business development team which activity codes apply to your specific business model.
Step 2: Reserve your trade name
Once your activity and entity type are confirmed, you reserve a trade name through the axs portal. Trade names must comply with UAE naming guidelines: they cannot reference government bodies, contain offensive terms, or duplicate an existing registered name. For university branches, the trade name will typically reflect the parent institution’s name.
Step 3: Submit your application and initial documents
Submit your completed application through the axs portal, accompanied by the initial documentation (see the Documents Required section below). The TECOM Group team will review your application, confirm your activity codes, and issue an initial approval. This stage typically takes five to ten business days.
Step 4: Select and lease your office or campus space
Following initial approval, you select and sign your office or campus space agreement with TECOM Group. DIAC offers a range of space types from co-working desks to full built-to-suit campuses (see the Facilities and Office Options section). Your space lease agreement is required to proceed to final licence issuance.
Step 5: Pay fees, receive your licence, and apply for visas
On receipt of the signed lease and payment of all applicable fees, DIAC issues your free zone trade licence digitally. With your licence and establishment card in hand, you can apply for investor and employment visas through the axs portal. Visa processing, including the medical fitness test and Emirates ID registration, typically takes seven to fourteen working days per applicant. For institutions requiring KHDA approval of academic programmes, that process runs in parallel and should be initiated as early as possible.
What documents are required to register a company in DIAC?
Documentation requirements at DIAC vary by entity type. The lists below reflect the standard requirements published by TECOM Group via the axs portal. TECOM Group may request additional documents depending on your specific business activity or the origin country of your shareholders.
Documents for a Free Zone LLC (new business)
- Completed application form (submitted via the axs portal)
- Passport copies of all shareholders, directors, and the proposed general manager
- Curriculum vitae (CV) of the general manager
- Business plan or business description outlining your proposed activities
- No-objection letter from current UAE sponsor or employer (if applicable)
- Two passport-size photographs of each shareholder and director
Once initial approval is granted and the space lease is signed, you will also need to sign the Memorandum of Association (MoA) and Articles of Association (AoA) for the FZ-LLC.
Documents for a branch of a foreign company
- Completed application form (via axs portal)
- Certificate of incorporation of the parent company (attested and legalised)
- Memorandum and Articles of Association of the parent company (attested)
- Board resolution authorising the establishment of a UAE branch
- Power of attorney in favour of the branch manager
- Passport copy of the proposed branch manager
- Audited financial statements of the parent company (last two years)
- Existing trade licence or equivalent regulatory approval from the home country
All foreign documents need to be attested by the relevant authorities in the country of origin and then by the UAE Embassy or consulate, followed by the UAE Ministry of Foreign Affairs (MoFA). Allow four to six weeks for attestation if sourcing documents from outside the UAE.
Documents for a branch of a UAE company
- Completed application form
- Copy of the UAE parent company’s trade licence
- Board resolution authorising the branch formation
- Passport copy of the proposed branch manager
No-objection letter from the UAE parent company
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What are the government fees and setup costs at DIAC?
DIAC’s fee structure comprises several components: the registration and licence fee, the space or facilities cost, and the visa and establishment card fees. The table below sets out the costs confirmed from official TECOM Group sources as at May 2026.
| Cost Item | AED (per year) | USD Equivalent (approx.) |
| GoFreelance permit (freelance licence + co-working access) | AED 7,520 | ~USD 2,048 |
| GoFreelance 1-year employment visa | AED 4,600 | ~USD 1,252 |
| GoFreelance 2-year employment visa | AED 5,042 | ~USD 1,373 |
| Establishment card (required for visa sponsorship) | AED 2,000 | ~USD 545 |
| D/Quarters Open Quarters (shared hot desk, monthly) | AED 1,000 / month AED 12,000 / year |
~USD 272 / month |
| D/Quarters Desk Quarters (dedicated desk, monthly) | AED 3,000 / month AED 36,000 / year |
~USD 817 / month |
| D/Quarters Office Quarters (private office, monthly) | AED 4,500 / month AED 54,000 / year |
~USD 1,225 / month |
| FZ-LLC registration and annual licence fee | Quote via axs portal | N/A |
| Branch registration and annual licence fee | Quote via axs portal | N/A |
Note: FZ-LLC and branch registration fees at DIAC are not published as fixed tariffs on the official DIAC website (diacedu.ae). TECOM Group issues individual quotations based on the type of entity, specific business activities, and space requirements. Contact the TECOM Group business development team through the axs portal at axs2.my.site.com or via tecomgroup.ae to obtain an itemised quote. All fees above are sourced from the official diacedu.ae website and are subject to change.
