The United Arab Emirates is the 4th biggest crude oil exporter in the region following Iran, Saudi Arabia, and Iraq. It also has the 6th biggest reserves of conventional crude oil in the world. It is the 5th biggest net oil exporter in the worldwide market.
However, in the past years, UAE has been experiencing an oil crisis. So it has started initiatives and plans on expanding its oil and gas capacity. The government has given priority to various gas projects and has joined forces with industry leaders to develop new and promising oil markets. One of the Emirates, Dubai, has also had its fair share of oil problems. Dubai’s oil production, which was about half of the country’s GDB has plummeted significantly from 410,000 bdp in 1991 to just 80,000 bdp in 2007. It then swung from being a thriving net oil exporter to mainly relying on petroleum imports.
If you’re thinking about building a petroleum company in Dubai, the region definitely shows promise. The demand is present, and the opportunities are vast. Before you set up The oil & gas business in UAE, you need to pay attention to the details in the UAE Constitution. It states that the ruler of every Emirate should decide how petroleum is extracted and explored. The Government of Dubai does the regulations in terms of gas extraction and exploitation in the region. In the year 2009, the Dubai Supreme Council of Energy came to life. It was established to thoroughly supervise the emirate’s energy sector. It also offers various incentives for companies that invest in the energy industry. This is all the more reason to go for an oil and gas business setup in the UAE, particularly in Dubai.
Here’s how you can set up a petroleum company in Dubai
As mentioned, the extraction and exploitation of petroleum-based products are approved by the Government of Dubai via certain concession agreements. Foreign firms permit to participate as minority shareholders in various state-regulated companies. These companies are also called “project-specific concession companies”. These are established to collaborate with international firms seamlessly.
In terms of the taxation of petroleum firms, Dubai follows a corporate tax regime. But for companies concluding concession agreements. The Dubai Government should evaluate the terms of the contracts to determine the tax liability. In terms of exporting and importing petroleum products, Dubai companies incur a 5% tax for imports and no taxes for exports.
If you’re wondering how to get an Oil and gas license in UAE, the actual process can be long and taxing. And for someone looking to do something big, you can’t afford to get caught up in the legwork and other delegable tasks. To do the process quickly and easily, you can just hire incorporation agents in Dubai. Which can help you with the registration procedure and other requirements to get your business started. Companies like Business Link UAE are around to help you set up your petroleum company without a problem. We will take care of acquiring your Oil and gas license in UAE and help you set up an oil & gas business in Free Zones. Start Oil and gas company in UAE at EXPO 2020 with us and enjoy a smooth and easy business setup in Dubai.
Setting up a huge project like that of a petroleum company takes a lot of planning and hard work, and you definitely need the right kind of support, especially during the initial yet crucial stage of business registration and setup. Contact us to work with the right professionals to get your venture to start in Dubai.