Set up a Company in Energy Sector in Dubai

Set up a Company in Energy Sector in Dubai

Updated on Monday 24th April 2017

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One of the most powerful and successful industries in Dubai is the energy sector, thus implying promising options for the investors who decide to set up a company in this business area. There are several laws which represent the legal framework a company in the energy sector must follow since its establishment and all along its period of functioning. You can confidently rely on our law firm in Dubai who can guide you along the implementation of the local legislation in your business project in the energy sector

Legal framework for the establishment of a company in the energy sector in Dubai

If you want to invest in Dubai in the energy sector, the main laws which will determine the organization and functioning of your company are the following:
  • the Electricity Law;
  • the Dubai Office Resolution Act;
  • the Dubai Electricity and Water Authority Act.
The Electricity and Water Authority (DEWA) issues licenses and has the responsibility of supervizing the companies established in the energy sector in Dubai. If you want to find out more about specific regulations contained in these laws and their effect on your business activity, you can rely on our Dubai lawyers

Foreign ownership in energy enterprises in Dubai

Dubai is a friendly place for foreign investments because it does not impose any special restrictions. The only legal limitations are those stipulated in the Company Law which is applicable in equal measure to both residents and foreign investors. Moreover there are certain requirements which apply to local companies, but from which foreign companies are excepted. 
According to the law, any onshore company must be established in collaboration with a local partner who must contribute with at least 51% in the ownership of the company. However, the enterprises which are established in the electricity sector are not obliged to comply with this provision. The producers of energy must sell their product to the DEWA which centralizes the product and subsequently distributes it to the rest of the country and abroad. 
If you are interested in other legal provisions regarding company formation and taxation, you are welcome to call on our attorneys in Dubai

Setting up an energy company in Dubai

The company formation procedure in the energy sector in Dubai follows the typical legal steps provided in the Company Law. In order to start the registration, you must make a name reservation and file the necessary documents to the Department of Economic Development including the licenses obtained from the DEWA. Depending on the business activity that you intend to conduct, you might be required to apply for a power generation license or a water desalination license. The renewable sector requires special licenses which allow a company to operate in Dubai. Our law firm in Dubai remains at your disposal with further details regarding the types of licenses that you need to obtain and with legal help in the application procedures.

Advantages of opening a company in the energy industry in Dubai

There are several important benefits for an investor who decides to establish a company in the energy sector in Dubai. One of the most important is the Dubai tax environment granting 0% rate for investors and special loan programs in order to support the business activity. Other advantageous elements are the incentives provided by the government for the operator in the green energy sector of Dubai and the governmental schemes which are released periodically for various energy sectors.
Don’t hesitate to contact our Dubai lawyers in order to perform a quick and sound set up of your company in the energy sector in Dubai.