KHDA fees: a separate cost for educational institutions
Businesses delivering regulated academic programmes at DIAC must obtain approval from KHDA (Knowledge and Human Development Authority). KHDA charges application and annual approval fees that vary by institution type, number of programmes, student enrolment levels, and the qualification level offered (vocational, undergraduate, postgraduate). KHDA fees are entirely separate from TECOM Group’s free zone registration fees and should be budgeted for independently. Contact KHDA directly at khda.gov.ae for the current fee schedule.
UAE Corporate Tax: what applies to DIAC companies
The UAE introduced federal corporate tax under Federal Law No. 47 of 2022, effective for financial years beginning on or after 1 June 2023. The standard rate is 9% on taxable income exceeding AED 375,000 (approximately USD 102,000). For free zone entities, a 0% rate may apply on ‘qualifying income’ if the business meets the criteria to be a Qualifying Free Zone Person (QFZP) as defined by the Federal Tax Authority. Businesses must verify their qualifying status with the Federal Tax Authority (tax.gov.ae) and, where applicable, with their licensed activity codes. All DIAC-registered businesses, including GoFreelance permit holders, are subject to UAE corporate tax rules.
What is the minimum share capital requirement at DIAC?
DIAC’s official website (diacedu.ae) does not publish a standard minimum share capital figure for Free Zone LLCs. The minimum capital requirement is confirmed at the point of registration and is determined by TECOM Group based on your specific business activity and entity type. Businesses should raise this directly with the TECOM Group business development team when requesting a licence quotation.
For context: GoFreelance permit holders operate as individual professionals and have no share capital requirement. For a branch of a foreign or UAE company, the parent company’s existing capitalisation is relevant; no separate share capital is required for the branch itself.
As a general principle for UAE free zones, share capital for an FZ-LLC is typically paid up at registration and held in a UAE bank account in the company’s name. The Federal Law No. 32 of 2021 on Commercial Companies does not directly govern free zone entities, which are instead regulated by their respective free zone authority’s own regulations. TECOM Group’s current capital requirements should be confirmed directly before you begin the registration process.
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How many visas can I get with my DIAC licence?
The number of visas available to a DIAC-registered business depends on the type and size of the office or facilities space you lease. TECOM Group applies a visa allocation that scales with your physical footprint.
Visa allocation by office type
| Space Type | Visa Allocation | Notes |
| GoFreelance permit | 1 (permit holder only) | No staff sponsorship permitted on a freelance licence |
| D/Quarters Open Quarters (hot desk) | 1 work permit | Shared desk arrangement |
| D/Quarters Desk Quarters (dedicated desk) | 2 work permits | Per TECOM Group D/Quarters offering |
| D/Quarters Office Quarters (private office) | 2 work permits and above | Scales with office size |
| Commercial office / campus space | Proportional to space taken | Confirmed at the point of leasing |
For university campuses and larger commercial tenants, visa allocation is determined in proportion to the floor space leased. Institutions with significant staff and faculty requirements should confirm the exact visa formula with the TECOM Group leasing team at the time of space selection. For businesses needing large numbers of employment visas for teaching and administrative staff, the space leased will need to be sized accordingly.
Note on freelance licences: GoFreelance permit holders cannot sponsor employees or additional visas. The permit covers the individual freelancer only. If you need to grow a team, you will need to upgrade to an FZ-LLC or branch entity.
What facilities and office options are available at DIAC?
