Starting a Daycare Business in Dubai: Cost, License& Requirements 2026
Starting a daycare business in Dubai can be an attractive opportunity for entrepreneurs looking to enter the childcare and early education sector. With a large working population, expatriate families and increasing demand for structured early childhood care, Dubai offers considerable potential for professionally managed daycare and nursery businesses.
However, opening a daycare centre is different from establishing a normal commercial business. In Dubai, facilities providing early childhood care and education are regulated as Early Childhood Centres (ECCs) and require approval from the Knowledge and Human Development Authority (KHDA) in addition to the applicable commercial licence and other regulatory approvals.
If you are planning to start a daycare business in Dubai in 2026, this guide explains the licensing process, expected investment, documents, premises requirements, staffing and important approvals.
What Is a Daycare Business in Dubai?
A daycare or Early Childhood Centre provides care and early education services to young children in a professionally managed environment.
KHDA’s current framework covers Early Childhood Centres providing care and/or education to children from birth up to six years of age, including children up to Year 1/KG2.
Depending on the approved business model, a centre may offer:
- Full-day childcare
- Half-day programmes
- Nursery education
- Early learning programmes
- Flexible childcare sessions
- Hourly or drop-in childcare
- Holiday programmes
- Preschool programmes
- FS1 or FS2 programmes where approved
- Age-specific early childhood activities
The services offered must correspond with the approved licence, education and care plan and KHDA requirements.
Why Start a Daycare Business in Dubai?
Dubai has a large population of professionals and families, creating continuous demand for reliable childcare services.
Growing Demand From Working Parents
Many households require professional childcare during working hours. A strategically located daycare centre near residential communities or employment hubs can therefore serve a consistent local customer base.
Large Expatriate Community
Dubai’s international population creates demand for childcare centres offering different educational approaches, languages and flexible attendance options.
Flexible Business Models
KHDA’s current Early Childhood Centre framework allows approved centres to offer different attendance and fee models, including full-time, part-time, sessional, hourly, drop-in and package-based arrangements.
Long-Term Customer Relationships
Unlike many businesses based on one-time transactions, childcare centres can develop recurring relationships with parents over several years.
Opportunity for Premium Services
Entrepreneurs can differentiate their centres through areas such as early learning, bilingual education, STEM activities, sensory learning, extended hours and specialised enrichment programmes, subject to the applicable approvals.
Do You Need a Licence to Start a Daycare in Dubai?
Yes.
A daycare or Early Childhood Centre cannot operate simply by obtaining a normal commercial licence.
The setup generally involves coordination between:
KHDA – for Early Childhood Centre approval and the Educational Services Permit.
Dubai commercial licensing authority – for the applicable business/commercial licence.
Other relevant authorities – depending on the building, location, fire safety, facility design and activity requirements.
Dubai’s Department of Economy and Tourism currently has responsibility for registering and licensing commercial and professional businesses operating in the emirate.
KHDA Approval for a Daycare Business in Dubai
KHDA regulates private Early Childhood Centres in Dubai.
The licensing process is completed through several stages.
Stage 1 – Initial Approval
The first major step is obtaining KHDA Initial Approval.
According to KHDA, applicants currently need documents including:
- Valid trade name reservation
- Initial approval from the relevant licensing authority
- Education and Care Plan prepared according to KHDA requirements
KHDA currently lists no fee for the Initial Approval stage and a service timeline of approximately 14 working days once the required documents have been received.
The Education and Care Plan is particularly important because it explains how the proposed centre will operate and deliver appropriate early childhood education and care.
Education and Care Plan
The Education and Care Plan should clearly describe the proposed daycare centre.
It may cover areas such as:
- Centre concept
- Age groups served
- Educational philosophy
- Curriculum approach
- Daily routines
- Care arrangements
- Child safeguarding
- Health and safety
- Staff organisation
- Parent communication
- Learning environment
- Child development approach
- Inclusion
- Emergency procedures
A poorly prepared plan may lead to additional revisions and delays.
KHDA states that applicants may be asked to amend their Education and Care Plan and provides up to three amendment opportunities within its process.
Appointing a Daycare Centre Manager
Another important stage is appointing an appropriately qualified Early Childhood Centre Manager.
KHDA separately reviews the proposed manager as part of the approval process.
The authority currently lists the manager appointment stage as having:
Government fee: No fee
Published processing time: approximately 10 working days once all required documents are received.
The proposed manager should satisfy the applicable qualification and experience requirements.
Daycare License Cost in Dubai
The cost of starting a daycare business consists of much more than the KHDA permit.
According to KHDA’s current service information, the Educational Services Permit for an Early Childhood Centre costs AED 10,000.
