Table of Contents
Frequently Asked Questions
What does activity code 7020.68 actually permit a feasibility studies consultancy to do in Dubai
Activity code 7020.68 falls under Management Consultancy Activities in the ISIC framework and covers economic, financial, and market feasibility assessment. It is an analytical and advisory classification, not a regulated financial services licence.
Permitted services include project viability studies across real estate, infrastructure, and industrial sectors, market entry analysis, financial modelling, investment appraisals, site assessments, and demand and supply studies for development projects.
The activity does not authorise regulated financial advisory services or statutory audit work. The boundary is strictly advisory and analytical, so firms needing to offer those services must hold separate, additional licences.
Should a feasibility consultancy set up on the Dubai mainland or in a free zone
The right jurisdiction depends on your expected client mix. A mainland licence issued through Dubai Economy and Tourism (DET) provides unrestricted access to UAE government tenders, federal contracts, and direct commercial engagement with local private sector clients — a practical advantage if you are targeting public-sector feasibility mandates.
A free zone licence — with Meydan Free Zone being a strong option for activity 7020.68 — offers 100% foreign ownership, faster incorporation, lower initial cost, and no restrictions on currency repatriation. It suits consultancies serving international investors, regional developers, or operating cross-border.
As a rule of thumb: if your pipeline is primarily UAE government or large local corporates requiring a local entity contract, choose mainland. If you are serving international or regional clients, a free zone structure is more efficient.
How quickly can a feasibility consultancy licence be issued in Dubai
Timelines vary by jurisdiction. Meydan Free Zone is noted for issuing licences in as little as 3–5 working days, making it one of the faster options available for activity code 7020.68.
Mainland licences through Dubai Economy and Tourism typically take longer due to additional approval steps, though the process is still straightforward when documentation is complete and in order.
Having two or three trade name options prepared in advance and ensuring all personal documents are attested and ready can prevent the most common delays in the application process.
What is the corporate tax position for a feasibility consultancy operating from a Dubai free zone
Under Federal Decree-Law No. 47 of 2022, qualifying free zone entities can benefit from a 0% corporate tax rate on qualifying income. This is a significant structural advantage for consultancies incorporated in a recognised free zone such as Meydan.
For income that does not meet the qualifying criteria, or for mainland entities, the standard corporate tax rate is 9% on taxable income above AED 375,000. Income at or below that threshold is taxed at 0%.
It is important to take specific tax advice to confirm whether your revenue streams and operational structure meet the qualifying conditions, as the rules around substance requirements and permitted activities are detailed.
When does a feasibility consultancy in Dubai need to register for VAT
VAT registration becomes mandatory once a business's annual taxable turnover reaches or exceeds AED 375,000. This threshold applies across the UAE regardless of whether the entity is on the mainland or in a free zone.
Voluntary registration is available below that threshold and can be commercially useful if your clients are themselves VAT-registered businesses that can recover input tax. It also signals a degree of operational scale and credibility to larger corporate clients.
Consultancies serving clients outside the UAE should also review the zero-rating rules for exported services, which can affect how VAT is applied to cross-border feasibility engagements.
Who are the typical clients of a feasibility studies consultancy in Dubai
The client base for activity code 7020.68 is broad. Property developers require project viability studies before committing capital to real estate or mixed-use schemes. Government entities commission independent appraisals to justify public expenditure on infrastructure and community projects.
Other common clients include private equity firms and institutional investors needing market entry logic validated, SMEs assessing expansion or new venture feasibility, and international investors entering the UAE or regional markets for the first time.
Dubai's structural drivers — ongoing infrastructure investment, free zone expansion, and strong inbound FDI — mean demand from these client segments is considered structural rather than cyclical, supporting a stable pipeline for well-positioned consultancies.
What is the size and growth outlook for the management consulting market in the UAE
The UAE management consulting market is valued at over USD 1.2 billion and continues to grow, driven by government-led programmes including Vision 2031 and the broader UAE Projects of the 50 initiative, which direct significant capital into infrastructure, economic diversification, and social development.
Dubai specifically ranks first in MENA for ease of doing business according to World Bank data, which sustains inbound investment flows and, by extension, demand for credible feasibility and market entry analysis.
For a new consultancy, this environment means the addressable market is expanding rather than contracting, though competition from established regional and international firms means differentiation — by sector specialism, methodology, or client segment — remains important.
What are the first steps in the licence setup process for activity code 7020.68 in Dubai
The process begins with confirming jurisdiction and activity approval — verifying that code 7020.68 is supported by your chosen authority. Meydan Free Zone supports this activity directly and is a common starting point for independent consultants and boutique firms.
The next step is trade name reservation. UAE naming conventions prohibit offensive terms, references to government bodies, and misleading descriptors, so preparing two or three options in priority order avoids delays if a first choice is rejected.
