What is an industrial license in Dubai?
Dubai is fast becoming a major industrial and logistics powerhouse – not only in the Gulf, but internationally. This shift is part of the government’s Dubai Industrial Strategy 2030 to boost the sector and further transform its economy.
All Dubai businesses involved in manufacturing and industrial operations require an industrial license which allows them legally to process, produce, or assemble goods locally. These licenses break down into three categories, which are based on the scale of operations, facility size, and health and safety risk levels:
- Light Industrial License: For small workshops (below 2,000 sq. ft.), like auto garages, small storage units, basic assembly, and light manufacturing activities.
- Medium Industrial License: For factories and larger warehouses (above 2,000 sq. ft).
- Heavy Industrial License: For large-scale plants or factories, often with custom-built infrastructures with complex, high-output machinery or involving hazardous substances.
Factories, assembly units, processing facilities. Planning your factory setup in UAE. That’s why we’ve put together this guide. You’ll learn everything about the industrial license UAE and manufacturing license Dubai, and the steps to get an industrial license in Dubai. Trade License Zone doesn’t just help with the paperwork – we handle everything for you, even post-setup.
What business activities fall under an industrial license?
Business activities allowed with an industrial license include manufacturing, processing, assembly, packaging, and storage-related operations. An industrial license permits a broad range of industrial activities:
- Processing of raw materials
- Quarry operations and mining activities related to stone and other minerals (including petroleum extraction)
- Textile manufacturing
- Metal casting and manufacturing of appliances and machinery
- Production of food products (including meat processing)
- Glass manufacturing
- Wood products and furniture manufacturing
- Plastics product manufacturing
- Motor vehicle manufacturing and parts manufacturing
- Light aircraft manufacturing
- Manufacturing of military equipment, sensors, and specialized industrial products
Interestingly, it also includes the treatment and processing services like sewage grease treatment, metal expansion bellows, fiberglass tanks, shower enclosures, etc. And innovative products and their manufacture are also permitted, like 3D printed building concrete and green hydrogen.
What are the main requirements for an industrial license?
Getting an industrial license means ticking several boxes for government, municipal, and other agencies’ approvals. One of the main requirements is showing proof of financial resources. Some industrial licenses (especially heavy industrial Dubai licenses) require a minimum of AED 250,000 capital investment. The other is needing a minimum of 10 employees – this is standard for all industrial businesses in Dubai.
How to get an industrial license in Dubai: Step-by-step process
Here’s a breakdown of the application process for an industrial license:
- Partnering with Trade License Zone
- Selecting your industrial license and location
- Getting an NOC and other approvals
- Obtaining initial approval
- Constructing or preparing your facility
- Final inspection and approval
Step 1: Partner with Trade License Zone
Starting your industrial business means navigating a complex and multi-layered process. That’s where partnering with expert business setup specialists like Trade License Zone comes in. We assist with everything from licensing, business registration, liaising with Dubai’s various government and municipality agencies, and handling the 100-and-1 other hidden actions in ensuring your business is set up right from the get-go.
Step 2: Choose your industrial license type and location
Do you need a light, medium, or heavy industrial license? That determines the location. There are specially created industrial area Dubai, designated according to license types and business activities.
So what are those approved areas in Dubai? Jebel Ali Free Zone (that’s a free zone industrial license), Dubai Industrial City, Dubai Investments Park, or Dubai South. You can’t perform any industrial activities outside of the designated Dubai industrial sector.
Step 3: Get an NOC and other approvals
You need to obtain three – essential – papers to continue:
- No Objections Certificate (NOC) from the Dubai Department of Economic Development (DED)
- Approval certificate from the Dubai Land Department
- Dubai Municipality license for Environmental Clearance
You may require additional industrial approvals in UAE from other government authorities, depending on your company’s operations.
Step 4: Apply for initial approval
Now, you can send off your initial approval (and paperwork – listed in the next section) to the Dubai Department of Economic Development (DED). It gives you the green light to set up your business.
Step 5: Construct or prepare your facility
Building a factory? Setting up your workshop? For this step, you can begin with those as per your approved plans in the approved industrial zone you selected.
