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From
its earliest days, Dubai has been involved in trading. For over six
centuries, its creek has provided a safe haven for the merchant vessels
laden with goods from Dubai’s traditional trading partners in the Far
East, Indian subcontinent and Africa. In the past, these goods were
sold to the camel caravan tribes in the vast desert hinterland. Today,
the city is a major re-export centre and the world comes to shop in
Dubai. Dubai was also once one of the world’s foremost pearling
centers. The emergence of cultured pearls in the 1930’s could well have
devastated the economy, however, Dubai with a reputation as a world
centre for trading in gold and other precious metals continues right up
to this day. Dubai is the second largest of the seven Emirates. The
Late Ruler of Dubai, His Highness Sheikh Rashid, together with late His
Highness Sheikh Zayed, Former President of the UAE, both were
instrumental in forming the federation, which has brought stability and
prosperity to the region.
Procedure for Licensing in Dubai
The Department of Economic Development, with the institutional support
from the Dubai Chamber of Commerce & Industry, is the statutory
body that regulates and controls the licensing procedures for an entity
in Dubai. It was formed to organize and activate industry as well as
internal and external trade in the Emirate and prepare studies relating
to industrial and commercial activities.
Types of Licenses issued in Dubai
1. Trade License
A
trade license is issued to a natural or juridical person to practice
any trading activity for the purpose of profit making through buying
and selling of goods. These licenses are issued for engaging wholesale
or retail trade enterprises, contractors, hotels, transport and storing
establishments etc., A Trading License can be a General Trading
or Specific Trading. A specific trading license limits the scope of
activities to trade in only closely related items. [For e.g. a company
can not trade in building materials, if its licensed activity is
trading in computer peripherals]
2. Industrial License
An
industrial license is issued to a natural or juridical person to
practice any investment activity, the object of which is to discover
natural resources or transform raw materials in terms of its structure
or appearance into manufactured products or to transform the
semi-manufactured products into fully manufactured products by using
mechanical power and segregate the products, filling, assembling or
packing them.
3. Professional License
A
professional license is issued to a natural or juridical person to
practice any profession in which he depends on his physical or mental
efforts rather than depending on a cash capital. This license is issued
to practice certain professions such as engineering consultancy, other
consultancy services and studies, auditing and accounting, business,
medical and educational services and similar services
A) Engineering Consultancy (Dubai Municipality Requirements)
· To be a UAE national
·
To be holder of a BSc. Degree in engineering from a recognized
university in one of the engineering fields for which he requires to
obtain a license
·
To have experience in the specialization field not less than three
years after obtaining the university degree
·
To be a member of the Engineers’ Association in the Country
·
Not to be an owner or a partner in any of the contracting companies nor
building materials trading companies
Expatriates may, pursuant to the stipulations and conditions provided
for, apply for registration in the register of engineers subject to the
following conditions:
·
To be exclusively dedicated to the business of the Engineering Firm
·
To have experience in the concerned engineering field not less than 5
years after obtaining the university degree.
Expatriate engineer must reside in UAE not less than 9 months in a year.
One more expatriates may join the firm; provided they are entered in
the Register of Practicing Engineers and the maximum shareholding in
the capital allowed shall not exceed 49%.
Engineering firm operating in Dubai shall adopt one of the following forms:
a) Local Engineering Firm
A
local engineering firm is the firm owned by one or more UAE nationals
who are entered in the Register. One or more expatriates may
have share in the ownership of the firm, provided that they are
entered in the Register and maximum such ownership allowed in
49%. A local engineering firm can be classified as follows:
Number of Years of Experience
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UAE national (not less than)
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Expatriate not less than)
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Category I
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10
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15
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Category II
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5
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10
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Category III
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3
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5
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b) An Associate Engineering Firm
A
local engineering firm classified as First Category may associate with
a Foreign Engineering Firm in establishing not more than one Associate
Engineering Firm to carry out some specialized engineering works,
provided that such firms should have previously practiced the
engineering profession for a period not less than 10 years inside or
outside the country in the field required to be licensed.
c) An Expert Engineering Firm
An
Expert Engineering Firm is the firm carrying out some of the
sophisticated specialized engineering works. Its work shall be limited
to provide opinion to the local engineering firms, the associate
engineering firms or any of the official bodies. The applicant of the
Expert Engineering Firm license must hold a scientific degree in a
sophisticated engineering specialization, have practiced the profession
in his sophisticated specialization for a period of not less than 15
years and required to carry out the activity personally. It is
conditional for an Expert Engineering Firm (if the licensee is an
expatriate) to appoint a UAE national as Local Service Agent whose
domicile is in Dubai.
d) A branch office of Foreign Engineering Firm
Foreign
Engineering firm Branch Office is defined as “the branch established in
the Emirate by one of the foreign specialized engineering firms”.
