Renewable energy is becoming a much bigger part of the UAE economy.
The country's updated Energy Strategy 2050 aims to triple the contribution of renewable energy by 2030 and increase installed clean-energy capacity to 19.8 GW. The government also expects AED 150 billion to AED 200 billion of investment in the energy sector by 2030, along with around 50,000 new green jobs.
For entrepreneurs, that creates opportunities in solar installation, renewable energy consulting, equipment trading, energy storage, project development and maintenance.
Setting up a renewable energy company in the UAE, however, requires more than getting a normal trade licence. Your approvals depend heavily on what you plan to do.
A business selling solar panels has different requirements from one installing grid-connected systems. A company generating and supplying electricity faces an even more regulated process.
What Type of Renewable Energy Company Can You Start in the UAE?
Your first job is to define the business model clearly.
Common renewable energy activities include:
Renewable energy consultancy
Solar photovoltaic system installation
Solar equipment and component trading
Solar system maintenance
Engineering and technical consultancy
Battery and energy-storage solutions
Energy-efficiency services
Renewable energy project development
Solar equipment manufacturing
Electricity generation
Green hydrogen and related clean-energy technologies
This choice affects your licence, office requirements, technical staff and external approvals.
For example, Dubai specifically recognises Renewable Energy Consultancy and Solar Energy System Installation as activities used by firms seeking DEWA solar accreditation.
If you simply want to import or distribute solar equipment, a commercial trading structure may be more suitable. Nexture's guide to a commercial licence in the UAE explains how trading activities are normally licensed.
In a 30-minute call we map your situation against jurisdiction, activity and cost — no commitment required.
Mainland or Free Zone: Which Is Better?
Both options can work, but they serve different business models.
Mainland company
A mainland setup usually makes more sense when your company will install solar systems at customer sites, carry out contracting work or regularly serve clients throughout the UAE.
Most mainland companies can now have 100% foreign ownership, although regulated and strategic activities remain subject to additional conditions. For a closer comparison, see Nexture's guide to Dubai mainland vs free zone business setup.
Free zone company
A free zone can suit renewable energy consultancies, technology startups, equipment traders, R&D companies and businesses focused on international markets.
Masdar City in Abu Dhabi is an obvious option because its ecosystem is built around sustainability, clean technology and innovation.
Current published Masdar City Innovation Zone packages start from AED 7,000 for a zero-visa startup package, while packages with visa eligibility start higher. The final cost depends on activities, visas and workspace requirements.
Free zone incorporation alone does not automatically give you permission to perform regulated installation or electricity activities anywhere in the UAE. External approvals may still apply.
Licences and Approvals for a Renewable Energy Company
This is where renewable energy setup differs from many normal service businesses.
Dubai
If you plan to design or install grid-connected solar PV systems, DEWA requirements become important.
A solar contractor seeking DEWA enrolment must hold relevant Dubai trade licence activities. DEWA currently identifies:
4322011: Solar Energy System Installation
4321001: Electrical Fitting Contracting
For renewable energy consultants, relevant activities include:
731004: Renewable Energy Consultancy
742171: Buildings Electrical Engineering Services
DEWA also requires qualifying companies to employ certified Solar PV Experts. The number and seniority of certified employees depend on whether the business works on smaller low-voltage systems, all LV systems or medium-voltage projects.
Once enrolled, the consultant or contractor can submit solar permit, design and grid-connection applications. DEWA's process covers technical drawings, system specifications, inspection and final connection.
Abu Dhabi
Abu Dhabi follows a separate regulatory framework.
The Department of Energy regulates activities including electricity generation, storage and renewable energy operations. A company carrying out a regulated energy activity may therefore need a DoE licence in addition to its economic licence.
For regulated activities, DoE assesses the applicant's legal, financial, managerial and technical capability. A Standard Licence assessment may take around three to four months depending on complexity.
Abu Dhabi has also expanded its solar self-supply framework during 2026, opening more opportunities for distributed rooftop solar and battery-storage solutions.
How to Start a Renewable Energy Company in the UAE
The exact sequence changes by emirate and activity, but most businesses follow these steps.
- Define your renewable energy activity
Decide exactly how the business will earn money.
For example, will you:
Sell solar panels?
Design PV systems?
Install them?
Provide energy consultancy?
Develop renewable power projects?
Avoid choosing a general activity simply because it is cheaper. Your licence must cover the work you actually plan to perform.
- Choose the jurisdiction
Compare mainland and free zone options based on customer location, contracting requirements, warehouse needs and external approvals.
- Select the legal structure
An LLC is common for mainland companies. Free zones may offer FZE, FZCO or similar structures.
Your choice depends on the number of shareholders, investment plans and future expansion.
- Reserve the trade name and obtain initial approval
Submit your proposed company name, shareholder details and selected activities to the relevant licensing authority.
