How Much Does Microsoft Dynamics 365 Cost (in UAE)?

Businesses in the UAE increasingly look to enterprise software to modernize operations, unify data, and scale faster. 

Among the top choices globally is Microsoft Dynamics 365, a suite of cloud-based business applications that blends ERP (Enterprise Resource Planning) and CRM (Customer Relationship Management) functionality. But one of the first questions prospective buyers ask isn’t about features - it’s about cost.

In this guide, we’ll break down how much Dynamics 365 costs, what influences that price, and what UAE companies should expect when budgeting for licences, implementation, and ongoing usage. 

Let’s get started.

What Is Microsoft Dynamics 365 - And Why Its Pricing Varies?

Microsoft Dynamics 365 isn’t a single product.

It’s a platform made up of many apps, each designed to handle a different part of your business:

• D365 Sales and Customer Engagement (CRM functions)

• Finance and Operations (ERP backbone)

• Business Central (ERP for SMBs)

• Customer Service, Field Service, D365 Marketing, Project Operations, and more

Each app has its own pricing tier, and you pay per licensed user per month. That modular model lets you pick only the tools you need, but it also means total cost is unique to your business.

Importantly for UAE businesses, prices you see online (often listed in USD) don’t include local VAT (5%), partner fees, or implementation costs - all of which can materially change your total spend. 

Licensing Models: How Microsoft Charges?

Understanding how Microsoft licenses Dynamics 365 is core to estimating cost. The licensing model today is built around named users - meaning each person using the system needs a licence. Licences are grouped into:

Full Users

These are your power users - sales people, accountants, customer service reps, operations managers - who need the full capabilities of a Dynamics 365 app.

Light / Team Members

For casual users who only need basic access (view reports, approve tasks, etc.), Microsoft has a “Team Member” licence that’s much cheaper than full user licences. 

There are also attach licences and cross-app discounts if you license multiple Dynamics applications for the same user — which can lower per-app costs. (Microsoft)

Core Pricing Breakdown (Per User/Per Month)

Below is a snapshot of typical per-user licence pricing for some of the most frequently considered Dynamics 365 apps. 

Note that Microsoft often lists these in USD with yearly commitments, and local partners in the UAE will price them in AED with additional services, tax, and contracts.

A. Dynamics 365 Sales

Sales licences help your sales teams manage leads, build pipelines, automate workflows, and get contextual AI-driven insights. 

B. Dynamics 365 Finance & Operations

This is Microsoft’s flagship ERP suite, designed for midsize and enterprise finance, accounting, reporting, and core operations.

These prices are available on Microsoft’s pricing page and reflect a yearly commitment. 

In UAE terms, local marketplace listings show around AED 771 per user/month (excl. VAT) for Finance & Operations licences, but this varies by partner and contract length. 

C. Dynamics 365 Business Central

Dynamics 365 Business Central is Microsoft’s ERP solution for small to midsize businesses (SMBs). It includes finance, supply chain, sales, inventory, and project basics.

Business Central pricing varies slightly depending on the D365 partner and whether implementation is included. 

Converting to UAE pricing with partner markup, Essentials is often around AED 250–300/user/month and Premium around AED 400+/user/month (excl. VAT). 

Implementation Costs: What the Licence Doesn't Tell You?

Licence fees are just one part of the total cost of owning Dynamics 365 - for many companies, implementation is the largest upfront investment.

Implementation costs include:

• Requirements gathering and solution design

• Data migration from legacy systems

• System configuration and customisation

• Integrations with local UAE systems (e.g., VAT/Excise compliance, banking, payroll)

• Training users and change management

• Support and post-go-live optimisation

For a small-to-midsize business, basic implementations of Business Central can range from tens of thousands of AED to over AED 100,000+, depending on complexity. For large enterprise Dynamics 365 Finance & Operations projects, it’s common for implementation to run into hundreds of thousands or even millions of AED in total. 

And these costs scale with the number of users, integrations, and custom reporting or automation needs.

How to Budget for Dynamics 365 in the UAE (Rule of Thumb)

Here’s a simplified way to think about total Dynamics 365 costs:

• Licence Costs: Multiply the number of users by the per user price (remember: team members are cheaper than full users).

• Implementation: Multiply expected implementation days (or project cost) by partner rates. For SMBs, this might be 20–80 days of consulting; for enterprise, 80–200+ days.

• Ongoing Support: Annual support retainer (5–20% of software value is typical).

• Training & Change Management: Budget separately for user adoption programs.

• Contingency: Leave room in your budget for scope changes, integrations, or feature requests.

If you operate in the UAE, you’re competing in a high-growth, highly digital market. That has several implications:

1. VAT and Local Tax Compliance: Dynamics 365 licences cover global use cases, but businesses in the UAE often require localisation, including VAT posting, tax reporting formats, and sometimes e-invoicing compliance. Implementation partners charge extra for local tax configurations.

2. Cloud-First Adoption: The UAE’s ICT strategy pushes cloud adoption, meaning many firms choose cloud Dynamics 365. Cloud licences include hosting, backups, and patches — but they are recurring costs.

3. Rapid Growth Expectations: Because UAE companies often expand fast across GCC markets, Dynamics 365 implementations typically plan for scalability — and that adds cost upfront, but saves money later.

How to Reduce Your Total Cost?

Here are practical tactics UAE companies use to manage spending:

• Start with core apps only and add more as you scale

• Use Team Member licences for casual users

• Negotiate multi-year contracts for licence discounts

• Bundle support with implementation for better rates

• Take advantage of Microsoft CSP partners for local pricing and compliance benefits.

The Bottom Line

Microsoft Dynamics 365 offers immense flexibility and power, but its cost isn’t a single number. Instead, it’s a formula built from licence types, user counts, implementation services, support agreements, and local tax/compliance needs.

For UAE businesses, that means moving past simple licence fees and thinking holistically about the total cost of ownership (TCO). Don’t just ask “How much does Dynamics 365 cost?”, ask “What will it cost our business to adopt, support, and scale with this system?”

With careful planning and the right partner, Dynamics 365 can definitely be a strategic investment - one that pays dividends in automation, real-time insights, and operational agility.

And what better way to get started than scheduling a call with Dynamics 365 consultants and experts in UAE - Kefify. We’re the only Dynamics 365 implementation partners that your business needs.