Licensing of the same shall be limited to the fields of sophisticated
specialization not commonly provided by local engineering firms.
Conditions for granting license:
·
The foreign engineering branch office should have high technical
qualifications and specialized in one or more of the sophisticated
engineering field and existing in the native country for a period of
not less than fifteen years.
· The management of the
firm should be vested in a manager in charge, entered in the register
of practitioners of the engineering consultancy profession, whose
experience in the practice of profession is not less than 15 years. A
registered local engineer may also be assigned for the management of
the firm, provided that he is totally devoted to the business of such a
firm.
· The head office of
the firm in the mother country should have carried out a number of
projects of large technical and financial value. When submitting the
application for the license, a full statement of such projects shall be
attached with supporting drawings and documents.
· The foreign
engineering branch office in the Emirate should have devoted technical
staff of high qualifications as follows:
a) Each of the licensed fields of
activity to be practiced should be lead by an engineer whose experience
is not less than 15 years in sophisticated specialization and it is
permissible to appoint one of the specialization heads as a resident
office general manager.
b) The specialization head should be
assisted by a number of assistant engineers whose experience
is not less than 7 years and that their number should be
consistent with the volume of the current works assigned to the firm
and that the head office should undertake to appoint the number
necessary to reside in the Emirate throughout the period of carrying
out the projects which require their presence.
B) Medical and Related Professions (Ministry of Health, Department of
Health and Dubai Municipality Requirements)
Stage – I: Approval by Ministry Of Health
· Formal application with local sponsor’s particulars and suggested trade name
· Provide
address/location of proposed clinic/pharmacy/centre for formal
inspection by the MOH
· Obtain no objection from MOH
Stage – II – Approval by Department of Health (DOH)
· A DOH qualified manager
· If the manager is a
new appointment he should appear for DOH exam before obtaining
permission to proceed for the license. Exams shall be conducted within
2 weeks time from the date of submitting the application.
· Upon successful
clearance of the exam a formal request letter has to be submitted in
the name of a UAE national to the “Director, Licensing and
Specification Department” with passport copy, nationality card, profile
about the proposed establishment, experience of the doctor, location
etc.
· Upon reviewing the
application, the department shall issue the no-objection letter to the
department of Economic Development and Dubai Municipality.
Stage – III – Approval by Dubai Municipality and issue of License by Dept. of Economic Development
· Submit formal license
application and name approval form to the Department of Economic
Development
· Submit formal
application for permission to the “Clinics” Department of Dubai
Municipality
The Municipality/DOH shall conduct formal inspection to satisfy their
requirements as per the standards set.
· The license shall be
a professional license and issued in the name of UAE national.
· The legal structure
shall be sole proprietorship, however, the same may be converted into
partnership subject to the approval of the Director (Licensing &
Specification Dept) of DOH
· The partnership must be in the name of a professional doctor.
C) Legal Consultancy (Ruler’s Office Requirements)
1.
A formal letter addressed to “H.H. Sheikh Mohammed bin Rashid Al
Maktoum, the Ruler of Dubai” requesting for the approval to practice
the activity “legal consultancy” in Dubai.
2. A detailed profile of the
applicant mentioning his/her experiences in the legal consultancy
field, i.e., curriculum vitae.
3. A certificate duly authenticated
by the concerned authority confirming the applicant is currently
practicing as a lawyer/legal consultant in the country.
4. A letter of confirmation from
the Law Firm stating the applicant is a partner or working with the
firm and the number of years.
5. Passport Copy of the Applicant.
6. Two passport size photographs.
7. Qualification Certificate/s duly
legalized from the UAE Embassy.
D) Management Consultancy (DED Requirements)
· To be exclusively dedicated to the business of the consultancy firm
· To be holder of
Bachelor Degree in the field in which he requires obtaining a License.
· To have experience in
the specialization field for not less than 3 years after obtaining the
University degree.
· Not to be owner or a partner in any of the consultancy companies.
· To submit copies of work experience certificates and academic qualifications
· To obtain a
certificate of good conduct and reputation from Dubai Police General
H.Q.
