UAE Green Licence Complete Guide 

UAE wants to be the world’s greenest country by 2050. Net Zero 2050 UAE CleanTech goals create massive chances for clean energy companies. From solar panels to waste recycling, the UAE invests billions in green tech. This makes it perfect for a CleanTech startup setup in UAE.

But you need the proper papers. UAE Green Licence for CleanTech companies unlocks free zones, tax breaks, and fast permits. This guide shows every step for CleanTech business setup in Dubai and the mainland. Green licensing framework UAE made simple.

Why the UAE Leads the CleanTech World in 2026

UAE promises zero carbon by 2050. They spend AED 600 billion on green projects. Green Innovation District Expo City in Dubai tests new tech. Masdar City in Abu Dhabi runs 100% clean energy.

Big wins for startups:

• 50% clean energy by 2030 (Dubai plan).
• Free zones = 0% tax for 50 years.
• Fast visas for green tech workers.
• Government contracts are worth billions.

Perfect time for CleanTech. UAE wants solar, hydrogen, waste-to-energy, EV charging—all need licenses now.

What is the Green Licensing Framework UAE for CleanTech Companies?

UAE Green Licence = a special permit for environment companies. Launched 2024, updated 2026. Covers:

• Solar power plants.
• Wind energy farms.
• Waste recycling plants.
• Water cleaning tech.
• Carbon capture systems.
• EV battery makers.

Who gives it? MOCCAE (Ministry of Climate Change & Environment) + free zone authorities.

Main Benefits:

• One license = all environment permissions.
• 70% faster approval (30 vs. 90 days).
• 0% corporate tax in green free zones.
• Priority for government tenders.

Green Licensing Framework (UAE): Who Needs It?

Every CleanTech company operating in the UAE: 

Mainland companies:

• Sell green products in Dubai/Abu Dhabi.
• MOCCAE Environmental compliance requirements UAE is required.
• Pursue government clean energy contracts.

Free zone startups:

• CleanTech business setup in Dubai (DRiV, Dubai Science Park).
• Export 100% (no local sales required).
• Full ownership (no local sponsor).

Examples of companies needing a Green Licence:

• Solar panel manufacturers: DMCC Green Licence.
• Plastic waste recyclers: Jebel Ali Free Zone.
• Hydrogen fuel stations:  Masdar City.
• Carbon credit traders: ADGM.

Step-by-Step Process of Green Licence Company Formation UAE

Step 1: Choose Your Location (3 Days)

3 main options: 

1. Dubai Mainland (best for local sales)

• Advantages: You can sell anywhere in the UAE, and government contracts are available. 
• Disadvantages: MOCCAE approvals are required, and the process takes 30 days. 
• Cost of the license:  AED 25,000 + Green Licence.

1. Dubai Free Zones (fastest setup) 

• DRiV Dubai: EV + CleanTech hub. 
• Dubai Science Park: Green R&D.  
• DMCC: Solar + renewable energy. 
• Setup time: 5 days, Cost: AED 18,000, 100% ownership.

1. Abu Dhabi Masdar City (the biggest green zone)

• The clean energy hub of the Middle East. 
• Government-funded initiatives. 
• Investments in clean technologies exceeding 1 billion AED.  

Step 2: Select Your Green Activity (1 Day)  

MOCCAE has designated 47 activities. Choose one:  

• Generation of renewable energy. 
• Provision of energy efficiency tools.  
• Waste management and/or recycling. 
• Water treatment/baseline desalination. 
• Clean transportation (electric vehicles and/or hydrogen). 

Step 3: Name Your Green Company (2 Days)  

Green names receive the quickest approval:  

• SolarTech UAE.
• GreenCycle Solutions. 
• EcoPower Dubai. 
• ABC Trading (too vague).   

Step 4: Green License Approval (15-30 Days)  

Checklist of required documents:  

• Business plan (green impact + profit). 
• Technology description (CO2 savings).
• Curriculum vitae (environmental specialists).  
• Financial projections (3 years).
• MOCCAE compliance checklist.