DIAC and the wider TECOM Group ecosystem offer a range of space types to suit businesses at every stage of growth, from individual freelancers to large university campuses. According to the official diacedu.ae website, the current offerings are as follows.
Commercial spaces and built-to-suit campuses
DIAC’s flagship offering is its purpose-built commercial spaces and campus facilities for universities and larger educational institutions. Spaces range from compact offices for education support businesses and training company administration teams to full multi-faculty campuses with lecture halls, laboratories, and student amenities. Facilities are customisable to the tenant’s operational and academic requirements. Featured partners including Heriot-Watt University, University of Birmingham Dubai, Amity University Dubai, and the University of Wollongong in Dubai all operate from custom campus spaces within DIAC.
D/Quarters co-working spaces
D/Quarters is TECOM Group’s modern co-working brand, available to all TECOM-licensed businesses. As confirmed on the official diacedu.ae website, D/Quarters offers three tiers:
| Tier | Monthly Fee (AED) | Visa Allocation | Desk Type | Key Amenities |
| Open Quarters | AED 1,000 ~USD 272 / month |
1 work permit | Shared hot desk | 24/7 access, Wi-Fi, meeting room credits, cafe, lounge |
| Desk Quarters | AED 3,000 ~USD 817 / month |
2 work permits | Dedicated private desk | Parking eligibility, 24/7 access, meeting room credits |
| Office Quarters | AED 4,500 ~USD 1,225 / month |
2 or more work permits | Dedicated private office | Fully furnished, scalable, parking eligibility |
D/Quarters locations are at Dubai Media City and Dubai Science Park. All TECOM-licensed businesses, including those registered under DIAC, can access these facilities as part of the TECOM Group ecosystem.
in5 Centres for startups and entrepreneurs
in5 is TECOM Group’s innovation incubation programme for startups and entrepreneurs in tech, media, design, and science. According to the official in5 website (infive.ae), the programme has supported over 940 startups. Ed-tech businesses at the idea or early-product stage can apply to in5’s incubation programme and receive access to creative workspaces, mentorship, investor networking events, workshops, and business setup support. in5 centres are located across TECOM Group’s districts including Dubai Internet City, Dubai Production City, Dubai Design District, and Dubai Science Park.
GoFreelance permit
The GoFreelance permit is TECOM Group’s individual freelancer offering. For education-sector professionals, the permit is issued under the Dubai Knowledge Park community and covers activities including Education Advisor, eLearning Advisor, Executive Coaching, Researcher, and Trainer. As confirmed on the official diacedu.ae website, the annual package fee is AED 7,520, which covers the freelance licence and access to co-working spaces. Establishment card and visa fees are charged separately (see the Fees section above). GoFreelance permit holders can also access marketplace.ae, TECOM Group’s exclusive platform connecting freelancers with project opportunities.
Retail spaces, land, and laboratories
DIAC also offers retail spaces, land parcels (available for sale or lease), and specialist laboratory facilities. Retail units cater to the 28,000+ student and academic community and are suited to cafes, restaurants, bookshops, convenience stores, and student services providers. Land is available for sale or long-term lease for institutions wishing to build their own campus infrastructure. Laboratory facilities support research institutions and science-focused education businesses within the district.
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What are the key benefits of setting up in DIAC?
DIAC shares the standard UAE free zone benefits that make the country one of the most attractive places in the world to set up a business, but it also offers several advantages that are unique to its education-sector focus.
100% foreign ownership
DIAC companies are 100% foreign-owned. There is no requirement for a UAE national partner or local sponsor for free zone entities. This full ownership structure gives international universities, training companies, and ed-tech businesses complete control over their UAE operations.
Zero corporate and personal income tax on qualifying income
Free zone entities that qualify as Qualifying Free Zone Persons under UAE Federal Law No. 47 of 2022 are eligible for a 0% corporate tax rate on qualifying income. There is no personal income tax in the UAE for individuals, including DIAC-based employees. This tax-efficient structure supports the viability of education businesses that operate on thin margins.
