An equipment rental company licence in Dubai is decided by a question most founders never ask: does the machine have wheels and a motor? The Dubai activity register splits construction plant rental into two codes on exactly that line. One of them, 7730009, says in its own description that "it does not involve the wheeled and motors operated equipment and machinery" [1]. The other, 7730010, is the wheeled twin, and the Roads and Transport Authority (RTA) attaches a permit to it at AED 1,000 new and AED 1,000 on renewal [2].
The second surprise is the calendar. Dubai Municipality requires cranes, hoists, lifts, lifting gear and forklifts to be tested and certified by an accredited third party "once every 12 months" [3]. A fleet of twenty machines is twenty certificates, and a machine with a lapsed certificate does not earn hire.
Get the code wrong and the RTA permit does not attach. Miss the certificate and the client's site sends the machine back. Since 2013, BusinessDubai.ae has set up companies across the UAE, and this guide is built from the published texts: the register wording, RTA's activity card and fee pages, the Municipality guideline and the tax decision. It covers the rental codes, the RTA layer, lifting certification, operators, insurance, the yard, fleet finance, hire rates, tax and cost. Where a point could not be confirmed from a primary source, it says so and tells you whom to ask.
Which licence does an equipment rental company need in Dubai?
An equipment rental company in Dubai needs a Professional licence carrying the rental activity that matches its machines. The Dubai activity register lists five: 7730010 for wheeled, motor-driven lifting and construction plant, 7730009 for construction equipment without wheels and motors, 7730004 for industrial machinery, 7730008 for pumps and generators, and 7730011 for scaffolds.
All five are Professional licence activities in the source used here: the Dubai Department of Economy and Tourism (DET) business activity list as recorded in a public copy of the register, with entries last updated in October 2023 [1]. Codes get renumbered, so confirm each one with DET on the day.
The table gives each code with the register's own wording, which is what decides the machines you may rent.
| DET code | Activity name | Register description (quoted) |
|---|---|---|
| 7730010 | Rental of Loading, Lifting & Construction Equipment with Wheels & Motors | "renting fixed and mobile lifting handling and construction equipment and machinery, with wheels and operating by motors, including electro and hydraulic cranes and trucks loaders" |
| 7730009 | Construction Equipment & Machinery Rental | "renting building and construction equipment for excavating, filling, demolition, earth leveling, road paving, cement mixing equipment and machinery, as well as cranes, elevators and heavy objects lifts, it does not involve the wheeled and motors operated equipment and machinery" |
| 7730004 | Heavy & Light Machinery & Equipment Rental | "renting and leasing heavy and industrial machinery and equipment used for handling, refrigeration, air purifying, metal cutting and forming" and onward to "lifts, escalators, boilers, central kitchens, automatic washing equipment, electric generators, water pumps" |
| 7730008 | Pumps, Engines & Generators Rental | "renting and leasing pumps for water and liquids pumping, engines and machines for ships, boats, vehicles, also machinery for industrial operation" |
| 7730011 | Scaffolds Rental | "renting temporary frames of metal pipes or other materials, used to support people and materials in the constructions or repair of buildings" |
Code 7730009 names cranes and excavating equipment, then removes anything wheeled and motor-driven, and 7730010 picks up exactly what it drops. A fleet of mobile cranes, wheel loaders and forklifts belongs on 7730010, static plant on 7730009, and many rental companies will need both.
Common Mistake: Renting mobile cranes on 7730009 because the description mentions "cranes". The same sentence ends by excluding "the wheeled and motors operated equipment and machinery" [1]. A mobile crane has wheels and a motor, so it sits under 7730010, and the RTA permit of AED 1,000 is tied to 7730010, not to 7730009 [2]. Fixing the code later means amending the licence.
Scaffold hire is its own code. If tube and system scaffold are part of your stock, our scaffolding company setup guide covers the difference between renting scaffold and erecting it.
Which activity code covers cranes, excavators, forklifts, boom lifts and generators?
The Dubai activity register has no separate code for forklift rental, boom-lift or access-platform rental, compressor rental, or hire with an operator. On the register wording, wheeled and motor-driven machines fall under 7730010 and generators under 7730008 or 7730004, but DET decides, so confirm every machine class with DET before you apply.
The table maps common machine classes to the nearest register wording and shows how firm each mapping is [1].
| Machine class | Nearest code on the register wording | How firm is the mapping |
|---|---|---|
| Mobile crane, wheel loader | 7730010 | Named: "electro and hydraulic cranes and trucks loaders" |
| Tower crane, static hoist | 7730009 | Named: "cranes, elevators and heavy objects lifts" |
| Excavator, bulldozer, grader | 7730010 if DET treats it as wheeled and motor-driven | Not named; tracked plant is not addressed. Ask DET |
| Forklift | 7730010 | Not named; a plain reading of "lifting handling" equipment with wheels and motors |
| Boom lift, scissor lift | 7730010 or 7730009 | Not named anywhere. Ask DET |
| Generator, water pump | 7730008 or 7730004 | Both descriptions cover them |
| Air compressor | 7730004 or 7730008 | No generic code; 7730033 is medical gas compressors only |
| Truck-mounted crane | 7710007 Specialized Vehicles Rental | Named: "truck-mounted cranes for loading and discharging" |
| Scaffold tube and systems | 7730011 | Named |
A crane on a truck chassis sits under a vehicle rental code, 7710007, a different family from the equipment codes.
Pro Tip: Send DET a one-page fleet list before you choose activities: machine type, wheeled or tracked, with or without an operator. Ask DET to name the code for each line. Five rental codes exist and several machine classes are named in none of them, so a written answer is worth more than any guide.
Does heavy equipment need an RTA permit in Dubai?
Yes, for the wheeled activity. RTA publishes an activity card for "Rental of Loading, Lifting & Construction Equipment with Wheels & Motors", the name of DET activity 7730010. The card sets the permit fee at AED 1,000 for a new permit and AED 1,000 for renewal, under Executive Council Resolution No. 47 of 2017.
The card is a PDF created on 17 April 2024 [2]. It lists the activity under RTA's own code, 622, and prints a DET number that differs from the register copy, so confirm the live DET code when you apply.
The permit comes with conditions. As the card states them, the rental company must [2]:
- Hold initial approval from the licensing authority.
