Industrial License in Dubai, UAE

The superior and wide-spread logistics and infrastructure of Dubai facilitate industrial growth. Being a trading hub that connects the east to the west, Dubai has a geographical advantage too. If you are into industrial manufacturing and would like to set up an industrial concern in Dubai or UAE – it is a prerequisite to attain an Industrial License. Getting an industrial license in Dubai facilitates manufacturing and industrial businesses to produce semi-manufactured or fully-manufactured items. The activities under industrial license in Dubai essentially indicate production, segregation, collection, packaging, etc. The industrial trade license in the UAE requires the business to have a physical warehouse inside the nation. The license is commonly granted by the Department of Economic Development (DED) Dubai. As a company owner, you need to get approval from the Dubai Municipality and other concerned authorities for the issuance of this license.

  • Dubai Industrial License Sector
    The sophisticated and well-organized seaports and airports in Dubai effectively cater to the growing needs of the industrial sector. The industrial sector utilizes this logistics advantage in the best possible manner. The transport of raw materials, equipment spare-parts, machinery and exchange of goods and all other associated activities can be performed smoothly and in a cost-effective manner. In the last decade, the industrial sector of UAE witnessed a growth of 31% and it is predicted to achieve a marginal increase by 2027. Dubai witnessed a 6% growth in the industrial sector in the last decade and is a major contributor towards the GDP. Electricity, water and gas, quarrying, mining and manufacturing are the major industrial sectors of Dubai.
  • What is meant by Industrial License?
    Production or manufacture of goods or commodities in an industrial environment or space requires a valid Industrial License. Production can be termed as the transformation of raw materials or natural resources from the crude state to the final or refined state. Here the raw materials are subjected to structural or appearance-oriented transformation and the end product could either be in the semi-manufactured or fully-manufactured state. The transformation must be carried out via manual or mechanical intervention. Production, accumulation, Industrial segregation, and final packaging of products – all come under Industrial activity and therefore necessitates a valid Industrial License. The license issuance is carried out by the Department of Economic Development or DED. The approvals and permissions from other external agencies and ministries may be required for license issuance when it comes to Industrial License in Dubai, UAE. The license is issued with validity in compliance with the terms and condition specified at the time of issuance. The investors who are planning to set up an industry in Dubai should possess a physical warehouse. And yes – it is a mandatory requirement.
  • Activities that come under Industrial production

    The entire manufacturing-related activities systematically performed in an area of land come under Industrial production. Some of the major activities that come under industrial production are listed below:

    Manufacturing of textile

    Paper Production

    Petroleum products manufacturing

    Metal casting

    Food production

    Manufacture of equipment and appliances

  • Prerequisites to apply for an industrial license in Dubai.
    There are certain prerequisites that an investor needs to accomplish before applying for an Industrial License in Dubai. And they are listed below.

    51% sponsor share – You should find a local sponsor for your company. The local sponsor holds 51% of the company share and the remaining 49% goes to the foreign investor.

    Local license – A local industrial license is mandatory for industrial concerns. And the local license is issued from the area of operation.

    Office and warehouse – A physical office space and a warehouse in Dubai is mandatory to obtain Industrial License. Having a virtual office in Dubai will not serve the purpose here.

    Employees – A minimum of 10 employees or workers is mandatory.

    Capital Investment – Minimum Dhs 250,000 must be set aside as the capital of your company. 5HP specification machines are mandatory.
  • Documents needed for Industrial license in Dubai.

    Certain Ministries and external agencies are involved in the License issuance. Here are the documents needed to attain an Industrial License in Dubai.

    A detailed report – You should submit a detailed report of the factory or industry that comprises the plan, objectives behind factory setup, information about the equipment involved in the production, manufacturing cost, capital involved and source of finance. You may furnish the employee details too. Non-citizens are supposed to submit the residence and passport copy.

    Feasibility study

    Partnership contract in case of partnership firms

    National Media Council Approval

    Approval from the Ministry of Health

    Copy of the Balance Sheet

    Approval from the Ministry of Environment and Water

  • How to get an Industrial License in Dubai?

    The process involved in the issuance of Industrial License in Dubai is listed below.

    Obtaining the Initial Approval from the concerned authorities is the very first procedure prior to setting up of industrial concern or factory in Dubai. Initial Approval is also applicable when it comes to altering the present factory specifications or settings.

    After you get the Initial approval, you may get in touch with the DED and apply for the Industrial License.

    The processing time of the license application is 3 months. DED makes the final decision within the prescribed time.

    The applicant shall receive the Application Approval notification from DED after the decision has been made. And this may take another 15 days.

    When it comes to factory construction, you need to get prior permission from the Municipality.

    You need to get other approvals from agencies and Ministries like the Ministry of Health, Chamber of Commerce and Industry etc.

    If all the aforementioned requirements and documents are through, the final approval shall be issued within two weeks.

