Business Setup in the Agriculture sector of the Dubai Mainland

7th February 20249th February 2020 by Nadeem Rasheed

Dubai’s economy has been facing a positive growth, especially in the tourism and hospitality sector over the last few years. This has resulted in an increase in food imports and agriculture development for the production and trading of agricultural products within the region. The Dubai Economic Department (DED) provides business setup opportunities for various agricultural activities and promote the growth of the agriculture sector. The government encourages agriculture business setup in Dubai by providing easy business setup procedures with various incentives.

Types of activities allowed for a professional license under the agricultural sector in Dubai

Activity Name	Activity Description	License Type
Agriculture & other Related Services	May include services related to the agricultural sector	Professional
Growing Vegetables & Plant Nurseries Product	May include the following: Activities related to growing vegetables Setup of a plant nursery.	Professional
Growing of Crops & Gardening	May allow for growing crops and gardening of plants and other forms of agriculture.	Professional
Growing of Cereals & other Crops	Includes the following: Growing and farming of field crops, eg. wheat, barley, corn, legumes and others.	Professional
Growing Of vegetables	Includes the following: Growing and farming of leafy vegetables such as cabbages, spinach, lettuce. Growing and farming of fruit-bearing vegetables such as eggplants, cucumbers, watermelons, tomatoes, and root vegetables such as onions, carrots, and garlic.	Professional
Planting and Growing Trees Seedling, Ornamental Plants and Annual Flowers	Includes the following: Producing and propagation of all vegetative planting materials such as fruit trees, flowers and buds, aromatic drug plants, ornamental plants, by using seeds, buds and branches propagation, and tissue culture for nurseries. The production and collection of seeds.	Professional
Growing of Fruits & Spice Crops	Includes the following: Growing and farming of various fruits and spice crops	Professional
Fruit & Palm Trees Planting	Includes the following: Planting and executing any of the palm, citrus, and other fruit trees farms, for either or both commercial or non-commercial purpose for agricultural firms	Professional
Land Preparation & Irrigation Systems Works & Maintenance	Includes the following: Soil leveling and tilling by agricultural equipment and machinery. Fertilization through natural and artificial fertilizers, also, nitrogen compounds. Execution and maintenance of irrigation system, networks main lines and laterals. installing pumps as well as electronic and automated control systems, connectors, filtration systems, as per the design and requirements of different agricultural projects.	Professional
Agricultural Pest Control	Includes the following: Protection of plants and integrated pest management for controlling plant pests, soil diseases and fungal through using various methods of control such as biological, chemical, manual, automatic, or through aircraft.	Professional
Quarantine Services	Includes the following: Performing quarantine services, to prevent the entry of any agricultural materials that carry diseases that may pose a threat to human or animal life and activities through sampling, analytical procedures, certification or recommendations prevention after the examination of samples in specialized agricultural laboratories for firms licensed by the competent authorities.	Professional
Landscape & Gardening works & Maintenance	Includes the following: Landscape gardening for municipal grounds such as parks, streets, squares, private housing, it involves executing landscape architecture through planting trees and flowers and green areas, fitting fountains and walkways, trees trimming, fertilization, disinfecting	Professional
Golf Courses & Football Playgrounds Works & Maintenance	Includes the following: Work and maintenance on golf courses by through the application of technical specifications such as highs and lows, water runways to avoid bunkers, also size and number of holes required as well as maintaining and fertilizing the green areas along with the plants within. Executing and maintaining green spaces and football playgrounds green areas, irrigation system, drainage fertilization, etc.	Professional
Trees Removal & Transplanting Services	Includes the following: Transplanting trees and plants that are grown in the wrong areas such as if on public roads or private homes, that are considered dangerous, or causing road blockage through using it elsewhere again.	Professional
Advanced Growing of Vegetables, Melons, Roots & Tubers	Includes the following:  Advanced growing and farming of leafy vegetables, roots, tuberous vegetables, fruit trees, melons, and the cultivation of mushrooms and other vegetables for commercial purposes, applicable for specialized agricultural firms.	Professional
Advanced Growing of Other Non- Perennial crops	Includes the following: Advanced growing and farming of non-perennial crops that are not classified under any of the other activities, such as fodder seeds, fodder, maize and alfalfa, flowers and seeds for producing ornamental flower buds and flowers for commercial purposes, applicable for specialized agricultural firms.	Professional
Advanced Growing of Beverage Crops	May allow for advanced farming of beverage crops	Professional
Advanced Growing of Citrus Fruits	May allow for advanced farming of citrus fruits	Professional
Advanced Growing of Spices	May allow for advanced farming of spices	Professional
Advanced Growing of Grains, Leguminous Crop & Oilseeds	May allow for advanced farming of grains, leguminous crops and oilseeds	Professional
Post-Harvest Crop Services	Includes the following: Preparation and maintenance of crops for primary markets, by trimming, disinfecting, cleaning, grading, waxing and sun-drying of fruits and vegetables, excluding industrial drying for agricultural firms.	Professional
Advanced Growing of Palms & Fruits	Includes the following: The advanced growing of date palms, using hydroponics, vertical farming and greenhouses or other non- traditional methods as well as same techniques applied in growing tropical and subtropical fruits, such as, avocados, bananas, mangoes, papayas, and pineapples for specialized agricultural firms	Professional
Agricultural Extension Services	Includes the following: Extension services to the public in terms of planting dates, fertilization, pest control methods, care and maintenance of agricultural production procedures and other extension services	Professional

