UAE Mining & Quarrying Company: MOEI Extractive License Setup Guide 2026

Updated August 2026. Establishing a mining or quarrying operation in the UAE requires navigating a multi-agency approval framework led by the Ministry of Energy and Infrastructure (MOEI). This guide consolidates every requirement — from extractive licensing and environmental impact assessments to royalty structures and foreign ownership rules — so investors can plan capital deployment with precision.

UAE Extractive Industry Overview: Limestone, Aggregate, Gypsum and Beyond

The UAE sits atop commercially significant deposits of limestone, crushed aggregate, dolomite, gypsum, and silica sand, concentrated primarily in the Hajar Mountains straddling Fujairah and Ras Al Khaimah (RAK). The Fujairah Emirate alone accounts for approximately 70% of the country’s crushed-stone output, feeding a construction sector projected to reach cumulative expenditure of USD 145 billion by 2031 under the UAE’s Vision 2031 infrastructure programme and associated megaprojects including the Etihad Rail national network and the Murban Bab Oilfield expansion.

RAK’s Al Hayl quarry zone and Fujairah’s Masafi belt are the two most active extraction corridors in the federation. Gypsum — used in plasterboard and cement additive manufacturing — is extracted primarily in Abu Dhabi’s western region near Liwa and Madinat Zayed. The Ministry of Energy and Infrastructure classifies these commodities under industrial minerals, distinct from hydrocarbons (under ADNOC’s purview) and precious metals (regulated by the Dubai Multi Commodities Centre for trading, though extraction still falls under MOEI).

The Emirates Steel (ArcelorMittal Emirates) ecosystem in Abu Dhabi’s Mussaffah Industrial Area creates downstream demand for metallurgical-grade limestone flux and high-grade iron ore feed, primarily imported from Brazil and Australia via Khalifa Port but with scope for UAE-sourced aggregate in construction steel supply chains. The rapid expansion of KIZAD — Khalifa Industrial Zone Abu Dhabi, operated by AD Ports Group — has created dedicated mineral processing land parcels where investors can establish crushing, grinding, and beneficiation plants adjacent to the port’s deep-water bulk berths, enabling seamless export logistics.

MOEI Extractive Licensing: Application Process, Stages and Fees

The UAE’s framework for granting quarry and mining concessions is governed by Federal Law No. 23 of 2001 on Mining, Quarrying and Related Activities and MOEI’s Minerals Affairs Department procedures (updated 2024 to align with UAE’s net-zero and circular economy commitments). The licensing pathway follows five sequential stages, each with distinct fees and durations:

1. Prospecting Permit — AED 25,000/year; allows geological surveys, sampling, and remote sensing within a defined block without extraction.
2. Exploration Licence — AED 100,000–AED 500,000; grants exclusive rights to conduct test-drilling, resource estimation, and reserve classification for up to three years, renewable once.
3. Feasibility Study Submission — No fee; a bankable feasibility study including reserve estimates (to JORC or NI 43-101 standard), extraction methodology, environmental baseline, and 20-year financial model submitted to MOEI’s Minerals Affairs Department for technical review.
4. Mining or Quarrying Concession — AED 500,000–AED 5,000,000 initial application fee (scaled to concession area in hectares and commodity type), plus annual royalties on extracted tonnage; concession term is typically 10–25 years, extendable.
5. Emirate-Level DED Trade Licence — AED 15,000–AED 50,000/year; even with a federal MOEI concession, the operating legal entity requires a local business licence from the relevant Emirate’s Department of Economic Development (e.g., Fujairah DED, RAK DED, or Abu Dhabi DED).

Total government permitting costs in Year 1 commonly fall between AED 1.5 million and AED 6 million before any capital expenditure on equipment or site infrastructure. MOEI targets a 90-day decision window for complete concession applications, but complex projects in environmentally sensitive zones — particularly wadis and mountain recharge areas — routinely require 12–18 months for full approval including MOCCAE sign-off.

Environmental Impact Assessment: Federal Law No. 24/1999 Requirements

No extraction activity may commence without a full Environmental Impact Assessment (EIA) approved by the Ministry of Climate Change and Environment (MOCCAE) under Federal Law No. 24 of 1999 on the Protection of the Environment. EIA requirements for mining and quarrying are among the most stringent in the UAE regulatory framework and include:

