The world is undergoing a great industrial revolution and business transformation in different verticals. Accordingly, engineering is playing a major role in this advancement globally, Gulf region, and the UAE. Therefore, starting an engineering consulting business in Dubai is a promising opportunity.
An engineering consultancy business is a company that takes part in engineering activities. Thus, the Dubai Municipality regulates the engineering industry in the Emirate of Dubai. So, it ensures excellence, quality control, and make certain national/foreign companies safely and competently perform work they hold tenders for.
In the event, you want to launch a business like an engineering consultancy in Dubai. You have to apply for a permit to practice in the area, to conduct engineering or construction activities. Also, ensure that your company has correct classification and accreditation by Dubai Municipality Building Service Department Qualification team.
Key takeaways of the UAE engineering consultancy sector
Here are the notable insights from the state of the engineering consultancy in Dubai, UAE.
- The UAE professional services market’s revenue is forecast to reach US$277.20m by 2029 from US$203.20m in 2024 at 6.41% CAGR. (Statista)
- Dubai’s engineering consulting market has projection to hit $48.21m by 2029, from $37.89m in 2025 at a CAGR of 6.21%.
- The UAE is ranked 4th on the Global Competitiveness Report 2023 for infrastructure quality, with Dubai a major contributor. (World Economic Forum)
- Dubai is among the top ranked in the Middle East for investment in infrastructure and construction projects. (KPMG)
- Since its founding in 2005, Dubai Roads and Transport Authority has awarded 240+ engineering consulting contracts worth AED 12 billion. (RTA)
- Dubai is investing to generate 75% energy from the renewable sources by 2050, with the support of consulting engineers. (Clean Energy Business Council)
- From inception in 1992, Dubai Electricity and Water Authority has given AED 86+ billion worth of contracts to consulting engineers. (DEWA)
- Dubai South project, aiming to build a futuristic city, has awarded AED 300+ million worth of contracts to engineering consultants. (Dubai South)
- Dubai is home to nearly 4000 engineering consulting firms, who employ 15000+ engineers and other technical staff.
- Engineering consultants integrate smart technologies like Building Information Modeling (BIM), AI-driven construction management, IoT-based monitoring systems, and sustainable materials.
- Dubai’s development goals prioritize sustainability, with initiatives like the Dubai 2040 Urban Master Plan focusing on Eco-friendly urban growth.
- Construction regulations in Dubai are strict, and require full adherence for effective operation across the UAE.
- Dubai Engineering Consultancy Classification (DECC) categorizes engineering consultancy firms into different types according to their capacity and capabilities.
Process to get an engineering consultancy license in Dubai
This is the step-by-step procedure of getting a license for an engineering consultancy business in Dubai.
- Select company and trading name
- Choose business structure
- Decide legal jurisdiction
- Acquire initial approval
- Secure office space
- Obtain engineering license
- Appoint local partner (optional)
Now, we briefly look upon the steps of incorporating an engineering consulting company in Dubai.
Select company and trading name
Pick a strong business name and accompanying trading name, and ensure they follow the UAE’s corporate naming conventions.
Choose business structure
Wisely pick a corporate company structure for your engineering consultancy in Dubai from LLC, LLP, or other available options.
Decide legal jurisdiction
Before initiating business setup in Dubai, you must determine whether you want to set up in Dubai mainland or free zone. If you go for Dubai mainland company formation, you can undertake engineering projects across the UAE. However, if you opt for Dubai free zone company formation, then you have benefits like 100% ownership and zero-taxation.
Acquire initial approval
Seek preliminary approval for your engineering consultancy from Dubai Municipality (DM). Dubai Municipality has set some parameters for no-objection certificate (NOC) to follow by the engineering companies. Subsequently, these guidelines under Dubai Engineering Consultancy Classification (DECC) help in regulating the running engineering consultancy businesses.
Secure office space
Find a suitable office space on rent/lease for your engineering consultancy firm in Dubai, UAE.
Obtain engineering license
Get appropriate professional/trade license from Department of Economic Development (DED) for your engineering consulting firm by submitting the legal documents.
Appoint local partner (optional)
Engineering, architectural, or industrial consultants may have to recruit an Emirati shareholder possessing these attributes.
- Have a UAE nationality
- Holder of BSc. degree in engineering from a renowned university in one of the recognized engineering fields
- To have minimum 3 years of experience in this specialized field after receiving university degree
- Be a member of engineers’ association in the UAE
Considerations while starting engineering consultancy company
These are the requirements to begin an engineering consulting business in Dubai.
- If the company is registering as branch of oversees company in Dubai, it must provide comprehensive details of parent company’s work activities for the last 15 years in order to be correctly classified.
- General manager of the engineering consultancy business must be an engineer with an experience of minimum 15 years and also be a national of parent company’s country.
- The engineer who is taking responsibility of each activity listed on trading license must have 15 years’ experience, and be a member of Society of engineers in the UAE.
