INTRODUCTION
The UAE's telecommunications sector thrives due to its strategic location, business-friendly climate, and advanced digital infrastructure, supported by a robust regulatory framework. Federal Law Number 3 of 2003 provides the foundation, while the Telecommunications and Digital Government Regulatory Authority (TDRA) ensure compliance, fosters competition, safeguards consumer rights, and promotes digital innovation, aligning with the UAE's knowledge economy vision. This framework has enabled the UAE to establish itself as a leading hub for telecommunications and digital innovation, attracting significant investment, fostering entrepreneurship, and contributing to the country's economic diversification and growth.
The Telecommunications and Digital Government Regulatory Authority (TDRA) play a vital role in supporting the government’s digital transformation efforts. This guide explains its initiatives and services in more detail.
OVERVIEW OF TDRA
The TDRA was established under Federal Law Decree Number 03 of 2003. TDRA’s responsibilities include representing the UAE in the International Telecommunication Union (ITU) Council, and holding memberships in regional groups such as the Arab Regulators Network (AREGNET), the Arab Spectrum Management Group (ASMG), and the GCC Telecommunications.
Firstly, TDRA plays an important role in regulating the telecom sector by monitoring competition, approving telecommunications equipment, and developing and implementing key plans and policies. TDRA also issues permits for spectrum use and wireless equipment.
With broad countrywide network coverage, Du and Etisalat are the only two licensed service providers in the United Arab Emirates. To cater to their customers’ varying needs, they offer a wide range of network technologies, including 2G, 3G, 4G, and 5G. Both service providers must abide by the rules established by the Telecommunications Law and submit frequent reports to the TDRA on the performance of their networks. Therefore, in summary, it promotes innovation and competition, meeting the UAE’s digital needs.
TELECOMMUNICATION LICENSING FRAMEWORK
WHAT IS TELECOMMUNICATION LICENSING?
According to the Telecommunications Law, any sale, provision, or operation of a telecommunication service requires a telecommunication license. Such services might occasionally be offered through a contract with a licensed operator in the United Arab Emirates.
WHO CAN APPLY FOR A LICENCE?
The updated eligibility criteria for applying for an individual or class telecommunications license in the UAE are as follows:
The applicant must be a company incorporated under the UAE Commercial Companies Law (Federal Decree-Law Number 32 of 2021).
The application must be pursuant to Article 28 of Federal Law by Decree Number 3 of 2003, which regulates the Organisation of the Telecommunications Sector (including its amendments).
Alternatively, any other legal person approved by the Board of the Telecommunications and Digital Government Regulatory Authority (TDRA) can apply.
The company’s shareholding structure must comply with the resolution under which the particular regulated telecom activity has been approved for licensing.
This reflects the latest legislation updates, replacing the previous Federal Law Number 8 of 1984 with Federal Decree-Law Number 32 of 2021, and includes provisions for digital government services.
TYPES OF LICENSES:
A license is required from the TDRA to provide public telecommunications services to and within the UAE. All licenses are issued individually to legal entities which meet the requirements of the Telecommunication Law and pursuant to a decision made by the TDRA Board. The specific qualifying activities for TDRA Individual and Class Licenses are categorised as follows:
Individual Licenses:
Issued for telecommunications services that require the use of scarce resources, such as:
Spectrum (radio frequencies)
Numbering resources (telephone numbers)
Nationwide infrastructure
Examples include major telecom operators providing mobile, fixed-line, satellite, or broadband services.
Example: Etisalat and du operate under Individual Licenses due to their need for spectrum, numbering, and large-scale infrastructure.
These Licenses entail stringent regulatory requirements and technical validation.
Class Licenses:
Issued for services that do not require scarce resources like spectrum and numbering.
Typically cover activities with minimal public impact and less regulatory oversight.
Examples include:
Cloud-based communication services running over the internet (VoIP, messaging apps)
Value-added services such as call centres, internet-based conferencing
Resale or provision of telecommunication services without owning physical infrastructure
Licenses are issued for 10 years for both types.
This framework allows TDRA to align regulatory controls based on the nature and impact of the telecom services provided, optimising the use of limited resources while fostering innovation and competition.
ELIGIBILITY OF SERVICE PROVIDERS:
An entity is eligible to apply for a telecom license if it meets the following criteria:
It is a company incorporated under the UAE Commercial Companies Law (Federal Decree-Law Number 32 of 2021).
The application is pursuant to Article 28 of the Telecommunications Decree-Law Number 3 of 2003, relating to the Organisation of the Telecommunications Sector (as amended).
The entity must be approved by the Board of the Telecommunications and Digital Government Regulatory Authority (TDRA) for the purpose of obtaining the license.
The company’s shareholders must comply with the resolution recognising the licensing of the specific regulated telecom activity.
Unless otherwise approved by the TDRA Board or subject to specific exemptions, foreign ownership in the applicant entity shall not exceed 49%, with the remaining 51% held by one or more UAE national partners.
This framework ensures compliance with UAE ownership regulations while allowing for certain exemptions or full foreign ownership approvals by the TDRA Board where applicable.
STEPS TO ISSUE LICENSES TO PROVIDE TELECOMMUNICATION SERVICES:
The Telecommunications and Digital Government Regulatory Authority (TDRA) is the legally designated entity responsible for issuing telecommunications licenses under the Telecommunications Law. According to the Telecommunications Decree-Law, any operation of a Public Telecommunications Network or provision of Telecommunication Services to subscribers within the UAE, as well as any other activities specified by the TDRA Board, requires a valid license issued by TDRA. This licensing requirement extends to existing licensees seeking to renew, amend, or revoke their licenses.
Licensing Process:
Complete and submit the licensing application.
