When adopting Dynamics 365 in the UAE, having a good grasp of licensing helps you avoid surprises and control costs. Licensing determines what features users can access, how many products you can combine, and the rules around upgrades or expansions.
Core Concepts: Base vs Attach Licenses
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Base license: This is your primary license for a user—one that gives full access to a specific Dynamics app (for example, Sales, Customer Service, or Finance). Every full-access user must have a base license assigned.
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Attach license: After you assign a base license to a user, you can “attach” additional application licenses for that same user at a lower cost. For instance, a user with a Sales base license might add Customer Service or Field Service via attach pricing.
These license types carry identical functional rights—they differ only in pricing.
If you combine apps, the highest-cost license among them must be the base, and then others can become attach.
Other License Types: Team Member, Device, Light Use
Not every user needs full access. There are lighter license options:
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Team Member license: For users who only need limited capabilities—viewing data, running reports, approving workflows, or editing small parts (such as quotes, timesheets).
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Device license: If multiple users share one device (for example, in a manufacturing environment), you can license that device instead of individual users.
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Operations – Activity license: Suited for roles needing more than Team Member but not full access. (Depends on product and scenario.)
Licensing Models & Procurement in UAE
CSP (Cloud Solution Provider) Model
Many UAE organizations acquire Microsoft D365 Licensing UAE via CSP partners. This is a flexible, subscription-based model where you pay monthly and can adjust user counts as needed. CSPs also bundle support and implementation services.
Volume / Enterprise Agreements
Large organizations may prefer Enterprise Agreements or volume licensing. These can yield better discounts but tend to require longer commitments and forecasting.
Local Reseller & Partner Support
Working with a UAE-based Microsoft partner brings advantages: localized compliance (VAT, Arabic support), regional pricing insight, bundled services, and smoother renewals. For example, Burhani is one such Gold partner in Dubai, providing optimized licensing and consulting.
Business Central: A Common Use Case in UAE
Business Central is popular among small to mid-sized enterprises in the UAE. Its licensing structure is clear and modular. Common license tiers include:
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Essentials – Core ERP functionalities
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Premium – Adds service management and manufacturing
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Team Member – Light users with limited access.
Also, Business Central under SaaS often includes a dual use right—you may use the software in cloud and on-premises in certain conditions.
Things to Watch Out For in UAE Licensing
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Currency vs pricing lists: Microsoft’s global pricing is often in USD. UAE partners will convert to AED, and local offers may differ.
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VAT & local taxes: Licensing may exclude VAT; always confirm whether 5% VAT or other charges apply. For example, e&’s licensing page mentions VAT separately.
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Minimum contract terms / exit fees: Some providers enforce minimum durations or penalty charges for early termination.
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License audits & compliance: Microsoft may audit usage; make sure you stay compliant with user assignments, active user counts, and unused licenses.
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Scalability & flexibility: Ensure your chosen license model lets you grow (add users, attach apps) or scale down without major losses. A good partner helps you transition.
How to Choose the Right License Setup
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Map user roles: Identify who needs full access, who needs light access, and who shares devices.
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Start with base licenses where needed: Then add attach licenses for cross-functional users.
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Use light / Team Member licenses for roles requiring minimal interaction.
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Leverage CSP partner guidance: They help model your license cost, compliance, and future scaling.
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Review annually: As your business evolves, revisit license assignments and upgrade/downgrade as needed.
In Summary
Microsoft Dynamics 365 licensing in the UAE relies on a base + attach model, supplemented with lighter and shared use licenses. Whether you pick a CSP subscription or volume agreement depends on your business size and strategy. Working with a trusted UAE partner helps align licensing with local regulations, optimize costs, and ensure smooth upgrades.