Mainland companies normally apply through the economic authority of the relevant emirate. UAE government guidance lists activity selection, legal form, trade-name reservation, initial approval and required external approvals among the core formation steps.
Step 5: Secure premises if required
A consultancy may have relatively light office requirements.
An installation, trading or manufacturing company may need a proper office, warehouse, workshop or industrial unit depending on its licence.
- Obtain sector approvals
This can include DEWA, Abu Dhabi DoE, municipality or other technical authorities.
If you import solar products, check product conformity requirements as well. UAE regulations apply conformity controls to solar equipment, while the Ministry of Industry and Advanced Technology issues conformity certificates for regulated products. For Dubai grid-connected projects, equipment must also meet DEWA's eligibility requirements.
- Receive the licence
Once the company formation requirements and required external approvals are satisfied, the licensing authority can issue the trade licence.
- Complete operational registrations
You may then need to arrange:
Establishment card
Employee visas and work permits
Corporate bank account
Corporate Tax registration
VAT registration when applicable
Customs registration for imports
Documents Usually Required
Prepare the following:
Passport copies of shareholders
Passport-size photographs
Emirates ID and residence visa if applicable
Proposed trade names
Business activity details
Memorandum or Articles of Association
Office or lease documents
Shareholder or board resolutions for corporate shareholders
Technical qualifications where required
Engineer employment documents
Professional certificates
Business plan for certain regulated activities
External authority approvals
Foreign corporate shareholders may also need legalised company documents.
How Much Does It Cost?
There is no single renewable energy company licence fee for the UAE.
Cost Area | What to Expect |
Free zone startup licence | Masdar City packages currently start from around AED 7,000 |
Mainland licence | Depends on emirate, legal form and activities |
Office or workspace | Depends on jurisdiction and size |
Technical approvals | Activity-specific |
Engineers and technical staff | Required for certain regulated activities |
Visas | Based on number of employees and jurisdiction |
Equipment certification | Additional cost may apply |
Warehouse or workshop | Required for some trading, contracting or industrial models |
A renewable energy consultancy with one founder can therefore start much more cheaply than a solar installation contractor with engineers, vehicles, equipment and warehouse space.
Utility-scale electricity generation is in another category entirely. Such projects require substantial capital, sector licensing and usually structured project agreements.
We’ll model the requirements and send back a single-page breakdown within 24 hours.
Tax and Compliance
A UAE mainland company is generally subject to Corporate Tax at 0% on taxable income up to AED 375,000 and 9% on taxable income above that amount.
Free zone companies do not automatically pay zero Corporate Tax. A Qualifying Free Zone Person can receive a 0% rate on Qualifying Income, while other taxable income may be taxed at 9%.
VAT registration becomes mandatory for a UAE-resident business when taxable supplies and imports exceed AED 375,000 over the relevant period or are expected to cross the threshold within the next 30 days.
Is Renewable Energy a Good Business Opportunity in the UAE?
Currently, the market is moving in that direction. Dubai's Mohammed bin Rashid Al Maktoum Solar Park has already reached 3,860 MW of production capacity and is planned to exceed 8,000 MW by 2030. DEWA is also adding large-scale battery storage as part of future phases.
The opportunities are not limited to giant power plants. Commercial rooftops, residential solar, batteries, equipment supply, engineering, maintenance and energy-efficiency services all create room for specialised businesses.
The better approach is to pick a narrow service first. A company that knows exactly which customers it serves and which approvals it needs is easier to license, staff and grow.
Conclusion
Starting a renewable energy company in the UAE can put you inside one of the country's fastest-developing industries, but the setup needs careful planning.
Start by defining your activity. Then choose between mainland and free zone incorporation and identify the regulator before paying for the licence.
For a consultancy or clean-tech startup, setup can be relatively straightforward. Solar installation, electricity generation and other technical activities require additional approvals, qualified employees and stricter compliance.
Getting the structure right at the beginning can save you from having to amend your licence or restructure the company once projects start coming in.
Frequently Asked Questions
Can a foreigner start a renewable energy company in the UAE?
Yes. Foreign investors can own 100% of most UAE mainland and free zone companies, subject to the rules for the selected activity.
Do I need DEWA approval to start a solar company in Dubai?
If your company will design, install or maintain grid-connected solar PV systems, DEWA enrolment and technical requirements can apply.
What is the cheapest way to start a renewable energy business in the UAE?
A small consultancy or technology business is usually cheaper than installation or electricity-generation operations. Masdar City currently advertises startup packages beginning around AED 7,000.
Can a free zone company install solar panels in Dubai?
A free zone licence alone does not automatically authorise regulated installation work throughout mainland Dubai. You must check DET, DEWA and any other applicable approval requirements.
Is renewable energy business profitable in the UAE?
There is growing demand backed by major public and private investment. Profitability still depends on your service, pricing, project pipeline, technical team and customer acquisition costs.