• Ecological baseline survey: a minimum 12-month baseline period documenting flora, fauna, soil profiles, groundwater levels, and air quality at all sensitive receptors within a defined study zone (typically 5 km from the extraction boundary).
• Dust and particulate modelling: PM10 and PM2.5 dispersion modelling at nearest sensitive receptors; MOCCAE’s ambient air quality standard sets a 24-hour PM10 limit of 150 µg/m³ and annual average of 50 µg/m³.
• Noise impact assessment: blasting vibration and continuous operational noise modelling; MOCCAE limits noise at residential receptors to 55 dB(A) during daytime and 45 dB(A) at night.
• Hydrological impact assessment: wadi system and groundwater recharge modelling is critical in Fujairah and RAK due to the Hajar Aquifer which supplies domestic water to both Emirates; MOCCAE requires peer-reviewed hydrogeological modelling for any quarry within 2 km of a wadi.
• Progressive and final rehabilitation plan: detailed commitment to restore worked-out sections, re-vegetate slopes with native species, and achieve final landform stability, backed by a performance bond.
• Community consultation record: mandatory public consultation for any operation within 5 km of a populated area, including schools, mosques, and residential clusters.

Engaging an MOCCAE-registered environmental consultancy for the full EIA study, modelling, and report typically costs AED 150,000–AED 600,000 plus the 12-month baseline monitoring period. Failure to obtain EIA approval before commencing extraction can attract fines of up to AED 5,000,000 under Federal Law No. 24/1999 and carries risk of concession cancellation by MOEI.

Ownership Restrictions and the 51% UAE National Requirement

UAE mainland onshore mining and quarrying operations are subject to the 51% UAE national ownership requirement for activities on the restricted list under the UAE Companies Law (Federal Law No. 32 of 2021, as amended by Cabinet Decision No. 55 of 2021). While the 2021 Companies Law reform opened many sectors to 100% foreign ownership, onshore mineral extraction remains on the restricted list, meaning a foreign investor can hold a maximum 49% equity stake in the concession-holding mainland LLC.

Free zone registration (including at KIZAD, JAFZA, or RAKEZ) offers 100% foreign ownership but does not solve the fundamental constraint: MOEI quarrying concessions are grants over federal or Emirate land, and MOEI will only issue a concession to an entity holding a mainland UAE commercial licence in the relevant activity category. The structure used by most international mining and aggregates companies therefore involves:

• A UAE LLC (49% foreign / 51% UAE national) as the concession holder and extraction operator, with the UAE national partner being a genuine commercial participant (not a nominee).
• A Free Zone entity (KIZAD, JAFZA, or RAKEZ) at 100% foreign ownership handling mineral processing, quality testing, marketing, and export trading — these activities are not on the restricted list and qualify for free zone treatment.
• An inter-company supply agreement between the LLC (extraction) and the Free Zone entity (processing/export) structured on arm’s-length transfer pricing principles to satisfy both MOEI and Federal Tax Authority requirements.

The 2021 Companies Law amendments explicitly prohibit nominee arrangements: the Emirati majority shareholder must hold genuine economic interest and be actively involved in governance. Investors typically partner with established UAE business families or industrial conglomerates that bring both the legal ownership structure and meaningful commercial value — logistics networks, land connections, or government relationships — to the joint venture.

KIZAD and Fujairah Port: Downstream Processing and Export Infrastructure

The UAE’s two principal infrastructure hubs for the mineral sector are KIZAD (Abu Dhabi) for downstream processing and Fujairah Port for bulk mineral export. Each serves a distinct role in the value chain:

KIZAD — Khalifa Industrial Zone Abu Dhabi, operated by AD Ports Group, provides:

• Industrial land plots from 2,500 m² to 500,000 m² at lease rates of AED 35–AED 90/m²/year (2026 standard rates), with long-term leases of 25–50 years available for anchor investors.
• Direct rail connectivity to Khalifa Port’s general cargo and bulk terminals via the Etihad Rail national network (operational since 2024), reducing heavy-haul truck traffic on the E11 highway corridor.
• Khalifa Port’s dedicated aggregate and bulk berths capable of handling Panamax-class bulk carriers of up to 80,000 DWT, enabling cost-competitive export to India, Qatar, Kuwait, and East African markets.
• 100% foreign ownership for processing entities under KIZAD’s Industrial Zone rules, with corporate tax exemption for qualifying manufacturing and processing activities.

Fujairah Port, operated by the Fujairah Port Authority, is the UAE’s primary bulk mineral export terminal with annual throughput capacity exceeding 40 million tonnes. In 2025, Fujairah Port handled over 28 million tonnes of aggregate and related mineral exports, primarily to India (60%), Qatar (15%), and Saudi Arabia (12%). The port’s proximity to Fujairah’s quarry belt — typically 20–35 km by haul road — makes it the most cost-effective export gateway, with road transport costs of AED 4–AED 8/tonne compared to AED 25–AED 40/tonne for equivalent distances to Abu Dhabi.

