How To Set Up An Electrical Services Business in the UAE

May 27, 2024

The electrical services business in the UAE is a thriving sector that caters to both residential and commercial needs. Electrical contractors typically handle large-scale projects, such as installation of systems from scratch whilst working in tandem with construction crews. On the other hand, electricians—who may or may not be attached to an electrical company—handle facets of the job such as repairs and maintenance on a smaller scale.

So, let’s explore the different types of services electrical companies offer in the UAE. Under residential services, these experts work on maintenance and safety checks, new fixture installations, repairs due to malfunctions, and upgrades to keep buildings in line with newer, better standards. 

On the commercial front, an electrical service company carries out electrical designing and planning for new constructions, installation of complex electrical systems, data cabling and network infrastructure, and emergency backup power solutions, amongst many more.

Electrical service providers also need to liaise with clients effectively, balance costs, and maintain clear communication. Quality is of top priority as well, including ensuring that all work adheres to local building codes and electrical safety standards. 

Setting up an electrical services company in the UAE can be extremely profitable. So, let’s talk about the different business activities you may need to kickstart this venture. SPC Free Zone offers instant licensing, streamlining your business set-up. From a guaranteed banking account in three working days to unlimited visas for partners, employees, and investors, you can navigate the paperwork with ease and minimal involvement. 

3314.00 – Repair of electrical equipment

Whether you plan to involve your company in large-scale operations at a commercial property or minor repairs at residential apartments, this activity is recommended. Contrary to popular opinion, repairing electrical equipment is a multi-step process. 

Beginning with an initial assessment, followed by a careful inspection and identification of the problem, the specialist determines whether solving the issue requires a repair or a replacement of the faulty component(s). Once complete, the technician thoroughly tests the equipment to ensure it functions safely and within its normal specifications.

Under this comes seven activities that enable the repair and maintenance of specific types of equipment. The repair and maintenance of the following items can be carried out: 

  •  3314.01 – Repair and maintenance of power, distribution, and specialty transformers
  • 3314.02 – Repair and maintenance of electric motors, generators, and motor generator sets 
  • 3314.03 – Repair and maintenance of switchgear and switchboard apparatus
  • 3314.04 – Repair and maintenance of relays and industrial controls
  • 3314.05 – Repair and maintenance of primary and storage batteries
  • 3314.06 – Repair and maintenance of electric lighting equipment
  • 3314.07 – Repair and maintenance of current-carrying wiring devices and non current-carrying wiring devices for wiring electrical circuits
Note that technicians with this license cannot repair or maintain telecommunications equipment, computers and computer-related equipment, consumer electronics, and watches or clocks.

A technician who’s good at what they do will also be up-to-date on the latest safety codes and newer, available equipment. These specialists have the potential to thrive in this sector, particularly through verbal recommendations and a good marketing strategy. 

Third-party Approval: No third-party approvals are required for this business activity

Filing of Economic Substance Return: Business activity 3314.00 is exempt from this requirement

Anti-Money Laundering Compliance: Business activity 3314.00 is exempt from this requirement

4321.00 – Electrical installation

A complex task that involves electrician skills and expertise, let’s take a look at what electrical installations in the UAE involve. Under the first stage, planning and design, comes client conversations to grasp the specific requirements and note factors such as the building’s purpose and size. This stage also involves ensuring compliance with UAE regulations for safety and efficiency, ending with an innovative system design for the electrical layout. 

Stage two involves material selections and procurement, ensuring high quality and adherence to approved materials, and fire safety through the installation of fire-resistant cables and more. The third stage, installation, involves wiring and cabling, panel and equipment installation, and fixture and outlet placement, all with safe work practices in mind. This stage is followed by verification through qualified inspectors and regular approvals, along with testing wherever required. 

With this business activity in tow, electrical service companies can take on projects that involve the installation of electrical systems in all types of buildings and civil engineering structures. Under wiring, the categories of electrical, telecommunications, computer network, and cable television (including fiber optic) are enabled through this business activity. 

Other installations include that of satellite dishes, lighting systems (including airport runway, street lighting and electrical signals), alarms (fire and burglar), and the connection of electrical appliances and household appliances, including baseboard heating.

Note that under this license, service providers cannot construct communications and power transmission lines, and monitor or maintain electronic alarm systems. 

Third-party Approval: Third-party approval from the Sharjah Municipality/Dubai Civil Defense is required for this business activity

Filing of Economic Substance Return: Business activity 4321.00 is exempt from this requirement

Anti-Money Laundering Compliance: Business activity 4321.00 is exempt from this requirement

7110.38 – Electrical Network & Distribution Engineering Services

Electrical network and distribution engineering services deal with the planning, design, and implementation of systems that deliver electricity from power plants to end users.

Transmission systems focus on the high-voltage network carrying electricity over long distances from power generation plants (like solar farms or wind farms) to substations located closer to cities or towns. Meanwhile, distribution systems involve designing the medium and low voltage network that distributes electricity from substations to individual buildings or neighborhoods.

In a nutshell, these electrical experts are involved in network planning, system designs, protection and control systems, and smart grid integration. For large-scale projects like skyscrapers, apartments, office buildings, and new neighborhoods, competent electrical network and distribution services are essential.

Working in conjunction with architects and engineers, electricians come into play during the construction stage. These experts are present during building design and drafting, engineering design, electrical and electronic engineering, safety engineering, and construction-related activities such as installing air conditioning, refrigeration, and other key elements.

It’s important to note that specific activities are prohibited with this license, including test drilling in connection with mining operations, development or publishing of associated software, computer consultancy, technical testing, research and development activities, industrial design, interior decorating, and aerial photography.
  • Third-party Approval: Third-party approval from the Sharjah Municipality is required for this business activity
  • Filing of Economic Substance Return: Business activity 7110.38 is exempt from this requirement
  • Anti-Money Laundering Compliance: Business activity 7110.38 is exempt from this requirement

Did you find what you were looking for? Explore the other guides in our Activity Hub for exploring unique business ideas in Dubai and navigate the essentials of business setup with ease.

You can also calculate your business setup costs easily using our handy cost calculator and choose from our customized company setup packages to find your perfect fit.

Get your business license in the UAE today and explore a world of opportunities waiting for you.

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