Table of Contents
Frequently Asked Questions
What does activity code 7110.90 cover for raw materials composition engineering services in Dubai
Activity code 7110.90 falls under ISIC Division 71 — Architectural and Engineering Activities and Related Technical Consultancy. It is a professional services classification, meaning it covers the provision of engineering knowledge and advisory output rather than physical manufacturing or regulated laboratory testing.
In practice, the scope includes material testing advisory, composition analysis consultancy, formulation engineering, and technical advice on raw material specifications across sectors such as manufacturing, construction, chemicals, food processing, pharmaceuticals, and energy.
Who needs a Raw Materials Composition Engineering Services licence in Dubai
This licence is suited to materials scientists, technical advisors, and engineering consultancy firms that provide expert guidance on what goes into industrial products and processes. It is not required for businesses that physically produce or test goods in a regulated laboratory.
Typical clients of licence holders include procurement teams, quality managers, and product developers in manufacturing, chemicals, construction, and food processing. If your value proposition is technical precision and advisory output rather than physical production, this is the appropriate classification.
What specific business activities are permitted under this licence
The licence permits a broad range of engineering consultancy activities. These include advising manufacturers on raw material sourcing and composition standards, engineering specifications for material blends, alloys, polymers, or compounds, and quality assurance consultancy for supply chain and procurement teams.
Additional permitted activities cover technical reporting for regulatory compliance or import and export purposes, formulation review and optimisation for industrial or consumer product applications, and due diligence support on material certification and supplier qualification.
Should I set up on the Dubai mainland or in a free zone for this type of engineering consultancy
The right choice depends primarily on who your clients are. A mainland licence issued by the Dubai Department of Economy and Tourism (DET) allows you to contract directly with UAE government entities, semi-government bodies, and local industrial clients without restriction — making it the better fit if public sector or large local manufacturer contracts are central to your model.
A free zone licence offers 100% foreign ownership, faster incorporation, and zero personal income tax. Free zone entities can serve international clients and other free zone companies freely, though serving mainland UAE clients directly may require a branch office or local commercial agent arrangement. For regionally or export-facing consultancies, a free zone is typically the more cost-efficient starting point.
Can a foreign national own 100% of a raw materials engineering consultancy in Dubai
Yes. 100% foreign ownership is permitted both in Dubai free zones and on the mainland, following the 2021 amendments to UAE commercial company law. Previously, mainland businesses in many sectors required a local UAE national partner holding at least 51% of shares.
Free zones such as Meydan Free Zone have always offered full foreign ownership, and this remains one of their key attractions for international professionals and engineering firms looking to establish in Dubai.
What are the corporate tax implications for this type of engineering services business in Dubai
The UAE introduced a 9% corporate tax on taxable income above AED 375,000. Income below this threshold is not subject to corporate tax, which benefits smaller consultancies and sole practitioners in their early years of operation.
Businesses operating within qualifying free zones may be eligible for exemptions on qualifying income, subject to meeting the conditions set by the Federal Tax Authority. It is advisable to consult a UAE tax adviser to confirm whether your specific activities and free zone status qualify for these exemptions.
How does Dubai's industrial strategy create opportunity for raw materials engineering consultancies
Dubai and the broader UAE have set an ambitious target to double the manufacturing sector's GDP contribution by 2031, according to the official UAE Government Portal. The manufacturing sector already contributed approximately AED 133 billion to UAE GDP in 2022, according to the Dubai Statistics Center.
This industrial expansion drives consistent demand for specialist engineering services, including raw materials composition analysis and formulation consultancy. As manufacturers scale up and diversify their supply chains, the need for technical precision in material sourcing, quality assurance, and regulatory compliance grows correspondingly, creating a commercially viable environment for licensed engineering consultancies.
What is the difference between a raw materials composition engineering licence and a laboratory testing licence in Dubai
The key distinction is that a raw materials composition engineering services licence (7110.90) is a professional services classification. It authorises you to provide engineering knowledge, advisory reports, specifications, and consultancy — it does not permit you to operate a regulated testing laboratory or physically analyse samples as a licensed testing facility.
