A Comprehensive Guide to Industrial Licensing in Dubai, UAE

Understanding Industrial Manufacturing License in Dubai

An Industrial Manufacturing License in Dubai, and across the United Arab Emirates (UAE), is a mandatory requirement for businesses engaged in industrial activities such as manufacturing or refining of petrochemicals. This license is typically required when the business operation involves the use of specialized plant equipment. Examples of such industrial activities include manufacturing of paper-based products, commercial-scale bread production, large-scale chemical production or mixing, metal casting, machine or equipment forging and assembly, and packaging of food products.

The Importance of an Industrial Manufacturing License in Dubai

The Industrial Manufacturing License is crucial for all businesses involved in manufacturing or industrial activities. Issued by the Department of Economic Development in the emirate where the business is to be established, this license requires several clearances and approvals before application. These include ensuring the presence of necessary firefighting equipment, protecting the health of workers, ensuring electrical safety, and having an electrical power connection that supports the operation of the machinery and equipment.

Key Aspects of Industrial Manufacturing License in UAE

Once the Industrial Manufacturing License is sanctioned, construction must begin within six months. Upon completion of construction, the Department of Economic Development provides permission to start operations. Any changes to industrial operations must be promptly notified to the authorities. Accurate records of all workers must be maintained, and the use of imported raw materials must be strictly for the purpose they were imported for. In Abu Dhabi, 25% of all workers must be of Emirati nationality.

Industrial License in Dubai

Requirements for Obtaining an Industrial Manufacturing License in Dubai

To obtain an Industrial Manufacturing License, a detailed report about the industrial establishment, including the reason for starting it or expanding current operations, must be submitted. This report should include details about the production tools, estimated cost of production, financing plan, number of employees, and consent from the Municipality. Membership of the local Chamber of Commerce and Industry is also required. A copy of the Emirates ID of all the partners and company formation documents that clearly show the owners must also be submitted.

Government Support and Regulations

The Government provides land for free or at reduced rates, along with assistance in R&D if the product is expected to add value to the UAE economy. Subsidized rates for electricity and water are provided as per the plant’s needs. Compliance with industrial safety regulations and strict adherence to Labour Law is expected.

Procedure to Obtain an Industrial Manufacturing License

The Industrial Manufacturing License is granted by the Department of Economic Development in the emirate where the plant is located. A physical office and a warehouse for storage are mandatory in Dubai. A Local Sponsor must also own 51% of the stock. All other permissions must be taken before applying for the license. If everything is in order, the license can be granted in as little as 3-4 weeks.

Need Assistance?

Securing an Industrial Manufacturing License in the UAE can be a complex process. It involves navigating through an array of paperwork and securing permissions from various Government agencies. Professional assistance from company formation specialists can be invaluable in this process. These experts can help entrepreneurs establish businesses in the UAE, guiding them through every step of the process, ensuring all financials are in order, and helping turn dreams into reality.

Umair Ahmad

Company Formation Specialist
  • +971 56 403 8600
  • info@privatewolf.ae
  • 06, 11B Happiness Street, CityWalk, Dubai