How to Set Up A Sports Academy in the UAE: Licensing Requirements & Compliance

With its strategic location, business-friendly policies and multidisciplinary free zones, the UAE serves as a magnet for foreign and domestic investors. Contributing approximately $2.5 billion annually to its economy, the sports sector plays a significant role in the country’s economic landscape. With Emirates like Dubai having launched the first International Sports and Entertainment Free Zone Cluster (ISEZ), it further reinforces the UAE’s position as the global capital for businesses. This has made Sports Academies and Fitness Centres attractive and viable business options.

Sports Academy in the UAE and its Regulators

In the UAE, the Federal Law No. (4) of 2023; Concerning Sports is the key legislation governing the arena of sports. As per its Article 1, a Sports Institution is defined as “any for-profit sports entity licensed by the competent authorities, to practise activities and provide sports services such as centres, private clubs and academies.” The competent authority for issuing such a license shall be any local authority concerned with licensing, regulating, supervising and controlling sports entities and activities.

How to Set Up a Sports Academy?

Setting up a Sports Academy in a global business hub like the UAE entails several key steps:

• Choosing the Right Location and Business Structure: Businesses can select either the UAE mainland or the specific free zones for establishing their sports academy based on their particular characteristics and objectives, with both areas entailing benefits unique to them. While free zones are known for their benefits, such as tax exemptions and 100% foreign ownership, a mainland setup allows you to trade directly within the UAE.
• Choosing the Right Name: Choosing the right name for your academy is a crucial and fundamental step in its establishment. This also highlights the requirement of Trade name registration.
• Licensing and Registration: To legally operate, licensing the proposed sports academy is a mandatory requirement. This is undertaken with the competent authorities as defined earlier, wherein the sports institutions shall adhere to the requirements set by such competent entities for providing services and practising any sports activities, upon which a sports services license shall be issued. Some of the government bodies accrediting these licenses are the Abu Dhabi Sports Council, Dubai Sports Council, Al Ain Sports Council and Sharjah Sports Council.
• Local Register: The competent authority shall then effect the licensing in the register of sports institutions for which it provides licensing. This registry is often the first step for formal recognition.
• Approval or Membership from Sports Federations: Sports academies may affiliate with sports federations by joining their memberships. However, when an academy joins a federation, it must comply with the controls and requirements outlined in the federation’s statute. In cases where an academy intends to offer training related to a specific sport or in order to participate in official competitions that are regulated by a Sports Federation, obtaining membership and adhering to the federation’s statutes shall become mandatory.

Penalty for Operating Without a License

As licensing remains a mandatory condition for operating a sports academy in the UAE, anyone who engages in an organised activity in the field of sports through an unregistered or non-licensed sports organisation shall attract strict penalties. This may include imprisonment for a period not exceeding 6 months and a fine of not less than 100,000 Dirhams and not exceeding 2,000,000 Dirhams. In such cases, in addition to the aforesaid penalties, the court may also order the closure of the sports entity.

Mandatory Sports Registrations & Sector Approvals

• Obtaining a license from the competent authority is the fundamental prerequisite.
• Licensing and Registrations can also entail additional requirements specific to each location. For instance, a sports academy to be set up in Dubai shall also comply with the Law No. (13) of 2024 Amending Law No. (11) of 2009 Concerning the Dubai Sports Council (DSC). Here, the DSC regulates, motivates, and approves plans related to Sports Establishments. Similarly, for a sports academy in the Abu Dhabi, it shall require compliance with the Abu Dhabi Sports Council’s (ADSC) guidelines.

A Sports Academy and a Registered Sports Entity

While a Sports Academy must be licensed by the Competent Authorities and entered into the local register, for such a sports academy to be in the separate category of Registered Sports Entities, it shall comply other specific requirements as detailed by the law under its Article 36. This includes (but is not limited to):

• Founders having the nationality of the State
• The existence of a permanent place to practice the activity.
• Obtaining a license from the competent entities.

These Registered Sports Entities primarily include Sports Federations, associations, and sports clubs.

Article 38 further enlists certain obligations to be complied by these entities. These include:

• Applying strict governance and accounting standards by auditing the financial statements of revenues and expenditures.
• Strictly adhering to ethical and non-political standards, by refraining from engaging in any political activity, or from provoking religious, sectarian or racial conflicts.
• Maintaining the safety and health of athletes and protecting them against any risks of violence and abuse.
• Insuring the athletes and keeping them away from doping.
• If the academy were to become a Registered Sports Entity, it would also be required to implement the goals and objectives stipulated in its statute.
• Committing to all international sports agreements as ratified by the State.

Common compliance pitfalls include the sports academy directly operating before obtaining a clearance from the authorised Sports Council, which can result in penalties.

While setting up a sports academy and ensuring its compliance with all the prevailing laws may seem a cumbersome process, seeking the assistance of a legal professional ensures that your sports academy meets every licensing, regulatory, and compliance requirement in the UAE, helping you avoid delays, penalties, and costly operational risks.