Home Services Mining & Natural Resources in the UAE: Regulations & Opportunities

Mining and Natural Resources in the UAE

The natural resources sector in the UAE is one of the most strictly regulated and strategically important. Any activity related to oil, gas, or mineral extraction requires licensing, government approvals, and strict compliance. From exploration to quarry development, companies must cooperate with authorities and comply with stringent standards.


Types of activities requiring a license

  1. Oil and gas extraction (upstream operations).
  2. Geological exploration and seismic modeling.
  3. Mining and processing of mineral resources (sand, limestone, dolomite, etc.).
  4. Quarry development.
  5. Drilling and service contracting.
  6. Supply of equipment and technologies for extraction.

Requirements for obtaining a license

  • License from DED or the emirate’s economic department.
  • Approval from the UAE Ministry of Energy and Infrastructure.
  • In some cases — participation of a local partner or state-owned company (e.g., ADNOC).
  • Environmental approvals and an EIA (Environmental Impact Assessment) report.
  • Compliance with safety, sanitation, and construction standards.
  • Availability of engineering staff and a project feasibility study.

What MIRAD does

  • Selection of registration format (Mainland, SPC, or joint venture with a local partner).
  • Preparation of documentation and business plan.
  • Coordination with regulatory authorities.
  • Support in obtaining special permits.
  • Selection of land plot or facility location.
  • Legal and compliance due diligence of partners and suppliers.
  • Advisory on reporting, HSE requirements, and Corporate Tax.

Risks of operating without a license

Important

Operating without a license in the UAE’s extraction sector carries fines exceeding AED 500,000, suspension of licenses, and even criminal liability. Environmental violations may lead to land confiscation, bans on operations, and severe reputational damage both locally and internationally.


Planning to enter the UAE natural resources market?

MIRAD will guide you from legal setup to obtaining licenses and ensuring full compliance.

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HowTo: how to start a mining business in the UAE

  1. Define business model (oil, gas, minerals, service works).
  2. Choose registration format: Mainland LLC, SPC, or JV with ADNOC/local partner.
  3. Prepare feasibility study and Environmental Impact Assessment (EIA).
  4. Apply for a license at DED or Free Zone.
  5. Obtain approvals from Ministry of Energy and related authorities.
  6. Secure land plot or production facility.
  7. Implement HSE system and reporting in line with legislation.

Why choose MIRAD

  • Deep expertise in regulated industries of the UAE.
  • Experience with the Ministry of Energy, ADNOC, RAK Gas, and DED.
  • Comprehensive support: legal, financial, and technical.
  • Protecting client interests in capital-intensive and high-risk projects.

FAQ: mining and natural resources in the UAE

❓ Can a foreign company own 100% of a mining business?
✅ In most cases, a joint venture with a local or state partner (e.g., ADNOC) is required. Full ownership is possible only in the services sector.

❓ Is an EIA mandatory?
✅ Yes, Environmental Impact Assessment is a mandatory requirement for all mining and quarry projects.

❓ How long does it take to obtain a license?
✅ Depending on project complexity, the process takes 4 to 12 months.


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