The United Arab Emirates (UAE) has emerged as a global hub for the growth and advancement of Artificial Intelligence (AI). Among the frontrunners driving this innovation is Ras Al Khaimah’s premium technology and innovation hub, Innovation City. Unlike traditional free zones in the UAE, Innovation City offers a purpose-built ecosystem tailored specifically for emerging technologies, including AI, Web3, robotics, and healthtech.
Why Choose Innovation City for Your AI Venture?
RAK Innovation City isn’t just a regulatory body; it is an AI powered tech-first ecosystem. By choosing this jurisdiction, AI founders gain access to:
- 100% Foreign Ownership: Retain full control of your intellectual property and company.
- Zero Personal Income Tax: Enjoy a tax-friendly environment for founders and employees.
- Remote Incorporation: You can set up your company from anywhere in the world without being physically present in the UAE.
- AI-Powered Compliance: The zone uses AI to streamline registrations, making it one of the fastest licensing processes in the region.
Step-by-Step Application Process
1. Define Your Business Activity
You must select a specific activity. For AI companies, the most common categories are:
- Innovation & Artificial Intelligence Research & Consultancies.
- Artificial Intelligence (Core development and solutions).
Coding and Software Development.
2. Document Submission
The “minimal documentation” approach is a hallmark of RAK Innovation City. You will typically need:
Passport Copy: Clear color copies of all shareholders and managers.
Business Plan: A brief overview of your AI product, revenue model, and target market.
CVs: Professional backgrounds of the technical team (often required for “Premium” AI activities).
To fast-track your licensing process, Sarsan Corporate Services (SCORP) provides end-to-end support for Innovation City. Once you connect with us regarding your business activity and requirements, our team manages the entire application process—including follow-ups—on your behalf. Ready to get started? Send your inquiry to info@scorp.ae.
3. Initial Approval & Name Reservation
The authority reviews your proposed trade name and business model. Once approved, you will receive an “Initial Approval” notification.
After paying the license fees, your digital Trade License, Memorandum of Association (MoA), and Certificate of Incorporation are issued.
RAK Innovation City AI License Requirements
Requirement | Details |
Minimum Capital | No minimum paid-up capital required for most AI setups. |
Physical Office | Flexible. Options range from “Flexi-desks” to private innovation labs. |
Manager in Charge | A designated manager must be appointed (can be a shareholder). |
Compliance | Must adhere to UAE Data Protection Laws and AI Ethics Guidelines. |
Frequently Asked Questions: AI Licensing in the UAE
1. Can a foreigner own 100% of an AI company in RAK Innovation City?
Yes. Like most premium UAE free zones, RAK Innovation City allows 100% foreign ownership. You do not need a local UAE partner or sponsor to hold shares in your company, giving you full control over your intellectual property and profits.
2. Is a physical office mandatory for an AI startup?
No. RAK Innovation City offers flexible “Flexi-desk” and “Virtual Office” packages specifically for tech startups and freelancers. This allows you to obtain a legal trade license and residency visas without the high overhead costs of a traditional physical office.
3. Can I open a corporate bank account with an AI license?
Yes. While tech startups globally often struggle with banking, RAK Innovation City has strategic partnerships with local banks (such as RAKBANK) to provide guaranteed or streamlined banking assistance for licensed entities.
4. Does the license cover “Crypto” or “Blockchain” activities too?
Yes. Since RAK Innovation City evolved from RAK Digital Assets Oasis (RAK DAO), the AI license can often be bundled with activities related to Web3, blockchain, and data science, making it the ideal jurisdiction for “AI-on-chain” projects.
