Guide to Start a Facility Management Company in Dubai

by Zaara 16, Dec 2021

Guide to Start a Facility Management Company in Dubai

Home to some of the most imposing skylines and ambitious construction projects in the world, Dubai is reaching the peak of success. Under those imposing skylines and headline, projects are a vast array of commercial and residential buildings, with new ones popping up seemingly every fortnight.

Today, we will be talking about setting up a facility management company in the UAE. It is estimated that the UAE’s total facilities management industry is expected to be worth an incredible USD 6.6 billion by the year 2022.

Therefore, a strong market presents opportunities for those within Dubai and the UAE with the skills and drive to see success. And if that’s you, here’s your guide to opening a facility management business in Dubai.

Procedure to Setup a Facility Management Company in Dubai

The steps to open a facilities management business are simple and straight-forward. The steps are as under -

  1. Decide on a company name. You will have to keep in mind that the UAE has a set of somewhat idiosyncratic naming conventions. The business name must not include any offensive or blasphemous language or refer to known organizations and corporations
  2. Decide on the jurisdictions. That is, whether you want to set up your company in a Mainland or a Freezone. If you decide on mainland business in Dubai, you are free to trade directly with the local market, without using the services of a local agent. You can also bid for government contracts - which can be important in the field of facilities management.

On the other hand, if you want to set up your business in the free zone, you can take benefit of 100% exemption from customs tax. UAE free zone business persons also have full freedom to repatriate all invested capital and profits. There are also no foreign exchange controls and currency restrictions.

  1. Apply for a trade license. If you are establishing up in a free zone, you should make your license application to the relevant free zone authority. If you have opted for Dubai mainland, then you can get help from the Dubai Department of Economic Development.
  2. Apply for a visa, including those of your employees and any domestic staff or family members that you wish to sponsor.
  3. Apply for a corporate bank account.

The documents required for obtaining a license was -

  • Completed application form
  • Passport copy of the proposed shareholders
  • Two colour passport size photos

Following a pilot scheme, your facilities management business may also need to be graded by the Real Estate Regulatory Agency (RERA). The grading will indicate the company’s specialization and level of expertise. Only companies of a particular grading can take on specific projects. For example, only a large company with expertise in buildings over a specific size could pitch for the facilities management contract of Burj Khalifa.

Rules and Regulations for Opening a Facility Management Company in Dubai

RERA has set some rules and regulations required for opening a facility management company through which the organizations will be graded. This means that the facility management companies would be evaluated for their expertise. After which, it will be decided whether the firm meets the qualifications to continue providing all of their services. Furthermore, this classification will also determine which companies are allowed to provide facility management services to specific properties.

  1. To maintain professional standards, the Middle East Facility Management Association, MEMFA, stated that facility management companies and facility management professionals would be provided with different kinds of license. This is because SMEs service providers may not be able to handle large-scale projects. Any small mistake can cause fines for the service provider, which may cause the business setup in UAE to suffer.
  2. Providing relevant kinds of licenses will help determine which services are better rendered by the companies. The companies can then work on upgrading and growing their best qualities.
  3. The three main concerns identified for the facility management companies were sustainability, costs transparency. However, work has been done to eradicate these issues. For example, a board member of MEFMA said that the association has been working to increase the lifespan of buildings by 10-years from the current 30 years.

These laws and regulations are to help provide a better environment for facility management companies in the industry. The upgraded framework, facility management companies are supposed to follow, will allow them to concentrate more on their good traits and therefore, grow smoothly and make use of the business opportunities in UAE.

How can we help?

We at Commitbiz can assist you in starting a facility management company in Dubai. Should you decide to go ahead, get in touch with us today. We’d be happy to assist you.