How to start an engineering consultancy in Dubai
Dubai, synonymous with groundbreaking innovation and architectural marvels, hosts some of the world’s most spectacular engineering projects. From the awe-inspiring Burj Khalifa and iconic Palm Jumeirah to the innovative Museum of the Future, these accomplishments push engineering boundaries and have redefined the emirate’s landscape.
As Dubai’s rapid development continues unabated and more ambitious developments take shape the demand for specialised engineering consultancy services has never been more pronounced
If you’re looking to establish an engineering consultancy business in the Emirate and be eligible to tender for government projects, you’ll need to register with the Dubai Municipality and obtain Dubai Engineering Consultancy Classification (DECC).
This article looks at how to start an engineering consultancy in Dubai, the requirements for obtaining DECC approval and other key considerations.
What is the DECC?
The Dubai Municipality established the Dubai Engineering Consultancy Classification (DECC) system to effectively categorise engineering consultancy firms based on their competencies and track record. This classification system is instrumental in the prequalification of engineering consultancy firms seeking to participate in government projects within Dubai.
Utilising the DECC system, engineering consultancy firms are classified into six distinct categories, ranging from Category A, which designates firms with extensive experience and a successful history of completing large and intricate projects, to Category F, which pertains to firms with more limited experience and capabilities.
The primary objective of the DECC system is to assist the Dubai Municipality in the identification and selection of engineering consultancy firms possessing the requisite qualifications and experience for government projects in Dubai. Through the meticulous prequalification of firms, the DECC system streamlines the procurement process, ensuring that only qualified entities, equipped with the necessary expertise to guarantee the safety and sustainability of undertaken projects, are chosen to contribute to government initiatives.
Which professions does the DECC system apply to?
The DECC is applicable to all engineering consultancy businesses and any related professions that provide similar services. This includes:
- Architectural Engineers
- Civil Engineers
- Electrical Engineers
- Environmental Engineers
- Geotechnical Engineers
- Mechanical Engineers
- Project Management Consultants
- Quantity Surveyors
- Structural Engineers
- Transportation Engineers
What are the requirements for DECC approval?
Obtaining Dubai Engineering Consultancy Classification (DECC) is a meticulous process that necessitates adherence to specific criteria. It’s applicable to all engineering consultancy firms, irrespective of their engineering discipline. The DECC approval process ensures that firms are well-equipped to contribute to the dynamic landscape of engineering projects in Dubai. The key requirements for DECC approval are as follows:
- Legal Entity: The engineering consultancy firm must be a legal entity registered in Dubai in possession of a valid trade licence.
- Technical Staff: The firm must boast qualified technical staff, each possessing relevant academic qualifications and substantial experience within their respective fields.
- Technical Capabilities: A critical requirement involves the firm showcasing its technical capabilities, affirming its proficiency in providing engineering services aligned with its declared field of expertise.
- Quality Management: The engineering consultancy firm is mandated to establish and maintain a robust quality management system which aligns with international standards such as ISO 9001, ISO 14001, and OHSAS 18001. This reflects a commitment to high-quality engineering services, environmental sustainability, and occupational health and safety.
- Financial Capability: Demonstrating financial capability is imperative. The firm must exhibit the financial capacity to undertake engineering consultancy projects of a specific minimum value.
- Insurance: The engineering consultancy firm must possess adequate insurance coverage, including professional liability insurance, to mitigate risks associated with project execution.
- Health and Safety: Compliance with health and safety regulations is paramount. The firm is required to implement and maintain a health and safety management system to ensure a safe working environment.
- Environmental Compliance: Environmental compliance is a key aspect of DECC approval. The firm must illustrate adherence to environmental regulations and maintain an environmental management system.
How engineering consultancies are categorised
The classification of engineering consultancy firms under the Dubai Engineering Consultancy Classification (DECC) is structured into three distinct categories, each specifying eligibility criteria for participation in projects of varying complexity and scale. These categories are summarised as follows:
- First Category:
- Enables participation in projects of any height.
- The company must employ a minimum of 5 engineers, each authorised to cover an area of 9,000 m2.
- Licensing in this category necessitates the operation from an office with a minimum area of 200 m2.
- Second Category:
- Enables participation in projects of up to 12 floors.
- The company must employ a minimum of 3 engineers, each authorised to cover an area of 7,500 m2.
- Licensing in this category requires the operation from an office with a minimum area of 150 m2.
- Third Category:
- Enables participation in projects of up to 4 floors.
- The company must employ a minimum of 2 engineers, each authorised to cover an area of 6,000 m2.
- Licensing in this category necessitates the operation from an office with a minimum area of 100 m2.
These categories are designed to provide a clear framework for engineering consultancy firms, ensuring that they are appropriately classified based on their capacity and capabilities. The categorisation facilitates a streamlined approach to project participation, allowing firms to focus on projects aligned with their expertise and resources.
Establishing an Engineering Consultancy in Dubai:
Successfully setting up an engineering consultancy in Dubai involves meeting specific requirements to ensure compliance and eligibility. The following is an overview of the process:
- Legal Requirements:
- Trade Name Reservation: Begin by selecting and reserving a unique trade name for your consultancy through the Department of Economic Development (DED).
- Business Activity Approval: Obtain approval for the specific engineering consultancy business activity from the DED.
- Business Entity Types:
- Determine Business Structure: Choose the most suitable business structure for your consultancy, such as Limited Liability Company (LLC), Sole Establishment, or Civil Company. The choice depends on factors like ownership, liability, and the nature of the business.
- Registration Procedures:
- LLC Formation:
- If opting for an LLC, involve local sponsorship, and draft a Memorandum of Association (MOA).
- Register the LLC with the DED and obtain an initial approval certificate.
- Draft an LLC agreement and notarise it at the Notary Public.
- Finalise the process by obtaining the trade licence.
- Sole Establishment:
- For a Sole Establishment, register with the DED, and secure a trade name and business activity approval.
- Prepare the required documents, including passport copies and visa details.
- Complete the registration and licensing processes.
- Civil Company Formation:
- If forming a Civil Company, choose partners and draft an MOA.
- Register the Civil Company with the DED and obtain initial approval.
- Notarise the agreement and finalise the registration to secure the trade licence.
- Obtain DECC approval:
- Register for DECC approval on the Dubai Municipality’s e-portal
- Submit all necessary documentation including proof of ownership or partnership, trade licence, tax certificate, insurance certificate and any other requested information.
- Provide details of work activities over the last 15 years for correct classification, as well as your company’s qualifications and capabilities
- Your application will then be evaluated and upon payment of the required fees, you’ll receive approval.
- Key Personnel Requirements:
- General Manager: The General Manager must be an Engineer with not less than 15 years of qualified experience and a national of the overseas country from where the Branch originates.
- Certified Engineer: A certified engineer with not less than 15 years of qualified experience must take responsibility for each activity listed on the trading licence and they should be a member of the Society of Engineers in the UAE.
- Visa Processing:
- Apply for visas for your team, ensuring compliance with UAE immigration laws.
How can Global Link help?
Global Link has over 16 years’ experience working with local and global businesses, providing bespoke consultancy services for company incorporation and financial services in Dubai and the wider UAE.
We can help you start your engineering consultancy in Dubai. From obtaining essential licences and navigating governmental approvals to facilitating employment visas and document attestation, we will streamline the complex setup process to ensure a swift and seamless establishment.
If you need advice on this or any other company incorporation, visa or PRO service, please get in touch with us on +971 4 553 9901 or email us at [email protected] and we will be happy to assist you.