The manufacturing sector is a key driver of the UAE’s economic development. As the country continues its diversification objectives, the sector maintains a positive outlook. Substantial investments in technology, infrastructure, supply chains, and logistics further strengthen the manufacturing sector, expanding business opportunities.
The first step to leveraging these opportunities is to secure a manufacturing license in the UAE. With the right guidance, applying for a manufacturing license in Dubai, Abu Dhabi, and the other emirates can be a smooth and efficient process.
With more than 20 years of experience as company formation specialists in the UAE, Worldwide Formations has formed government partnerships and expanded expertise. We guide businesses through regulatory requirements, approvals, and compliance with confidence, ensuring a streamlined setup and a strong foundation for long-term success in manufacturing in the UAE.
The following guide details the UAE manufacturing license requirements as well as the process involved in obtaining one.
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Key insights
- The manufacturing sector in the UAE is diverse, with many thriving manufacturing companies covering the production of a wide range of goods, from auto parts to textiles.
- A manufacturing business setup in the Dubai mainland typically requires more approvals from authorities than a setup in free zones, making the latter a more cost-effective option for entrepreneurs.
- Manufacturing companies in the UAE must meet the capital requirement, which is a minimum of AED 250,000.
Businesses that need a manufacturing license in Dubai and across the UAE
Any business involved in the production of raw materials into final products that are ready for market distribution needs a manufacturing license in the UAE. The manufacturing sector in the Emirates is diverse.
Dubai and its neighboring emirates are home to many thriving manufacturing industries, covering the production of a wide range of goods. Some of the sectors include:
- Auto parts
- Aviation
- Binding
- Casting of metals
- Food
- Packaging
- Paper
- Printing
- Sculpting
- Textiles
How to apply for a UAE manufacturing license
Manufacturing companies in Dubai and the UAE need to handle a couple of key tasks before applying for a business license.
The first is to choose your company name. This process takes on more importance here in the Emirates than elsewhere because it must follow the UAE’s clearly defined naming conventions. In addition to choosing a catchy business name that also captures the nature of your business, you must ensure that it does not contain:
- Any blasphemous or offensive language
- References to any well-known institutions
- Any abbreviation of your name (though your full name is acceptable)
Your name should also have a legal entity attached to it, such as FZE or LLC. It must also relate to your business activity, not resemble the name of any other company, and be available to register.
The next task is to clearly outline your business activities. Manufacturing is not enough. You must specify the type of manufacturing you intend to undertake.
Your activity or activities must be chosen from a pre-determined list. It’s important that you list every activity that applies to your business when making your application as failure to do so can lead to fines or even license revocation.
Once these steps are complete, you can start the process of applying for your manufacturing license in Dubai, or elsewhere in the UAE.
- Secure approval to build or operate a factory. This must be obtained from your local municipality.
- Apply for your license. If you are setting up in the UAE mainland, make your application to the Dubai Department of Economy & Tourism (DET) or the equivalent in your emirate.
- If you’ve chosen a free zone setup, apply directly to the managing authority of your chosen free zone.
In both cases, you are usually required to submit several documents along with your application form, including:
- A copy of your passport – and that of any other shareholders
- Your business plan
- A copy of your signature
- A No Objection Certificate from your current employer (if applicable)
A manufacturing business setup in Dubai mainland also requires approvals from the Chamber of Commerce and Industry, Ministry of Health, Ministry of Environment and Water Approval, Ministry of Interior Approval and other government bodies. These approvals are not a requirement for a manufacturing business setup in a UAE free zone, making it the most cost-effective option for most companies. Free zone incorporation is often the simplest solution for most businesses.
If approved, licenses are usually issued within two weeks.
Need assistance with a business setup in the UAE?
Starting your manufacturing business the right way from day one is critical to its success
in the UAE. With expert guidance in choosing the right legal structure and finding the
suitable location, Worldwide Formations simplifies your business setup and ensures it is
built for long-term growth.
Talk to Our ExpertsWhat are the requirements to get a manufacturing license in Dubai?
All manufacturing companies in Dubai and the UAE need to complete several requirements.Â
- You must have physical premises, not a virtual office.Â
- You must have at least AED 250,000 in capital and you must employ at least 10 people.
- You are also required to produce a report detailing the specifics of your factory, including floorplans, tools and financing information. If you are setting up in a free zone and using an existing factory, this step is not necessary.
- You must also conduct a feasibility study into your business proposition.
Manufacturing license in Dubai – Cost
There are numerous costs involved in starting a manufacturing business. As well as the cost of materials, tools, premises and workforce, you’ll also need to consider visas, approvals, and licenses.
The most cost-effective way to get set up is to incorporate your business in a UAE free zone. By doing so, you remove the costs of additional approvals and can usually make use of tools and premises at much lower rates than on the mainland.
To obtain your UAE manufacturing license, you should expect to pay in the region of AED 15,000 to AED 50,000. In some cases, this will include visa eligibility and the use of premises.
The best way to ascertain the costs involved in starting your business is to talk to an expert in company setup in Dubai and across the UAE, so they can provide you with a quote based on your specific requirements.
Securing a manufacturing license in the UAE
By following the steps above, you can obtain your trade manufacturing license in Dubai, UAE.
Whether you need a mainland company formation in Dubai or a business setup in a free zone, it is always advisable to undertake the steps with the assistance of a registered company formation agent to eliminate any potential delays that might arise.
With more than 20 years of experience in company incorporation, Worldwide Formations can help you get your business up and running within a week or two. We’ll manage your license and visa application and correspond with all relevant authorities on your behalf. All you need to do is wait for the green light to start trading.
Frequently Asked Questions
Can foreigners own 100% of a manufacturing company in the UAE?
Yes, foreigners can own 100% of a manufacturing company in the UAE. Companies with local sponsors can begin to restructure their business and own 100% of their company as foreigners. Investors can establish manufacturing companies in Abu Dhabi, Dubai, and elsewhere in the UAE, producing textiles, beverages, food, and machinery.Â
Some restrictions still apply, though. Complete foreign ownership of a manufacturing company is not allowed in security-related manufacturing. These include military garments manufacturing, military tools and supplies manufacturing, sensors and military communication systems manufacturing, toughened and laminated flat glass manufacturing, and radar equipment manufacturing, among others.
What is the minimum capital requirement for an industrial license in Dubai, UAE?
The minimum capital requirement for an industrial license in Dubai, UAE, is at least AED 250,000. The minimum amount ensures that your business will have the resources to operate efficiently and that it is financially capable of carrying out its defined activities.
Do I need ISO certification to start manufacturing in the UAE?
No, you do not need an ISO certification to start manufacturing in the UAE. An ISO certification is a credential and not a requirement. It’s a credential that tells buyers that your system is reliable in managing quality, process control, documentation, and operational risk. Although ISO certification is not mandatory for manufacturing companies in the UAE, it may be a key requirement for export-focused markets, major buyers, and to bid on government contracts.
The information here is only for general guidance. Details may vary by jurisdiction. For up-to-date information relevant to your business, please book a free personal consultation today.
