The business sector in the United Arab Emirates is expanding rapidly. As this growth continues, obtaining legal licenses has become essential to start a business. Currently, the UAE grants licenses in areas such as housekeeping, manufacturing, import and export, and freelancing. How to get an industrial license in Dubai? This is the main point of this article.

In Dubai, an industrial license is required for businesses that convert natural resources or raw materials into finished products. This transformation can be done manually or by machines, and it can start with raw materials or partially processed materials.

Having an industrial permit allows you to legally set up factories, warehouses, and workshops in Dubai. You can use these spaces to manufacture or store goods. You need this license for activities such as manufacturing, processing, assembling, packaging, and storing products. This article breaks down industrial licenses in simple terms:

What Is an Industrial License in Dubai?

An industrial license in Dubai allows individuals or companies to legally complete industrial activities. This allows them to manufacture goods, process and produce goods during compliance with Dubai rules. With this license, entrepreneurs can set up factories, production lines and contribute to the city’s industrial development.

To obtain it, you must register your business with the Department of Economic Development (DED) and the Dubai Chamber of Commerce and Industry. A license is required for companies that convert raw materials into new or semi-finished products, which includes manufacturing, sorting, storage and packaging.

Obtaining this license requires a physical facility such as a factory, plant or warehouse. Dubai’s strategic location and strong infrastructure make it ideal for industrial development. For further guidance, contact DBS Business Setup Consultancy Group.

Types of Industrial Licenses in Dubai

Discover the various specialized industrial licenses available in Dubai, each customized to specific business activities:

General Industrial License

A license covering a wide range of industrial operations and general manufacturing activities.

Industrial License for Chemicals

Issued to businesses involved in chemical production, handling and related industrial work.

Industrial License for Pharmaceuticals

Specifically for companies engaged in the production of medicines, healthcare products and related pharmaceutical operations.

For businesses manufacturing textiles, apparel and textile-based products.

Industrial License for Manufacturing

Designed for businesses focused on the production of goods and the operation of various production processes.

Industrial License for Plastics

Designed for companies manufacturing plastic goods and carrying out plastic processing activities.

Industrial License for Food Processing

Required for companies involved in the preparation, processing and packaging of food products.

How to Get an Industrial License in Dubai?

The steps to obtain an industrial license in Dubai include:

Legal Structure: Determine the legal form of your business, such as a Limited Liability Company (LLC) or a Free Zone Establishment (FZE).

Business Type Classification: Identify your business activity based on the official classification provided by the DED.

Trade Name Reservation: Choose and register a unique trade name for your business.

Approvals And Payments: Secure the required approval, pay the applicable fee, and get your industrial license.

Submit Application: Collect and submit all the necessary documents including your business plan, lease agreement and NOC from the relevant authorities.

Benefits of Getting a Dubai Industrial License

Obtaining an industrial license in Dubai offers numerous benefits to business owners and investors. Here is a list of such benefits for your understanding:

World-Class Infrastructure

Dubai provides world-class infrastructure and advanced technologies that help you to increase your manufacturing business efficiently in Dubai.

Strategic Location

The location of Dubai is very strategic, which provides easy access to markets in Asia, Africa and Europe. It also provides connectivity to GCC countries like Qatar, Bahrain, Oman and Saudi Arabia. Its central place makes it an ideal center for international trade.

Access to Skilled Workforce

A major benefit of having an industrial license in Dubai is access to a globally talented and skilled workforce. This workforce can help you take your manufacturing or packaging business to new heights.

Low-Cost Land

Industrial license holders can obtain land from the UAE government at low prices or sometimes for free to set up their businesses in Dubai.

Government Assistance

If your product or production contributes to strengthening the national economy of the UAE, you may be eligible for financial assistance from the government during the research and development phase.

Increased Business Credibility

Obtaining an industrial license in Dubai and starting your manufacturing or industrial business here significantly increases the credibility of your business.

Loans at Reduced Rates

If your manufactured or manufactured product is innovative, you may be eligible to get loans from banks at reduced interest rates.

Discounted Essential Services

After obtaining an industrial license in Dubai, you can get essential business services such as water and electricity at discounted rates.

Affordable Industrial Space

Entrepreneurs planning to start a manufacturing or industrial venture in Dubai do not need to worry about the high cost of industrial space. The rental terms are specifically designed to benefit business owners.

Read Next: How to Setup a Cloud Kitchen in Dubai: License Cost & Step by Step Process

Documents required to Obtain a Dubai Industrial License

• Details about the raw materials to be used

• Detailed blueprint of the proposed factory

• Lease agreement for the land

• Factory location plan

• Information about health and safety measures

• Copies of passports of all shareholders

• Complete list of machinery and equipment

• Details about the technology intended for production

• Proof of financial support

• Business model of the factory

• Memorandum of Association

Estimated Costs

Average costs to obtain an industrial license in Dubai:

• Professional consultant fee - starts from AED 7,000

• License fee - starts from AED 1,500 per year

• Government costs for certificates, stamps, signatures and other formalities

• Typical timeline

• Facility rental and construction costs

• Equipment, inventory and daily operating costs

It usually takes 1 to 3 months to obtain an industrial operating license in Dubai Months Take:

• Week 1: Select a location, submit NOC and approval requests

• Week 3: Obtain initial approval from DED

• Week 6: Construct the industrial facility and install the required systems

• Week 10: Conduct DED final inspection

• Week 12: Obtain a 5-year industrial license

The timeline may vary depending on the zone, business activity, and government departments.

Frequently Asked Questions

Q1. What types of industrial activities are permitted under this license?

An industrial license covers manufacturing, processing, packaging, assembling, and related industrial operations.

Q2. How much does an industrial license cost in Sharjah?

The cost of an industrial license in Dubai depends on the type and scale of industrial activity. Prices range from a few thousand to millions of dirhams.

Further Reading: Trade License in Sharjah: Costs, Types, Complete Process Explained