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How to Start a Manufacturing Company in UAE?

Starting a Manufacturing Company in the UAE is a prospective business category. UAE is a manufacturing hub with large and small manufacturing units operating in the region. So, to setup a manufacturing company, the investor must take an industrial license in UAE.

There are numerous business activities that fall under the Industrial License category in the UAE. It is a perfect location for obtaining an Industrial License as there is a large addressable market. There are many advantages for investors in setting up a Manufacturing Company in UAE.

Manufacturing Company are required for the production of diverse items and there is a growing demand for local production in UAE.

Indeed, a lot of items ranging from essential goods to construction materials to pharmaceuticals, etc., are required in the local UAE Market on a daily basis. Also, there is a robust business infrastructure available in the UAE that can easily support the growth of Manufacturing Company.

Why Choose UAE for Establishing a Manufacturing Company?

UAE offers the best infrastructure and support services for establishing manufacturing company. There are numerous business advantages in making UAE the base for a Manufacturing Company. Expert Business Consultants such as AURION will guide the investors in obtaining the Industrial License in UAE.

Investors prefer the UAE to obtain their Industrial License and setup a manufacturing company due to many reasons. UAE has a strategic location that will help manufacturers easily reach out to their global suppliers.

Furthermore, the business-friendly laws and initiatives by the UAE Government instill confidence in investors to set up a manufacturing unit. The industrial License issuance procedures in UAE are very straightforward and transparent.

Manufacturing Unit in UAE

Setting up a manufacturing unit is highly capital-intensive and requires huge investment. A manufacturing company setup requires heavy capital for sourcing the machinery, building the manufacturing setup, maintaining the equipment, etc.

So, a stable Government with no geopolitical tensions is the ideal place for establishing a Manufacturing Unit. Furthermore, UAE has one of the best Transport Networks with Airport, Seaport, Road Connectivity, and world-class infrastructure facilities.

Additionally, the UAE has an abundance of availability of skilled labor, easy import of raw materials at lower cost, warehouse facilities, a huge network of international banks, a large logistics network, a transparent Customs Clearance process, and more.

All of these business facilities and support infrastructure make it the ideal place to establish a Manufacturing company.

Where to obtain an Industrial License in UAE?

For obtaining an Industrial License in UAE, the investor can choose any of the two business jurisdictions – The Mainland or Free Zones. Depending on the business requirements, scope of business activity, budget, etc., the entrepreneurs can choose the right business jurisdiction.

1. Obtaining Industrial License from UAE Free Trade Zones

An Industrial License is available from selected Free Trade Zones in UAE. The investor can set up their Manufacturing Unit in those Free Zones in UAE having a large land area and warehouse spaces.

Free Zones such as the Dubai Airport International Free Zone (DAFZ), Dubai Commercity, Sharjah Airport International Free Zone (SAIF Zone), Hamriyah Free Trade Zone, etc., are ideal for obtaining the Industrial License and setting up a Manufacturing Company in the UAE.

They offer the perfect infrastructure and Industrial License packages for the investors to easily set up a Manufacturing Company in UAE. For entrepreneurs who want a plug-and-play manufacturing unit, the best choice is the Free Zone.

For manufacturing companies that are involved in re-packaging, assembling, re-exporting, etc., choosing a warehouse-based manufacturing unit in the Free Zones is the right choice.

2. Obtaining an Industrial License from UAE Mainland

For Manufacturing Units that require large infrastructure, land area, and capital investment, the ideal choice for obtaining an industrial license is Mainland. There are numerous business activities under the Industrial License in UAE. To setup a Manufacturing Unit in the Mainland, the investor must go through certain steps.

Ranging from Oil and gas manufacturing to Healthcare Devices Manufacturing, UAE has a wide range of industry presence. Investors can obtain 100% ownership in their Manufacturing unit, however, for certain business activities there is pre-approval required from the UAE Government Departments.

Industry Sectors Requiring Special Approvals

Following industry sectors have some pre-approvals to be obtained before proceeding with the issuance of Industrial licenses in UAE.

  • Oil and Gas Extraction Factories or Refineries
  • Mineral Ore Extraction or Purification Factories
  • Energy Management – Solar, Wind, Thermal
  • Factories with capital Exceeding AED 250,000

The Manufacturing industry sector is a key contributor to the UAE’s Non-Oil Trade. Also, UAE is constantly diversifying its business infrastructure and providing the required support to global investors.

UAE offers the right infrastructure support for entrepreneurs to easily establish long-term strategic projects that will contribute significantly to the progress of the UAE.

Setting up a Manufacturing Company in UAE Mainland – Steps Explained

To setup a Manufacturing Company in the UAE Mainland, the entrepreneurs must choose the right tradename for the company and get the name approved from the Dubai Economy.

Industrial License in UAE

Depending on the complexity of the business activity, obtain the special permits from the Government Authorities (For example for Pharmaceutical Companies, it requires a permit from the Ministry of Health).

As the next step, pay the required fees and submit the investor details, and other supporting documents (business plan if applicable) to get the industrial license issued from the authorities.

Business Activities under Industrial License in UAE

Following are the business activities that are allowed under the Industrial License in UAE:

  • Raw Material Processing
  • Petroleum and Metal Extraction
  • Fabric Production & Textile Manufacturing
  • Die Casting, Casting of Iron & Steel
  • Appliances and Machinery Manufacturing
  • Food and Beverages Production
  • Paper Product Manufacturing
  • Furniture, wood, rubberwood products manufacturing
  • Light Aircraft Manufacturing and Maintenance
  • Spare Parts Production – Automobiles, Ships, Yachts, Heavy Equipment, etc.

Please note the above list is not an exhaustive listing. There are more than 100+ business activities are available under the industrial license category.

Documents required for obtaining Industrial License in UAE

Following are the documents required for the Industrial License

  • Application Form duly filled-in for the Manufacturing license from Free Zone
  • Shareholder passport copy & photograph
  • Memorandum of Association with Free Zone
  • Factory Plan/Blueprint (optional)
  • Lease Agreement for the Manufacturing Unit
  • Proof of financial support by providing bank statement, financing options for the manufacturing unit

Specific Approvals Required for the Manufacturing License

Following are the specific approvals required for the Manufacturing License

  • Clearance from Economy and Ministry of Commerce
  • Approval from Dubai Municipality Planning Department
  • Dubai Electricity and Water Authority (DEWA) permit- Electricity, water, other utilities, etc.
  • Approval from Dubai Health Ministry
  • UAE Ministry of Interior approval

The Manufacturing license in UAE plays a vital role in shaping the overall trade and economic outlook of the region. Manufacturing companies in UAE get special customs and tax exemptions for meeting certain criteria such as

  • sourcing locally produced raw materials for production in UAE
  • Goods aimed at national consumption with export to outside of UAE
  • Industrial sectors that Government has earmarked for future development and more

Manufacturing Sector is a major focus area for UAE to improve the exports and trade value. From Oil & Gas Manufacturing to Healthcare Devices Manufacturing, UAE has a wide range of industry presence and is actively growing in volumes.

UAE offers the perfect infrastructure and ecosystem for entrepreneurs and companies (large & small) to expand their business in the global market seamlessly.

To know more about the process of obtaining an Industrial License in UAE, connect with our expert Business Consultants right away!

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