If your business model involves physically conducting laboratory tests on materials and issuing accredited test reports, you would need a separate laboratory or testing facility licence, which falls under a different regulatory and classification framework. Many engineering consultancies work alongside accredited laboratories rather than operating one directly.
Raw Materials Composition Engineering Services License in Dubai
Dubai's position as a regional manufacturing and trade hub means steady demand for firms that analyse, test, and engineer the composition of raw materials. That demand runs across industries from petrochemicals to food processing, and it is not going away. If you run this kind of technical advisory or testing business, Dubai gives you access to a dense client base and strong re-export corridors.
This guide covers what the raw materials composition engineering services license covers, who needs it, how to set up in Dubai, and why Meydan Free Zone is a practical base for this activity.
Key Stats at a Glance
| Activity | Raw Materials Composition Engineering Services |
|---|---|
| Jurisdiction options | Mainland (DET) or free zone (Meydan Free Zone) |
| Foreign ownership | 100% in free zone; 100% on mainland for most activities – Invest in Dubai |
| VAT threshold | AED 375,000 taxable turnover – Federal Tax Authority (FTA) |
| License starting from | AED 12,500 at Meydan Free Zone |
| Office requirement | Flexi-desk available at Meydan Free Zone |
What This License Covers
Raw materials composition engineering services covers the testing, analysis, and technical advisory work around the chemical and physical makeup of raw materials. You are not manufacturing anything. You are telling clients what their materials are made of, whether they meet required standards, and how to adjust formulations if they do not.
The industries that use this service regularly include manufacturing, food and beverage, construction, petrochemicals, and pharmaceuticals. Each of those sectors needs composition data at some point, whether for product development, regulatory compliance, or quality control before a batch goes into production.
Permitted work under this license typically includes:
- Laboratory analysis of raw material samples
- Composition reports for clients and regulators
- Formulation advisory services
- Quality compliance support linked to material specifications
- Technical consulting on material sourcing and substitution
What this license does not cover is full-scale manufacturing or product certification. Those are separate activities with separate license codes. If your scope includes either of those, you need to confirm the correct codes before you apply. You can browse the full Business Activities List at Meydan Free Zone to check what is available and what fits your model.
Keep the scope clean from the start. Mixing activities that sit outside your license creates compliance problems that are time-consuming and expensive to fix later.
Mainland vs Meydan Free Zone
This is the most important structural decision you will make when setting up. Get it wrong and you either pay too much or limit your client access. Let your actual client base drive the choice, not the setup fee.
| Factor | Mainland (DET) | Free Zone (Meydan Free Zone) |
|---|---|---|
| Client access | Direct contracts with UAE government and mainland businesses | Mainly international clients and free zone entities; mainland via distributor |
| Foreign ownership | 100% for most activities | 100% |
| Office requirement | Physical office required | Flexi-desk available |
| Setup cost | Higher on average | Lower; Trade License from AED 12,500 |
| Currency restrictions | None | None |
| Best suited for | Firms targeting UAE government bodies or local manufacturers directly | Firms serving international clients, regional exporters, or starting lean |
A mainland license from DET lets you work directly with UAE government bodies and sign contracts with local manufacturers without needing an intermediary. If your pipeline is built around government tenders or large local industrial clients, mainland is the right base.
Meydan Free Zone gives you 100% foreign ownership, no currency restrictions, and a lower cost base. You can set up with a flexi-desk rather than a full office, which keeps your fixed costs down while you build your client book. The trade-off is that selling directly into the UAE mainland market needs a local distributor or commercial agent. For firms whose clients are regional exporters, international manufacturers, or businesses operating within free zones, that trade-off rarely matters in practice.
If you are not sure yet, start with Meydan Free Zone. You can always add a mainland entity later once your UAE client base justifies the extra cost. You can also start a business remotely through Meydan Free Zone if you are not yet based in the UAE.
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Calculate NowHow to Set Up: Step-by-Step
The process is straightforward once you have confirmed your activity code and chosen your jurisdiction. Here is how it runs at Meydan Free Zone.
- Step 1, book your trade name: Use the Company Name Check tool to confirm your preferred name is available before you go further. Names must follow UAE naming rules: no offensive terms, no references to religion or ruling families, and no names that imply government affiliation.
