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Dubai’s industrial sector continues to attract manufacturers and investors from around the world, backed by world-class infrastructure, strategic location, and investor-friendly regulations. Whether you are launching a new production facility or expanding existing operations into the UAE market, securing an industrial license in Dubai is the first step toward legal, compliant manufacturing. At Setup Dubai Business, we handle the entire licensing process on your behalf, from initial approvals to final issuance, so you can focus on building your business.
An industrial license is a government-issued permit that authorizes businesses to carry out manufacturing, production, and processing activities within the UAE. Issued by the Dubai Department of Economy and Tourism (DET) for mainland setups, or by the relevant free zone authority for free zone companies, this license ensures your operations comply with federal and local industrial regulations.
Unlike a commercial license (for trading activities) or a professional license (for service-based businesses), an industrial license specifically covers the transformation of raw materials and semi-finished goods into finished products through physical, chemical, or mechanical processes.
Dubai classifies industrial licenses based on the scale and nature of your operations. Understanding which category applies to your business is essential before starting the application process.
For small-scale operations in workshops, auto garages, showrooms, and warehouses under 2,000 sq ft. Best suited for businesses with lower health and safety risk profiles.
For mid-sized manufacturing units, factories, and storage facilities exceeding 2,000 sq ft. Covers most standard manufacturing and production operations in the UAE.
For large-scale industrial operations involving chemicals, recycling plants, and heavy manufacturing. Subject to additional environmental and safety clearances.
Any business engaged in converting raw or semi-manufactured materials into finished goods, whether through physical, chemical, or mechanical means, must obtain an industrial license in the UAE. This applies across a wide range of manufacturing sectors:
Food and Beverage Production
Bakeries, dairy plants, packaged food manufacturing
Textile and Garment Manufacturing
Fabric weaving, apparel production, dyeing
Metal and Steel Fabrication
Casting, forging, structural steel works
Machinery and Equipment
Engine manufacturing, industrial equipment assembly
Petroleum and Chemical Products
Refining, chemical compounds, plastics
Pharmaceuticals and Healthcare
Drug manufacturing, medical device production
Paper and Packaging
Paper production, packaging materials, printing
Construction Materials
Cement, concrete, glass, building components
The UAE government has identified five priority industrial sectors for growth: aerospace, maritime, pharmaceuticals, machinery, and food and beverage. Businesses operating in these sectors may qualify for additional government support and incentives.
Obtaining an industrial license involves meeting specific criteria set by the DET and the Ministry of Industry and Advanced Technology (MoIAT). Here is what your business must have in place:
| Requirement | Details |
|---|---|
| Minimum Share Capital | AED 250,000 for mainland industrial activities |
| Minimum Employees | 10 or more workers, depending on classification and activity type |
| Physical Premises | A physical warehouse, factory, or industrial land is mandatory. Virtual offices are not accepted for industrial licenses. |
| Industrial Machinery | A minimum of 5 power-operated machines installed at the facility |
| Location | Must be within a designated industrial zone or park (residential and commercial areas are not permitted) |
| Legal Structure | Registered as an LLC, free zone entity, or other accepted business structure |
| Ownership | 100% foreign ownership is now permitted for most industrial activities on the mainland |
Depending on your manufacturing activity, additional approvals may be required from authorities such as Dubai Municipality (environmental and safety compliance), the Ministry of Health (pharmaceuticals and healthcare products), the Central Bank of the UAE (banking-related manufacturing), and Civil Defense (fire safety clearance).
Not sure which approvals apply to your activity? Our licensing specialists at Setup Dubai Business assess your specific manufacturing activity, identify all required approvals, and manage the entire clearance process, so nothing gets missed or delayed.
Having your documentation ready upfront prevents delays during processing. Here is what you need to prepare:
– Passport copies of all shareholders
– UAE entry stamp or valid visa copies
– Emirates ID copies (if applicable)
– No Objection Certificate (NOC) from current sponsor, if employed in the UAE
– Memorandum of Association (MOA)
– Detailed business plan with production scope
– Industrial feasibility study
– Factory or warehouse layout plans
– Initial approval from DET
– Dubai Municipality approval
– MoIAT industrial production license
– Civil Defense clearance (fire safety)
– Ejari-registered tenancy contract
– Title deed or lease agreement for industrial land
– Location plan and facility layout
– Environmental impact assessment (if applicable)
The application process involves coordination between multiple government authorities. Here is how Setup Dubai Business guides you through each stage:
We help you identify the correct activity code from the DET list and determine whether a light, medium, or heavy industrial license matches your operations. This step also includes selecting your preferred legal structure.
