Electric power generation, transmission and distribution

Under the framework reinforced by MD 229 of 2025, utility provision is categorized as an Excluded Activity when provided to non-Free Zone Persons or for mainland consumption. The high capital expenditure and physical infrastructure requirements necessitate a 'High' substance profile, but the revenue is typically treated as taxable at 9% to prevent erosion of the mainland tax base via regulated utility arbitrage.

Audit Red Flag

Attempting to classify electricity as 'Goods' to claim the 0% rate under Designated Zone distribution rules.

Which UAE zones permit this activity?

Scout checks the current permission status for this activity across every UAE zone against your specific structure.