If you’re a UK entrepreneur looking to expand into a future-focused market, Dubai is one of the best places to be right now. The demand for clean, green energy in the UAE is growing fast and the government is putting serious money and support behind it.
Dubai is working towards an ambitious goal: 75% of its electricity from clean energy by 2050. The city is already home to one of the world’s biggest solar projects, the Mohammed bin Rashid Al Maktoum Solar Park, which is expected to reach 5 GW capacity by 2030. Across the UAE, the government has committed around AED 150–200 billion to clean energy projects by 2030, aiming to cut carbon emissions in half and triple its renewable energy capacity.
For UK entrepreneurs, this is a golden opportunity. Dubai offers a very business-friendly environment – including 100% foreign ownership in many renewable sectors, fast licensing processes, and even green funding options like Dubai’s AED 100 billion Green Fund. Plus, British expertise in clean tech, smart energy, and sustainability is highly respected in the region.
So, if you’re looking to start a renewable energy company in Dubai, now is the perfect time.
Why Start a Renewable Energy Company in Dubai?
Dubai isn’t just dreaming about a greener future; it’s actively building it. Here’s why a green energy business setup in Dubai makes so much sense:
1. Massive Demand and Ambitious Green Goals
Dubai has set clear targets to make clean energy a major part of its future. Under the Dubai Clean Energy Strategy 2050, the city aims to generate 75% of its power from renewable sources by 2050.
2. Huge Tax Benefits
While the UAE introduced a 9% corporate tax for businesses earning over AED 375,000 per year from June 2023, free zone companies meeting certain conditions may still enjoy 0% tax. Additionally, there is no personal income tax.
3. Demand for International Expertise
British businesses and technologies are well-respected in the UAE. Your experience in areas like solar, wind, smart grids, and energy efficiency can find high demand here. Plus, UK-UAE trade ties are strong, making collaboration easier and smoother.
4. High Solar Potential All Year Round
Dubai enjoys over 3,500 hours of sunlight per year, making it an ideal location for solar energy projects. The consistent sunshine ensures stable solar yields, which boosts the profitability and efficiency of solar panel systems, farms, and clean energy solutions.
5. Access to Capital & Green Financing
Beyond government funds, Dubai is attracting significant private capital for renewable energy projects. The growing emphasis on ESG (Environmental, Social, and Governance) investing globally means that projects in Dubai with strong sustainability credentials are increasingly attractive to institutional investors and ethical funds, including those from the UK.
What are the Types of Renewable Energy Businesses You Can Start in Dubai?
Here are some promising renewable energy business ideas to consider:
1. Solar Panel Installation & Maintenance
This is one of the most in-demand renewable energy services in Dubai. You can provide solar panel setups for homes, businesses, and industrial facilities, along with ongoing maintenance and repair services.
2. Renewable Energy Consultancy
Many companies in Dubai want to go green but don’t know where to start. As a consultancy, you can help clients:
- Plan sustainable energy usage
- Choose the right renewable technology
- Navigate local regulations and DEWA approvals
- Design energy-efficient buildings or systems
3. Solar Farm Development
For large-scale investors, setting up solar farms or becoming an Independent Power Producer (IPP) is a high-reward opportunity. You can supply energy directly to utilities or large industrial clients under government-supported power agreements.
4. Energy Storage and Battery Solutions
With the rise of solar energy comes the need for efficient energy storage. Launching a business that provides advanced battery systems (like lithium-ion or flow batteries) for residential and commercial use is a fast-growing niche.
5. Green Construction & Building Integration
Offer renewable energy integration services for new construction projects, such as solar-powered HVAC systems, rooftop solar panels, and sustainable architecture consulting. Dubai has many new real estate and infrastructure projects that require green certifications like LEED.
6. Wind Energy Feasibility Services
While Dubai isn’t as wind rich as other regions, feasibility and hybrid renewable systems (solar + wind) are gaining attention. You can provide feasibility studies, tech sourcing, or hybrid system design for specific use-cases.
7. Waste-to-Energy Solutions
The UAE is investing in converting waste into usable energy. You can explore setting up a facility or consultancy that deals with biogas, incineration-based energy, or other waste management tech with energy outputs.
8. Solar Equipment Trading or Distribution
Import and distribute solar panels, inverters, batteries, mounting systems, and energy-efficient appliances. This type of business supports the ecosystem and can be done through free zones with flexible warehousing.
9. Smart Energy Management Systems
Start a tech-driven business that provides energy monitoring, AI-powered efficiency tools, or IoT-based smart grid solutions for homes and commercial buildings. These are crucial for managing consumption and reducing costs.
10. R&D and Innovation in Renewable Tech
If you’re into clean tech innovation, Dubai offers support for research-based businesses through hubs like Dubai Science Park. You can work on improving energy efficiency, developing next-gen storage tech, or creating new renewable systems for extreme climates.
Which License is Required to Start a Renewable Energy Company in Dubai?
The type of license you’ll need depends on your business model. Here’s what you should know:
1. Commercial License
A commercial license in needed when your business involves trading renewable energy equipment (e.g., solar panels, inverters, batteries), distribution, or sales.
2. Professional License
If your business focuses on providing services, such as:
- Renewable energy consulting
- Feasibility studies
- Design and engineering services for renewable energy projects
- Project management for clean energy installations
- Energy auditing
- Maintenance and repair services for renewable energy systems
(Commercial/Professional licenses are issued by the Department of Economic Development (DED) in Dubai. A mainland company generally allows you to conduct business across the UAE and directly with local clients and government entities).
