The purpose of Industrial license is to regulate activities that involve machinery, labor, and large-scale production. The government uses this permit to ensure businesses are operating safely, following environmental rules, and maintaining quality standards. It also ensures the company’s processes are monitored and meet Dubai’s industrial development goals. This license helps the authorities understand the nature of production, the resources used, and the type of goods being manufactured, creating a structured and transparent industrial environment.
The article explains everything investors need to know about getting an industrial license in Dubai. It covers what the license is, who qualifies, the steps to apply, required documents, costs, and the activities allowed under industrial regulations. It also highlights the benefits of operating in Dubai’s strong manufacturing ecosystem and the free zones that support industrial businesses. The summary ends by showing how DIAC helps investors complete the licensing process smoothly and start operations with full confidence.
What Is an Industrial License in Dubai?
An industrial license is a permit issued to businesses involved in manufacturing, processing, assembling, or transforming raw materials into finished products. It is required for companies operating factories, workshops, or large-scale production units. When a business receives an industrial license in dubai, it gains legal permission to run industrial activities under UAE regulations. This license ensures that the business meets environmental, safety, and operational standards set by authorities.
Manufacturing plays a major role in Dubai’s non-oil economy. The government encourages industrial activities to strengthen local production, reduce imports, and support export-focused industries. With more factories operating legally, the city boosts innovation, increases employment, and attracts global investors. Manufacturing also supports key sectors like construction, automotive, food production, and logistics, all of which depend on steady access to locally made goods.
Who Is Eligible for Industrial License in Dubai, UAE
Eligibility for the industrial license in UAE depends on the type of production, the business facility, and the approvals the company can obtain. Businesses involved in large-scale manufacturing or industrial processing must show proof that they have a proper warehouse, factory, or production space. Investors must also have a detailed project plan that outlines materials, machinery, labor requirements, and environmental impact. Meeting these conditions ensures that only serious, capable businesses apply.
Eligibility Based on Business Activities
Businesses involved in production, packaging, assembling, and industrial transformation qualify for this license. This includes manufacturing equipment, food products, chemicals, textiles, building materials, plastic goods, and metals. The type of activity determines the external approvals required. Some industries need clearance from Dubai Municipality, while others may need NOC from specialized authorities. The activity must be clearly defined to avoid compliance issues during inspections or renewals.
Eligibility Based on Facility Requirements
To qualify, the company must have a physical industrial space such as a factory or warehouse. The premises must meet safety standards, proper ventilation, and fire-control measures. Authorities evaluate space size, power requirements, machinery layout, and environmental impact. They also check waste-management systems. Without a suitable industrial location, the license application may be rejected because the government prioritizes safe and compliant business operations.
How to Get an Industrial License in Dubai
Obtaining this license follows a structured process that involves initial approvals, external clearances, and final documentation. Investors must submit detailed information about their manufacturing plans. Each stage ensures that the business activity is safe, environmentally sound, and aligned with UAE’s industrial development vision. Companies planning to hold a manufacturing license in UAE must demonstrate clear planning and operational capability.
Initial Approval Stage
The first step is to apply for initial approval from the Department of Economy and Tourism (DET). This includes submitting your business plan, production details, partner information, and proposed location. The authorities examine the activity to confirm whether it meets the industrial guidelines. Once approved, you can proceed with preparing your site, arranging external approvals, and completing the remaining documents. Initial approval does not allow activity to begin; it only confirms eligibility.
Approvals from External Authorities
Depending on the nature of the industrial activity, specific external approvals may be required. For example, factories handling chemicals need clearance from civil defense and environmental authorities. Food-processing units may require health certifications. Industrial companies must follow strict safety rules because they involve machinery, manpower, and environmental impact. These approvals are essential to maintain safety standards across Dubai’s industrial sector.
Final License Issuance
After completing all clearances and documentation, the final step is to submit the full file to DET. The authorities will review all approvals, verify the industrial site, and ensure the company meets every requirement. When everything is complete, the license is issued. The business can then legally begin operations, hire employees, install machinery, and start production. Renewal is required every year to maintain compliance.
Why Obtain a UAE Industrial License
Manufacturers obtain an industrial license because it opens doors to long-term growth, government incentives, and international market access. Businesses operating legally under this license gain credibility, easier access to materials, and permission to produce at scale. Companies planning to operate as a mainland company often use this license to compete in both local and international markets without restrictions.
Access to Local and Global Markets
This license allows manufacturers to sell products across the UAE and export internationally. Dubai’s location, modern ports, and global connectivity support smooth export operations. Industrial companies can also participate in government procurement, supply goods to major corporations, and expand distribution networks. Being legally recognized boosts business confidence and makes partnerships easier.
Strong Industrial Infrastructure
Dubai offers advanced industrial zones, modern logistics facilities, and reliable energy resources. Investors benefit from ready-to-use warehouses, organized transportation routes, and easy access to global shipping channels. These advantages make it easier for industrial companies to manage production efficiently. The government continues to invest in manufacturing centers, ensuring long-term industrial growth.
Cost of Industrial License in Dubai
The cost of industrial licensing depends on several factors, including the size of the factory, business location, required approvals, and the nature of the activity. The cost for an industrial license in the UAE starts around AED 25,000 for initial application fees, but total initial expenses can exceed AED 50,000 once inspections, facility preparation, and regulatory approvals are added. Many businesses seek support during company registration to avoid mistakes that could increase costs. Planning the budget early helps investors estimate setup expenses, utility needs, and labor requirements with clarity.