From there, the process moves through document submission, licence issuance, and — where required — visa and bank account applications. Having personal documents attested and ready before starting the application is the single most effective way to keep the timeline on track.
Start a Feasibility Studies Consultancy in Dubai
Dubai's project pipeline is large, fast-moving, and full of investors who need someone to tell them whether their idea will actually work. Developers, government bodies, and international investors are committing billions of dirhams each year to infrastructure, real estate, and commercial ventures. Almost none of them will do that without a credible feasibility study behind them.
A feasibility studies consultancy sits at the centre of that demand. It is a lean, high-margin professional services business that fits Dubai's project economy well, provided you set it up in the right jurisdiction and go after the clients who actually commission this work. This guide covers the license, the clients, the setup route, and what running the business looks like in practice.
Key Stats at a Glance
| License activity | Feasibility Studies Consultancy |
|---|---|
| Jurisdiction options | Mainland (DET) or free zone (Meydan Free Zone) |
| Foreign ownership | 100% in free zone; 100% on mainland for most professional services – Invest in Dubai |
| Minimum setup cost | From AED 12,500 at Meydan Free Zone |
| VAT registration threshold | AED 375,000 annual taxable turnover – Federal Tax Authority |
| Corporate tax rate | 9% on taxable income above AED 375,000 – Federal Tax Authority |
| Typical office requirement | Physical office (mainland) or flexi-desk (free zone) |
What This License Covers
A feasibility studies consultancy license lets you carry out economic, technical, and financial feasibility analysis for clients. In practice, that means assessing whether a proposed project is viable, what it will cost, what returns it can generate, and what risks stand in the way. You can cover multiple sectors under one license: real estate, hospitality, industrial, retail, healthcare, and others.
What this activity does not cover is execution. You are advising on viability, not managing the project, running the procurement, or delivering the construction. If you want to offer those services as well, you need to add the relevant activity codes at setup.
It is also worth being clear about the line between feasibility consulting and adjacent activities. Market research is a separate license activity. Management consulting is another. Feasibility studies sit between them: more quantitative than market research, more project-specific than general management consulting. If your work regularly crosses into financial modelling for investment decisions, check whether you need a regulated financial advisory license from the Securities and Commodities Authority.
When clients ask for work that goes beyond your licensed scope, the right answer is to add the activity code, not to stretch the existing one. Adding codes at Meydan Free Zone is a straightforward process and costs less than the risk of operating outside your license. You can review the full Meydan Free Zone business activities list to see what can be bundled with your core activity.
Who Your Clients Will Be
Getting the client picture right before you set up matters. It shapes your jurisdiction choice, your office requirement, and how you position the business.
The main client groups in Dubai are:
- Real estate developers and master planners who need feasibility studies as part of the planning and finance approval process
- Government and semi-government entities running formal procurement for infrastructure and public-use projects
- International investors entering the UAE for the first time, who need an independent local view before committing capital
- SMEs and family offices evaluating expansion into a new sector or geography
- Banks and lenders who need a third-party study before approving project finance
Government and semi-government clients run formal tenders. They want you on an approved vendor list before any work starts, and they sign contracts only after due diligence on your firm. Getting onto those lists takes time, but once you are there, the work is steady and the contracts are long.
International investors and private developers move faster. They often need a study within a tight window and will pay a premium for speed and sector knowledge. These clients are less concerned with your jurisdiction and more concerned with your methodology and the names on the report.
Family offices and SMEs are the most price-sensitive segment. They are worth taking on early to build a track record, but they should not be your primary positioning once you are established.
Mainland vs Free Zone: Which Setup Works for You
This is the biggest choice you will make when setting up. Let your clients decide it, not the price.
| Factor | Mainland (DET) | Free Zone (Meydan Free Zone) |
|---|---|---|
| Client access | Open UAE market, including government contracts | Mainly private sector and international clients |
| Foreign ownership | 100% for most professional services activities | 100% guaranteed |
| Office requirement | Physical office required | Flexi-desk options available |
| Setup cost | Higher, includes office lease and DET fees | Lower; Dubai Trade License from AED 12,500 |
| Setup speed | Typically 2 to 4 weeks | Can be done in days |
| Government tenders | Direct access | Possible via a local commercial agent or branch |
A mainland license from DET lets you work directly with UAE government bodies and bid on public tenders without restriction. If government and semi-government entities are your primary targets, mainland is the right route.
Meydan Free Zone gives you 100% foreign ownership, a faster setup, and lower running costs. If your clients are mainly private developers, international investors, and corporates, a free zone company is workable and more cost-efficient. You can also start a business remotely through Meydan Free Zone without needing to be in Dubai for the setup process.
Some founders set up a free zone company first, build a track record and cash flow, then add a mainland branch when they are ready to go after government work. That is a sensible sequence if you are starting lean.
