United Arab Emirates (UAE) is one of the richest companies in the world which is as diverse as it is rich. It has been able to achieve these heights due to a low crime rate, a solid currency as well as a systemized infrastructure. The environment makes UAE one of the best places for businesses to thrive — both corporations as well as small businesses.
Oil Field Rental Business opportunities in UAE
The largest city of the United Arab Emirates, Dubai acts as a link between the east and the west and is one of the biggest cash cows of the UAE. However, another city, Abu Dhabi which is two hours away from Dubai holds 94 percent of the oil reserves of UAE. These reserves include both onshore as well as offshore oil reserves. These pose a great business opportunity for the people in the region. Oil field equipment rental is one of the business opportunities in the United Arab Emirates that is highly beneficial and can provide a steady flow of income.
If you want to start a business by yourself, planning alone is not the most important task, the most important task is to choose a business concept that you are interested in and which is bound to make money for you as well. Oil field equipment rental is one of such business concepts that you can build your business upon.
What comes under an oil field equipment rental business?
First, you need to understand what comes under an oil field equipment rental business. You will be renting out equipment like down-hole tools, equipment to control the pressure, tubular handling equipment, fishing equipment as well as other tools which are required at oil rig sites. Additionally, you may also need to provide transportation services so that you can deliver and take back equipment to and fro the oil rig sites. Additionally, you will also have to set up a customer care department to handle customer support.
How to Start Oil Field Equipment Rental business in UAE?
If you want to start a profitable business in the UAE, you will need to get a few things out of the way before you buy property or rent offices. There are various ways of setting up a business in UAE, but if you want to get the full potential out of your business, you will need to set up a locally registered LLC.
To set up an LLC, you will need to partner with a citizen of the UAE and make them a 51% partner in your company. This partner will be called a local sponsor. If you have a local company, you have the freedom to set up your business anywhere in the urban area. If you are looking to establish your business in Dubai, it will help a lot in getting a location you want.
The sponsor will charge a yearly fee which both of you can negotiate between yourselves. You should have a good relationship with your sponsor so that they can help you if you face any problems with the local authorities.
If you want a 100% ownership of your business and don’t want to work with a local sponsor, you will have to establish your business in a free zone. A free zone will not allow your business to be in the heart of the city, but it will enable you to have full ownership of your company, a quick start-up, as well as duty-free customs boundary. However, properties in a free zone district are costly and will require a lot of initial funding to establish the business.
Once you have got a local sponsor or have selected a free zone for your business, you have to confirm your visa eligibility and requirement for the UAE. Visas are permitted almost all kinds of businesses in the UAE. If you are establishing an LLC, you will have to work with your local sponsor for arranging visas for you and your employees.
Finally, after you have your visas arranged, you will need to start the business registration process. You should hire a registered agent which will help you in the registration process. They can register your company on your behalf, open up business bank accounts, organize auditors for the business, as well as do any business paper renewals that are required every few years.
In some cases, the registration agent may also provide you expert suggestions on how to plan the business registration from the bottom up which includes itemizing costs, offering licensing options, providing solutions to business problems, etc.
UAE is a booming economy that is often credited to its oil fields. The oil field extraction process requires certain tools that are often rented by oil rig workers instead of buying. Thus, an oil field equipment rental business in the UAE is profitable and has a demand in the market that you can fulfill. Follow the steps in the article to successfully set up your own oil field equipment business from scratch.