- Use vehicles registered in Dubai, "whether it is owned or leased".
- Show the facility name and the empty and loaded weight on the vehicle body.
- Fit a tracking system and a speed limit system, as the nature of the activity requires.
- "Provide protection or emergency vehicle to escort the vehicle used in practicing the activity, as stated by the Agency".
- "Refrain from moving equipment on highways, except for internal roads".
- "Comply with the maximum permissible distance of driving the lifting and loading machinery and equipment from one place to another; which is 15 kilometres".
- Present vehicles for inspection at licensing and renewal, and keep activity records.
- "Provide an office, vehicles and parking spaces commensurate with the nature of the activity" and "Use the parking spaces approved by the RTA".
Common Mistake: Pricing a hire as if the loader can drive itself to site. RTA's card caps self-driven movement of lifting and loading machinery at 15 kilometres and bars highways except internal roads [2]. A site 30 kilometres from the yard means a low-loader in both directions, so quote mobilisation as a separate line on every hire.
A Dubai Media Office release of 14 September 2021 named an RTA "Mobility Permit for Over-Weight and Over-Dimension Vehicles" and gave an oversize movement window of 02:00 to 05:00 [6]. That release is five years old and does not mention mechanical equipment, so confirm current truck bans and permit fees with RTA.
What does it cost to register a crane or excavator with RTA?
RTA charges AED 1,000 to register private heavy mechanical equipment and AED 1,300 to register public heavy mechanical equipment, plus a AED 20 Knowledge and Innovation fee, on its vehicle registration service page updated on 6 October 2026. Light mechanical equipment costs AED 600 private and AED 800 public.
The fees below are RTA's published lines for registering, transferring and deregistering mechanical equipment [4][5].
| RTA service | Fee (AED) | Notes |
|---|---|---|
| Register heavy mechanical equipment, private | 1,000 | Plus AED 20 Knowledge and Innovation fee and a plate fee |
| Register heavy mechanical equipment, public | 1,300 | Same additions |
| Register light mechanical equipment | 600 private, 800 public | Same additions |
| Register trailer or semi-trailer | 120 | Number plates cost AED 35 to 500 by type |
| Change of ownership, heavy mechanical equipment | 800 private, 1,000 public | Plus AED 50 sale and purchase agreement fee and AED 20 |
| Cancel registration | 100 light, 200 heavy | Plus AED 20 |
The page does not say what makes equipment "heavy", and it does not define "public" and "private", so it does not tell a rental company which class a hire fleet falls into. The gap is AED 300 a machine, or AED 9,000 on a 30-machine fleet. Confirm the class with RTA before you budget.
RTA's conditions matter to anyone buying plant outside Dubai. The equipment "must pass the traffic safety test", an Electronic Customs Certificate is required, and "Vehicles imported by an establishment must be transferred to Dubai from the emirate where the establishment is located" [4]. The registration issued is valid for one year, so it is an annual line.
What licence does a driver need to move heavy equipment on Dubai roads?
RTA issues a driving licence for tractors or heavy equipment with a minimum age of 20. Its driving licence service page, updated on 8 October 2026, lists a knowledge test, a yard test and a road test, an eye test, and fees of AED 200 for the learning permit and AED 300 for licence issuance at 21 or over.
The other fee lines are a traffic file at AED 200, a handbook at AED 50 and issuance at AED 100 for an applicant under 21, plus the AED 20 Knowledge and Innovation fee. RTA asks for an Emirates ID, the eye test and a medical test [7]. Driving school tuition is separate.
This guide does not state a licence category number or a weight threshold for heavy equipment, because the sources read for it conflict on both. Confirm with RTA which category covers each machine in your fleet before you recruit or send anyone to a driving school.
A road licence is one of three papers that get confused. The RTA driving licence covers driving the machine on a road. The operator certificate under the Dubai Municipality guideline covers operating lifting equipment at a workplace. And Gulf News reported in December 2018 that RTA issued "Special Nature Driving Permits" for machinery at project sites, tied to the holder, the workplace and the employer [8]. That report is old, so confirm with RTA whether the permit is still offered.
How often must cranes and forklifts be inspected in Dubai?
Once every 12 months. Dubai Municipality's Technical Guidelines for Examination and Certification of Cranes, Hoists, Lifts and Other Lifting Equipment, document DM-HSD-GU48-ECLA2, Version 5.0, issued on 29 January 2025, require testing and certification by a third party accredited by the Emirates International Accreditation Center (EIAC).
The first requirement in the guideline reads in full: "Cranes, hoists, lifts, lifting equipment and gears, forklifts, etc. used in factories, construction sites, hotels, and other workplaces shall be tested and certified by a third party accredited by Emirates International Accreditation Center (EIAC) once every 12 months." [3]
Forklifts are in that list by name, and "lifting equipment and gears" reaches slings, shackles and spreader beams as well as the machine. The guideline applies to "all establishments where cranes, hoists, lifts & other lifting equipment are used within the Emirate of Dubai" [3].
The certificate is specific to each machine. The guideline says the accredited third party issues a certificate of safety "only after any repairs have been carried out", specifying the serial number, technical details, tests done and safe working load for each item. It adds: "Safe working loads shall be displayed on the equipment." and "Compliance certificate shall be kept at the site." [3]
Defects stop the machine. "The repairs identified by the accredited third party shall be carried out by the owner/occupier immediately." And if the inspector considers the equipment unsafe, "the owner must be advised to cease use of the equipment and a report must be sent immediately to the Health and Safety Department." [3]
The guideline places these duties on the "owner/occupier" and says nothing about hire. A rental company owns the plant, so on a plain reading the certificate is the rental company's to hold, with a copy at the hirer's site. The guideline does not say who pays when a certificate lapses mid-hire, so put that in the hire agreement.
Pro Tip: Stagger certificate dates across the fleet. If 20 machines were bought in the same month, 20 certificates expire in the same month a year later, and every inspection day is a day off hire. Bring some inspections forward in year one so renewals fall in each month. The guideline sets the interval at 12 months [3]; it does not stop you from inspecting earlier.
Who can certify crane operators, riggers and signalpersons in Dubai?
