When you think of Dubai, towering skyscrapers and luxury might come to mind, but behind the glamour, there’s a powerful engine driving the city’s economy: industry. From high-tech manufacturing units to large-scale food production plants, Dubai has quietly built a thriving industrial sector backed by strong infrastructure, government support, and strategic global connectivity.
If you’re planning to start a business that involves manufacturing, packaging, assembling, or processing, you’ll need an industrial license in Dubai. This license is issued by the Department of Economic Development (DED) and is necessary for operating legally. It covers a wide range of activities like making clothes, food products, electronics, or even metalwork.
Getting an industrial license in the UAE gives your business access to industrial zones, duty-free import of raw materials, zero corporate tax (in free zones), and support from the UAE government. These perks make Dubai one of the most business-friendly places for industrial operations.
So, who should consider it? If your business involves any kind of physical product creation or processing, this license is for you.
What is an Industrial License in Dubai?
An Industrial License in Dubai is a legal permit that allows businesses to carry out manufacturing, industrial, or production-related activities within the UAE. It’s issued by the Department of Economic Development (DED) for mainland companies or by the relevant free zone authority for businesses operating in specific industrial zones.
The main purpose of this license is to regulate and support businesses involved in transforming raw materials or natural resources into finished goods or semi-finished products.
Besides obtaining an industrial license from the DED or the respective free zone authorities, you may need approval from external bodies such as:
- Ministry of Industry and Advanced Technology (MoIAT)
- Dubai Municipality
- Civil Defense
- Environment and Safety authorities
What are the Activities Covered Under a Dubai Industrial License?
An industrial license in Dubai is needed for any business that:
- Manufactures or assembles products
- Processes raw materials
- Packages and stores goods in bulk
- Engages in mechanical or chemical transformation of materials
- Recycles industrial waste into usable goods
Some common industries that require this license include:
- Food and beverage production (e.g., bottled water, snacks, sauces)
- Textile and garment manufacturing
- Metal fabrication and welding
- Plastic or rubber products manufacturing
- Furniture and wood products manufacturing
- Automotive parts assembly
- Electronics or electrical equipment production
- Chemical and cleaning product manufacturing
If your business is only trading, importing/exporting, consulting, or offering services (like IT or marketing), then an industrial license is not required. Instead, you may need a commercial or professional license.
What Documents are Required to Obtain an Industrial License in Dubai?
To apply for an industrial license in Dubai, you’ll need to prepare and submit several documents. Here’s a checklist of the key documents required:
- Passport copies
- Emirates ID and residence visa copy (if applicable)
- Trade name reservation certificate
- Memorandum of Association (MoA)
- Business plan or feasibility study
- Lease agreement or Ejari certificate for industrial premises
- Industrial unit layout or blueprint
- Environmental and safety clearance
- Civil Defence approval
- Approvals from external authorities (e.g., MoIAT, Municipality)
How to Get an Industrial License in Dubai, UAE?
Setting up an industrial business in Dubai involves multiple steps, from approvals to securing a physical facility. Here’s a step-by-step process to obtain an industrial license:
Step 1: Define Your Business Activity
Determine the exact industrial activity: Clearly define what your business will do (e.g., textile manufacturing, food processing, metal casting, etc.). This will dictate the type of license you need and any specific external approvals.
Step 2: Choose Your Legal Structure
Choose your legal structure: Common options include Limited Liability Company (LLC) or a Branch of a Foreign Company. For mainland industrial activities, 100% foreign ownership is now allowed, but you may still need a Local Service Agent for administrative tasks. In Free Zones, 100% foreign ownership is standard, and no local sponsor is required.
Step 3: Select the Right Location (Mainland or Free Zone) and Secure Premises:
- Mainland: Offers the ability to trade directly within the UAE and internationally without restrictions. Licensing is typically handled by the Department of Economic Development (DED) and often requires approval from the Ministry of Industry and Advanced Technology (MOIAT). You’ll need a physical office and warehouse/factory.
- Free Zones: Offer 100% foreign ownership, zero corporate taxes (for businesses not trading directly on the mainland), and streamlined import/export procedures. They have dedicated industrial zones (e.g., IFZA, Jebel Ali Free Zone (JAFZA), Dubai Industrial City, Dubai Techno Park) with integrated ecosystems tailored to specific industries.