Industrial Areas in Dubai
The
Dubai Government has allocated a number of Industrial areas and
provided them with all necessary facilities, such as internal roads,
electric power, water, tele-communication services and other
facilities. The local government offers various incentives to the
businesses involved in industrial projects. These include exemption
from customs duty on import of items for the use of industrial projects
such as raw materials and machinery, in addition to a 10% price
preference in government prices over imported goods. There are five
basic requirements to be complied by an entrepreneur to start up an
industrial project in Dubai.
1.
No objection from Dubai Municipality
2.
Obtain initial clearance from Ministry of Finance & Industry
(Industrial Department)
3.
Apply for industrial license with Department of Economic Development
4.
Arrange the factory site (such as preparation of factory site,
installation of machinery, import of raw materials etc.)
5.
Register the project in the Industrial Register at the Ministry of
Finance & Industry
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Ras Al Khor Industrial area
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661 hectares
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Al-Quoz Industrial area
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1838 hectares
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Al-Safa Area
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20 hectares (Only for consumer food stuff)
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Al Khubaisi Area
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102 hectares
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Um-Ramool Industrial Area
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391 hectares
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Al-Qusais Industrial Area
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545 hectares
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Jebel Ali Industrial Area
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84 hectares
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Dubai Investments Park (DIP)
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Location
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Close to proposed Jebel Ali International Airport
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Promoters
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Dubai Investments Park Development Company (LLC)
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Size
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33,950,000 sq. meters
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Zoning in DIP
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Industrial Zone, Commercial Zone, Residential & Recreational Zone, Education Zone
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Type of Industries
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Cosmetics,
food, light engineering, logistics & distribution, paper products
and plastics. In short DIP is focusing mainly on small
and medium sized industries
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Approximate Land Rental
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Manufacturing US$ 4.10 [AED 15] per square meter. Warehousing/Storage US$ 13.10 [AED 48] per square meter
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Lease Period
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Up to 30 years, renewable for further 30 years
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Ownership
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51.49
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Features:
· Price competitiveness for fully developed plots
· No hidden charges
· Different size of plots
· Complete infrastructure
· Equity participation by Dubai Investments PJSC
· Easy access to major freeways, Jebel Ali sea port and airport
· Water supply network
· Wastewater collection and treatment
· Diversification to
create infrastructure suitable to attract high-tech industries.
Dubai Industrial City
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Location
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Close to proposed Jebel Ali international airport
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Promoters
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Dubai Holdings
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Size
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560 million sq. feet
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Zoning in DIC
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Zone 1 Food and Beverage
Zone 2 Base metals
Zone 3 Mineral products
Zone 4 Transport Equipment and parts
Zone 5 Machinery and Mechanical Equipment
Zone 6 Chemicals
Zone 7 Logistics zone ( Trans PARK DUBAI)
Zone 8 Academic zone
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Land rent
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AED 2.5 - 3.00 per sq. feet [US$ 0.68 -0.82] minimum 100,000 square ft to be leased )
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Lease period
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30 years, renewable for further 50 years
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Ownership
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51.49 (100% foreign ownership is at proposal stage)
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Features:
International Standards
Activities
in Dubai Industrial City will be governed under international safety,
quality & environmental standards. Dubai Industrial City will
introduce the Dubai Quality Mark (DQM) for products manufactured in the
city.
Industrial Fund
Dubai
Industrial City is setting up a multi-million dollar fund to provide
financial products tailored to the needs of the industrial sector. The
fund is being set up in conjunction with leading banks, investment
houses and prominent business groups in the region. The fund will be
managed by globally renowned industrial fund managers.
Advanced Logistics: TransPARK – Dubai
One
of the major segments and attractions of the Dubai Industrial City will
be a dedicated Logistics Park. This will be especially designed to meet
the special logistic needs of the tenants. It has specialized
facilities from warehousing, labeling and packaging to advanced
transportation systems.
Education
Academic
zone will host the first Engineering University in Dubai. The
Engineering University will be established in partnership with one of
the leading globally branded schools. Several technical training
centers will also be set up in partnership with prominent business
houses to cater to skill needs of specific sectors
Amenities
The
Dubai industrial city will be a complete city of its own, with a
Downtown area that will have varied facilities such as hotels,
entertainment, conferences, and residential complex areas
Single Window Clearance
Dubai Industrial City also offers a one stop shop providing a single
window of clearance for government services, support services and
access to labor from all over the world.
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