A third party accredited by the Emirates International Accreditation Center (EIAC). Dubai Municipality's lifting equipment guideline, Version 5.0 of 29 January 2025, requires that for operators of cranes, hoists, forklifts and cradles, and for riggers and signalpersons, and requires training institutes to be approved by the Knowledge and Human Development Authority (KHDA).
The operator requirement is the one Version 5.0 updated. It reads: "Operators of lifting equipment such as cranes, hoists, forklifts, cradles, etc. used in factories, construction sites, residential and commercial buildings and other workplaces shall be certified by a third party accredited by Emirates International Accreditation Center (EIAC)." [3]
The people around the lift are covered too: "Workers involved in lifting operation such as signalperson / signalman and rigger shall be certified by a third party accredited by Emirates International Accreditation Center (EIAC)." And the trainers: "Training institutes involved in training of the lifting equipment operators, riggers and signalperson / signalman shall be registered and approved by Knowledge and Human Development Authority (KHDA)." [3]
If you supply the operator, the certificate is yours to obtain and keep current. If you supply the machine alone, the hirer's operator needs it, and you will want to see it before you hand over the keys. The guideline publishes no fee for machine or operator certification. Both are priced by the accredited bodies, so treat them as quotes and get three.
What changes in Dubai Development Authority zones and Trakhees areas such as JAFZA?
Dubai Development Authority (DDA) Circular 614 of 14 March 2025 requires lifting equipment on its construction sites to be inspected and certified by EIAC-accredited companies. In Trakhees areas, procedure PCFC-TRK-EHS-IO-CP-06, Rev. 02 of September 2022, requires inspection agencies to be pre-qualified with Trakhees. No Trakhees inspection interval was found.
DDA zones
DDA's circular, titled "Lifting Equipment and Operations", tells consultants and contractors that the "Inspection company's current accreditation status and scope must be verified before engagement", that crane operators, supervisors, riggers and signalmen must be certified by EIAC-accredited persons certification bodies, and that "Complete maintenance records must be maintained on-site" [9]. For a rental company, that means paperwork travelling with the machine: its certificate, its maintenance records and, if you supply the operator, the operator's certificate.
Trakhees areas
Trakhees is the regulatory arm of the Ports, Customs and Free Zone Corporation, and its areas include Jebel Ali Free Zone. Its procedure states that "all Training, Inspection and Testing agencies/Consultants shall need to be pre-qualified and registered with EHS (even if certified on Federal/State levels)", and its scope covers inspection, testing and certification agencies for lifting equipment and pressure equipment [10]. The mandatory documents include an EIAC accreditation certificate for ISO/IEC 17020.
So an EIAC-accredited inspection body is not automatically acceptable in a Trakhees area. Ask your inspector whether it holds Trakhees pre-qualification before a machine goes into Jebel Ali. Our HSE consultancy licence guide covers pre-qualification from the agency's side.
The pages of the Trakhees procedure read for this guide state no inspection interval for lifting equipment. Do not assume the Municipality's 12 months applies inside Trakhees areas. Ask Trakhees or your pre-qualified inspector for the interval in writing.
Can you rent equipment with an operator on a rental licence in Dubai?
The Dubai activity register has no "with operator" rental activity, and the descriptions of 7730004, 7730009 and 7730010 do not mention operators at all. Whether supplying operators with the machine changes the licence you need is not confirmed by any official source this guide could read. Ask DET before you sell hire with operators.
The trade uses two terms. Dry hire is the machine alone: the hirer supplies the operator, fuel and day-to-day care. Wet hire is the machine with the rental company's operator, and often fuel and maintenance as well. The only statement found on the licence point is free zone marketing: Meydan Free Zone's activity pages, which use the zone's own dotted codes, say that supplying operators needs a separate licence, without citing a rule [11]. That is not DET's position.
Real Talk: Nobody can tell you from a published text whether wet hire needs a second activity. The register has five rental codes and none mentions an operator [1]. If operators go out with every machine, you are supplying people as well as plant, which may be read as a different business. Get DET's answer in writing, and read our staff secondment and outsourcing guide on supplying people.
Whatever DET answers, an operator, rigger or signalperson you supply must hold a certificate from an EIAC-accredited third party [3]. If your crews also assemble, erect or dismantle on site, that starts to look like contracting, which our construction company setup guide covers.
Who is liable when a hired machine causes damage on site?
No UAE statute or official text was found that allocates liability between the owner and the hirer of rented plant. Dubai Municipality's guideline says "Dubai Local Order No. 61/1991 requires the Occupier/Employer to ensure that the workplace, plant, and equipment are always safe" [3]. Between the two companies, the hire agreement decides who pays.
A contract allocates risk between the two parties that signed it; it does not stop an injured third party from claiming against either. This guide is not legal advice, so have a UAE lawyer draft or check the liability clauses. The table is a checklist of what the agreement should settle, not a statement of law.
| Clause | What it should settle |
|---|---|
| Damage and loss | Who pays for damage on site, in transit and in the hirer's custody, and how a total loss is valued |
| Standby | Whether hire runs when the machine is on site but idle, and at what rate |
| Fuel and consumables | Who supplies fuel, lubricants, tyres and wear parts |
| Breakdown | When hire stops, how fast you must repair or replace, and who pays if the hirer caused it |
| Operator competence | Who supplies the operator, which certificates are required, and who checks them |
| Certificates | Who keeps the 12-month certificate current, and what happens if it lapses mid-hire |
| Indemnities and insurance | Who indemnifies whom for third-party claims, and which policies each side must prove |
| Off-hire and transport | How notice ends the hire, and who pays for mobilisation, escort and permits |
Pro Tip: Write the off-hire rule so it cannot be argued about: hire runs until the hirer gives notice in the agreed form and the machine is released for collection. Without that sentence, a machine standing idle on a client's site for 3 weeks after the work finished is 3 weeks of hire you will have to argue for. A dated off-hire email settles it.
Is insurance legally required to rent out heavy equipment in Dubai?
No law or regulation requiring a rental company to hold plant all risks or third-party liability cover on rented equipment was found in the research for this guide, carried out on 13 October 2026. Insurance on rental plant is a contract, client and lender requirement. Road-registered units are different, because RTA's ownership services ask for electronic insurance.
