Launched in 2000, Dubai Internet City (DIC) is a member of Dubai HoldingDubai Holding's group of companies. As one of the free trade zones that fit under the umbrella of Dubai Technology and Media Free Zone (TECOM)Dubai Technology and Media Free Zone (TECOM), DIC caters to Information and Communications Technology (ICT) organizations. DIC offers incentives including 100% tax-free ownership, 100% repatriation of capital and profits, no currency restrictions, streamlined registration, licensing and no customs duty.

Upon launching in 2000, DIC attracted an initial list of 100 organizations that grew to 850 companies by mid 2006. It hosts international companies including MicrosoftMicrosoft, OracleOracle, IntelIntel, HPHP, IBMIBM, DellDell, Sony EricssonSony Ericsson, SamsungSamsung, and CiscoCisco. These companies have been establishing their presence in DIC as a marketing and sales hub for the Middle East, Africa, and South Asia. A limited amount of software development also takes place there. In 2006, DIC announced its intentions to attract more research and development activity into its zones.

DIC began an AED5 billion (USD1.3 billion), 10 phase expansion, due for completion by the end of 2006. It also announced plans to expand by setting up similar smart cities in other countries. DIC reached an agreement in early 2005 with Kerala's commercial capital of Kochi in India to establish Smart City at a total cost of AED1.28 billion (USD348 million). In March 2006, it signed an agreement with the government of Malta to establish SmartCity@Malta, a business park for knowledge-based companies at a cost of USD308 million.

In November 2005, DIC obtained the ISO 9001:2000 certification.