How to Set Up an Electrical Equipment Production Company in the UAE

The UAE is a dynamic economy with a rapidly growing infrastructure. In the country’s energy plan, the objective is to invest AED 600 billion by 2050 which can address the increasing energy demand and promote sustainable economic growth for the country. This energy transition is anticipated to lead to a significant increase in the installation of distribution transformers and other electric generator components throughout the country.

Entrepreneurs who explore a manufacturing business in this field in the UAE can use cutting-edge technologies and implement engineering expertise to create customised solutions that cater to the demands of the local market.

In addition, the strategic geographic location and strong infrastructure of the UAE make it a highly appealing manufacturing hub. This allows for the establishment of efficient distribution networks and easy access to international markets. The manufacturing industry in the UAE is crucial for driving economic diversification and sustainable development initiatives. This is achieved through continuous investment in research and development as well as strict adherence to quality standards.

If you are interested in setting up a business of this nature, you should acquire a license with SPC Free Zone. With this license, you get access to various features and value-added services that can benefit you. 

Below, you will find more information about the business activities you can explore with a license for electrical equipment production:

2710.00 – Manufacture of electric motors, generators, transformers, and electricity distribution and control apparatus

This category covers the business activities involved in the manufacturing of advanced smart grid solutions for electric motors, generators, transformers, and electricity distribution and control apparatus. There is great potential for entrepreneurs, especially if they possess the technical skill sets to develop advanced equipment that is specifically designed for modern grid infrastructure, given the increasing need for more efficient and sustainable energy distribution systems.

This type of business encompasses the development of transformers with advanced monitoring and control features to optimise power flow, improve reliability, and reduce the chances of outages. Additionally, entrepreneurs can innovate by designing and producing advanced switchgear and switchboard apparatus that seamlessly integrate into modern grid architectures. Another potential area for entrepreneurs to explore is the development of electric motors and generator sets designed specifically for renewable energy applications. The demand for advanced motors and generators that can effectively capture and convert renewable energy into electricity is on the rise.

Entrepreneurs who can develop customised solutions that improve energy efficiency, minimise maintenance, and enhance system performance while contributing to a more sustainable energy landscape should explore this type of business.

2710.02 – Manufacture of arc-welding transformers

Arc-welding transformers require a specific structure of top-notch components, such as copper windings and robust transformer cores, designed to endure the challenging conditions of welding environments.

2710.02 – fluorescent ballasts (i.e., transformers)

Fluorescent ballasts, also known as transformers, are critical in fluorescent lighting systems because they control the electrical current that powers fluorescent lamps. The manufacturing process focuses on creating compact units that efficiently control electricity flow and stabilise voltage levels. These are designed to meet industry standards, making them an ideal choice for residential, commercial, and industrial applications.

2710.04 – Manufacture of substation transformers for electric power distribution

Producing substation transformers for electric power distribution necessitates the careful assembly of durable components, including top-quality transformer cores and insulated winding materials. Electricity distributors implement these transforms to effectively adjust voltage levels, guaranteeing smooth transmission and distribution of electricity throughout grids. Ensuring the dependability and durability of these vital infrastructure components requires strict quality control measures and a commitment to rigorous safety standards.

 2710.11 – manufacture of power circuit breakers

Producing power circuit breakers requires a high level of engineering expertise to ensure these devices can automatically cut off electricity when there is a fault in the current flow. Power circuit breakers involve expertly building up components, usually comprising contacts, insulation systems, and arc extinguishing mechanisms, to guarantee top-notch performance and safety. This guarantees their effectiveness in protecting electrical systems from overloads and faults.

 2710.16 – manufacture of electric fuses

The process of manufacturing electrical fuses involves efficiently stacking components with fusible elements inside protective casings. Experts specifically design these fuses to interrupt power surges and safeguard electrical circuits from potential damage. The production process usually entails choosing materials with precise melting points and designing them into dependable components that can quickly interrupt the circuit when needed.

This category excludes making electronic component-type transformers and switches, environmental controls, industrial process control instruments, switches like push button and snap switches for electrical circuits, electric welding and soldering equipment, solid-state inverters, rectifiers, converters, turbine-generator sets, and starting motors and generators for internal combustion engines.

Third-party Approval: This business activity does not require third-party approval.

Filing of Economic Substance Returns: This requirement does not apply to business activities under 2710.00.

Anti-Money Laundering Compliance: This requirement does not apply to business activities under 2710.00.


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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