Setup guides that call plant insurance "required" name no rule. What this guide found is narrower:
- Road-registered machines. RTA's change-of-ownership service lists electronic insurance among its requirements, so motor insurance attaches to registered units [5].
- Inspection bodies. The Municipality guideline requires professional liability insurance of the company that certifies lifting equipment. That is the inspector's cover, not the rental company's [3].
Beyond that, cover is driven by clients and financiers. The covers usually discussed for this trade are plant all risks on the machines, third-party liability, and workmen's compensation for employed operators. Which a main contractor demands, and at what limit, is in that contractor's pre-qualification pack, so ask for it before you quote.
The only price found is advertised: UAE Free Zone Finder's rental guides, updated in August 2026, advertise fleet insurance of AED 100,000 to AED 300,000 a year for a ten-machine fleet, without a source [12]. Get broker quotes on your own fleet list.
Real Talk: On dry hire the machine is operated by someone you did not train, on a site you do not control. If a AED 600,000 machine is written off and the hire agreement is silent on damage, you carry the loss and the argument. No statute found for this guide forces you to insure plant. Insure it anyway, and make the hirer's own cover a condition of release.
Can a rental company repair machines, and where should the yard be?
A rental licence is not a repair licence for other people's machines. Repairing and maintaining heavy equipment is a separate Professional activity on the Dubai register, 3319902 Heavy Duty Equipment & Machinery Repairing & Maintenance. Whether maintaining your own rental fleet needs that activity is not addressed by any source found: ask DET.
The register describes 3319902 as covering firms that "repair machinery and equipment, lifts, escalators, boilers, central kitchens, automatic washing equipment, electric generators, water pumps, tower cranes" [1]. Our machinery and equipment trading guide makes the same point from the trader's side: selling machines and repairing them are different activities.
Add 3319902 to the licence before the first paid job on another owner's machine.
The yard
RTA's activity card requires the rental company to "Provide an office, vehicles and parking spaces commensurate with the nature of the activity" and to "Use the parking spaces approved by the RTA" [2]. That is the one primary-source rule on premises found for this guide. Zone marketing pages describe a Dubai Municipality yard approval as mandatory, but no Municipality rule to that effect was located, so confirm with the Municipality before you sign.
Location follows from the 15 kilometre limit: every site beyond it, or reached only by highway, needs a transporter [2], so a yard close to your clients' sites cuts mobilisation cost on every hire.
No official or professional source for yard rents was found. UAE Free Zone Finder advertises AED 100,000 to AED 250,000 a year for a 5,000 square metre depot (guide updated August 2026) [12]. Price your own plot. If you also fabricate attachments or structures in the yard, our steel fabrication company guide covers the industrial licence that work needs.
How do you buy and finance a rental fleet in the UAE?
Fleet purchase is the largest cost in an equipment rental company, and bank terms are published only in outline. Emirates NBD's business vehicle loan page offers up to AED 10 million over up to 60 months for construction equipment and machinery, with rates not published. Import, conformity and customs rules are covered in the machinery trading guide.
Buying and importing
Importing machines brings customs duty, conformity questions and, for plant brought in for a project and taken out again, temporary admission. Our machinery and equipment trading guide covers those rules, including duty on re-export, and this guide does not repeat them. The one point to carry over is RTA's: road-going plant needs an Electronic Customs Certificate at registration [4].
Finance
Emirates NBD's business vehicle loan page, carrying a 2026 copyright and no campaign date, offers up to AED 10 million over up to 60 months with the first payment deferred by up to 60 days, "Up to 100% of asset value, including insurance costs", for assets including "construction equipment" and "equipment and machinery" [13]. A 0% down payment is offered only to existing customers who have repaid a loan across the group for 12 months. Free zone companies are eligible, and the bank asks for "Details of the current fleet, or an inventory of equipment for equipment loans".
Interest rates are not on the page, and no current terms were found for other lenders. A lender will want a working business account first, and our corporate bank account guide covers what banks ask of a new company. Instalments fall due every month whether or not the machine is on hire or the client has paid, so hold cash for the months when utilisation drops.
What hire rates are advertised in the UAE, and what utilisation breaks even?
No official or audited source for UAE plant hire rates or utilisation was found. The figures available are advertised: UAE Free Zone Finder's rental guides, updated in August 2026 and described as Q1 2026 supplier quotations, list 50 to 100 tonne mobile cranes at AED 3,500 to AED 5,500 a day with operator.
The table gives advertised day rates from that publisher's two guides, excluding VAT and fuel [12]. Where the two guides disagree, both ranges are shown, because averaging two advertised ranges produces a number nobody quoted.
| Machine class | Advertised in the construction equipment guide (AED a day) | Advertised in the truck and heavy equipment guide (AED a day) |
|---|---|---|
| Mini excavator, 1 to 5 tonnes | 650 to 900, operator extra | Not stated |
| Excavator, 20 to 30 tonnes | 1,200 to 1,800, operator extra | 1,200 to 2,500 |
| Mobile crane, 50 to 100 tonnes | 3,500 to 5,500, operator included | 4,000 to 8,000 |
| Bulldozer, D6 or D7 class | 1,800 to 2,400 | 1,500 to 3,000 |
| Forklift, 7 tonnes | Not stated | 400 to 900 |
| Boom lift, 60 feet | Not stated | 800 to 1,800 |
The same guides advertise an operator at AED 150 to AED 350 a day, mobilisation at AED 500 to AED 2,500 a deployment and security deposits of AED 5,000 to AED 50,000 [12]. The guides are not consistent with themselves on several lines, so use them to frame a conversation, not as a price list.
No sourced utilisation benchmark was found either. What can be offered is arithmetic, with every input stated.
Quick Math: An illustrative break-even for one mobile crane. Assumptions, none of them market data: purchase price AED 600,000, written off over 8 years, so AED 75,000 a year; operator AED 60,000 a year; insurance and maintenance AED 45,000; certification AED 2,000 (a placeholder, since the fee is a quote); RTA registration AED 1,320 (the public rate plus AED 20) and permit AED 1,000 [2][4]; share of yard and overhead AED 120,000. Annual cost: AED 304,320. At the low end of the advertised rate, AED 3,500 a day [12], break-even is 304,320 / 3,500 = 87 hired days, or about 28% of 312 working days. Change any input and the answer moves.