However, investors should also budget for:
- Commercial licensing
- Trade name reservation
- Facility rent
- Security deposit
- Interior fit-out
- Children’s furniture
- Educational materials
- Outdoor play equipment
- Safety equipment
- CCTV systems
- Fire and life-safety compliance
- Staff recruitment
- Employee visas
- Insurance
- Marketing
- IT and administration systems
- Working capital
Therefore, the AED 10,000 KHDA permit fee should not be confused with the complete daycare setup cost in Dubai.
How Much Does It Cost to Start a Daycare in Dubai?
There is no single fixed investment because costs depend heavily on the size, location, capacity and design of the centre.
For budgeting purposes, investors should divide the project into several categories.
| Expense | Indicative Planning Range |
|---|---|
| KHDA Educational Services Permit | AED 10,000 |
| Commercial licensing and registrations | Variable |
| Annual premises rent | AED 100,000–400,000+ |
| Fit-out and modifications | AED 150,000–600,000+ |
| Furniture and learning equipment | AED 50,000–200,000+ |
| Indoor/outdoor play equipment | AED 30,000–150,000+ |
| CCTV, security and IT | AED 15,000–50,000+ |
| Recruitment and visas | Depends on team size |
| Insurance | Variable |
| Marketing and launch | AED 15,000–75,000+ |
| Working capital | AED 100,000–300,000+ |
These are commercial planning estimates rather than official government fees. Actual costs can vary considerably.
A small daycare centre may require several hundred thousand dirhams to launch, while a large premium nursery with extensive indoor and outdoor facilities can require an investment exceeding AED 1 million.
Choosing the Right Location for a Daycare in Dubai
Location is one of the most important business decisions.
A daycare centre generally performs best when it is easily accessible to families.
Potential locations include areas near:
- Residential communities
- Apartment clusters
- Villa communities
- Business districts
- Schools
- Large office areas
- Family-oriented neighbourhoods
Popular residential areas can provide greater demand but may also involve substantially higher rents.
Before signing a tenancy agreement, investors should ensure that the proposed premises can satisfy the regulatory and physical requirements applicable to an Early Childhood Centre.
Do not select a property solely because the rent is cheap.
An unsuitable building can result in expensive modifications or approval difficulties.
Daycare Facility Requirements
The premises should be designed specifically for children.
Depending on the approved capacity and age groups, the centre may require:
- Age-appropriate classrooms
- Safe entrances and exits
- Reception area
- Children’s toilets
- Staff facilities
- Sleeping/rest areas
- Food preparation facilities where applicable
- Indoor play areas
- Outdoor play areas where applicable
- First-aid facilities
- Secure storage
- CCTV
- Emergency exits
- Fire safety systems
Every part of the facility should prioritise children’s safety, accessibility and supervision.
Staff Requirements for a Daycare Business
A daycare business is highly dependent on qualified employees.
The team may include:
- Centre Manager
- Early years teachers
- Teaching assistants
- Childcare practitioners
- Nurse or healthcare support where required
- Administrative staff
- Reception staff
- Cleaning and support personnel
The actual staffing requirement depends on the centre’s capacity, children’s ages and regulatory requirements.
When preparing your budget, include:
- Recruitment cost
- Salaries
- Employment visas
- Medical insurance
- Training
- Background documentation
- Staff onboarding
- Annual leave provisions
Payroll will normally be one of the largest recurring operating expenses.
Documents Required to Start a Daycare in Dubai
Requirements can vary depending on the applicant and facility, but investors should generally prepare documents such as:
- Passport copies of shareholders
- Emirates ID where applicable
- Trade name reservation
- Initial commercial approval
- KHDA application documents
- Education and Care Plan
- Proposed manager documents
- Premises documents
- Tenancy agreement
- Floor plans
- Facility approvals
- Staff qualification documents
- Health and safety documentation
- Insurance documents
- Additional authority approvals where applicable
KHDA can request additional documentation or information during its assessment.
Step-by-Step Process to Start a Daycare Business in Dubai
Step 1: Define Your Daycare Concept
Decide:
- Age groups
- Capacity
- Curriculum
- Operating hours
- Fee positioning
- Location
- Full-time or flexible childcare
- Premium or affordable model
Step 2: Reserve the Trade Name
Reserve an appropriate business name with the relevant licensing authority.
Step 3: Obtain Initial Commercial Approval
Complete the required initial business licensing procedures.
Step 4: Prepare the Education and Care Plan
Develop a comprehensive plan according to KHDA requirements.
Step 5: Obtain KHDA Initial Approval
Submit the required documents and Education and Care Plan to KHDA.
Step 6: Secure Suitable Premises
Select premises capable of meeting Early Childhood Centre requirements.
Step 7: Obtain the Commercial Licence
Proceed with the applicable business licensing procedures following the required approvals.
Step 8: Appoint the Centre Manager
Submit the proposed manager for KHDA approval.
Step 9: Complete Facility Fit-Out
Develop the premises according to the approved design and safety requirements.
Step 10: Recruit Qualified Staff
Hire teaching, childcare, administrative and support staff.
Step 11: Complete Final Approvals
Complete inspections and any additional approvals required by the relevant authorities.