Step 4: Reserve a Trade Name
Select a unique and relevant business name and get it approved through the DED or your chosen free zone authority
Step 5: Secure an Industrial Facility
Rent or lease a warehouse, factory, or production unit in an industrial zone. You’ll need a tenancy contract or Ejari certificate (for mainland) as proof of a physical address.
Step 6: Obtain External Approvals
Depending on your activity, you’ll need additional approvals from various authorities, including:
- Dubai Municipality (for environmental clearance, civil defence, construction permits, detailed floor plans, safety checks, waste management plans).
- Ministry of Industry and Advanced Technology (MOIAT) for federal registration and an Industrial Production Certificate, especially for large-scale operations and specific national incentives.
- Ministry of Health (if applicable, e.g., for food or pharmaceutical manufacturing).
- National Media Council (if applicable).
- Chamber of Commerce and Industry (membership is often required).
- Dubai Civil Defence (for fire and safety unit validation).
- Dubai Electricity and Water Authority (DEWA) for utility connections.
Step 7: Facility Construction and Final Inspections
Once initial approval is granted, you can proceed with constructing or fitting out your warehouse/factory according to the pre-approved architectural plans.
The DED and other relevant authorities (e.g., Dubai Municipality, Civil Defence) will conduct site inspections to verify that the facility complies with all approved drawings, safety standards, and environmental regulations.
Step 8: Pay Fees and Receive Your Industrial License
The cost of an industrial license in Dubai varies significantly based on whether you choose mainland or a free zone, the type of industrial activity, facility size, and additional permits.
Once all approvals are obtained, inspections are passed, and fees are paid, the DED or the relevant Free Zone authority will issue your industrial license in Dubai. This license permits you to commence operations.
Step 9: Post-Licensing Obligations
- Industrial Register: You may need to register your factory in the industrial register of the Ministry of Industry and Advanced Technology (MOIAT) to benefit from customs duty exemptions on machinery, equipment, and raw materials.
- Visas: Apply for employee visas based on your business size and office/factory space.
- Corporate Bank Account: Open a corporate bank account in Dubai.
- Ongoing Compliance: Adhere to all license terms, renew your license annually, and notify authorities of any changes to your industrial operations.
What is the Industrial License Cost in Dubai?
The basic industrial license cost in Dubai mainland typically starts from around AED 18,000 to AED 25,000+, while in free zones, it generally starts from AED 12,000 to AED 35,000. Some packages in free zones may even go higher depending on facilities and included services. The total setup cost is considerably higher than just the license fee due to mandatory facility requirements, diverse approvals, and a minimum capital investment (AED 250,000 for MOIAT registration). Consulting a business setup expert is recommended for an accurate quote.
What are the Benefits of Getting an Industrial License in Dubai?
Getting an industrial license in Dubai opens the door to several business-friendly advantages that can help your company grow and succeed.
1. 100% Foreign Ownership
In many free zones and increasingly on the mainland (for certain activities), foreign investors can enjoy 100% ownership of their industrial businesses, providing full control and profit repatriation.
2. Duty-Free Import of Raw Materials
Businesses with an industrial license can often import raw materials and machinery without paying customs duty, reducing your overall production costs.
3. Access to Industrial Zones
With an industrial license, you can set up your operations in well-developed industrial areas like Dubai Industrial City, Al Quoz, or Jebel Ali. These zones are equipped with world-class infrastructure and logistics support.
4. Proximity to Global Shipping Routes
If you’re exporting products, having your facility near Jebel Ali Port (one of the world’s busiest ports) or Dubai International Airport gives you a clear edge in terms of speed and cost of delivery.
5. Lower Operational Costs Compared to Other Global Cities
Despite being a modern business hub, Dubai offers cheaper utility rates, subsidized land, and government-backed services for industrial businesses, especially for manufacturers focused on volume.
6. Easier Labour Hiring and Visa Support
Manufacturing businesses usually need a large workforce. With an industrial license, you can apply for more employee visas and hire both skilled and unskilled labour with fewer restrictions.
Why Go Through the Setup Process Alone?
An industrial license in Dubai is a must if you want to run a manufacturing or production business. It not only keeps your business legal but also gives you access to many benefits. But getting the license involves a lot of crucial & legal steps. It can be confusing and time-consuming if you try to do it on your own.
That’s where All Emirates (AE) Setup comes in. We help you with everything – from start to finish. Whether it’s picking the best location, handling paperwork, or dealing with government or free zone authorities, we’ve got you covered.
Want to set up your industrial business in Dubai without the stress?
Get in touch with AE Setup today and let our team make the process easy for you.