That example leaves out loan interest, fuel, transport, bad debts and tax. Its purpose is the method: annual fixed cost per machine divided by the day rate gives the days you must sell. Run it for each machine class with your own purchase price and quoted rate before you buy.
Can an equipment rental company pay 0% corporate tax in a free zone?
No. Renting plant is not on the list of Qualifying Activities in Ministerial Decision No. 229 of 2025, so a free zone rental company's hire income does not earn the 0% rate. The company pays corporate tax at the ordinary rates, 0% on taxable income up to AED 375,000 and 9% above.
Ministerial Decision No. 229 of 2025 lists the Qualifying Activities of a Qualifying Free Zone Person, from manufacturing and trading of Qualifying Commodities to financing and leasing of aircraft and logistics [14]. Equipment rental is not there.
The Decision also lists Excluded Activities. Article 2(2)(d) reads: "Finance and leasing activities without prejudice to the Qualifying Activities specified in paragraphs (c), (e), (j) and (k) of Clause (1) of this Article." [14] The paragraphs it preserves are trading of Qualifying Commodities, ships, treasury and financing services, and aircraft.
Article 2(3)(p) defines the term: "Finance and leasing activities means the provision of credit or financing for any kind of consideration, and the letting or otherwise granting the right to use an asset in exchange for rental or other consideration pursuant to a finance lease, operating lease or other arrangement, that are subject to the regulatory oversight of the Competent Authority in the State." [14]
The Decision defines the Competent Authority as the Central Bank of the United Arab Emirates, the financial regulators of the Dubai International Financial Centre and the Abu Dhabi Global Market, the Securities and Commodities Authority, or another entity the Minister determines [14].
Here is what that means, stated plainly. Renting plant is not on the list of Qualifying Activities, so a free zone rental company's hire income does not earn the 0% rate whichever way the "Excluded Activity" label is read. Whether plant hire is also an Excluded Activity turns on the regulatory-oversight wording, because a plant hire company is not supervised by a financial regulator. That question changes nothing for a pure rental company. It can matter for a mixed business that has qualifying income from another activity, so take advice if the answer matters to you.
Small Business Relief
A rental company with revenue at or under AED 3,000,000 can elect Small Business Relief for tax periods ending on or before 31 December 2029, under Ministerial Decision No. 131 of 2026. Our Small Business Relief guide explains the election and its conditions, and our Qualifying Free Zone Person guide covers the 0% regime for the activities that do qualify.
How do depreciation, loan interest and VAT work for a rental fleet?
A rental fleet is deducted through depreciation, not on purchase; net interest is deductible up to 30% of EBITDA above a AED 12 million threshold; and hire is subject to VAT at the standard rate of 5%. The Federal Tax Authority (FTA) states each of those rules in its published guides.
Depreciation
The FTA's corporate tax guide on the determination of taxable income, dated 31 July 2024, says: "While capital expenditure is not deductible, when determining Taxable Income, the depreciation of the cost of capital assets is a deductible expense for Corporate Tax purposes." [15] There is no separate tax depreciation table: the deduction follows the useful life in your own accounting policy, so set that policy with your auditor before the first machine arrives.
Interest on fleet loans
The Corporate Tax Law limits net interest expenditure to 30% of accounting earnings before interest, tax, depreciation and amortisation. The FTA guide states that the limit does not apply where net interest expenditure is below AED 12 million in a tax period [15]. A group financing a large fleet should model the cap.
VAT
The FTA's Financial Services VAT Guide of July 2019 states: "The hire or leasing of equipment is subject to VAT at the standard rate." [16] The standard rate is 5%. Registration is mandatory once taxable supplies pass AED 375,000 and voluntary from AED 187,500, and VAT on machine purchases is recovered only by a registered business. Our VAT registration and compliance guide covers registration and returns.
One VAT question has no published answer that this guide could find: equipment hired to a client who uses it outside the UAE. The VAT Decree-Law's place of supply rules were read and no FTA text on that case was located [17]. Do not assume the hire is zero-rated. Confirm the place of supply before invoicing.
If tax registration, VAT returns and renewals are more than you want to run alongside a fleet, our post-setup services team handles tax registration, bookkeeping and licence renewals.
Should an equipment rental company be on the Dubai mainland or in a free zone?
For most equipment rental companies the Dubai mainland is the natural base, because the machines work on client sites across Dubai and RTA's permit attaches to the DET activity for wheeled plant. BusinessDubai.ae's Dubai mainland package is AED 18,200 in year one without a visa and AED 24,400 with one visa.
Our mainland company setup page itemises the DET route, and our free zone company setup page shows the zone packages, so you can compare the two on the same visa basis.
The table compares the two routes on the points that matter for plant hire. Free zone prices are BusinessDubai.ae package prices for Meydan Free Zone [18].
| Factor | Dubai free zone | Dubai mainland |
|---|---|---|
| Licence package, no visa | AED 12,500 at Meydan Free Zone | AED 18,200 |
| Package with one visa | AED 21,050 at Meydan Free Zone | AED 24,400 |
| Year-two renewal | Roughly 80% of year one | About AED 15,000 |
| Activity codes | The zone's own list; Meydan's dotted codes are not DET codes [11] | DET codes 7730010, 7730009, 7730004, 7730008, 7730011 [1] |
| RTA permit for wheeled plant | Ask the zone and RTA how a zone licence obtains it | AED 1,000, tied to the DET activity [2] |
| Hiring to sites across Dubai | Needing a branch is asserted by zone marketing only; no primary source found | Direct |
| Corporate tax on hire income | Ordinary rates; hire is not a Qualifying Activity [14] | Ordinary rates |
A free zone can list a rental activity and still not list the one you need. An undated copy of IFZA's activity list held for this research includes 7730004 and 7730009 but not 7730010, 7730008 or 7730011. Ask the zone for its current list and check the wheeled activity by name.
At IFZA and Meydan Free Zone, a shareholder applying for an investor visa must show capital of at least AED 75,000 in a bank account, in the UAE or in the home country [18].
A free zone earns its place when the fleet works inside it. A rental company serving terminals and warehouses in Jebel Ali may want to be there, inside the Trakhees system it has to satisfy anyway, and our JAFZA free zone setup guide covers that zone.