We reserve your company name with the DET, ensuring it complies with UAE naming conventions and is not already registered. This can now be completed digitally through the DET’s online portal.
We submit your application for initial approval, which confirms your chosen activity is permitted and your proposed business structure is compliant. This is the foundational green light before proceeding.
We coordinate with Dubai Municipality, MoIAT, Civil Defense, and any sector-specific authorities to obtain all necessary clearances. Simultaneously, we assist with leasing suitable industrial premises in a designated zone.
We submit your application through MoIAT’s digital services platform, including all documents, pay the applicable fees, and coordinate the mandatory facility inspection by the ministry inspector.
Once all approvals are in place, we finalize payment and collect your industrial license. We then assist with post-setup essentials, including corporate bank account opening, visa processing, and VAT registration and accounting setup.
Typical Timeline: The full process takes approximately 4 to 12 weeks depending on activity type, premises readiness, and the number of external approvals required. Our team works to fast-track clearances and minimize delays at every stage.
Choosing the right jurisdiction for your manufacturing business directly impacts your market access, costs, and operational flexibility. Both mainland and free zone setups offer distinct advantages for industrial businesses.
| Factor | Mainland | Free Zone |
|---|---|---|
| Market Access | Unrestricted access to the entire UAE market and direct government contracts | Primarily for export; local sales require a mainland distributor (though new 2026 permits are easing this) |
| Ownership | 100% foreign ownership now available for most industrial activities | 100% foreign ownership standard |
| Corporate Tax | 9% on profits exceeding AED 375,000 | 0% preferential rate on qualifying income for qualifying free zone entities |
| Setup Cost | AED 20,000 – AED 40,000+ (excluding premises and machinery) | Varies by free zone; often lower licensing fees with ready-to-use warehouses |
| Best For | Manufacturing for UAE domestic market and government suppliers | Export-focused manufacturers and businesses seeking customs advantages |
Your facility must be located within a designated industrial zone. Dubai offers several world-class options:
Home to 7,000+ companies. Direct access to Jebel Ali Port, the region’s largest. Ideal for export-heavy manufacturers with cargo transfer between port and airport in under 4 hours.
Dubai Industrial City (DIC)
Over 300 operational factories across six sector-focused zones. Located near Al Maktoum Airport. Lower setup costs compared to other industrial areas, with over 500 factories planned by 2026.
Dubai Investments Park (DIP)
Mixed-use development offering industrial warehouses, factories, and residential areas. Flexible plot sizes suited for medium to large-scale manufacturers.
Dubai South
A logistics and aviation-connected industrial hub near Al Maktoum International Airport. A growing choice for light and medium industrial operations.
The total cost of obtaining an industrial license depends on your business activity, premises size, legal structure, and the number of visas required. Here is a general breakdown to help you plan your budget:
| Cost Component | Estimated Range (AED) |
|---|---|
| DET / Free Zone License Fees | 10,000 – 15,000 |
| MoIAT Industrial Production License | 1,000 – 3,000 |
| Government Approvals and Certificates | 3,000 – 8,000 |
| Trade Name Registration | 600 – 1,200 |
| Professional Consultancy Fees | 7,000 – 15,000 |
| Estimated Total (Excluding Premises) | AED 20,000 – AED 40,000+ |
These estimates do not include premises rental, machinery, fit-out costs, or visa processing fees. Actual costs vary based on your specific activity and chosen jurisdiction. Contact us for a personalized cost estimate tailored to your manufacturing business.
An industrial license unlocks advantages that go well beyond legal compliance. Dubai actively supports its manufacturing sector through incentives and infrastructure that give licensed businesses a competitive edge.
Mainland industrial license holders can sell products anywhere in the UAE and bid on government contracts, a significant revenue opportunity not available to free zone entities without special permits.