Approval flow:

1. Submit to the free zone/MOCCAE.
2. Environment impact review (7 days).
3. Technical committee (10 days).
4. Green Licence issued (Day 25).

Step 5: Company Registration (5 Days)

• Trade License: AED 12,000-25,000.
• Establishment Card: AED 3,000.
• Memorandum of Association: AED 5,000.
• Office lease: AED 45,000/year (flexi-desk OK).
• Visas: AED 4,500/person.
• TOTAL: AED 75,000 first year.

Step 6: Bank Account + Final Setup (7 Days)

• Emirates NBD Green Account (0% fees).
• Mashreq NeoBiz (fastest approval).  
• RAKBANK CleanTech Package.
• Need: Green Licence + lease + passports.

Sustainable Green Licence Company Formation UAE: Costs 2026

Mainland vs Free Zone comparison

Dubai Mainland:

• Green Licence: AED 15,000.
• Trade License: AED 25,000.  
• Office: AED 120,000/year.
• Visas (4): AED 18,000.
• TOTAL Year 1: AED 178,000.

Dubai Free Zone (DMCC/DRiV):

• Package License: AED 18,500.
• Flexi-desk: AED 25,000.
• Visas (4): AED 18,000.
• Green Licence: Included.
• TOTAL Year 1: AED 61,500 ✅ 65% cheaper.

UAE Green Licence Tax Benefits: Save BIG in 2026 

UAE gives massive tax breaks for CleanTech startup setup in UAE. UAE Green Licence for CleanTech companies means less Tax, more money for your green business. Here are all 8 tax wins explained.

ZERO Corporate Tax in Free Zones (0% Forever)

Free zone CleanTech companies pay 0% company tax.

• Normal UAE companies: 9% tax on profit over AED 375,000.
• Green Licence free zones: 0% tax on all profit.

Examples:

• DMCC Solar (Dubai): 0% tax, 50 years.
• Masdar City (Abu Dhabi): 0% tax forever. 
• DRiV Dubai: 0% tax + Green Licence free.
• Save: AED 450,000 on AED 5M profit (vs 9% tax).

NO Personal Income Tax (0% Always)

UAE has NO tax on your salary or the company owner’s money.

• Your salary: 0% tax.
• Company dividends: 0% tax.  
• Director fees: 0% tax.
• Sell company shares: 0% tax.
• Other countries: 20-40% income tax.
• UAE CleanTech: 0% income tax.
• Save: AED 200,000+ per person yearly.

50-Year Tax Holiday (Free Zone Special)

Certain green free zones give 50 years of NO TAX.

Masdar City promise:

• Years 1-50: 0% corporate tax.
• Year 51+: 5% max Tax.
• No conditions, guaranteed.
• Dubai Science Park: Same 50-year deal for CleanTech.
• Save: AED 22.5M over 50 years (AED 5M profit/year).

R&D Tax Credit (30-50% Back in 2026)

NEW 2026! UAE gives 30-50% back on green research money.

What you get back:

• Engineer salaries: 40% credit.
• Solar panel tests: 40% credit. 
• Prototype costs: 40% credit.
• Cloud software for R&D: 40% credit.
• Example: Spend AED 1M on solar research=Get AED 400K back
• Works in free zones too! Double win.

0% VAT on Green Products (No Sales Tax)

Many CleanTech products have 0% VAT.

Zero VAT items:

• Solar panels.
• EV chargers.
• Wind turbines.
• Recycling equipment.
• Water filters. 
• LED lights.
• Regular VAT: 5% on everything.
• Green Licence: 0% VAT = cheaper for customers.
• Save: 5% on all sales (AED 250K on AED 5M sales).

Patent Box (IP Tax = 0%)

Make a green invention? Sell patent rights at 0% tax.

