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Investors who wish to carry out manufacturing, processing, logistics and other related activities must obtain an industrial license in Dubai. An industrial license in Dubai mainland is being issued by the Department of Economic Development (DED). However, as per the rules of company formation in Dubai, foreign investors must obtain approvals from concerned ministries and departments to obtain the industrial license. This complex condition can be simplified by applying for an industrial license through business setup consultants in Dubai.
Businesses choose to obtain an industrial license in Dubai because it offers wide operational permissions, strong government support, and a strategic environment for scaling manufacturing operations in the UAE.
Obtaining an industrial license in Dubai makes business sense as the industrial sector is the third largest sector in Dubai after Trade & Logistics. Manufacturing counts for 11-14% of Dubai’s GDP and has clocked robust growth in recent years. Read ahead for more details on a Dubai mainland industrial license.
Applying for an industrial license in Dubai allows investors to legally carry out manufacturing and industrial activities with full compliance. The license supports large-scale operations, enables the use of commercial warehouses and factories, and strengthens the company’s credibility while dealing with suppliers, distributors, and government bodies.
As per the DED definition, an industrial license authorises the activity of converting raw materials and natural resources into finished goods. These activities fall under the scope of an industrial license in Dubai and help investors identify the exact operations they are legally allowed to conduct. The production, assembling, processing and packaging of finished goods fall within the scope of an industrial license in Dubai. Business setup consultants in Dubai can help investors choose the right activities under an industrial license. See the below list to understand some of the major activities permitted under an industrial license in Dubai:
To successfully obtain an industrial license in Dubai mainland, investors must comply with specific regulatory and operational conditions set by the DED. Unlike other licenses, certain conditions have to be met to obtain an industrial license in Dubai mainland. Some of the conditions are:
Most of the activities under an industrial license are not eligible for 100% foreign ownership in the UAE. Foreign investors are required to appoint a UAE national as a local sponsor to set up a company in Dubai with an industrial license. The local sponsor is entitled to 51% of the shares in the company, while the foreigner can hold the rest of the 49%. Business setup consultants in Dubai can help expatriate investors find a local sponsor.
As per the process of business setup in Dubai mainland, entrepreneurs need to rent or lease office spaces and warehouses. This is because the DED wants the companies to have a physical address on the mainland. The DED doesn’t permit the investors to operate from a virtual office in Dubai. The investors need to sign the tenancy contract with their landlords and get it attested through Ejari to obtain an industrial license.
While setting up a manufacturing business in Dubai, the investors should be aware of the number of workers and machinery requirements. At least 10 workers should be there in a manufacturing unit. The investors also need to have five powerhouse machines. Consult with business setup advisers in Dubai for more information on such requirements.
Investors must undertake a series of steps set out by the DED to apply for an industrial license. Business setup consultants in Dubai can help investors to simplify some of the steps. Below are the major steps of obtaining an industrial license in Dubai:
Foreign investors are required to submit specific documents and information while applying for an industrial license in Dubai mainland. Providing accurate and complete documents increases the chances of faster approval for an industrial license in Dubai. Any error in documentation could delay the process of business setup in Dubai. Here is a list of documents and information required to apply for an industrial license in Dubai mainland:
Dubai provides an ideal location for investors to set up manufacturing units. Dubai is considered the gateway to lucrative markets in the Middle East region. The emirate offers excellent connectivity to all the major trading hubs. Apart from that, investors can enjoy the following benefits by setting up industrial businesses in Dubai:
As stated already, investors must obtain special approvals to start an industry in Dubai. Business setup consultants in Dubai can assist the entrepreneurs to get the approvals on time. Approvals must be obtained from the following ministries and government departments:
There are various strategies and policies designed by the Dubai government to boost the emirate’s industrial prowess. Launched in 2016, the Dubai industrial strategy 2030 aims to boost the emirate’s total industrial output and value addition in the manufacturing sector. The strategy also aims to make Dubai the world’s most dynamic manufacturing hub and procure an additional investment of AED 160 billion by 2030. The key areas identified under the strategy include aerospace, maritime, aluminium and fabricated metals, pharmaceutical and medical equipment, food and beverage, machinery and equipment. The growing focus on advanced manufacturing further increases the demand for obtaining an industrial license in Dubai.
Obtaining an industrial license in Dubai mainland offers foreign investors exceptional opportunities and long-term industrial growth. However, the rules of business setup in Dubai mainland involve some complex steps that require expert assistance. Since many approvals are involved, it is better to avail of the best business setup services in Dubai provided by Jitendra Business Consultants (Jitendra Business Consultant). Jitendra Business Consultant has a team of business setup consultants in Dubai with years of experience. We could easily handle government approvals, bank account opening and visa approvals etc. Consult with us today to start your entrepreneurial journey with the right motivation.
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"Jitendra Business Consultants made our company formation process incredibly smooth. Their expertise in free zone setup saved us weeks of paperwork and thousands in costs."
Ahmed Al-Rashid
CEO, TechVentures FZCO
"From consultation to getting our trade license, the entire experience was seamless. Their team handled everything professionally, including our visa processing."
Sarah Johnson
Founder, SJ Trading LLC
"Outstanding service! They guided us through mainland company setup, bank account opening, and PRO services. Highly recommend for anyone starting a business in Dubai."
Rajesh Kumar
Director, Global Solutions
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