Introduction
Abu Dhabi is the largest Emirate of United Arab Emirates (UAE) and have the largest natural resources of Oil and Gas in the UAE. The Abu Dhabi National Oil Company (ADNOC) organize the Abu Dhabi International Petroleum Exhibition & Conference (ADIPEC) every year in the month of November. In 2017 the conference held from 13th to 16th November renowned companies from all over the world came together under one roof to explore new business opportunities. This document is aimed to highlight the major considerations for setting up an oil and gas company in Abu Dhabi.
The Process
UAE has been known for its transparent and business-friendly policies. UAE was more dependent on its oil and gas revenues till last few years therefore, this industry is highly regulated and therefore offshore or free zone companies are not allowed to do these business activities.
It is important to note here that approval from Supreme Petroleum Council (SPC) is a must for setting up an oil and gas company. SPC is the regulatory authority established under Law No of 1988 to regulate the petroleum policy of the Emirate. SPC also forms the board of directors of ADNOC which is the largest oil company in UAE. The major steps involved in setting up an oil and gas company in Abu Dhabi are:
- Decide and shortlist 3 -4 trade names
- Decide the prime activities and legal form for the proposed entity
- Check the name availability and obtain initial approval from the authority
- Find out the office space and arrange the documents e.g. Lease Deed, Ejari etc.
- Prepare documents as directed by the authority at the time of granting the initial approval
- The authority may ask the company to obtain approval from other regulatory authorities before granting the license.
- Submit the documents with the authorities to obtain trade license
- Once the trade license is obtained, open a company Bank account
- Register the Company with Immigration and Labor Department
- Find out right people to work for you and obtain their employment permits and visas.
Local Sponsor
As mentioned earlier, freezone or offshore companies are not allowed to undertake the business activities of oil and gas. Only onshore companies registered with the Department of Economic Development (DED) in Abu Dhabi can do this activity. Also, the law requires that foreign nationals can hold maximum 49% shares in such companies and 51% shares should be held only by the Emirati Nationals. We can assist you to find out the local Emirati nationals to hold 51% shares in the company and support your business decisions.
The Bottom Line
To sum up the things following are the important determinants to register an oil and gas company.
| S. No. | Particulars | Responsibility |
| 1. | Decide the name and activity | Client |
| 2. | Preparing documents and obtaining initial approval | IMC |
| 3. | Arranging Office Space and preparation of necessary documents | IMC can assist on request |
| 4. | Obtaining SPC Approval | IMC |
| 5. | Obtaining other necessary approvals | IMC |
| 6. | Preparation of documents and submission with authority | IMC |
| 7. | Obtaining Trade License and assistance in Bank Account opening | IMC |
| 8. | Registering Companies with Govt authorities and Department | IMC |
| 9. | Obtaining Visas for investors and employees | IMC |
| 10. | Finding and Negotiating terms with Emirati Partner | IMC |
For more information, please contact us at [email protected] and one of our consultants shall get in touch with you. You can also visit our website at www.intuitconsultancy.com