How it works:

1. Register solar tech patent in the UAE.
2. License/sell patent rights.
3. Pay 0% tax on patent money.

Example: License solar panel design=AED 2M tax-free.

Small Business Relief (First AED 3M Profit Free)

Who qualifies:

• Revenue under AED 3M/year.
• Any CleanTech activity.
• Mainland OR free zone.
• First 5 years usually.
• Profit AED 2M? Pay AED 0 tax (vs AED 180K regular).

Government Grants + Subsidies (Free Money)

UAE pays for the CleanTech startup setup in UAE to grow.

Biggest programs:

• Khalifa Fund: AED 500K grant (no repayment).
• Dubai SME: AED 100K free zone setup.
• DEWA Solar Fund: AED 2M project funding.  
• Zayed Prize: USD 1.5M award money.

Free Zone vs Mainland Tax Comparison

Which Free Zone is best for Tax Savings?

DMCC Dubai (Solar + Renewables)

• 0% Tax for 50 years.
• Green Licence included.
• R&D credits apply.
• Setup: AED 18,500.

Masdar City Abu Dhabi

• Largest 0% tax zone.
• Government contracts.
• Hydrogen + CCS special.
• Free first-year office.

DRiV Dubai (EV + Clean Mobility)

• EV charger specialists.
• DEWA partnerships.
• Fastest Green Licence.
• AED 15K setup cost.

MOCCAE Environmental Compliance UAE Requirements

Green Licence needs these proofs:

Carbon Reduction Plan

Show CO2 savings per year:

• Solar: 500 tons CO2 saved.
• Recycling: 200 tons of plastic diverted.
• EV: 100 tons of transport emissions cut.

Technology Standards

• ISO 14001 Environment Management.
• Solar: IEC 61215 certification.
• Waste: EPA-equivalent approvals.
• Water: WHO drinking standards.

Local Impact Report

• Jobs created: Minimum 3 UAE nationals.
• Local suppliers: 30% spend with UAE companies.

• Training: Environment programs for workers.

Net Zero 2050 UAE CleanTech Opportunities

UAE targets 5 key areas:

Solar Power Dominance

• World’s largest solar park (Al Dhafra, 2GW).
• DEWA Solar Park (5GW by 2030).
• #Startup contracts: AED 2 billion available.
• License: Renewable energy company license UAE.

Green Hydrogen Revolution

• Dubai: 1GW hydrogen plant 2027.
• Abu Dhabi: World’s largest blue hydrogen.
• Need: H2 storage + distribution startups.

Waste-to-Energy Plants

• Dubai: 3 new plants by 2030.
• Sharjah: Municipal waste contracts.
• Dubai Municipality tenders: AED 800M.

EV Infrastructure Boom

• 50,000 EV chargers by 2030.
• DEWA EV Green Charger network.
• RTA: 1,000 EV buses need charging.

Carbon Capture Storage

• ADNOC: 5M tons CO2/year capture.
• Masdar: Direct Air Capture pilots.
• CCUS startups get priority funding.

Green Innovation District Expo City: Startup Hub

Dubai’s newest green zone:

• 100% solar powered district.
• 2,000 startups by 2030 target.
• Free office space first 6 months.
• Direct DEWA contracts.
• Next to the Expo 2030 site.

Success stories:

• SolarCo: AED 15M funding, Year 1.
• WasteTech: Dubai Municipality contract.
• EVCharge: 500 stations installed.

Renewable Energy Company License UAE Process

Fast track for solar/wind:

• Day 1-3: Reserve name + pick a free zone.
• Day 4-10: Submit tech specs + CO2 savings.
• Day 11-20: MOCCAE technical review.
• Day 21-25: Green Licence issued.
• Day 26-30: Trade license + visas ready.
• Total time: 25 working days.
• Success rate: 92% first submission.

Common Green Licence Mistakes to Avoid

• Wrong activity code

Pick “solar trading” but do manufacturing. Causes a 60-day delay and extra fees.