Sharjah and Ajman as alternatives
Corporate tax is federal, so the rate on hire income is the same in every emirate. Package prices differ. The table compares three bases on BusinessDubai.ae package prices with one visa [18] and on what Dubai's plant rules mean for each.
| Base | Corporate tax on hire income | Package with one visa (AED) | What Dubai's plant rules mean |
|---|---|---|---|
| Dubai mainland | 0% to AED 375,000, 9% above | 24,400 | RTA permit attaches to the DET activity [2] |
| Sharjah free zone (SPC Free Zone) | Same | 14,255 | RTA's card requires vehicles used in the activity to be registered in Dubai [2] |
| Ajman free zone (ANC Free Zone) | Same | 10,800 | Same; the Municipality certificate applies to lifting equipment used in Dubai [3] |
The cheaper packages come with questions this guide did not answer: it did not check whether the Sharjah and Ajman zones list an equipment rental activity, and it did not read those emirates' own plant rules. If your machines will work on sites there, our business setup in Sharjah page and our business setup in Ajman page show what each route costs and includes. If the work is in Dubai, Dubai's rules reach the machine regardless of where the company is licensed.
How much does an equipment rental company cost to set up in Dubai?
Setting up an equipment rental company on the Dubai mainland costs AED 18,200 in year one without a visa or AED 24,400 with one visa on BusinessDubai.ae's package, plus AED 1,000 for the RTA permit and AED 1,000 to AED 1,300 a machine for RTA registration. The fleet, yard and insurance are quotes.
The table separates published fees from costs that can only be quoted [2][4][18].
| Cost item | Amount (AED) | Notes |
|---|---|---|
| Dubai mainland package, no visa | 18,200 | BusinessDubai.ae package price, year one |
| Dubai mainland package, one visa | 24,400 | BusinessDubai.ae package price, year one |
| RTA permit, wheeled plant rental | 1,000 | New permit, from RTA's activity card; applies to the 7730010 activity |
| RTA registration, heavy mechanical equipment | 1,000 private, 1,300 public, per machine | Plus AED 20 and plates; RTA page updated 6 October 2026; confirm the class with RTA |
| Heavy equipment driving licence, RTA fees | 770 at age 21 or over | Per driver; school tuition extra [7] |
| Third-party certification, per machine | Quote | Priced by EIAC-accredited bodies; due once every 12 months |
| Operator, rigger and signalperson certification | Quote | Priced by EIAC-accredited certification bodies |
| Insurance | Quote | Advertised at AED 100,000 to 300,000 a year for ten machines, unsourced [12] |
| Yard | Quote | Advertised at AED 100,000 to 250,000 a year for a 5,000 square metre depot [12] |
| Fleet | Quote | The largest line [13] |
| Year two: licence renewal | About 15,000 | BusinessDubai.ae Dubai mainland renewal figure |
| Year two: RTA permit renewal | 1,000 | From RTA's activity card |
| Year two: recertification and registration | Quote, plus RTA fees | Registration is valid for one year; confirm the renewal fee with RTA |
The government and package lines for a ten-machine company come to under AED 40,000 in year one. What decides whether the business survives sits in the rows marked "Quote", so get those quoted before you commit to the licence.
Quick Math: Year one on the Dubai mainland with one visa and ten heavy wheeled machines at the private registration rate: AED 24,400 package + AED 1,000 RTA permit + AED 10,200 registration (10 x AED 1,020) = AED 35,600 before plates, certification, insurance, yard and fleet [2][4][18]. Year two: about AED 15,000 renewal + AED 1,000 permit renewal = AED 16,000, plus registration renewal and ten recertifications.
If you want those quote lines filled in for your own fleet list, we will price the mainland route against a free zone on the same visa basis.
Get your itemised setup quote→
Which setup fits your equipment rental business?
The right setup depends on what you rent and whether people go out with the machines. Mobile crane and earthmoving hire points to the Dubai mainland with activity 7730010 and the AED 1,000 RTA permit; generators and pumps point to 7730008; scaffold hire to 7730011; and operator supply needs DET's written answer first.
Codes in the table are from the register copy and should be confirmed with DET [1].
| Your business | Activity to raise with DET | Base | What to settle first |
|---|---|---|---|
| Mobile crane hire | 7730010 | Dubai mainland | RTA permit; 12-month certificate; certified operators, riggers and signalpersons |
| Earthmoving plant | 7730010, once DET confirms tracked machines | Dubai mainland | RTA permit, registration class, transport beyond 15 kilometres |
| Forklifts and access platforms | 7730010 for forklifts; ask DET about platforms | Mainland, or the zone where the warehouses are | 12-month certificate on every unit |
| Generators and pumps | 7730008 or 7730004 | Mainland, or a zone that lists the activity | Any lifting gear used to place the units |
| Scaffolding | 7730011 for hire; 4390008 Scaffolding Contracting to erect | Mainland | Whether you only rent or also erect |
| A trader adding a rental arm | Add the rental code to the trading activities | Where the trading licence sits, if it lists the code | Whether Commercial and Professional activities share a licence: ask DET |
| A company supplying operators with every machine | The rental code, plus whatever DET requires for operators | Dubai mainland | DET's written answer on wet hire; operator certificates |
Renting cars and vans is a different RTA activity, covered in our car rental business guide.
Real Client Stories
These are composite examples built from the situations equipment rental founders most often face. Names and details are illustrative, and the only figures used are published authority fees and BusinessDubai.ae's package prices.
Imran's mobile crane hire (Dubai mainland)
Imran planned to rent three mobile cranes to contractors and chose 7730009, Construction Equipment & Machinery Rental, because its description names cranes. The same description excludes wheeled, motor-operated equipment, so his cranes belonged under 7730010, the activity RTA ties its permit to. He corrected the activity before issue, applied for the RTA permit at AED 1,000, and set up on the Dubai mainland package at AED 24,400 with one visa. Each crane was registered with RTA and certified before its first hire. Lesson: read the last clause of the activity description, not only the first.
Layla's forklift fleet (Dubai mainland)
Layla bought twelve forklifts in one month to rent to warehouses. Dubai Municipality's guideline names forklifts among the equipment that must be tested and certified by an EIAC-accredited third party once every 12 months, so all twelve certificates would have expired together. She brought four inspections forward in the first year so that renewals fell in three separate months. Her licence was the Dubai mainland package at AED 18,200 without a visa. Lesson: a certificate date is a planning decision, so spread the dates before the fleet grows.