- Step 2, confirm your activity code: Make sure the raw materials composition engineering services code is approved for your chosen jurisdiction before you submit anything. If you plan to add related activities, confirm those codes at the same time.
- Step 3, choose your legal structure: Most single-founder businesses set up as a Free Zone Establishment (FZE). Multiple shareholders use a Free Zone Company (FZC). Both give you 100% foreign ownership at Meydan Free Zone.
- Step 4, submit your application: You need passport copies for all shareholders and directors, and a basic outline of your intended business activity. Meydan Free Zone does not typically require a full business plan for this activity type, but check at the time of application.
- Step 5, get initial approval and arrange your workspace: Once initial approval comes through, confirm your flexi-desk or office arrangement. Meydan Free Zone's flexi-desk option keeps your overheads low in the early months.
- Step 6, pay license fees and collect your trade license: Fees are paid at this stage. Your license is issued once payment clears and your documents are in order.
- Step 7, open a corporate bank account: You need your trade license, shareholder documents, and company formation certificate. Meydan Free Zone's business banking support service can help you navigate this step, which is often the most time-consuming part of the setup process.
Compliance and Operational Requirements
Once your license is active, there are several ongoing duties to keep on top of. None of them are complicated, but missing them creates problems that are avoidable.
VAT registration
You must register for VAT with the Federal Tax Authority once your taxable turnover hits AED 375,000. Voluntary registration is available below that threshold if it suits your invoicing arrangements with clients. Once registered, you file returns quarterly and keep records for at least five years.
Corporate tax
UAE corporate tax applies at 9% on taxable profits above AED 375,000. Free zone businesses can access a 0% rate on qualifying income, subject to meeting substance and activity conditions. Check the current rules with the FTA or use Meydan Free Zone's corporate tax services in Dubai to make sure you are filing correctly from the start.
Staff visas and labour cards
If you hire employees, each one needs a residence visa and a labour card issued through the Ministry of Human Resources and Emiratisation (MOHRE). The number of visas your license allows depends on your office or workspace size. Flexi-desk holders at Meydan Free Zone still get a visa allocation.
Lab and testing accreditation
If your work involves physical laboratory testing, you may need accreditation from relevant UAE authorities depending on the materials and industries you serve. This is separate from your trade license. Confirm what applies to your specific scope before you start taking on clients.
Annual renewal
Your trade license needs renewing every year. Keep your company records current, your registered address active, and your visa allocations in order. Missing a renewal deadline triggers fines and can affect your ability to operate bank accounts.
Market Opportunity in Dubai
Dubai's industrial and manufacturing base has grown steadily, and that growth creates real demand for raw material testing and advisory services. Manufacturers need composition data to meet product specifications. Food producers need it for regulatory compliance. Construction firms need it for material quality assurance. None of those needs go away when markets slow down.
The UAE's proximity to Gulf petrochemical supply chains adds another layer of opportunity. Large volumes of raw materials move through UAE ports, and many importers and re-exporters need composition verification before goods move on. DP World's port infrastructure in Dubai handles a significant share of regional trade, and businesses operating in those corridors are natural clients for composition engineering services.
Clients in this space tend to sign longer contracts once you are on their approved vendor list. The onboarding process takes time, but the relationships that follow are stable. That is different from project-based consulting where you are always hunting the next engagement.
International firms entering the UAE market also need local testing and advisory support to confirm their materials meet UAE standards before they commit to production runs. That creates a consistent pipeline for well-positioned composition engineering firms, particularly those with multilingual capability and experience across more than one industry sector.
Conclusion
A raw materials composition engineering services license in Dubai is a focused, technical activity with real commercial demand across multiple sectors. The work is specialised, the client relationships are durable, and the UAE's industrial growth and trade volumes keep the pipeline healthy.
Meydan Free Zone gives you a cost-effective, fully foreign-owned base to operate from. You can set up with a flexi-desk, keep your fixed costs low in the early stage, and scale to a mainland entity if your UAE client base grows to the point where direct contracting becomes necessary. The Meydan Plus suite covers banking support, accounting, visa services, and more, so you are not piecing together your operational infrastructure from scratch.
Speak to the Meydan Free Zone team to confirm your activity code, get a cost breakdown, and move your setup forward.
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