Step 12: Obtain the Educational Services Permit
Once the required conditions have been completed, obtain the KHDA Educational Services Permit and commence operations according to the approved activity.
How Long Does It Take to Open a Daycare in Dubai?
The complete setup period varies depending on:
- Documentation
- KHDA application
- Education and Care Plan approval
- Manager approval
- Property selection
- Fit-out
- Inspections
- Commercial licensing
- Recruitment
KHDA currently publishes a 34-working-day service timeline for its Early Childhood Centre permit process once all required documents are received and conditions for each stage are satisfied.
However, the complete business setup can take longer because this timeline does not necessarily include property search, construction, recruitment or other external approvals.
A realistic project should therefore be planned well in advance of the intended opening date.
Daycare Business Revenue Model
A childcare centre can generate recurring revenue through several approved attendance models.
KHDA’s 2026 fee framework permits centres to structure programmes as:
- Full-time
- Part-time
- Sessional or seasonal
- Hourly/drop-in
- Package-based
Fee structures and attendance arrangements must be properly disclosed to parents and reflected in the applicable parent contract.
This allows operators to create packages tailored to different parent requirements.
Is a Daycare Business Profitable in Dubai?
A well-positioned childcare centre can develop a sustainable recurring revenue model, but profitability depends on several factors.
These include:
- Enrolment rate
- Student capacity
- Average monthly fee
- Rent
- Staff salaries
- Marketing expenses
- Centre positioning
- Location
- Parent retention
- Operating efficiency
A centre with expensive premises but low enrolment may struggle despite charging premium fees.
Investors should therefore prepare a detailed financial model covering at least:
Startup investment
Monthly operating expenses
Maximum child capacity
Break-even enrolment
Average revenue per child
Expected occupancy rate
Marketing cost per enrolment
This provides a more reliable picture of potential profitability.
Common Mistakes When Starting a Daycare in Dubai
Renting a Property Before Checking Suitability
This can lead to substantial fit-out expenses or approval issues.
Underestimating Working Capital
New centres may take time to build enrolment.
Hiring the Manager Too Late
Manager approval forms an important part of the licensing process.
Weak Education and Care Plan
Incomplete submissions can delay KHDA approval.
Ignoring Parent Acquisition
A beautiful facility does not automatically generate enrolments.
A strong pre-launch marketing strategy should begin before opening.
Competing Only on Price
Parents typically evaluate safety, staff quality, learning programmes, location, communication and reputation in addition to fees.
How Beyond View Can Help With Daycare Business Setup in Dubai
Starting an Early Childhood Centre requires coordination between business licensing, regulatory approvals, documentation and facility setup.
Beyond View can assist investors with the business setup process, including:
- Business activity guidance
- Trade name reservation support
- Commercial licensing assistance
- Documentation coordination
- Application support
- Guidance on external approval requirements
- Visa and establishment-related services
- Business setup consultation
Regulatory approvals and permits are ultimately issued by the relevant government authorities and remain subject to their requirements and approval.
Frequently Asked Questions
How much does it cost to start a daycare business in Dubai?
The complete investment depends on the centre’s location, capacity, rent and fit-out. A daycare project can require several hundred thousand dirhams, while larger premium centres may exceed AED 1 million.
How much is the KHDA daycare permit?
KHDA currently lists the Educational Services Permit for an Early Childhood Centre at AED 10,000.
Who regulates daycare centres in Dubai?
Private Early Childhood Centres in Dubai are regulated by the Knowledge and Human Development Authority (KHDA).
Can foreigners start a daycare business in Dubai?
Foreign investors can establish businesses in Dubai subject to the applicable ownership, licensing, regulatory and activity requirements.
Do I need KHDA approval to start a nursery in Dubai?
Yes. An Early Childhood Centre requires the applicable KHDA approvals and Educational Services Permit.
How long does KHDA approval take?
KHDA currently publishes an overall service timeline of approximately 34 working days after receiving all required documents and subject to compliance with each stage.
What age groups can an Early Childhood Centre serve?
KHDA’s current framework covers childcare and early education services for children from birth up to six years of age, including up to Year 1/KG2.
Can a daycare offer hourly childcare?
KHDA’s current framework allows approved Early Childhood Centres to use flexible models including hourly and drop-in attendance, subject to the centre’s approved programme and fee arrangements.
Conclusion
Starting a daycare business in Dubai in 2026 can provide entrepreneurs with an opportunity to enter a growing early childhood care and education market.
However, success begins with proper planning.
Investors must consider much more than obtaining a commercial licence. KHDA approval, the Education and Care Plan, a qualified centre manager, suitable premises, facility design, qualified staff, child safety and sufficient working capital are all important parts of the setup process.
The KHDA Educational Services Permit currently costs AED 10,000, but the total investment required to open a daycare centre can be significantly higher once rent, fit-out, staff, equipment and working capital are included.