The industrial growth in Dubai is supported by world-class logistics and infrastructure, helping the UAE expand its corporate landscape. For manufacturers, obtaining an industrial license in Dubai enables the production of semi-manufactured or fully manufactured goods. A valid license is required to operate an industrial facility. As Dubai evolves, this guide outlines the current steps to secure an industrial license and start production. For broader context on Dubai real estate and site selection, see Real estate in Dubai in 2023: expert forecast.
The transformation of raw materials from crude to refined states is commonly referred to as production. The final product may be semi-manufactured or fully manufactured, depending on the extent of transformation. Whether through manual or mechanical processes, these conversions are carried out in an industrial setting. A Dubai industrial trade license is issued to the organization that processes natural resources or alters raw materials.
The first step is to engage business formation experts for the UAE industrial license application, as they can manage the procedure on behalf of the investor. Business setup consultants in Dubai help streamline the process to obtain an industrial license in Dubai, ensuring thorough documentation and reducing startup stress. Additionally, consider property options in Dubai Land to find suitable office or warehouse space. Dubai Land: Who needs property in the area?
Prerequisites and Documents to Obtain Industrial License in Dubai
Before applying for an industrial license, there are certain specifications that the applicant should accomplish. A non-negotiable prerequisite is that the company should have a local sponsor who holds 51% of the shares and they help with all the legal formalities associated with the industrial license. Foreign investors or industrial license holders can take the rest of the shares. For office and warehouse space considerations in Dubai Land, see Dubai Land: Who needs property in the area?.
The investor must have a physical office and a warehouse presence anywhere in Dubai if they want an industrial license. It is not acceptable for the authorities to have virtual offices. From the area where the business is operating, they should also have a local industrial license. The company should have 5 horsepower machines, at least 10 workers and the capital should be at least Dhs 250,000. For updated trends in Dubai real estate, see Real estate in Dubai in 2023: expert forecast.
There is the involvement of certain ministries and external agencies in the issuance of the license. To attain an industrial license in Dubai, the investor should submit a detailed report to the concerned authorities. It should include the details related to the factory plans, production cost, capital, intention for opening the factory, information about the equipment involved in the production, as well as ways to finance the factory. Any other relevant information including data about the employees should also be submitted. This aligns with broader regulatory and land-use planning considerations discussed in The Future of Dubai Real Estate: What to Expect in the Next Decade.
The investor should carry a copy of the passport, trade license, and balance sheet. They should have the approval of the National Media Council, the Ministry of Health, the Ministry of Environment and Water, and the Ministry of Interior. They must also have a partnership contract if it is a partnership firm, a feasibility study, and a summary of the registration of the citizen. For broader real estate planning context, see The Future of Dubai Real Estate: What to Expect in the Next Decade.
Industrial License in Dubai – How to Obtain and What Are its Benefits?
It is a straightforward process to apply for an industrial license in Dubai. The very first procedure before setting up an industrial concern or factory is to obtain initial approval from the concerned authorities in Dubai. When it comes to altering the present factory specifications or settings, initial approval is also applicable. This aligns with the broader real estate outlook in Dubai.
The business person must get in touch with the Department of Economic Development (DED) and apply for the industrial license after they get the initial approval. Within the prescribed time, the final decision is made by the Department of Economic Development (DED). For the license application, the processing time is 3 months. However, the applicant can submit a request to the relevant free zone authorities if they want to run their business in a free zone. This timeline is influenced by project scale and location, with real estate market trends covered in Real estate in Dubai in 2023: expert forecast for context.
After the decision has been made by the Department of Economic Development (DED), the applicant shall receive the Application Approval notification. It may take another 15 days to reach the applicant. The applicant needs to get prior permission from the municipality when it comes to factory consultation. Other agencies and Ministries like the Ministry of Health, Chamber of Commerce and Industry, etc must also approve the license. The final approval shall be issued within two weeks if all the aforementioned requirements and documents are through. This process is part of the broader regulatory framework that aligns with the real estate and industrial outlook described in The Future of Dubai Real Estate: What to Expect in the Next Decade.
After all the applications and approvals when the industrial license is obtained by a company, the authorities in the United Arab Emirates grant them certain rights. Encouraging industries and increasing investment in the industries is the aim of those authorities. The benefit of holding an industrial license in Dubai is that the government will provide land at a reduced rate for developing their industry. To support the investor, terms for renting industrial space have been specifically designed. This aligns with the broader real estate outlook in Dubai and can be better understood in The Future of Dubai Real Estate: What to Expect in the Next Decade.
Necessities such as water, electricity, and others are available at a low rate. To improve their industry, guidance is provided focusing on the methods used by similar industries. Loans with lower interest rates are given to innovative products and if the product is expected to improve the national economy, the government will financially help them during R&D. During official procurement, exceptional quality goods will be prioritized by the UAE government.
As the applicant obtains the industrial license, the following activities can be carried out:
- Processing of raw materials
- Iron and Steel casting
- Appliances and equipment manufacturing
- Manufacturing of gold and precious stone cutting
- Production of batteries
- Food production
- Paper production
- Manufacturing of textile
- Manufacturing of petroleum products
- Automobile and motorcycle manufacturing
The cost is dependent on the location of the firm. According to the type of industry they are establishing, they may need additional approvals and registration. With amendments in existing pricing rules, the overall cost may vary from time to time, and this is further contextualized by trends in Dubai real estate as discussed in Real estate in Dubai in 2023: expert forecast.