Royalties, Rehabilitation Bonds and 2026 Cost Benchmarks

Beyond the initial licence fee, UAE concession holders pay annual royalties on extracted volumes to MOEI (federal component) and to the relevant Emirate’s mineral authority (Emirate component). The 2026 combined royalty benchmarks by commodity are:

Commodity	MOEI Federal Royalty	Emirate Royalty (typical)	Total (AED/tonne)
Limestone / Crushed Aggregate	AED 1.50	AED 0.75	AED 2.25
Gypsum	AED 3.00	AED 1.50	AED 4.50
Dolomite	AED 2.00	AED 1.00	AED 3.00
Silica Sand (industrial grade)	AED 4.00	AED 2.00	AED 6.00
Other Industrial Minerals	AED 5.00	AED 2.50	AED 7.50

The environmental rehabilitation bond — deposited with MOCCAE before operations begin — is scaled to concession size and estimated rehabilitation cost: typically AED 200,000 for small quarries under 50 hectares and up to AED 2,000,000 for large concessions over 500 hectares. The bond is held throughout the concession term and released only after a post-closure audit confirms that the site meets MOCCAE’s rehabilitation standards. Where progressive rehabilitation is being implemented, MOCCAE may release up to 50% of the bond incrementally as sections are restored and verified.

Investors should also budget for annual MOEI compliance audits (typically AED 15,000–AED 50,000 in consultant support costs), quarterly production reporting to MOEI and the Emirate mineral authority, and third-party dust and noise monitoring at a cost of approximately AED 80,000–AED 150,000/year for a mid-size operation.

A realistic pre-production investment for a mid-size aggregate quarry producing 1 million tonnes per year ranges from AED 25 million to AED 80 million, including all government fees, EIA costs, site infrastructure, primary and secondary crushing plant, haul fleet, and working capital for the first 12 months. Break-even is typically achieved by Year 4–6 at prevailing UAE aggregate market prices of AED 18–AED 28 per tonne ex-quarry.

Frequently Asked Questions

Can a 100% foreign-owned company hold a UAE mining or quarrying concession?

No. MOEI grants quarrying and mining concessions only to UAE mainland-registered entities, and onshore mineral extraction remains on the restricted activities list requiring 51% UAE national ownership in the operating company. Foreign investors typically hold 49% of the concession-holding LLC. Processing and export companies established in free zones such as KIZAD or JAFZA can be 100% foreign-owned, making a split-structure the standard approach for international mining groups operating in the UAE.

What does an EIA for a UAE quarry cost and how long does it take?

An MOCCAE-approved Environmental Impact Assessment for a quarry in Fujairah or RAK costs between AED 150,000 and AED 600,000 in environmental consultancy fees, plus the mandatory 12-month ecological baseline monitoring period before the formal EIA report can be submitted. Including MOCCAE’s internal review and any requested revisions, the total EIA process typically takes 18–24 months from commissioning to approval, making it the single longest item on the permitting critical path for a new quarry.

How are annual royalties calculated and paid for UAE mineral extraction?

Royalties are calculated on a per-tonne basis of material extracted and reported each month by the concession holder to MOEI’s Minerals Affairs Department via the online production return portal. Combined federal and Emirate royalty rates range from AED 2.25/tonne for basic limestone aggregate to AED 7.50/tonne for premium industrial minerals. Royalty payments are due within 30 days of each month-end. MOEI conducts periodic independent volumetric audits using satellite imagery and surveying to verify declared production figures.

Is Fujairah Port suitable for large-scale bulk mineral export?

Yes. Fujairah Port is the UAE’s primary bulk mineral export terminal, with annual throughput capacity exceeding 40 million tonnes and dedicated bulk berths capable of handling Panamax-class vessels up to 80,000 DWT. Conveyorised stockpile and loading systems minimise demurrage. In 2025 the port handled over 28 million tonnes of aggregate, gypsum, and dolomite exports, primarily to India, Qatar, and Saudi Arabia. Its proximity to Fujairah’s quarry belt — typically 20–35 km by haul road — makes it significantly more cost-effective than routing minerals to Abu Dhabi or Dubai for export.

What is the environmental rehabilitation bond requirement for a UAE quarrying concession?

MOCCAE requires a site rehabilitation performance bond deposited before extraction commences, scaled to concession size: AED 200,000–AED 500,000 for small concessions under 50 hectares, and AED 500,000–AED 2,000,000 for large concessions over 500 hectares. The bond is held for the full concession term and returned only after a post-closure audit confirms land restoration to the pre-extraction condition specified in the approved rehabilitation plan. Where progressive rehabilitation is underway, MOCCAE may release up to 50% of the bond in tranches as restored sections pass independent verification.