- In case of Dubai LLC company formation or civil company, local partner is required who is, an Emirati architect or civil engineer having minimum 10 years qualified experience.
- Oversees company are required to appoint a local agent to handle the business setup application on their behalf. The local agent should be Dubai born and resident.
- Proof of technical competence in the form of project completion certificates which will require to be notarized, legalized and translated for use in Dubai.
DECC approval criteria for Dubai engineering consultancies
The Dubai Engineering Consultancy Classification (DECC) is a rigorous mechanism for all engineering consultancies. It ensures consultants are enough competent to contribute to the dynamic landscape of engineering projects in Dubai. Here are the requirements for the engineering consultants in Dubai.
- Technical expertise and staffing
- Legal entity status
- Quality management
- Insurance coverage
- Health, safety, and sustainability
Next, we take a look on these prerequisites of the DECC approval.
Technical expertise and staffing
Engineering consultancy firms must have professional staff with relevant academic qualifications. Their resources must hold extensive experience demonstrating their technical competence. Overall, these consultancies must possess proficiency in providing engineering services, in line with their field of expertise.
Legal entity status
The engineering consultancy business must be a Dubai-registered legal entity with a valid trade license.
Quality management
The engineering consultancy company must maintain a quality management system. That too in line with the international standards and the Emirati obligations. Thus, it must highlight a commitment to quality engineering services, occupational health, and environmental safety.
Insurance coverage
To offset the project execution risks, the engineering consultant business must have proper insurance coverage, including professional liability insurance.
Health, safety, and sustainability
Engineering consultancy in Dubai must adhere to the health and safety regulations of the UAE. Therefore, it must implement a health and safety management system to ensure a safe working environment. A full adherence of the environmental regulations of DECC results in timely approval.
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General types of consulting engineering businesses
Local engineering firms are the businesses in the company register that one or more UAE nationals own. Consequently, they may get edge over their foreign counterparts in certain areas. There are three types of engineering consulting businesses in general.
- Associate engineering firm
- Expert engineering firm
- Foreign engineering branch office
Top services of engineering consultancy firms in Dubai
Here are some leading services that engineering consultancy firms in Dubai can provide.
- Research and planning
- Feasibility reports
- Design and drafting
- Structural engineering
- Construction supervision
- Project management
- Quality control
- Risk aversion and mitigation
- Value engineering
- Post-project evaluation
Major engineering activities in Dubai
These are some main engineering activities that are common in Dubai and the UAE.
- Architectural consultancy
- Civil engineering consultancy
- Electrical and electronic engineering consultancy
- Mechanical engineering consultancy
- Mine, mining and geological engineering consultancy
- Chemical and petrol engineering consultancy
Classification of consulting engineering companies in Dubai
UAE’s Dubai Municipality classifies the consulting engineering companies under these four office categories.
- Local engineering companies
- Engineering consulting companies
- Joint engineering companies
- Branches of foreign engineering offices
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Conclusion
The process of setting up an engineering company in Dubai is complex and quite challenging. If your business fully meets the above criteria. Then, you get a temporary permit that allows you to start employing staff before finalizing commercial license. Foreigners can hold 100% ownership in the engineering companies from June 2021.
Engineering consultancies in Dubai provide specialized guidance throughout the project lifecycle. They assist in feasibility studies, structural design, compliance with regulations, project management, risk assessment, and implementation of innovative technologies. So, they are helping to achieve the Dubai’s goal of becoming a global leader in smart urban development.
It is always beneficial to seek professional advice from business consultants. KWS Middle East acts as a liaison to ensure the Dubai Municipality understands which areas your engineering firm can cover. Hence, you can operate safely and legally as quickly as possible in the UAE. Just send us an email or call us today.
FAQs about starting engineering consultancy business in Dubai
These are the answers to frequently asked questions regarding starting engineering consultancy business in Dubai, UAE.
What is an engineering consultancy company?
An engineering consultancy company provides professional and technical services in the field of engineering. These services include design, planning, and management of construction or engineering projects. Also, specialized engineering firms may deliver expertise in feasibility studies, structural engineering, construction supervision, and value engineering.
Can an engineering consultancy business in Dubai work on projects of any size?
Yes, engineering consultancy firms in Dubai can take up projects of any magnitude. Because, they have the expertise and resources to handle a variety of engineering projects. It includes small-scale renovations, mid-scale house/office building maintenance, and large-scale infrastructure projects.
What are categories of engineering consulting businesses on experience?
There are three categories of engineering consulting businesses on the basis of experience.
– 1st Category — Ten years for UAE nationals or fifteen years for expatriates
– 2nd Category — Five years for UAE nationals or ten years for foreigners
– 3rd Category — Three years for UAE nationals or five years for others
How are engineering consulting businesses classified on project height?
Dubai Municipality classifies engineers who go about company formation in Dubai in three categories.
– First Category (Unlimited) — This enables participation in projects of any height
– Second Category (G+12) — This enables participation in projects up to 12 stories in height
– Third Category (G+4) — This enables participation in projects up to 4 stories in height.
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