Nursery License Dubai: KHDA Cost, Setup and Revenue
Content reviewed by My Business Setup Team, Business Setup Specialists.
Nurseries in Dubai are licensed and regulated by the Knowledge and Human Development Authority, and KHDA is the gatekeeper for everything that matters: premises, outdoor space, staff ratios, curriculum and child safeguarding. The trade licence is secondary to the KHDA permit. Dubai has over 500 KHDA-licensed private nurseries, which is one of the highest densities per capita anywhere, so this is a competitive market rather than an open one. Fees range from about AED 18,000 to over AED 80,000 per child per year, and premium curriculum nurseries reach AED 100,000. A 30-child nursery typically needs AED 1m to 2m to open, and break-even usually arrives around 60 children in year two.
Who Should Consider a Nursery and Daycare License?
- Educators with early-years leadership experience
- Investor and principal partnerships, where the principal meets KHDA requirements
- Operators expanding an established nursery brand or franchise
- Developers adding a nursery to a residential community
What You Can and Cannot Do
A KHDA nursery permit covers children from around 45 days to four years. School-age education is a different licence entirely. After-school care, holiday camps, and any therapeutic or special-needs provision have additional requirements. Transport requires a separate vehicle permit and compliant child restraints.
How Much Does a Nursery and Daycare License Cost?
For a Nursery and Daycare License, expect AED 25,000 - 70,000 in a free zone and AED 30,000 - 80,000 on the mainland for year one, with the licence issued in roughly 60-120 working days once documents are ready. The lower end of each range is a single-activity licence with no staff visas in a low-cost emirate; the upper end reflects Dubai, extra activities, or a larger office.
| Item | Indicative cost | Notes |
|---|---|---|
| Free-zone licence (year one) | AED 25,000 - 70,000 | Ajman, Fujairah, Sharjah, RAK and UAQ sit at the low end; Dubai zones at the high end |
| Mainland licence (year one) | AED 30,000 - 80,000 | Excludes the tenancy, which mainland requires separately |
| Establishment / immigration card | AED 1,200 - 2,000 | One-off, needed before any visa |
| Investor or partner visa (2 years) | AED 3,500 - 5,500 | Includes medical, Emirates ID and status change |
| Employee visa (2 years) | AED 4,000 - 6,500 | Per employee, plus deposit on mainland |
| Ejari tenancy (mainland only) | from AED 15,000 / year | Not required for a free-zone flexi desk |
| Corporate tax registration | No fee | 9% applies only on taxable profit above AED 375,000 |
| Annual licence renewal | 85 - 100% of year-one licence fee | Excludes one-off formation items |
Indicative market ranges for planning, not a quote. Government fees, zone packages and external approvals change; confirm current figures before you apply.
Approvals you should budget time for
KHDA, ADEK or Ministry of Education permit. This is the part that moves the timeline, not the licence itself.
Premises with compliant outdoor space and KHDA-standard fit-out dominate. Staff ratios are mandated, so payroll is largely fixed by enrolment rather than chosen.
Good to know
- 100% foreign ownership available
- Flexi/shared office keeps overhead low
- Visa quota scales with office size
Watch out
- Taking premises without the outdoor play area KHDA requires
- Budgeting payroll without applying mandated staff-to-child ratios
- Opening mid-academic-year, which cripples first-year enrolment
- Underestimating the time KHDA approval and inspection takes
How to Get Started
- Confirm the nursery concept, curriculum and target fee level
- Obtain KHDA initial approval for the concept and proposed location
- Secure premises with compliant indoor and outdoor space
- Submit the layout for KHDA approval and complete the fit-out
- Pass KHDA and Civil Defence inspection and recruit qualified staff
- Issue the trade licence, obtain the KHDA permit and open for the academic year
Documents Checklist
- Passport copy & recent photo of each shareholder
- Current visa/entry status
- 2 to 3 preferred trade names
- Brief scope & staffing plan
Nursery and Daycare License FAQs
How much does it cost to open a nursery in Dubai?
A 30-child nursery needs AED 1m to 2m in year one. The KHDA annual licence is roughly AED 5,000 to 10,000 and the commercial licence AED 12,000 to 20,000, so licensing is minor. The cost is premises with compliant outdoor space, KHDA-standard fit-out, and carrying mandated staff ratios while you fill places.
How much do nurseries charge per child in Dubai?
Fees run from about AED 18,000 a year at community nurseries to AED 80,000 and above at premium providers, with Montessori and IB PYP settings reaching AED 100,000. Budget bilingual nurseries sit around AED 10,000 to 30,000. Your fee level has to be set against the catchment you can realistically draw from.
When does a Dubai nursery break even?
Typically around 60 enrolled children, usually in year two. Because KHDA mandates staff-to-child ratios, payroll scales with enrolment and cannot be cut below the required level, so the gap between opening and break-even has to be fully funded.
Who licenses nurseries in Dubai?
KHDA, the Knowledge and Human Development Authority. It governs premises, outdoor space, staff ratios, curriculum and safeguarding, and its permit is what allows you to operate. Abu Dhabi uses ADEK and other emirates the Ministry of Education. The DET trade licence is separate and secondary.
Is the Dubai nursery market saturated?
It is competitive. Dubai has over 500 KHDA-licensed nurseries, one of the highest densities per capita globally, and the market grows at roughly 8% a year. Success depends on catchment and differentiation rather than on general market growth, so validate demand in your specific community before committing.
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Last updated: October 2026
Requirements, timelines, and fees vary by jurisdiction, office setup, and external approvals. Confirm the current structure before applying.