Industrial
Industrial License in Dubai, UAE
Any business in Dubai involved in industrial or manufacturing activities requires an industrial license. This license is mandatory for companies engaged in converting raw materials into finished products, components, or commodities for commercial sale.
Industrial Company Formation in Dubai: Permitted Activities
Businesses operating factories or manufacturing facilities must obtain an industrial license.
Some of the common activities permitted include:
- Canning and freezing of fish
- Stone processing
- Manufacturing of batteries
- Manufacturing of pharmacological products
- Dog food manufacturing
- Water bottling
- Tyre manufacturing
- Manufacturing of tobacco products
- Manufacturing of medical equipment
Industrial License in Dubai: Issuance and Approvals
The industrial license is issued by the Department of Economic Development (DED) in Dubai.
In addition, companies must secure approvals from several relevant authorities depending on their activity type.
Before an industrial license is granted, companies are required to submit a comprehensive business plan outlining:
- Business objectives
- Technical specifications of operations
- Factory layout and installed equipment
- Number of employees and accommodation plans
- Ownership and management structure
Once the license is issued, the company must begin constructing its factory within six months.
After construction is completed, a request for operational approval must be submitted to the DED.
During operations, companies must comply with all regulations such as:
- Hiring qualified personnel
- Meeting Emiratisation requirements
- Maintaining safety standards
- Keeping accurate operational records
- Conducting activities only under approved licenses
If the company wishes to expand its activities, it must obtain additional approvals from DED and relevant departments. Operating outside the permitted scope may result in penalties or cancellation of the license.
Advantages of Industrial Company Formation in the UAE
There are numerous benefits to setting up an industrial company in Dubai and across the UAE. These include:
- Ease of doing business in the UAE
- Access to thriving logistics and trading hubs
- Discounted utility rates for electricity, water, and essential services
- World-class banking and financial infrastructure
- A global talent pool and diverse workforce
- Strong government support in enforcing contracts
In certain cases, additional incentives may be available, such as:
- Priority in government procurement
- Preferential loan rates for innovative businesses
- Free or subsidized land for high-impact industries
- Waived setup fees for key manufacturing sectors
- Grants and financial support for R&D
Steps Involved in Obtaining an Industrial License in Dubai
The basic steps involved in acquiring an industrial license include:
- Initial approval from the authority
- Application for an industrial license with the DED
- Approval confirmation from DED if the license is granted
- Securing related approvals from government departments such as the Ministry of Health, Chamber of Commerce, etc.