Step 6: Final inspection and approval
The DED will conduct inspections to verify your facility’s compliance with your approved plans and the government requirements for safety and environmental standards. Once passed, it’ll issue your industrial license approval.
Documents needed for an industrial license in Dubai
You’ll need to sort the following papers out:
- Passport and Emirates ID of the owners and shareholders (and passport-sized photos of each person)
- A No Objections Certificate (NOC) from the DED
- Memorandum of Association (MoA)
- Architectural and engineering blueprints/layout of the factory or facility
- List and description of machinery, raw materials to be used, technology, and production methods
- Environmental impact assessment study
- Ejari or tenancy contract (depending on setup type)
- Detailed business plan and proof of financial resources
- Land Department approval certificate
- Dubai Municipality Environment Clearance certificate
Government approvals and authority coordination explained
Securing an industrial license in Dubai requires coordination and approvals from several government authorities to ensure compliance with legal, safety, environmental, and operational standards. Here are the most typical approvals needed:
- Dubai Department of Economic Development (DED): This is the main authority to apply for industrial license. It also oversees inspections and coordinates with other agencies to verify compliance before granting the license.
- Dubai Municipality: Approves the land use, building permits, and construction plans (or any warehousing license in Dubai is needed). It conducts inspections for health, fire, safety, environmental compliance, waste management, etc.
- Dubai Civil Defense: Reviews fire safety and building codes.
- Dubai Land Department: Approves land use areas for industrial activities.
- Dubai Chamber of Commerce and Industry (DCCI): Registration is required as this body recognizes your business within Dubai’s commercial framework.
Other relevant authorities depending on your industry type:
- Ministry of Health (MOH)
- Ministry of Climate Change and Environment
- Dubai Electricity and Water Authority (DEWA)
- UAE Ministry of Interior
Key benefits of holding an industrial license in Dubai
The key benefits of obtaining an industrial license in Dubai include tax advantages, strategic location, logistics efficiency, and foreign ownership possibilities.
Tax benefits
Industrial businesses in free zones enjoy exemptions from personal income tax and corporate tax (subject to regulations), and they also benefit from customs exemptions on machinery, equipment, and raw material imports used in manufacturing.
Strategic location
Dubai’s industrial zones are situated close to ports and airports for easier access to global markets and supply chains.
Logistics efficiency
The designated industrial zones comprise logistics infrastructure, warehouses, and ready factories for smoother storage, processing, and distribution activities. Companies in these zones also benefit from preferential rental fees and subsidized land costs, in some cases.
Foreign ownership possibilities
Most industrial free zones offer 100% foreign ownership without the need for a local partner. This means investors can fully control their manufacturing businesses in Dubai.
Dubai Industrial Strategy 2030: What it means for your business
The Dubai Industrial Strategy 2030 is a comprehensive government plan to transform into the premier hub for logistics and supply chain UAE. This policy’s aim is to support the sector’s growth in economic importance, foster innovation and knowledge-based industrial activities, promote Dubai as the preferred global manufacturing platform, and stimulate green and sustainable industrial activities.
The strategy provides incentives and support to make it work. There’s AED 30 billion in funding set aside through financial institutions; access to advanced infrastructure in its industrial zones; and incentives of AED 190 million through investments in research and development.
Frequently asked questions
What is an industrial license in Dubai?
It is a license that permits manufacturing, processing, or industrial production in Dubai.
How much is industrial license in Dubai?
Industrial license cost Dubai ranges from AED 10,000 to AED 30,000 or more, depending on setup, location, and approvals.
What is the difference between an industrial license and a commercial license?
An industrial license covers production or manufacturing. A commercial license covers buying/selling goods or services.
Why work with Trade License Zone
Trade License Zone is your specialist partner in setting up an industrial business in Dubai. Our team has guided tens of thousands of businesses over the past 30 years, and our expertise spans business setup in Dubai, legal procedures, and government approvals.
What sets us apart is our support that extends beyond initial setup. We offer ongoing support and advice on market changes and compliance requirements. Getting your industrial license? We can simplify the entire process for you – and save you time and money.
How? Contact Trade License Zone today to take the first step.