Licensing Fees
Licensing fees usually include the initial approval charge, trade name reservation, and final license issuance. Industrial activities may require additional fees depending on their nature. Some approvals come with inspection charges, especially for large-scale machinery or chemicals. Professional guidance helps investors estimate these costs accurately before applying.
Additional Operating Costs
Apart from initial license fees, industrial businesses must also consider long-term expenses such as rent, electricity, water, labor contracts, and waste-management charges. Factory operations consume more resources than regular offices. Costs also differ between free zones and mainland locations. Planning ahead helps businesses maintain financial stability during the first operational year.
Activities Covered Under Dubai Industrial License
The industrial license covers a wide range of production activities. Companies producing goods for commercial distribution must obtain this permit. Investors who plan to form a limited liability company for manufacturing must ensure their industrial activity appears under the approved list. Authorities classify activities carefully to ensure public safety and proper regulation.
Manufacturing-Based Activities
These activities include creating machinery, tools, furniture, plastic products, chemical goods, electronic devices, and metal works. Each activity requires compliance with safety standards, fire control measures, and proper waste disposal. Some industries need environmental audits to ensure their processes are not harmful. Manufacturing plays a central role in economic development.
Packaging and Processing Activities
Packaging, assembling, printing, and processing activities also fall under the industrial category. This includes food processing, garment stitching, and material treatment. Businesses involved in sorting, cleaning, refining, or modifying raw items must obtain industrial approval. These activities still require machinery and manpower, making regulation essential for public safety.
Benefits of Obtaining an Industrial License in Dubai
The license offers major advantages such as market access, better credibility, and government support. Investors launching industrial businesses with help from new business setup consultants in dubai gain smoother entry into the sector because consultants help manage approvals and reduce delays. Licensed industrial companies enjoy a trusted reputation and easier access to suppliers and distributors.
Access to Skilled Workforce
Dubai is home to a skilled labor force experienced in engineering, manufacturing, technical operations, and production management. Industrial companies can hire workers from many countries who bring unique expertise. This helps businesses maintain high production standards while benefiting from efficient labor availability.
Government Support and Incentives
The UAE government encourages industrial growth by offering incentives such as tax benefits, reduced import duties, and support for innovation. Industrial zones often provide facilities at competitive rates. Authorities also help businesses adopt advanced technology and sustainable practices. This support motivates long-term investment and expansion.
Popular Free Zones Offering Industrial Licenses in UAE
Many investors prefer free zones for industrial operations because they offer modern infrastructure, tax benefits, and easy export options. Free zones also simplify obtaining a Trade License in Dubai, especially for companies focused on international trade and manufacturing. Each free zone caters to specific industries with tailored facilities.
Dubai Industrial City (DIC)
DIC is one of the leading industrial hubs offering ready warehouses, logistics support, and large industrial plots. It is ideal for companies involved in food processing, machinery production, and construction materials. The zone provides flexible leasing options and strong infrastructure, helping investors scale operations quickly.
Jebel Ali Free Zone (JAFZA)
JAFZA is one of the largest free zones in the Middle East and is known for its proximity to Jebel Ali Port. It is ideal for export-oriented manufacturers. Companies benefit from strong supply-chain support, global connectivity, and access to distributors worldwide. JAFZA also offers large production units and industrial land.
Sharjah Airport International Free Zone (SAIF Zone)
SAIF Zone offers modern warehouses, quick setup processes, and centralized logistics support. It is particularly suitable for companies seeking budget-friendly industrial facilities. The strategic location near Sharjah Airport provides cost-effective access to regional and global markets. Many small and mid-sized manufacturers choose this zone.
Documents Required for Industrial License in Dubai
Investors must prepare several documents to apply for this license. Requirements depend on the business activity and production scale. Authorities review these details to ensure the operation is safe, compliant, and suitable for industrial activity. Many investors work with DIAC to complete documents correctly and avoid delays.
Identification Documents
- Passport copies of all shareholders
- Visa copies (for residents)
- Emirates ID copies (for residents)
- Partner information and personal details
- Passport-size photographs (if required)
These documents help confirm the identity of all business owners and ensure transparency throughout the licensing process.
Legal and Technical Documents
- Detailed business plan
- Feasibility study
- Factory or warehouse site layout
- List of machinery and equipment
- Environmental impact report
- NOCs (No-Objection Certificates) from relevant authorities
- Tenancy contract for industrial space
- Ejari certificate (for Dubai-based premises)
These documents allow authorities to review safety, environmental impact, and operational feasibility before approving the industrial license.
Get Your Dubai Industrial License with DIAC
DIAC, Dubai International Advisory Consultants guides investors through every step of the licensing process, helping them navigate approvals, documentation, facility requirements, and operational compliance. The team ensures that investors understand each stage clearly, reducing errors and delays. Companies trust DIAC for dependable guidance during industrial business setup.
How DIAC Simplifies Industrial Licensing
DIAC assists with activity selection, approvals, documentation, inspections, and license issuance. The team analyzes your business model, recommends suitable locations, and prepares all required paperwork. This support speeds up the approval process and ensures the company meets all regulatory standards.
Why Investors Trust DIAC
Investors trust DIAC because of its transparent approach, expert consultants, and strong understanding of UAE industrial regulations. The firm offers step-by-step guidance and long-term support, ensuring smooth operation after setup. With DIAC’s help, industrial businesses start stronger, remain compliant, and expand more confidently. Contact Us today to begin your industrial licensing process with complete support and expert guidance.