International investors can now own their manufacturing business entirely on the mainland, with no requirement for a local partner or sponsor for most industrial activities.
Licensed manufacturers may access subsidized industrial land, discounted utility rates, and low-interest financing, particularly in priority sectors under the UAE’s Operation 300bn industrial strategy.
Sponsor residence visas for employees and dependents. Business owners also qualify for investor visas and potentially the 10-year Golden Visa, depending on investment size.
Industrial license holders benefit from Dubai’s customs infrastructure, free trade agreements, and access to major ports and airports for global distribution of manufactured goods.
Corporate tax of just 9% on profits above AED 375,000, with the first AED 375,000 taxed at 0%. Free zone qualifying entities may benefit from a 0% preferential rate on qualifying income.
Once your industrial license is issued, ongoing compliance is essential to maintain your legal standing and avoid penalties. Here is what to stay on top of:
Annual License Renewal
Your trade license must be renewed every year. Late renewal incurs penalties. Some jurisdictions also require annual audits.
Corporate Tax Filing
All businesses must file corporate tax returns within 9 months of the financial year end. Tax Registration Number (TRN) is mandatory even for businesses below the taxable threshold.
VAT Compliance
VAT at 5% applies on most goods and services. Registration is mandatory once annual turnover exceeds AED 375,000. Updated 2026 rules have simplified VAT paperwork.
E-Invoicing (Starting July 2026)
Businesses with AED 50M+ revenue must use FTA-certified e-invoicing systems from July 2026. Smaller businesses follow in later phases. Preparation should begin early.
UBO Reporting
Ultimate Beneficial Owner transparency is mandatory. All companies must maintain accurate UBO records and report to the relevant authorities.
Emiratisation (50+ Employees)
Companies with 50 or more employees must meet Emiratisation quotas with a 2% annual increase in national hiring targets.
Setup Dubai Business offers ongoing PRO services and accounting and tax compliance support to keep your industrial business fully compliant year after year.
Industrial licensing involves more moving parts than most other trade licenses in Dubai. Multiple government authorities, facility inspections, sector-specific approvals, and strict premises requirements mean there are numerous points where delays or rejections can occur. That is exactly where our team adds value.
End-to-End
We manage everything from initial consultation and activity selection through to final license collection and post-setup support.
Multi-Authority
We coordinate directly with DET, MoIAT, Dubai Municipality, Civil Defense, and all sector-specific regulators on your behalf.
Full Support
Beyond licensing, we help with bank account opening, visa processing, office setup, and annual compliance.
Whether you need a mainland industrial license, a free zone manufacturing permit, or guidance on which jurisdiction suits your operations best, our specialists are ready to help. We also support investors looking at company formation in Dubai, branch office setup, and company registration across the UAE.
The process typically takes 4 to 12 weeks. Simple activities with ready premises can be completed faster, while complex manufacturing requiring multiple approvals and facility construction may take longer. Our team works to minimize processing time at each stage.
No. Industrial licenses require a physical facility, whether a factory, warehouse, or industrial land within a designated zone. Virtual offices are not accepted for industrial activities.
Yes. As of 2026, 100% foreign ownership is permitted for most industrial activities on the mainland. Free zones have always allowed full foreign ownership. No local partner or sponsor is required.
Mainland industrial companies require a minimum share capital of AED 250,000, at least 10 employees, and a minimum of 5 power-operated machines. Free zone requirements vary by authority and may differ.
Total setup costs range from approximately AED 20,000 to AED 40,000+, excluding premises, machinery, and fit-out. Actual costs depend on your activity type, jurisdiction, and company structure. Contact us for a detailed estimate based on your requirements.
Yes. Your trade license must be renewed annually, and the MoIAT industrial production license has its own renewal cycle. Late renewals can result in fines and operational restrictions.
Disclaimer: The information provided on this page reflects general requirements as of early 2026 and is subject to change based on government regulatory updates. Specific requirements may vary depending on your business activity, chosen jurisdiction, and individual circumstances. This content is for informational purposes and does not constitute legal or financial advice. Contact Setup Dubai Business at +971 55 378 8000 for personalized guidance tailored to your manufacturing business.
for more details call +971 55 378 8000 or e-mail us in info@ebsuae.com
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