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Calculate NowHow to Set Up Your Consultancy: Step by Step
- Step 1, check your company name: Use the company name check tool to confirm your preferred trade name is available before you go further. Names must follow UAE naming rules: no offensive terms, no references to religion or politics, and no names already registered.
- Step 2, confirm your activity code: Make sure the feasibility studies activity is approved in your chosen jurisdiction. If you want to offer complementary services such as market research or financial modelling, add those codes now. It is cheaper to do this at setup than to amend the license later.
- Step 3, submit your setup documents: For a free zone company at Meydan Free Zone, you need passport copies for all shareholders, a completed application form, and proof of address. For a mainland company via DET, you also need a No Objection Certificate if you are employed in the UAE on a work visa.
- Step 4, get initial approval: Meydan Free Zone issues initial approval quickly, often within a few days. Mainland approvals through DET take longer, typically one to two weeks.
- Step 5, sign your office or flexi-desk agreement: Free zone companies can use a flexi-desk, which satisfies the address requirement for your license and visa applications. Mainland companies need a physical office lease registered with Ejari.
- Step 6, pay your license fees and receive your license: Once the office agreement is in place and fees are paid, your trade license is issued. Keep a digital copy. You will need it for bank account applications and client contracts.
- Step 7, open a corporate bank account: This is where most new founders lose time. UAE banks are thorough in their due diligence. Have your business plan, client pipeline, and source of funds documentation ready. Meydan Free Zone's business banking support service can help you prepare and navigate the process.
- Step 8, apply for visas: Your license determines how many visas you can sponsor. A flexi-desk package at Meydan Free Zone typically covers one or two visas. If you are bringing in senior staff, check the visa allocation before you sign the office agreement.
Compliance, Market Opportunity, and Running the Business
Running a feasibility consultancy in Dubai is not heavily regulated compared to financial services or healthcare. But there are a few things you need to have in place from day one.
VAT registration
You must register for VAT with the Federal Tax Authority once your annual taxable turnover reaches AED 375,000. Voluntary registration is possible below that threshold. If you are working with large developers or government-adjacent clients, they will expect a tax registration number on your invoices. Get registered early. Meydan Free Zone's VAT registration support can handle the filing on your behalf.
Corporate tax
The UAE introduced a 9% corporate tax on taxable income above AED 375,000. Free zone companies can qualify for a 0% rate on qualifying income, but the rules are specific and you need to meet the substance requirements. Check with a tax adviser before assuming the exemption applies to your business. The Federal Tax Authority publishes the guidance at tax.gov.ae.
Professional indemnity insurance
It is not mandatory for feasibility consultants in the UAE. But serious clients, particularly banks, developers, and government-adjacent bodies, will ask for it. A professional indemnity policy shows that your advice is backed by something real. Get a policy in place before you pitch for major contracts. It also protects you if a client disputes the conclusions of a study.
Bookkeeping and audit
Free zone companies at Meydan Free Zone are not automatically required to have audited accounts, but good bookkeeping is essential for tax compliance and for any client that asks to see your financials before signing a contract. Meydan Free Zone's bookkeeping services can keep this manageable from the start.
Market opportunity
Dubai's infrastructure and real estate pipeline is substantial. The city is in the middle of a long-term expansion programme covering transport, hospitality, healthcare, and mixed-use development. Every major project in that pipeline needs a feasibility study at some point, usually before planning approval and again before financing. That creates a steady flow of work for well-positioned consultancies.
International investors entering the UAE market for the first time are another consistent source of demand. They do not have local knowledge, they cannot read the regulatory environment on their own, and they will not commit capital without independent analysis. A consultancy that can deliver credible, sector-specific studies in clear English and Arabic is well placed to serve this segment.
Positioning
Price is rarely the deciding factor for serious clients commissioning feasibility work. What matters is methodology, sector depth, and the names on the report. If your senior staff have a track record in specific sectors, lead with that. A consultancy known for hospitality feasibility or healthcare project analysis will win more work than a generalist offering lower fees.
Build your credentials file from the first project. Anonymised case studies, sector reports, and named senior staff are your main sales tools. Clients want to know who will actually be doing the work, not just who runs the company.
Conclusion
A feasibility studies consultancy is a lean, high-margin professional services business that fits Dubai's project economy well. The setup cost is low relative to the fees the work commands. The compliance burden is manageable. And the demand is real, driven by a project pipeline that shows no sign of slowing.
The key decisions are jurisdiction and positioning. If your clients are government bodies and public developers, go mainland. If they are private developers, international investors, and corporates, Meydan Free Zone gives you a faster, more cost-efficient setup with full foreign ownership. Get those two decisions right and the rest follows.
Talk to Meydan Free Zone about the right setup for your consultancy and get a clear cost picture before you commit.
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