Project Management Services.
Project Management Services is one of the ten most-licensed activities at IFZA. This page covers what the licence permits, the QFZP / Corporate Tax position, VAT treatment, indicative cost in USD, and the home countries from which the most applications for this activity originate.
At a glance
| Feature | Position |
|---|---|
| IFZA activity classification | 7110.05 — Project Management Services |
| Year-1 all-in cost (USD) | USD 10,120 |
| Time to licence issuance | 5–7 business days |
| Visa quota (standard) | Up to 9 investor/employee visas under flexi-desk package |
| QFZP 0% qualifying status | Qualifying for QFZP 0% on income from non-UAE-mainland clients (project management services qualify as a professional service) |
| UAE VAT (5%) | 5% on UAE-resident client invoices; zero-rated for export of services |
| UAE Corporate Tax | 9% above AED 375,000 profit; 0% under QFZP if conditions met |
| Audit requirement | Not required for non-regulated activity; recommended for QFZP claims |
What this licence covers
The IFZA Project Management Services activity authorises the provision of project-management services across multiple sectors — including construction project management, engineering project management, technology project management, event project management, and general programme management. It is particularly common for ex-corporate project managers transitioning to consulting careers, and for engineering / construction professionals leading large-scale GCC infrastructure projects on contract.
For construction-specific project management (CPM), this licence sits alongside (but does not replace) specific Engineering or Construction Consultancy activities; for large infrastructure projects, the project-management firm typically holds additional regulator authorisations (Dubai Municipality registration for construction supervision; Trakhees for ports / industrial projects).
QFZP and Corporate Tax
Project Management Services qualify as a professional-services activity for QFZP 0% purposes when delivered to non-UAE-mainland clients. Standard substance, audit, de minimis tests apply. For project-management firms serving GCC infrastructure clients outside the UAE (Saudi, Qatar, Bahrain), QFZP applies cleanly. For UAE-mainland project work, the de minimis test controls.
Banking and operational notes
Project-management consultancies are well-received across UAE banking. Wio Business / Mashreq Neo Biz onboard within 5-10 days; Tier 1 banks (Emirates NBD, ADCB) within 3-6 weeks. Operational notes:
- Performance bond requirements — large project clients may require performance / advance-payment bonds from a UAE bank. Tier 1 bank relationship matters for bond issuance.
- Milestone billing — project clients typically pay against milestones, creating predictable cash flow but requiring careful VAT timing (VAT due on issued invoice, not on receipt).
- Insurance — Professional Indemnity insurance with cover proportionate to project value is typically required by clients. UAE insurance market has multiple providers offering PI from USD 2,000/year for small consultancies.
When this licence is not the right answer
- Construction contracting (building physically). Construction Contracting licence required separately; project-management licence covers only the management/oversight role.
- Engineering design. Engineering Consultancy activity is separately classified with engineer-discipline-specific approvals (Civil, MEP, Structural).
- Pure programme advisory without project execution. Management Consultancy may be more appropriate.
- Construction-supervision role on Dubai mainland projects. Requires Dubai Municipality registration in addition to the IFZA licence.
Indicative year-1 cost in USD
| Component | Year 1 | Year 2+ |
|---|---|---|
| IFZA government licence fee (this activity bundle, up to 3 activities) | USD 4,200 | USD 4,200 |
| Establishment card & immigration file | USD 800 | USD 400 |
| Investor visa (1 visa) | USD 1,300 | USD 400 (renewal) |
| Emirates ID + medical + biometrics | USD 320 | USD 120 |
| ArxSetup professional fee + KYC + bank introduction | USD 3,500 | USD 2,000 |
| All-in total | USD 10,120 | USD 7,120 |
Add-ons: VAT registration (USD 950), Corporate Tax registration (USD 550), additional visas (USD 1,300 each), bespoke shareholders' agreement (from USD 3,500), trademark registration (from USD 5,500).
Top countries applying for this activity
Applications for this activity most commonly originate from the following countries (drawn from IFZA application data and our own client mix):
Common questions
Can I take on a Saudi infrastructure project as project manager under this licence?
Yes. The IFZA Project Management Services licence covers cross-border project-management engagements where the contracting entity is the IFZA company. For physical mobilisation of personnel to KSA, Saudi visa and (depending on scope and duration) Saudi tax-registration considerations apply — we coordinate with Saudi tax counsel.
Do I need additional approvals for construction project management?
For purely advisory / project-management oversight, the IFZA licence suffices. For construction-supervision activities requiring local engineer-of-record sign-off, additional registrations apply: Dubai Municipality for Dubai projects; Trakhees for industrial / port projects; Abu Dhabi Municipality for ADGM projects. The classification depends on the specific role.
How does Professional Indemnity insurance work for an IFZA project manager?
PI insurance is not mandated by IFZA but is typically required by client contracts and is essential for credible practice. UAE PI cover for project-management consultancies starts around USD 2,000/year for cover of USD 1 million; large-project cover scales accordingly. We refer clients to specialist UAE brokers.
Can I employ project engineers and project coordinators on this licence?
Yes, up to the 9-visa quota of the standard IFZA flexi-desk package. Each visa USD 1,300 issuance + ~USD 400 renewal. Construction-discipline engineers (Civil, MEP, Structural) may require Society of Engineers UAE membership in addition to the visa.
What VAT applies to project-management invoices to a foreign client?
Place of supply rules: services performed for a foreign-resident business with no UAE establishment are zero-rated. UAE VAT registration is still required above the threshold; the zero-rating affects the VAT charged on the invoice but not the registration obligation. Standard reporting via quarterly VAT returns through our affiliated FTA-registered tax-agent partners.