License Classification

Trade License Classification

Examining your trade license is essential and crucial when it comes to the case of UAE, as the laws are strong and not flexible to favors. For contracting and engineering related companies, they can avail themselves of the trade license without much trouble. But in the case of some activities, it will be frozen waiting for municipality classification.

Before knowing the steps and requirements, what exactly is this classification?

Municipality classification is the process in which the Abu Dhabi Department of Town Planning Municipalities examines the trade license and evaluates the capability of Contracting and Engineering companies before they are given permission to participate in tenders within the Capital. It is carried out in accordance with well-defined and specific criteria as stated in the classification regulation No. (1) for the year 2009 and the contractor’s classification regulation No. (2) for the year 2009.
Classification is therefore a system that is set forth by the Abu Dhabi municipality for engineering and construction companies, it ensures that every such company is qualified, experienced and resourceful to participate in tenders within the Capital of UAE. Thus, it is mandatory for such companies to be classified if they intend to bid for government or semi-government projects according to the classified activity.

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Types of classification

Based on certain conditions and requirements, classification can be categorized into two.

Contracting

Engineering Consulting companies

Each contracting company and consulting company can examine and evaluate and then decide as to which category they fall under. The appropriate classification must be chosen according to the activity type.

Classification for Contractors

This type of classification aims for contracting companies or contracting license holders. There are sub-categories or sub-divisions in this type of classification.

Special Category

This is the highest level of classification category for contracting companies and has the highest number of requirements to be met. The basic requirement for such a type of classification is a minimum of AED 20 million equity for the previous fiscal year. For every classification activity, there should be 3 company engineers each having 10 years of overall experience. Executed projects by the company must be worth AED 240 million in the last 10 years per classification activity. ISO 9001 and 14001 certification is required.

First Category

The major requirement for this type of classification is a minimum of AED 10 million equity for the previous fiscal year. For every activity, there should be 2 company engineers each having 10 years of overall experience. Executed projects from the company worth AED 120 million in the last 10 years per classifying activity. ISO 9001 and 14001 certification is required.

Second Category

The basic requirement for such a type of classification will be a minimum of AED 5 million equity for the previous fiscal year. For every classification activity, there should be 2 company engineers, each having 7 years of overall experience. Executed projects by the company must be worth 60 million AED in the last 10 years per classification activity. ISO 9001 and 14001 certification is also required.

Third Category

In such a type of classification, there should be 2 company engineers with each having 5 years of overall experience for every classification activity. Executed projects by the company must be worth AED 30 million in the last 10 years per classification activity.

Fourth Category

For such type of classification, there should be 1 company engineer having 5 years of overall experience per classification activity. Executed projects by the company must be worth AED 15 million in the last 10 years per classification activity.

Fifth Category

This type of classification is suitable for newly established contracting companies as they do not have any past project experience.
The requirements are:
For each classifying activity there should be 1 engineer having 4 years overall experience.

Sixth Category

This is also suitable for newly formed companies. The requirement is to have one Engineer with 3 years overall experience for each classifying activity.

Classification for Consultants

Special Category

This is the highest level category for consulting companies and has the highest number of requirements to be met. All foreign branch companies in Abu Dhabi are required to be classified in the Special category.
The requirements are:

  • minimum 2 million dirhams equity for Previous fiscal year.

  • company engineers, each having 10 years overall experience per activity.

  • Executed projects worth 240 million AED in the last 10 years per classifying activity.

  • ISO 9001 and Indemnity Insurance certificates.

First Category

The requirements are

  • minimum of 1 million dirhams equity for previous fiscal year.

  • company engineers, each having 7 years overall experience per classifying activity.

  • ISO 9001 and Indemnity Insurance certificates.

Second Category

This category is suitable for new consulting companies that don’t have any past project experience. The only requirements are 1 company engineer per classifying activity each having 4 years of experience and an Indemnity Insurance certificate.