How To Set Up An Engineering Firm In The UAE

Author: Hanoof Al Naama
Published: May 8, 2024
Category: Business Setup in Dubai

Overview of Engineering Business Opportunities in the UAE

The UAE is experiencing rapid development with an unmatched skyline, landscape, and infrastructure. The country is investing heavily in mega-projects, creating a booming demand for engineering services and consultancy. Specific demands exist for:

The growth of the engineering industry is being driven by the UAE's focus on renewable energy projects such as solar and wind power, as well as green buildings. This has created significant demand for sustainable design and construction expertise.

SPC Free Zone Benefits for Engineering Firms

SPC Free Zone, described as the fastest free zone, offers instant business licenses for engineering activities. Key benefits include:

Business License Options for Engineering Firms

There are several business activities available for setting up an engineering firm in the UAE. Below are the most popular business licenses within this category.


License Type 1: 7110.00 – Architectural and Engineering Activities and Related Technical Consultancy

Overview

This license covers numerous essential activities for engineering firms under the broad categories of:

Note: License codes 7110.02 and 7110.03 under this license enable subsections of activities specified below.

Architecture Services Covered

Engineering firms can undertake:

This enables firms to contribute uniquely to the developing UAE landscape.

Surveying Services Covered

This license is essential for firms conducting:

These services are critical for informed design decisions, construction safety, and legal compliance.

Engineering Design Activities

A vast majority of engineering design activities fall under this license. Engineering design specifically refers to the process of applying the physical laws and principles of engineering in the design of:

Sub-License 7110.21: Design Activities and Consultation

The following design activities and consultations are enabled:

Sub-License 7110.3: Additional Engineering Consultancy

Consultants with this specific license can be involved in:

These services are necessary for most indoor spaces, creating:

Regulatory Requirements for License 7110.00

Requirement Type Details
Third-party Approval Municipality approval – Technical Department is required for this business activity, post obtaining your trade license
Filing of Economic Substance Return Business activity 7110.00 is exempt from this requirement
Anti-Money Laundering Compliance Business activity 7110.00 is exempt from this requirement

Prohibited Activities Under License 7110.00

The following engineering and construction-related activities are prohibited with this license:


License Type 2: 7110.11 – Engineering Consultancy

Overview

This license covers engineering consultancy services with multiple sub-categories (7110.13, 7110.17, 7110.18, 7110.20, 7110.2, 7110.22, 7110.24, 7110.25, 7110.26, 7110.27, 7110.28, 7110.31, 7110.32, 7110.33, 7110.34, 7110.38, 7110.39).

Access to reliable and innovative engineering consultancy solutions is imperative for completing projects with efficiency, safety, and according to the UAE's stringent regulations.

General Regulatory Requirements for License 7110.11

Requirement Type Details
Third-party Approval Municipality approval – Technical Department is required for this business activity
Filing of Economic Substance Return Business activity 7110.11 is exempt from this requirement
Anti-Money Laundering Compliance Business activity 7110.11 is exempt from this requirement

Important Note: Certain business activities require special third-party approvals based on the nature of the business activity. All approvals must be obtained after securing your trade license, not before.

Engineering Consultancy Sub-Categories

Sub-Categories Requiring No Unique Third-Party Approvals

The following business activities require no unique third-party approvals:

License Code Engineering Consultancy Type
7110.17 Mass Media Engineering
7110.20 Electronic Devices
7110.18 Engineering in Management Information Systems
7110.22 Manufacturing and Materials
7110.24 Raw Material Installation
7110.26 Illumination and External Lighting for Buildings
7110.27 Safety and Evacuation
7110.28 Engineering with 3D Printing Technology
7110.31 Communications Engineering

Sub-Category Requiring Ports & Customs Department Approval

Third-party approval from the Ports & Customs Department (Sharjah) is required:

License Code Engineering Consultancy Type
7110.13 Engineering for Ship Building

Sub-Categories Requiring Sharjah Municipality Approval

Third-party approval from the Sharjah Municipality is required for these business activities:

License Code Engineering Consultancy Type
7110.25 Interior Design Engineering
7110.32 Civil Engineering
7110.33 Coastal Engineering
7110.34 Mechanical Engineering
7110.38 Electrical Network & Distribution
7110.39 Construction Engineering

Prohibited Activities Under License 7110.11

The following engineering and construction-related activities are prohibited with this license:


License Type 3: 8110.09 – General Facilities and Services Engineering Consultancy

Overview

With consultancy in general facilities and services engineering, a firm can provide expertise in:

These consultancies can be involved in all stages of a building's life cycle:

General facilities and services engineering consultancies can be a valuable resource for businesses and organizations of all sizes. They help ensure that facilities are planned, designed, constructed, and operated in a way that is safe, efficient, and cost-effective.

Core Activities: Operations and Maintenance

Operations and maintenance are the core of this activity. This includes developing plans and procedures for the ongoing care and maintenance of the facility:

Important Distinctions and Limitations

This license is distinctly separate from core business activities and primary operations. Key limitations include:

Regulatory Requirements for License 8110.09

Requirement Type Details
Third-party Approval Third-party approval from the Sharjah Municipality is required for this business activity, post obtaining your trade license
Filing of Economic Substance Return Business activity 8110.09 is exempt from this requirement
Anti-Money Laundering Compliance Business activity 8110.09 is exempt from this requirement

SPC Free Zone Benefits for License 8110.09

With SPC Free Zone's instant business licenses, obtaining this license can be streamlined, along with:


Summary: Choosing the Right Engineering License

Quick Reference Table

License Code License Type Key Services Municipality Approval Required Economic Substance Filing AML Compliance
7110.00 Architectural and Engineering Activities Architecture, surveying, engineering design, project management Yes (Technical Department) Exempt Exempt
7110.11 Engineering Consultancy Specialized engineering consultancy across multiple disciplines Yes (Technical Department, varies by sub-category) Exempt Exempt
8110.09 General Facilities and Services Engineering Facilities planning, design, operations, and maintenance Yes (Sharjah Municipality) Exempt Exempt

Key Considerations for Engineering Firms

  1. Third-Party Approvals: All third-party approvals must be obtained after securing your trade license, not before
  2. Prohibited Activities: Certain activities are consistently prohibited across engineering licenses, including software development, computer consultancy, technical testing, R&D activities, and aerial photography
  3. Service Scope: For facilities management (8110.09), firms must provide multiple services, not just a single service type
  4. Specialized Approvals: Some engineering consultancy sub-categories require specific approvals from Ports & Customs Department or Sharjah Municipality

About SPC Free Zone

SPC Free Zone is positioned as the fastest free zone for business setup in the UAE, offering:

Contact Information:


This guide provides comprehensive information on setting up an engineering firm in the UAE through SPC Free Zone, covering the three main license types and their specific requirements, approvals, and permitted activities.