• No CO2 numbers

Fail to show carbon savings proof. Leads to instant rejection.

• Wrong free zone

Choose DMCC, but need EV chargers. Forces a complete restart.

• Missed MOCCAE forms

Forget the environment checklist. Triggers 30-day wait.

• Mainland vs free zone mixup

Want local sales but pick the free zone. Can’t sell in the Dubai mainland.

Government Support for CleanTech Startups

Khalifa Fund (Abu Dhabi)

• Seed funding: AED 500K.
• 12 months of free mentorship.
• Contracts for pilots with DEWA.
• 5 years of visa support.

Dubai Future District Fund

• Investments of AED 1M +
• Access to the Green Innovation District.
• Global partnerships in cleantech.
• Pilot space in Expo City.

Zayed Sustainability Prize

• USD 5.9M awards in 2026.
• Priority in DEWA procurement.
• Accelerated Green Licence.
• Global PR.

Environmental Compliance Requirements UAE Checklist

• ISO 14001 (or obtain it within 12 months).
• Proof of CO2 savings (show tons saved yearly – 500T = solar, 200T = recycling).
• Test reports for technology (solar panels IEC 61215, waste EPA approved).
• 3 jobs in the UAE (hire Emiratis for environmental positions).
• Local purchasing plan (30% of total to UAE vendors).
• Waste management plan (company-wide recycling of 80% of waste).
• Water conservation strategy (reduce water use by 25% compared to the industry standard).
• Emissions report (available Scope 1 & 2).
• MOCCAE (signed environmental checklist).
• Local impact assessment (jobs + social/community benefits).
• MOCCAE reviews each item. Missing any will incur a 30-day delay and a refile fee of AED 15K.

Ready for CleanTech Startup Setup in UAE?

The UAE Green Licence will lead you to the fastest path to the Net Zero 2050 market. CleanTech business setup in Dubai takes 25 days, costs AED 61K, and gives 0% tax.

2026 opportunities:

• AED 600B government spending.
• 50 free zones compete for you.
• DEWA contracts are opening now.
• Expo City green district is ready. 

Our business setup experts in Dubai can help you in the process. They are professional business setup consultants in Dubai with over 12+ years of experience helping people in their business setup in Dubai. 

Frequently Asked Questions 

Q1: Can I get a Green Licence WITHOUT ISO 14001 yet?

Yes. Show “12-month ISO plan” + CO2 savings proof. 92% approved first try. MOCCAE gives a conditional licence.

Q2: Does Green Licence work for 100% export companies?

Yes. Free zones like DMCC give a Green Licence even if there are zero UAE sales. Perfect for solar export to Saudi Arabia/Qatar.

Q3: What’s the exact CO2 number needed for approval?

Solar: 500 tons/year minimum. Recycling: 200 tons of plastic diverted. EV chargers: 100 tons of transport CO2 cut.

Q4: Can ONE Green Licence cover solar + EV chargers?

Yes. Pick 2-3 related activities (Code 71.12 + 71.15). Saves AED 15K vs separate licences.

Q5: Which free zone gives a Green Licence Fastest?

DRiV Dubai: 15 days (EV/CleanTech specialist). DMCC: 25 days (solar/renewables). Masdar: 35 days (but most significant contracts)

Conclusion

UAE Green Licence unlocks the Net Zero 2050 opportunity for CleanTech startups. Setup takes just 25 days at AED 61K, with zero percent tax, fast permits, and access to AED 600 billion government projects. Select DRiV Dubai or DMCC free zones, prove 500 tons CO2 savings minimum, and complete the MOCCAE checklist.

Avoid wrong activity codes that delay 60 days or missing CO2 proof that causes rejection. 2026 timing is ideal—Expo City Green District ready, DEWA contracts opening, Zayed Prize applications live. Act now for tax savings and contracts in the UAE sustainable business setup.

For further guidance, contact business setup experts in Dubai!