The energy industry is one of the most powerful industries in Dubai which is why opening a company in this sector can bring substantial earnings to its owners. The main laws governing the opening of a company in the energy industry in Dubai are:
The last law provides for the main authority in charge with the licensing and supervision of energy companies in Dubai – the Dubai Electricity and Water Authority, shortly known as DEWA.
Foreign investors seeking to open companies in the electricity sector can obtain more information on the laws governing this industry from our company incorporation agents in Dubai.
The main advantage of starting a business in the energy industry in Dubai is that there are no foreign investment restrictions, apart from the ones stipulated by the Company Law which provide for onshore companies to have a local partner who owns at least 51% of the company. Opening a free zone company in the Dubai electricity sector has no such impositions.
It should be noted that the energy produced by these companies can only be sold to DEWA which is the main distributor in the emirate.
The company registration process of a company in the energy industry in Dubai is the same as for any other type of business and implies the incorporation with the Department of Economic Development, followed by obtaining the necessary licenses with DEWA. Companies in the private sector must obtain a power generation license or a water desalination license in order to be allowed to operate in Dubai. Also, other special licenses can be obtained by companies operating in the renewable energy sector.
Opening a company in the energy sector in Dubai has many advantages, among which:
For full information on starting energy companies in the emirate, do not hesitate to contact our company formation consultants in Dubai.