3. Free Zone Company License
A free zone company license is issued by the relevant Free Zone Authority (e.g., Dubai Silicon Oasis (DSO), DMCC, JAFZA, IFZA, Sharjah Research, Technology, and Innovation Park (SRTI Park)). Free zones offer 100% foreign ownership, full repatriation of profits, and tax exemptions within the free zone.
4. Additional Approvals You May Need
- DEWA (Dubai Electricity & Water Authority): For solar installation or projects linked to the grid.
- Dubai Municipality: For construction or building-related renewable energy solutions.
- Civil Defence: If your solutions involve building systems or battery storage.
- ESMA (Emirates Authority for Standardisation and Metrology): For importing energy products and equipment.
Documents Required to Start a Renewable Energy Business in Dubai
For a green energy business setup in Dubai, you need to prepare a few key documents, such as:
- Passport copies of all shareholders and partners
- Emirates ID (if applicable)
- UAE visa copy or entry stamp page
- Proposed trade name options
- Office or warehouse lease agreement (Ejari for Mainland)
- Memorandum of Association (MOA)
- Local Service Agent Agreement (for certain professional licenses)
- External approvals (e.g., DEWA, Dubai Municipality, Civil Defence, ESMA based on activity)
How to Start a Renewable Energy Company in Dubai?
Here’s a simplified process to start a renewable energy business in Dubai:
1. Decide Your Business Activity
Choose the type of renewable energy business you want to start, such as solar installation, consultancy, trading, or manufacturing. This determines your license category and any special approvals needed.
2. Choose Your Business Structure & Jurisdiction
Mainland Company:
- Pros: Allows direct interaction with the broader UAE market, including government entities and local clients outside free zones. Recent changes allow 100% foreign ownership for many activities.
- Cons: Can be more complex and time-consuming for setup, requires Ejari (registered tenancy contract) for office space.
Free Zone Company:
- Pros: 100% foreign ownership, 0% corporate tax (for qualifying income within the free zone), full profit repatriation, simplified setup process, excellent infrastructure.
- Cons: Generally restricted to doing business within the free zone or internationally. For direct mainland interaction (e.g., selling services to clients outside the free zone), you may need a local distributor or agent.
3. Reserve a Trade Name
Pick and submit 2–3 business name options for approval from the Department of Economic Development (DED) or Free Zone authority.
4. Secure Office Space/Location
Mainland businesses require a physical office space with a registered Ejari (tenancy contract) from the Dubai Land Department. In free zones, you can typically opt for a flexi-desk, shared office, or dedicated office space provided by the free zone authority.
5. Apply for Your Business License
Submit all prepared documents, initial approval, and tenancy contract to the DED (for mainland) or the Free Zone Authority.
The type of license will be Commercial (for trading/equipment sales) or Professional (for services, consulting, installation). The specific wording will be tailored to “Renewable Energy Solutions,” “Solar Energy Services,” “Energy Efficiency Consultancy,” etc. Pay the required licensing fees.
6. Obtain DEWA Solar or Energy Approvals (if applicable)
If you’re installing or connecting solar PV systems:
- Register on DEWA’s e‑services portal as an energy contractor/consultant.
- Ensure a qualified electrical engineer with relevant DEWA-approved certification is sponsoring the license.
- Submit technical documents like single-line diagrams, load calculations, equipment details, layouts, and system specs.
- Undergo DEWA reviews, inspections, and then receive final solar approval and grid connection permit (typically takes around 11–30 days).
7. Obtain Other Regulatory Approvals (as needed)
Depending on your services:
- Dubai Municipality approval for building-integrated systems
- Civil Defence clearance for installations with battery storage or elevated infrastructure
- ESMA certification for importing DEWA-listed solar equipment
- Environmental Impact Assessment (EIA) and Power Purchase Agreements (PPAs) for large-scale
7. Hire Staff & Apply for Visas
Hire certified engineers, consultants, and technicians with DEWA credentials. Apply for investor and employee visas. Abide by UAE labour regulations, obtain work permits, and register staff under your license.
8. Open a Corporate Bank Account
Use your newly issued trade license and MOA to open a business bank account with UAE banks to manage operations, payments, and customer funds.
What is the License Cost for a Sustainable Energy Startup in the UAE?
The cost of obtaining a business license to start a renewable energy company in Dubai varies based on the business activity and chosen jurisdiction. For Mainland companies, the license typically costs between AED 12,000 to AED 20,000 per year. In Free Zones, license fees can range from AED 10,000 to AED 30,000 annually, depending on the specific Free Zone authority, type of license, and whether visa packages or office space are included.
Some Free Zones also offer startup-friendly packages for renewable energy and tech businesses, which can make licensing more affordable in the first year.
How Shuraa UK Can Help
Dubai isn’t just talking about clean energy, it’s investing in it, scaling it, and inviting global innovators to be part of the journey. For UK entrepreneurs, this is more than just a good business move; it’s a chance to make a real impact in one of the world’s fastest-growing green economies.
And if you’re unsure where to begin, Shuraa UK has your back. We’ll walk you through every step – licenses, approvals, office space, and all the fine print, so you can launch your business with confidence and clarity. Let’s build something meaningful for the planet and your future.
