Setting up an energy company in the UAE

There are many opportunities in the UAE and the GCC for innovative and groundbreaking companies to expand their business in the region. The Energy and Power sector provides favorable investment prospects especially for those in the renewable energy and renewables-related maintenance fields.

For entrepreneurs, the renewables sector in the UAE is bursting with opportunity. This energy type will play a central role in the UAE’s economic growth with the UAE government set on a 30% growth in energy generation by 2030. This follows the country’s rapid growth and the concomitant rise in energy demand.

There are different methods and sources from which renewable energy can be generated. One of the best and most cost effective methods is generation from waste and byproducts. Several studies are being carried out on this method, and labs around the world are increasingly finding more and more types of waste that can be used.

Through the use of machinery and turbines, the heat generated as a waste or byproduct in various industries can be used by companies invested in renewable energy to generate electricity.  Construction or demolition waste are another major waste product accumulating daily that can be harnessed.  This can be a huge opportunity for companies to come up with innovative generation ideas from virtually free resources - contractors and earth movers would sell these at cost, or even pay for accepting this waste.

Here are a few things you must do when setting up a business in this industry within the UAE:

1. Decide the legal form of the business
2. Register your trading name
3. Identify the right jurisdiction
4. Identify the right Business Activity
5. Find out the location and get a contract
6. Apply for the trade license
7. Get approvals from the concerned departments and authorities like the municipality, Dubai Electricity & Water Authority (DEWA), Sharjah Electricity Water and Gas Authority (SEWA), Federal Electricity and Water Authority (FEWA), Abu Dhabi Distribution Co. (ADDC), the Department of Energy, Environment Agency Abu Dhabi (EAD), Planning, Civil Defense, etc.
8. Register your new business with the labor and Immigration Departments.

The following legal options are available for you:

• Limited Liability Company
• Branch Office
• Professional License

All major Free Zones, such as the DMCC, DSO and many others, also allowing this activity in their facilities.

The procedures and steps required for setting up a renewable energy company can be complex and daunting, and there are a number of approvals involved across various desks, departments and locations. And this is where we come in.

At MBG Corporate Services, a leading name in company formation and business setup,  our comprehensive setup service covers the entire A-to-Z of the process to ensure you launch your renewable energy business in the UAE smoothly and successfully.