How To Set Up An Electrical Services Business in the UAE

Author: Hanoof Al Naama
Published: May 27, 2024

Overview of Electrical Services Business in the UAE

The electrical services business in the UAE is a thriving sector that caters to both residential and commercial needs. Electrical contractors typically handle large-scale projects, such as installation of systems from scratch whilst working in tandem with construction crews. On the other hand, electricians—who may or may not be attached to an electrical company—handle facets of the job such as repairs and maintenance on a smaller scale.

Types of Electrical Services in the UAE

Residential Electrical Services

Under residential services, electrical companies provide the following:

Commercial Electrical Services

On the commercial front, an electrical service company carries out:

Business Requirements and Standards

Electrical service providers need to:

Quality is of top priority, including ensuring that all work adheres to local building codes and electrical safety standards.

Setting Up with SPC Free Zone

Setting up an electrical services company in the UAE can be extremely profitable. SPC Free Zone offers instant licensing, streamlining your business set-up with the following benefits:

Business Activities for Electrical Services Companies

Business Activity 3314.00 – Repair of Electrical Equipment

Whether you plan to involve your company in large-scale operations at a commercial property or minor repairs at residential apartments, this activity is recommended.

Process Overview

Repairing electrical equipment is a multi-step process:

  1. Initial Assessment: Careful inspection and identification of the problem
  2. Diagnosis: Specialist determines whether solving the issue requires a repair or a replacement of the faulty component(s)
  3. Repair/Replacement: Execution of the necessary work
  4. Testing: Technician thoroughly tests the equipment to ensure it functions safely and within its normal specifications

Sub-Activities Under 3314.00

This business activity includes seven sub-activities that enable the repair and maintenance of specific types of equipment:

Activity Code Description
3314.01 Repair and maintenance of power, distribution, and specialty transformers
3314.02 Repair and maintenance of electric motors, generators, and motor generator sets
3314.03 Repair and maintenance of switchgear and switchboard apparatus
3314.04 Repair and maintenance of relays and industrial controls
3314.05 Repair and maintenance of primary and storage batteries
3314.06 Repair and maintenance of electric lighting equipment
3314.07 Repair and maintenance of current-carrying wiring devices and non current-carrying wiring devices for wiring electrical circuits

Exclusions for Activity 3314.00

Technicians with this license cannot repair or maintain:

Professional Requirements

A technician who's good at what they do will also be up-to-date on the latest safety codes and newer, available equipment. These specialists have the potential to thrive in this sector, particularly through verbal recommendations and a good marketing strategy.

Regulatory Requirements for Activity 3314.00

Requirement Status
Third-party Approval No third-party approvals are required for this business activity
Filing of Economic Substance Return Business activity 3314.00 is exempt from this requirement
Anti-Money Laundering Compliance Business activity 3314.00 is exempt from this requirement

Business Activity 4321.00 – Electrical Installation

A complex task that involves electrician skills and expertise, electrical installations in the UAE involve multiple stages.

Installation Process Stages

Stage 1: Planning and Design

Stage 2: Material Selection and Procurement

Stage 3: Installation

Stage 4: Verification

Scope of Work Under Activity 4321.00

With this business activity, electrical service companies can take on projects that involve the installation of electrical systems in all types of buildings and civil engineering structures.

Wiring Categories Enabled:

Other Installations Include:

Exclusions for Activity 4321.00

Under this license, service providers cannot:

Regulatory Requirements for Activity 4321.00

Requirement Status
Third-party Approval Third-party approval from the Sharjah Municipality/Dubai Civil Defense is required for this business activity
Filing of Economic Substance Return Business activity 4321.00 is exempt from this requirement
Anti-Money Laundering Compliance Business activity 4321.00 is exempt from this requirement

Business Activity 7110.38 – Electrical Network & Distribution Engineering Services

Electrical network and distribution engineering services deal with the planning, design, and implementation of systems that deliver electricity from power plants to end users.

System Types

Transmission Systems

Transmission systems focus on the high-voltage network carrying electricity over long distances from power generation plants (like solar farms or wind farms) to substations located closer to cities or towns.

Distribution Systems

Distribution systems involve designing the medium and low voltage network that distributes electricity from substations to individual buildings or neighborhoods.

Core Services

These electrical experts are involved in:

Project Applications

For large-scale projects like skyscrapers, apartments, office buildings, and new neighborhoods, competent electrical network and distribution services are essential.

Collaboration and Scope

Working in conjunction with architects and engineers, electricians come into play during the construction stage. These experts are present during:

Prohibited Activities Under License 7110.38

Specific activities are prohibited with this license, including:

Regulatory Requirements for Activity 7110.38

Requirement Status
Third-party Approval Third-party approval from the Sharjah Municipality is required for this business activity
Filing of Economic Substance Return Business activity 7110.38 is exempt from this requirement
Anti-Money Laundering Compliance Business activity 7110.38 is exempt from this requirement

Summary of Business Activities

Activity Code Activity Name Third-Party Approval Required Economic Substance Return AML Compliance
3314.00 Repair of electrical equipment No Exempt Exempt
4321.00 Electrical installation Yes (Sharjah Municipality/Dubai Civil Defense) Exempt Exempt
7110.38 Electrical Network & Distribution Engineering Services Yes (Sharjah Municipality) Exempt Exempt

Additional Resources

Explore the other guides in the Activity Hub for exploring unique business ideas in Dubai and navigate the essentials of business setup with ease.

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