Provide all the required data and documents to support the application.
Pay the prescribed service fees.
Undergo an audit of the license application by TDRA.
Upon successful review and compliance, obtain the telecommunications services license.
Required Documents Include:
Proof demonstrating eligibility for the license.
Certified copies of the company’s Articles of Association and Memorandum of Association.
Detailed information on the shareholder ownership structure, including any existing telecommunications licenses held by shareholders either within the UAE or internationally.
Information about the management team’s qualifications and experience in telecommunications, locally or abroad.
A comprehensive business plan covering:
Types of networks and services to be operated.
Initial network and service deployment plans, including technical diagrams.
Requirements for spectrum or numbering resources, if applicable.
Financial proposals or feasibility studies demonstrating viability.
Explanation of the economic benefits the proposal will bring to the UAE.
For satellite service providers, a No-Objection Certificate from the UAE Space Agency.
Any other supportive information relevant to the license application.
OTHER INFORMATION RELATED TO LICENSE REGISTRATION:
Fees: The application fee for obtaining a telecommunications license from the Telecommunications and Digital Government Regulatory Authority (TDRA) is AED 10,000 (non-refundable).
Expected Time for Approval: The time required for approval cannot be precisely estimated, as it depends on security inputs and approvals from various third parties involved in the vetting process.
Service Channels: Applications and renewals are conducted through the official TDRA website, allowing convenient online access for businesses.
Target Audience: The license registration service is primarily intended for entities in the business sector seeking to operate telecommunications services within the UAE.
Service Limitations and Compliance Requirements:
Company Establishment Approval: Before applying for the telecommunications license, applicants must first obtain approval to establish their company under Article 28 of the Telecommunications Law. This step ensures the legal entity is recognised as eligible to engage in telecom activities.
Understanding Establishment Approval Limitations: It is important to note that approval of establishment or incorporation does not automatically imply approval of the telecommunications license application. The licensing assessment is a separate regulatory process subject to compliance checks and further approvals.
Potential Exemption Requests: Applicants may request exemptions from certain provisions of the Commercial Companies Law or Business Law if justified by their specific circumstances and subject to TDRA’s discretion.
These requirements represent essential steps in the licensing process, designed to ensure full regulatory compliance and promote a secure, efficient telecommunications environment in the UAE.
RENEWAL OF TELECOM EQUIPMENT SUPPLIER
To renew the registration of manufacturers and suppliers of telecommunications equipment in the UAE, the following documents are typically required:
A valid commercial or business license with telecom-related activities.
Updated company registration details, including incorporation certificates.
Relevant technical compliance certificates and equipment type approval documents.
Proof of a valid UAE Pass login for authentication.
Any additional documentation supporting the renewal, such as updated financial or business details.
These documents ensure that the entity remains compliant with the Telecommunications and Digital Government Regulatory Authority’s (TDRA) standards and regulations. The renewal process includes submitting an application form through the TDRA website, attaching the required documents, paying the applicable fees, undergoing an application review by a specialised team, and then receiving the renewed telecom equipment supplier registration certificate.
This streamlined process aims to maintain high standards for telecom equipment suppliers operating in the UAE while facilitating ease of business continuity.
OTHER INFORMATION RELATED TO RENEWAL OF TELECOM EQUIPMENT SUPPLIER:
The specific law/source for the renewal of telecom equipment supplier license in the UAE is provided by the Telecommunications and Digital Government Regulatory Authority (TDRA). According to TDRA regulations:
The renewal service for telecom equipment suppliers and manufacturers takes 1 working day.
The renewal fee is AED 5,100.
A valid commercial or business license with telecom activity is a mandatory condition for renewal.
The service can be initiated up to a month before the expiry or within 15 days of expiry.
The official TDRA documentation details these requirements and service conditions for renewing telecom equipment supplier registration in the UAE.
GOVERNMENTAL OVERSIGHT:
Licensees must pay license fees and royalties as part of regulatory compliance.
Corporate taxes apply mainly to “onshore” (mainland) companies, with each entity’s tax obligations assessed individually.
Many free zones offer tax holidays or exemptions for a specific period.
A 5% Value Added Tax (VAT) has been in place since January 1, 2018, applied to most goods and services.
On June 1, 2023, the UAE introduced a federal corporate tax:
0% tax on taxable income up to AED 375,000.
9% tax on taxable income above AED 375,000.
Starting January 1, 2025, 15% Domestic Minimum Top-up Tax (DMTT) targets large multinational enterprises with global revenues exceeding approximately. AED 3.15 billion, aligning with OECD global tax standards.
Businesses must register with the Federal Tax Authority (FTA) and file annual returns.
Some income types, like dividends, capital gains, and profits from group reorganisations, may be exempt.
No withholding tax on domestic or cross-border payments.
CONCLUSION:
Telecom licensing in the UAE is a crucial component of a carefully crafted regulatory framework that balances innovation, security, and competition. This framework ensures the sector's efficiency, security, and role in driving digital transformation.
License Classification: Determine whether your activity requires a Class License or an Individual License.
Compliance Commitment: Investing in telecoms demands not only capital but also a serious commitment to compliance and transparency.
Regulatory Alignment: Adhere to TDRA-approved frameworks and standards to avoid penalties and operational restrictions.
The UAE's telecom sector offers a privileged position in emerging industries like 5G, AI, and e-government projects. As the licensing system evolves, it will balance growth, security, and competitiveness, creating opportunities for entrepreneurs, investors, and innovators.
Telecom licensing in the UAE is a gateway to one of the world's most ambitious digital ecosystems, not a hurdle. By navigating the regulatory landscape, businesses can unlock new opportunities and drive growth in the region.