Types of activities allowed for a commercial license under the agricultural sector in Dubai

Activity Name	Activity Description	License Type
Seeds Trading	Includes the following: Reselling trees, plants, and flowers seeds and breeders to increase the agricultural output. Can be carried for only industrial and agricultural purposes and not for direct consumption.	Commercial
Flowers & Ornamental Plants Trading	Includes the following: Reselling and arranging of different types of raw flowers and ornamental plants	Commercial
Trees Seedlings, Ornamental Plants & Annual Flowers Trading	Includes the following: Reselling of plant palm, fruits and shade trees, seedlings like odorous plants, ornament plants, flowers, bulbs.	Commercial
Agricultural Tools Trading	Includes the following: Reselling of gardening and nursing tools, such as planters, soil movers, tree cutters, palm pollination, flower pots, fruit baskets, irrigation hoses as well as, poultry and livestock farm tools, apiary accessories, wax cells, and beekeepers’ cloths	Commercial
Chemical Fertilizer Trading	Includes the following: Reselling of any synthetic chemical compounds that contain plant nutritive elements, that may contain one or more fertilizing elements.	Commercial
Agricultural Pesticides Trading	Includes the following: Reselling any materials that are intended for protection against, extermination and to control agricultural pests, such as disease carriers affecting plants and animals. Pests can be any plant or a creature that is harmful or destructive, eg. insects, fungal, spiders, bacteria, nematodes, parasitic plants, harmful weeds, moss, plant viruses, rodents, and harmful birds.	Commercial
Organic Fertilizer & Plant Feed Trading	Includes the following: Reselling of animal and bird manure, or any vegetable residues or a combination of them, in order to improve the soil quality. These materials can exist as processed or crude for marketing or use in fertilizing agricultural soil, and agricultural feed added to the soil to improve and enhance productivity.	Commercial
Agricultural Tractors & Machinery Trading	Includes the following: Reselling of various agricultural tractors and machinery, harvesters, seeding devices, plows, and other equipment for different uses.	Commercial
Agricultural Equipment & Accessories Trading	Includes the following: Reselling of any agricultural machinery and equipment that are used in farms, gardens and orchards to cut grass and small trees and roots, also reselling of pesticide sprayers and other equipment for different uses.	Commercial
Agricultural Equipment & Machinery Spare Parts Trading	Includes the following: Reselling any spare parts used for agricultural machinery for planting, soil preparation, or plowing, seeding, fertilizing, manure spreading, pesticide sprayers, grass cutting, sorters, milkers, poultry and bee-keeping.	Commercial
Green Houses & Equipment Trading-	Includes the following: Reselling any greenhouse that is made of plastic or glass, and is designed for controlling the growth of plants due to the temperature, light and humidity. Allows improved food production on lands that suffer shortcomings in the growth, also, they allow certain crops to be grown throughout the year.	Commercial

Benefits of an agriculture commercial license

• Allows the license holder to trade with other mainland companies 

A commercial license acquired from the Dubai Economic Department (DED) is considered beneficial for businesses, as they are allowed to trade with the other companies registered with the mainland. Agriculture is one of the sectors that is found more profitable if setup in the mainland. A free zone commercial license will be subject to various trade restrictions; however, this is not the case of a mainland registered company as they are allowed to trade within and outside the UAE.

• Allows businesses to perform a wide range of activities

A Dubai Economic Department (DED) commercial license allows the license holder to perform various activities offered in the UAE. An agricultural license may not be only allowed for the trading of crops, but also includes activities relating to farming and growing of those crops. Such variety of activities may increase the scope of growth in the agricultural sector.

Benefits of an agriculture professional license

• May allow flexibility in the location

A professional, as well as a commercial license from the DED, are both suited for various agriculture related activities, and they also provide flexibility in terms of the location of the business. Agricultural commercial and professional license offer the license holder, a range of locations to set up their agricultural business in the UAE. This is different from acquiring a license from a free zone, as in that case, a license holder will be confined to the area dedicated to the free zone. This flexibility helps for a greater market visibility in the region.

• Allows for 100% foreign ownership

A professional license is considered beneficial as it allows the license holder to have a 100% ownership in the business. However, this benefit is subject to certain provisions such as the issuance of the license will require a UAE national (local) service agent to assist in obtaining the license. Further, the appointment of the service agent will not affect the ownership of the business, as the agent will not have any direct involvement or influence in the business, and will only be paid an annual fee.

Read More: Business License Registration & Required Documents in DUBAI Mainland 

Business Setup Consultants in Dubai

Setting up a business in the Dubai mainland may be considered difficult for new business owners planning to start a business. Farahat & Co has experienced business setup consultants that can help in the process and compilation of required documents for the business setup. The firm has a record of providing successful results within the estimated time.