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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 industrial expansion and its position as a regional manufacturing and trade hub have created steady demand for specialist engineering services — including raw materials composition analysis and engineering consultancy. Whether you are a materials scientist, a technical advisor, or an engineering firm serving the chemicals, construction, or food processing sectors, Dubai offers a structured and commercially viable path to operating legally.

This guide covers what activity code 7110.90 covers, who needs this licence, where to set up, and how to get licensed efficiently in Dubai.

Key Stats at a Glance

Metric Detail Source
UAE manufacturing sector GDP contribution Approximately AED 133 billion (2022) Dubai Statistics Center
ISIC classification Code 7110.90 — Engineering Activities and Related Technical Consultancy ISIC Division 71
UAE industrial strategy target Double manufacturing sector's GDP contribution by 2031 Official UAE Government Portal
Corporate tax exemption threshold Qualifying free zone income may be exempt; 9% applies above AED 375,000 taxable income Federal Tax Authority
Foreign ownership 100% permitted in free zones and mainland (post-2021 amendments) Official UAE Government Portal

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What Raw Materials Composition Engineering Services Covers

Infographic: Raw Materials Composition Engineering Services License in Dubai

Activity code 7110.90 sits within ISIC Division 71 — Architectural and Engineering Activities and Related Technical Consultancy. It is a professional services classification, not a manufacturing or laboratory licence. The distinction matters: you are providing engineering knowledge and advisory output, not producing or testing physical goods in a regulated laboratory setting.

The scope is broad. It covers material testing advisory, composition analysis consultancy, formulation engineering, and technical advice on raw material specifications across a wide range of industrial sectors.

Clients typically operate in manufacturing, construction, chemicals, food processing, pharmaceuticals, and energy. The value you deliver is technical precision — helping procurement teams, quality managers, and product developers make better decisions about what goes into their products and processes.

Typical Business Activities Under This Licence

  • Advising manufacturers on raw material sourcing and composition standards
  • Engineering specifications for material blends, alloys, polymers, or compounds
  • Quality assurance consultancy for supply chain and procurement teams
  • Technical reporting for regulatory compliance or import and export purposes
  • Formulation review and optimisation for industrial or consumer product applications
  • Due diligence support on material certification and supplier qualification

Mainland vs Free Zone: Where to Set Up

The choice between mainland and free zone is primarily driven by who your clients are and how you intend to contract with them.

A mainland licence issued by the Dubai Department of Economy and Tourism (DED) allows you to contract directly with UAE government entities, semi-government bodies, and local industrial clients without restriction. If your business model depends on winning public sector or large local manufacturer contracts, mainland is the appropriate structure.

A free zone licence — including through Meydan Free Zone — offers 100% foreign ownership, simplified incorporation, a faster setup timeline, and zero personal income tax. Free zone entities can serve international clients and other free zone companies without restriction. Serving mainland UAE clients directly requires either a branch office or a local commercial agent arrangement.

For raw materials engineering consultancy with a regional or export-facing model — serving Gulf manufacturers, international procurement teams, or multinational industrial groups — a free zone licence is typically the more cost-efficient and administratively straightforward starting point.

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Step-by-Step Licence Setup Guide

The process is straightforward if you prepare correctly before submission. Incomplete documentation is the most common cause of delay.

Step 1 — Define your legal structure. Choose between a sole establishment, mainland LLC, or free zone entity (FZE for a single shareholder, FZCO for multiple shareholders). For most individual consultants or small engineering firms, an FZE in a free zone is the most direct route.

Step 2 — Reserve your trade name and confirm the activity. Verify that activity code 7110.90 is approved for your chosen jurisdiction before committing. Trade name reservation is typically done online through the relevant authority's portal.

Step 3 — Prepare your incorporation documents. Standard requirements include passport copies, a UAE visa if you are already resident, a professional CV or credentials summary, and a No Objection Certificate (NOC) if you are currently employed in the UAE under another visa.

Step 4 — Submit your application. Mainland applicants use the DED e-services portal. Free zone applicants submit directly through the chosen zone's authority — either online or through a registered setup agent.

Step 5 — Obtain initial approval and secure your office arrangement. Sign a tenancy agreement or flexi-desk contract, pay licence fees, and submit the tenancy document to complete the application.

Step 6 — Collect your trade licence and open a corporate bank account. Register for UAE Corporate Tax with the Federal Tax Authority if your projected taxable income exceeds AED 375,000 annually.

Note that professional engineering activities may require qualification verification with the relevant authority or municipality, particularly for mainland licences. Confirm this requirement before submission to avoid delays.

Typical processing timelines: 3–7 working days for free zone; 7–15 working days for mainland DED.

Documents Typically Required

  • Passport copy (all shareholders and managers)
  • UAE residence visa copy, if applicable
  • Proof of professional qualifications or engineering credentials
  • Business plan summary (required by some free zones)
  • NOC from current UAE employer, if applicable
  • Completed application form from the chosen authority

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Costs, Compliance, and Ongoing Obligations

Free zone licence fees for professional consultancy activities typically range from AED 10,000 to AED 25,000 annually, depending on the zone and the office package selected. Flexi-desk arrangements sit at the lower end; dedicated office space increases the cost accordingly.

Under UAE Corporate Tax, a 9% rate applies to taxable income above AED 375,000. Qualifying free zone income may be exempt under specific conditions — review the current guidance published by the Federal Tax Authority to confirm whether your business model qualifies.

Annual licence renewal is mandatory. Free zone entities are not subject to Emiratisation quotas, which simplifies workforce planning for small consultancy operations. Mainland professional licence holders may be required to enrol with a relevant professional body or obtain municipal approval depending on the scope of engineering work undertaken.

The Invest in Dubai portal provides a single-window overview of licence requirements, costs, and approval pathways across jurisdictions — a useful reference before committing to a structure.

Conclusion

A Raw Materials Composition Engineering Services licence under activity code 7110.90 is a professional consultancy licence suited to engineers, materials scientists, and technical advisors serving industrial and manufacturing clients across the UAE and wider region. The licence sits within a well-defined ISIC category with clear scope — and Dubai's industrial growth trajectory makes this a commercially relevant service offering for the medium term.

Dubai offers both mainland and free zone pathways. The right choice depends on your client base, ownership preferences, and cost structure. Free zone suits international and regional consulting models; mainland suits those targeting UAE government or large local industrial contracts directly.

If you are ready to set up or want a cost comparison across jurisdictions, use the tools below or speak directly with a setup adviser.

References

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