Chen's generator rental (Dubai free zone)
Chen wanted to rent generators and pumps from a Dubai free zone and assumed the hire income would be taxed at 0%. Ministerial Decision No. 229 of 2025 does not list equipment rental among the Qualifying Activities, so that assumption failed. His company is taxed at the ordinary rates, 0% on taxable income up to AED 375,000 and 9% above. He kept the zone for its location, on a Meydan Free Zone package at AED 21,050 with one visa. Lesson: pick a free zone for its activity list and location, not for a tax rate that hire income does not earn.
Start your equipment rental company the right way
Three things carry the weight. The activity code turns on wheels and motors and decides whether the RTA permit attaches. Every lifting machine needs a third-party certificate once every 12 months, and every operator, rigger and signalperson needs one too. And hire with an operator is an open question that DET should answer in writing before you sell it.
The licence is the small number. BusinessDubai.ae's Dubai mainland package is AED 18,200 in year one without a visa and AED 24,400 with one visa, with renewal at about AED 15,000, and the RTA permit adds AED 1,000. Our mainland company setup team will match each machine class to its activity with DET and prepare the RTA permit file, with itemised pricing and no hidden fees.
If you sell machines as well as rent them, start with our machinery and equipment trading guide, which covers import, conformity and customs.
Frequently Asked Questions
What is the activity code for equipment rental in Dubai?
There are five main codes on the Dubai activity register, all Professional: 7730010 for wheeled and motor-driven plant, 7730009 for construction equipment without wheels and motors, 7730004 for industrial machinery, 7730008 for pumps and generators, and 7730011 for scaffolds. Confirm the live codes with DET.
What is the difference between activity 7730009 and 7730010?
Activity 7730009 covers construction equipment rental but its description says "it does not involve the wheeled and motors operated equipment and machinery". Activity 7730010 covers lifting, handling and construction equipment "with wheels and operating by motors", including cranes and loaders. A mobile crane fleet belongs on 7730010.
Is there a specific licence for forklift rental in Dubai?
No. The Dubai activity register has no separate forklift rental code. On the register wording, a forklift is lifting and handling equipment with wheels and a motor, which points to 7730010, but the description does not name forklifts. Confirm the code with DET.
Which code covers boom lifts and scissor lifts?
None names them. The Dubai activity register does not mention access platforms, boom lifts or scissor lifts in any rental description. The nearest wording is in 7730010 and 7730009, so ask DET which one it will accept for your machines.
Does a crane rental company need an RTA permit in Dubai?
Yes, where it rents wheeled, motor-driven plant. RTA's activity card for that rental activity sets a permit fee of AED 1,000 new and AED 1,000 on renewal, under Executive Council Resolution No. 47 of 2017.
How far can a loader or crane be driven on Dubai roads?
RTA's activity card sets the maximum distance for driving lifting and loading machinery from one place to another at 15 kilometres, and tells permit holders to refrain from moving equipment on highways except for internal roads. Longer moves go on a transporter.
How much does it cost to register a crane with RTA?
RTA charges AED 1,000 to register private heavy mechanical equipment and AED 1,300 for public heavy mechanical equipment, plus AED 20 and a plate fee, on its page updated on 6 October 2026. The page does not define the two classes, so confirm yours with RTA.
What is the minimum age for a heavy equipment driving licence in Dubai?
RTA's driving licence page, updated on 8 October 2026, gives a minimum age of 20 for a tractors or heavy equipment licence. Applicants take knowledge, yard and road tests. Confirm the licence category and any weight threshold with RTA.
How often must a crane or forklift be inspected in Dubai?
Once every 12 months. Dubai Municipality's guideline DM-HSD-GU48-ECLA2, Version 5.0 of 29 January 2025, requires cranes, hoists, lifts, lifting equipment and gears, and forklifts to be tested and certified by a third party accredited by the Emirates International Accreditation Center.
Who can certify a crane operator in Dubai?
A third party accredited by the Emirates International Accreditation Center. Dubai Municipality's guideline requires that for operators of cranes, hoists, forklifts and cradles, and for riggers and signalpersons. Training institutes must be registered and approved by the Knowledge and Human Development Authority.
What happens if an inspector finds a rented crane unsafe?
Dubai Municipality's guideline says the owner must be advised to cease use of the equipment and a report must be sent immediately to the Health and Safety Department. Repairs identified by the accredited third party must be carried out immediately, and the certificate is issued only after repairs.
Who pays for the annual certificate on a hired machine?
The Municipality guideline places the duty on the "owner/occupier" and does not mention hire. A rental company owns the plant, so on a plain reading the certificate is the owner's to hold. Settle who pays, and what happens if it lapses during a hire, in the hire agreement.
Do the same inspection rules apply in JAFZA?
Trakhees areas, including JAFZA, have their own procedure, PCFC-TRK-EHS-IO-CP-06, Rev. 02 of September 2022, which requires inspection agencies to be pre-qualified and registered with Trakhees. No inspection interval was found in the pages read for this guide, so ask Trakhees for it.
Can I hire out machines with my own operators on a rental licence?
That is not confirmed by any official source found for this guide. The Dubai activity register has no "with operator" rental activity and the rental descriptions do not mention operators. Ask DET in writing whether supplying operators needs an additional activity.
What is the difference between wet hire and dry hire?
Dry hire is the machine alone, with the hirer supplying the operator and fuel. Wet hire is the machine with the rental company's operator. The terms are trade usage, and the Dubai activity register uses neither.
Who is liable if a hired crane causes an accident?
No UAE statute or official text allocating liability between the owner and the hirer of rented plant was found for this guide. Dubai Local Order No. 61 of 1991 puts the workplace safety duty on the occupier or employer. Between the two companies the hire agreement governs, so take legal advice on it.
Is insurance required by law to rent out heavy equipment in Dubai?
No law requiring a rental company to hold plant all risks or third-party liability cover on rented equipment was found on 13 October 2026. Road-registered units need motor insurance for RTA's services, and clients and lenders commonly set their own insurance conditions.
Can a machinery trading company rent out the machines it sells?
