Company Formation Dubai



Set Up a Company in the Energy Sector in Dubai

Updated on Tuesday 11th April 2017

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Set-up-company-in-the-energy-sector-in-DubaiThe 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 Electricity Law;
  • -          the Dubai Office Resolution Act;
  • -          the Dubai Electricity and Water Authority Act.

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.

Foreign ownership in energy companies 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.

Setting up an energy company in Dubai

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.

Advantages of opening a company in the energy industry in Dubai

Opening a company in the energy sector in Dubai has many advantages, among which:

  • -          a tax-free environment;
  • -          incentives for companies operating the in the green energy sector;
  • -          loan programs;
  • -          governmental schemes targeted to various segments of the energy sector.

For full information on starting energy companies in the emirate, do not hesitate to contact our company formation consultants in Dubai.



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