Dubai International Academic City (DIAC): The Complete Guide for 2026

Dubai International Academic City (DIAC) is where most of Dubai’s international university campuses are based. For students it is a university town; for universities, training providers and education businesses it is a free zone with its own licensing, tax and audit rules.

This guide covers what DIAC is, which universities are there, how education businesses are licensed, and the corporate tax, VAT and audit rules that apply to companies in the zone.

What Is Dubai International Academic City?

DIAC is a free zone dedicated to higher education. It was launched by TECOM Group in 2007, building on the success of Dubai Knowledge Village (now Dubai Knowledge Park), to give international universities a purpose-built place to open Middle East campuses.

Today DIAC and Dubai Knowledge Park make up TECOM Group’s education cluster, which TECOM reports is home to more than 85% of students enrolled in private higher education in Dubai. In January 2026 TECOM bought an integrated university campus in DIAC for about AED 125 million, a sign of continued demand for space in the zone.

Companies in the zone are licensed and regulated by the Dubai Development Authority (DDA), the authority that also oversees Dubai Internet City, Dubai Media City and Dubai Knowledge Park.

Where Is Dubai Academic City?

DIAC is in the south-east of Dubai, off the Dubai–Al Ain Road (E66) and close to Dubai Silicon Oasis. Road links make it reachable from across Dubai and from Sharjah, and it is within a short drive of Dubai International Airport. Students commonly use buses, taxis and student housing in and around the zone.

Which Universities Are in Dubai International Academic City?

DIAC hosts branch campuses of universities from the UK, Australia, India and other countries, alongside training and professional education providers. Institutions based in the zone include:

University	Home country
BITS Pilani Dubai Campus	India
Manipal Academy of Higher Education, Dubai	India
Amity University Dubai	India
Heriot-Watt University Dubai	United Kingdom
University of Birmingham Dubai	United Kingdom
The British University in Dubai	UAE
Murdoch University Dubai	Australia
Curtin University Dubai	Australia
American University in the Emirates	UAE

Campuses move and new institutions open regularly, including the Indian Institute of Management Ahmedabad, which opened its first international campus in DIAC in 2025. Check each university’s own website for its current campus address.

What Is Student Life Like in DIAC?

DIAC is a mixed international community, with students of many nationalities on campuses that combine teaching buildings, libraries and laboratories with sports facilities, cafés and student housing nearby. Universities run career fairs, cultural events and industry partnerships throughout the year, and many students take internships with Dubai employers during their studies.

How Do You Set Up a Business in DIAC?

Setting up in DIAC follows the usual free zone route, with an extra step for academic activities:

1. Choose the activity. Higher education, training, education services, EdTech and supporting activities such as student services and retail.
2. Apply to DDA. The Dubai Development Authority issues the commercial licence, approves the legal form and leases the premises.
3. Get academic approval if needed. A university or college offering degrees in a Dubai free zone also needs licensing and quality assurance through the Knowledge and Human Development Authority (KHDA), for example under its University Quality Assurance International Board, or through the Ministry of Higher Education and Scientific Research.
4. Register for tax. Register for corporate tax and, where taxable supplies exceed AED 375,000 a year, for VAT.
5. Arrange visas and staff. Employment visas for faculty and staff are processed through the free zone.

Free zone set-up offers 100% foreign ownership and full repatriation of profits. It no longer means tax-free: corporate tax applies, as explained below.

Do DIAC Companies Pay Corporate Tax?

Yes. Since corporate tax began, every DIAC company must register for UAE corporate tax. Many guides still describe free zones as “tax-free”, which is out of date.

• A DIAC company is taxed at 9% on taxable income above AED 375,000 unless it is a Qualifying Free Zone Person (QFZP).
• A QFZP pays 0% only on qualifying income. Education services are not on the list of qualifying activities, so tuition fees from students are generally non-qualifying income, and too much non-qualifying income can cost a company its QFZP status altogether.
• Income from other free zone persons can be qualifying in some cases, so the answer depends on who your customers are.
• Small Business Relief can apply to a business with revenue up to AED 3 million, but not to a company that is a QFZP.

Expert tip: before relying on the 0% rate, map each income stream (tuition, accommodation, training for companies, services to other free zone entities) against the QFZP rules. Our guide to Qualifying Free Zone Persons explains the tests.

Is Education Subject to VAT in the UAE?

UAE VAT treats education carefully:

Supply	Usual VAT treatment
Preschool and school education by recognised institutions	Zero-rated (0%)
Higher education by institutions owned or more than 50% funded by government	Zero-rated (0%)
Higher education by private universities	Standard-rated (5%)
Training courses, uniforms, transport, accommodation	Usually standard-rated (5%)

Most international branch campuses in DIAC are privately funded, so their tuition is generally standard-rated at 5%. Related goods and services need to be reviewed one by one.

What Are the Audit Requirements for DIAC Companies?

Like other DDA free zones, DIAC requires companies to keep proper books and submit audited financial statements every year:

• The audit must be carried out by an auditor on DDA’s approved auditor list, so check the list before you appoint a firm.
• Audited statements are generally due within six months of the financial year end and are submitted through the DDA portal, usually tied to licence renewal.
• Statements are prepared under IFRS, and the same audited accounts support your corporate tax return, which is due within nine months of the year end.
• A company that wants QFZP status must have audited financial statements every year in any case.

For more on audit requirements and how to prepare, see our audit services and our guide on how to choose an audit firm in Dubai.

How SGA World Supports DIAC Companies

SGA World keeps books, prepares financial statements and handles VAT and corporate tax for education businesses and other free zone companies in Dubai. For DIAC companies we can:

• keep IFRS-compliant books that are ready for your DDA-approved auditor;
• review VAT on tuition, accommodation and training;
• assess whether QFZP status is realistic and prepare the corporate tax return;
• support your year end so audited accounts are filed on time for licence renewal.