    Getting an Industrial License in Dubai can be a time-consuming and tiring task because of the overload of formalities. Kiltons Business Setup Services have assisted several establishments for acquiring Industrial License in Dubai. Please contact our business consultants, even if it is a general query regarding Industrial License. We’re pleased to help you.

  • Privileges of Firms with Industrial License

    The authorities in the UAE have extended some privileges to the firms with an industrial license. Envisaged to promote industries and attract more investments in the sector.

    The privileges of having industrial license in Dubai are:

    • Terms for renting industrial space exclusively formulated to benefit the investor
    • The government will provide land at a subsidised rate or free of cost for establishing your industry
    • Discounted rates for electricity, water and other essential requirements
    • Guidance based on modus operandi of similar industries, to enhance your industry
    • Innovative products can get a loan at reduced rates 
    • If your product is expected to strengthen the national economy, the government will support you financially during the course of R&D
    • The products with exceptional quality will be given priority by the UAE government during official procurement

  • How Much the UAE Industrial License will Cost?

    The cost of obtaining an industrial license in Dubai, UAE and setting up industry will depend on whether your business is in the Mainland or Free Zone and other relevant factors. You may need additional approvals and registrations according to the type of industry you are establishing. The total cost may be approximately AED 25K. However, this may vary from time to time, with amendments in existing pricing rules. 

    Considering the initial set up charges and other costs, starting an industry in the Free Zone jurisdiction would be more budget-friendly. 
  • Obligations of an Industrial License Holder

    The federal authorities have specified certain obligations for the industrial license holder in Dubai. You must abide by the same for the smooth functioning of your industry and for avoiding unwanted repercussions.  

    Once your project is approved, you must commence construction of the industrial space within six months of receipt of the approval 

    • Submit all the requisite data to the Department of Economic Development (DED), Dubai, as directed
    • A letter to be submitted to the DED as and when you are ready to start the industrial activity. The DED will issue a certificate of authorization subsequently
    • Your industry must be included in the register of industries. Submit a letter to the concerned authority for the same.
    • In case of any alterations or amendments in the data pertaining to the factory, submit a letter, in the prescribed format, to the DED detailing the changes
    • You are unauthorized sell or lease the property that has been allocated by the government for establishing the industry
    • The data of employees enrolled in the company has to be prepared and a copy of the same must be submitted to the DED
    • All the products and materials imported after claiming exemption from customs duties shouldn’t be used unless specified during the import
    • Federal laws stipulate a minimum of 25% employment for local Emiratis
    • Strictly follow the rules, regulations and policies of the land
    • All the directives to maintain hygiene, health conditions and industrial safety must be pursued without fail
    • Any changes, including the appointment of a director, must be informed to the DED in writing. In that case, the shareholders along with the director will be responsible for all the activities, law enforcement, and maintaining stringent regulations for the industrial safety of the company
    • Reports have to be submitted to the authorities on a regular basis.

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Frequently Asked Questions On Industrial License in Dubai

  • What are the documents needed for an industrial license in Dubai?
    • The documents required while applying for the industrial license are: -

      Documents indicating company registration

      Copies of passports of shareholders

      National identity card and family book of the Emirati sponsor

      Notarized Memorandum of Association (MOA)

      Business plans, and blueprint of the industry - Info detailing the product costs, setting up expenses and other financial aspects

      Land lease agreement

      Location plan of the envisaged industrial establishment

      Other documents sought by the authorities

  • What is the purpose of the Industrial License in Dubai?
    • Industrial license is a mandatory requirement if you are planning a manufacturing or production factory in Dubai. You will have to register your firm with the industrial license to the DED and Dubai Chamber of Commerce and Industry.

  • What are the key focus industries specified by the federal government in the UAE?
    • With a vision to elevate the country to the next level by 2030, the government has formulated some key focus industries. The companies aiming to set up industries in the subject sector are expected to get better support from the government than other sectors. 

      Aerospace and aviation industry

      Maritime industry

      Medical equipment and pharmaceuticals

      Machineries/ Equipment

      Aluminium and other fabrication metal industry

      Food and beverage sector

  • Is there any additional support given by the government?
    • Yes, the government in the UAE extends additional support to the companies that prefer the following:

      Using indigenous raw materials and components

      The business is in the area specified by the government

      The industry can be instrumental in the economic development and strengthening of the nation

      Products are for national consumption

      The products are of international quality and can compete with products from the international arena

  • What are the essential requirements for obtaining an industrial license?
    • The essential requirements for obtaining an industrial license in Dubai, UAE are detailed below:

      You must set up an industry physically in Dubai. Alternately, you can register a business and seek an industrial license

      51% of the share of the company will be on the name of the local Emirati sponsor

      Your industry must have a warehouse, physically established in the emirates

      The company must meet the minimum capital requirements i.e. AED 250K