100% profit repatriation
DIAC-registered companies can repatriate 100% of their profits and capital without restriction. There are no foreign exchange controls in the UAE, meaning revenue earned in the UAE can be freely transferred to parent entities or shareholders abroad.
axs smart services portal: 200+ government services in one place
According to TECOM Group’s official website (tecomgroup.ae), the axs portal provides access to over 200 corporate and government services, covering licensing, visa applications, Emirates ID, trade name reservations, establishment cards, NOCs, permits, and more. For DIAC-based businesses, this single-platform access significantly reduces the administrative burden of running a UAE operation.
Strategic Dubai location with visa access for students and staff
DIAC is located in Dubailand, Dubai, easily accessible from Emirates Road (E611) and connected to Dubai’s wider road network. The district is designed to make student and employee visa processing efficient, with TECOM Group’s axs platform handling UAE residency and work permit applications for both academic staff and administrative teams. The presence of hotels (Premier Inn and Radisson Blu are cited in DIAC’s community directory) within or adjacent to the campus community adds convenience for visiting academics and students.
What are the unique advantages and incentives of setting up in DIAC?
Beyond the standard free zone benefits, DIAC offers several advantages that are specific to its academic ecosystem and that you would not find in a generalist free zone.
Immediate access to a captive audience of 28,000+ students
DIAC’s on-campus student population of 28,000+ represents a permanent, captive market for education-related products and services. Training companies, tutoring services, language schools, ed-tech platforms, student accommodation operators, and retail businesses all benefit from this built-in audience. No other UAE free zone offers this scale of ready-made education consumer community.
Proximity to globally recognised academic partners
According to the official diacedu.ae website, DIAC’s featured academic partners include Amity University Dubai, Heriot-Watt University, University of Birmingham Dubai, University of Wollongong in Dubai (UOWD), BITS Pilani Dubai Campus, Murdoch University Dubai, Manchester Business School, and Middlesex University. Operating within the same physical community as these institutions opens significant opportunities for research partnerships, joint programme delivery, graduate recruitment, and corporate training tie-ups.
TECOM Group’s 10-district ecosystem
As a DIAC-licensed entity, you are part of TECOM Group’s broader portfolio of 10 business districts. This gives you access to the wider TECOM community of 12,200+ customers and 147,000+ professionals across technology, media, design, science, and manufacturing sectors. Cross-district collaboration opportunities, TECOM Group-hosted events, and access to shared infrastructure across the portfolio are genuine advantages over a standalone free zone registration.
GoFreelance and marketplace.ae for independent education professionals
The GoFreelance programme, combined with marketplace.ae (TECOM Group’s exclusive freelancer platform), gives individual education professionals a credible, low-cost route to operating independently in the UAE. For education advisers, researchers, trainers, and eLearning consultants, the AED 7,520 annual package is the most cost-efficient way to build a regulated professional practice in the UAE without forming a full company.
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How does DIAC compare to other education free zones and UAE free zones?
DIAC is the UAE’s only free zone built exclusively for the education sector. Two points of comparison are particularly useful for businesses deciding where to register.
DIAC vs Dubai Knowledge Park (DKP)
Dubai Knowledge Park (DKP), also managed by TECOM Group, is DIAC’s sister district within the same portfolio. Both serve the education and knowledge economy. The key distinction is scale and institutional focus: DIAC is home to full university campuses and large-scale academic institutions, while DKP is more oriented towards professional training, HR consultancies, corporate academies, and smaller education support businesses. Both districts are covered by the same axs services portal and the same GoFreelance programme. Businesses that need a full university-grade campus infrastructure should choose DIAC; those running smaller training and consultancy operations may find DKP’s offering more commercially suited to their needs.
DIAC vs generalist UAE free zones
For businesses whose activities are not primarily education-related, DIAC is not the right choice. Generalist free zones such as IFZA (International Free Zone Authority), DMCC (Dubai Multi Commodities Centre), or RAKEZ (Ras Al Khaimah Economic Zone) offer broader activity code lists and may present more flexible or lower-cost entry options for non-education businesses. DIAC’s strength is its sectoral focus: if your business is in or closely adjacent to education, the ecosystem advantages: proximity to universities, a student community, KHDA relationships, and TECOM Group’s academic network. These advantages justify the choice decisively. If your business is not education-related, a generalist free zone will serve you better.