Not on trading activities alone. Trading and rental are separate activities on the Dubai register, so a trader needs a rental code added. Ask DET whether the Commercial and Professional activities can share one licence.
Can a rental company repair other companies' machines?
Not on a rental activity. Repair and maintenance of heavy equipment is a separate Professional activity, 3319902 Heavy Duty Equipment & Machinery Repairing & Maintenance. Ask DET whether maintaining your own fleet needs it.
Is equipment rental income taxed at 0% in a free zone?
No. Equipment rental is not on the list of Qualifying Activities in Ministerial Decision No. 229 of 2025, so hire income is not qualifying income. A free zone rental company pays corporate tax at 0% on taxable income up to AED 375,000 and 9% above.
Does Small Business Relief apply to an equipment rental company?
Yes, if revenue is at or under AED 3,000,000 and the company elects it, for tax periods ending on or before 31 December 2029 under Ministerial Decision No. 131 of 2026. The relief is not available to a Qualifying Free Zone Person.
Is VAT charged on equipment hire in the UAE?
Yes. The Federal Tax Authority's Financial Services VAT Guide states that the hire or leasing of equipment is subject to VAT at the standard rate, which is 5%. Registration is mandatory above AED 375,000 of taxable supplies and voluntary from AED 187,500.
Is equipment hired for use outside the UAE zero-rated for VAT?
Do not assume so. No Federal Tax Authority text on the hire of equipment for use abroad was found for this guide. Confirm the place of supply with a tax adviser or the Federal Tax Authority before invoicing.
Is interest on a fleet loan deductible for corporate tax?
Yes, within the general limit. Net interest expenditure is deductible up to 30% of EBITDA, and the Federal Tax Authority's guide states that the limit does not apply below AED 12 million of net interest in a tax period. The machines themselves are deducted through depreciation.
How much does an equipment rental licence cost in Dubai?
BusinessDubai.ae's Dubai mainland package is AED 18,200 in year one without a visa and AED 24,400 with one visa, with renewal at about AED 15,000. Add AED 1,000 for the RTA permit on wheeled plant and AED 1,000 to AED 1,300 a machine for RTA registration.
Can a free zone company rent equipment to sites on the Dubai mainland?
No primary source answering that was found for this guide. Zone marketing pages say a branch or agent is needed, without citing a rule. Ask the zone and DET before relying on a free zone licence for mainland sites, and check that the zone lists the wheeled rental activity.
References
[1] Dubai Department of Economy and Tourism. Business activity list as recorded in a public copy of the register: codes, names, licence types and descriptions for 7730004, 7730008, 7730009, 7730010, 7730011, 7710007 and 3319902 (entries last updated October 2023). visaindubai.ae/activity/rental-of-loading-lifting-construction-equipment-with-wheels-motors and visaindubai.ae/activity/construction-equipment-machinery-rental
[2] Roads and Transport Authority. Activity Description Card, Rental of Loading, Lifting & Construction Equipment with Wheels & Motors: permit fees, legislation and conditions (PDF created 17 April 2024). rta.ae
[3] Dubai Municipality, Health and Safety Department. Technical Guidelines for Examination and Certification of Cranes, Hoists, Lifts and Other Lifting Equipment, DM-HSD-GU48-ECLA2, Version 5.0, 29 January 2025. dmpmedia.dm.gov.ae
[4] Roads and Transport Authority. Apply for Registering a New Vehicle: fees and conditions for mechanical equipment and trailers (updated 6 October 2026). rta.ae service 516
[5] Roads and Transport Authority. Change of vehicle ownership and cancellation of registration: fees for mechanical equipment (6 October 2026). rta.ae service 600 and rta.ae service 526
[6] Dubai Media Office. RTA and Dubai Police complete link-up of systems to control movement of heavy trucks: mobility permits, ban periods and oversize movement window (14 September 2021). mediaoffice.ae
[7] Roads and Transport Authority. Apply for or Manage a Driving Licence: minimum age, tests and fees for the tractors or heavy equipment licence (updated 8 October 2026). rta.ae service 621
[8] Gulf News. Special licences for machinery operated at work sites: RTA Special Nature Driving Permits (last updated 12 December 2018). gulfnews.com
[9] Dubai Development Authority. Circular 614, Lifting Equipment and Operations (14 March 2025). dda.gov.ae
[10] Trakhees, Ports, Customs and Free Zone Corporation. PCFC-TRK-EHS-IO-CP-06, Pre-qualification of Third Party Consultants and Service Providers, Rev. 02, September 2022. pcfc.ae
[11] Meydan Free Zone. Activity hub pages for machinery and equipment rental, using the zone's own dotted activity codes (updated August and September 2026). meydanfz.ae
[12] UAE Free Zone Finder. UAE Construction Equipment Rental Guide 2026 and UAE Truck and Heavy Equipment Rental Guide 2026: advertised hire rates, insurance and depot figures (updated August 2026). uaefreezonefinder.com construction equipment guide and uaefreezonefinder.com truck and heavy equipment guide
[13] Emirates NBD. Business Vehicle Loans: published loan amount, tenure and eligible assets (page copyright 2026). emiratesnbd.com
[14] UAE Ministry of Finance. Ministerial Decision No. 229 of 2025 Regarding Qualifying Activities and Excluded Activities: Article 2(1), Article 2(2)(d), Article 2(3)(p) and the definition of Competent Authority. mof.gov.ae
[15] Federal Tax Authority. Corporate Tax Guide, Determination of Taxable Income (31 July 2024): depreciation of capital assets and the general interest deduction limitation. tax.gov.ae
[16] Federal Tax Authority. Financial Services VAT Guide VATGFS1 (July 2019): section 4.3.13, hire or leasing of equipment. tax.gov.ae
[17] Federal Tax Authority. Federal Decree-Law No. 8 of 2017 on Value Added Tax, unofficial English translation: place of supply rules. tax.gov.ae
[18] BusinessDubai.ae. Package prices as of October 2026: Dubai mainland company setup (AED 18,200 in year one without a visa, AED 24,400 with one visa, about AED 15,000 on renewal), free zone packages for Meydan Free Zone, SPC Free Zone and ANC Free Zone, and the AED 75,000 capital requirement for investor visas at IFZA and Meydan Free Zone. businessdubai.ae