Tips for Setting Up at DIAC
- Start your KHDA approval process early. If your business involves delivering accredited academic programmes, KHDA approval can take several months. Begin this process in parallel with your TECOM Group licence application rather than waiting until your licence is issued.
- Use the axs portal for everything. All DIAC licensing, visa, and government service transactions are processed through TECOM Group’s axs platform (axs2.my.site.com). Creating your axs account early and familiarising yourself with the portal saves significant time during the setup process.
- Size your space to your visa needs. Your office space at DIAC directly determines how many employment visas you can hold. If you anticipate needing multiple visas for academic staff or administrative teams, confirm the visa allocation formula with the TECOM Group leasing team before signing your space agreement.
- GoFreelance is a genuine stepping stone. The AED 7,520 GoFreelance permit is the lowest-cost way to test your education business in the UAE. Many successful training consultants and eLearning advisers start on GoFreelance before upgrading to an FZ-LLC as their client base grows.
- Plan for local bank account timelines. UAE corporate bank account opening typically takes four to eight weeks and requires a fully issued licence plus establishment card. Start the bank account process immediately after receiving your licence to avoid delays to your operations.
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Frequently Asked Questions About Business Setup in DIAC
Yes. As with all UAE free zone entities, DIAC companies are 100% foreign-owned. There is no requirement for a UAE national shareholder, local partner, or local sponsor. This applies to Free Zone LLCs, foreign company branches, and UAE company branches registered at DIAC.
No. DIAC is a sector-specific free zone designed exclusively for education and knowledge-economy businesses. Permitted activities include higher education institutions, professional training companies, ed-tech startups, eLearning platforms, educational consultancies, academic publishers, and related support services. Non-education businesses are not eligible to register at DIAC and would need to look at a generalist UAE free zone such as IFZA, DMCC, or RAKEZ.
UAE federal corporate tax applies at 9% on taxable income above AED 375,000 (approximately USD 102,000), effective for financial years beginning on or after 1 June 2023. Free zone entities, including DIAC companies, may be eligible for a 0% rate on qualifying income if they meet the criteria to be a Qualifying Free Zone Person as defined by the Federal Tax Authority. Businesses should verify their qualifying status with the Federal Tax Authority (tax.gov.ae).
The GoFreelance permit is TECOM Group’s individual freelancer offering for professionals in education, tech, media, and design. For education-sector freelancers, it covers activities such as Education Advisor, eLearning Advisor, Executive Coaching, Researcher, and Trainer. The annual package costs AED 7,520, which includes the freelance licence and co-working access. Visa and establishment card fees are additional. GoFreelance permit holders cannot sponsor employees; the licence covers the individual only.
KHDA (Knowledge and Human Development Authority) approval is required for businesses that deliver regulated academic programmes, accredited qualifications, or supervised vocational training within Dubai. If your business at DIAC involves teaching accredited courses, running a school, or delivering regulated professional certifications, a KHDA licence or approval is needed in addition to your TECOM Group free zone licence. KHDA fees are separate. Contact KHDA at khda.gov.ae for the current approval process and fee schedule.
The timeline from initial application to licence issuance is typically two to four weeks for a standard FZ-LLC or branch registration, assuming all documents are in order and the space lease is agreed promptly. Visa processing for each individual takes seven to fourteen working days following licence issuance. For institutions requiring KHDA approval of academic programmes, that process runs on a separate, longer timeline and should be initiated well in advance of your planned operational start date. Bank account opening adds a further four to eight weeks.
Yes. A UAE residence visa obtained through a DIAC-registered company entitles the visa holder to sponsor eligible dependants (spouse and children) for UAE family residence visas. Parents of the visa holder may also be sponsored subject to meeting UAE income threshold requirements. The family sponsorship process is handled through the UAE immigration authorities and can be initiated through the axs portal.
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