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Industrial License In Dubai, UAE

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Industrial License In Dubai, UAE

What is an Industrial Manufacturing License in Dubai?

An Industrial Manufacturing License in Dubai or anywhere else in the United Arab Emirates is granted when the commercial activity undertaken is of an industrial nature, such as manufacturing or refining of petrochemicals. If you are unsure of whether a particular business activity is industrial or not, the rule of thumb is that it is most likely to be industrial if it involves the use of specialized plant equipment. Examples of industrial activity include
  • Manufacturing of paper and/or paper-based products
  • Production of bread on a commercial scale
  • Anything involving the production or mixing of chemicals on a large scale
  • Casting of metals
  • Forging and/or assembly of machines / equipment / engines
  • Packaging of food products, including bottling of carbonated drinks

Why do you need an Industrial Manufacturing License in Dubai?

All business entities into manufacturing or industrial activity need an Industrial Manufacturing License. Although it is issued by the Department of Economic Development in the emirate you plan to set up your company in, there are several clearances and mandatory approvals that need to be obtained before one can apply for an Industrial Manufacturing License in Dubai. For example, your industrial establishment must have the necessary firefighting equipment in place and this must be certified. You are also required to ensure that the health of your workers will be protected at all times, and this often entails submitting a detailed plan to the authorities. And depending on the machinery and/or plant equipment that you intend to use, the place must have an electrical power connection that supports the continued operation of the equipment. You are also responsible for ensuring the electrical safety of your premises, so any failsafe electrical. protection equipment (these must meet the standards set by the United Arab Emirates) that you plan to install must also be included in the Business Plan, which will be reviewed thoroughly by competent technical authorities.

About Industrial Manufacturing License in United Arab Emirates

Once your Industrial Manufacturing License has been sanctioned by the Department of Economic Development, you need to start construction within six months. Once construction has been completed, the Department of Economic Development will provide you with the permission to start functioning. Any change to your industrial operations at any point of time must be notified to the authorities immediately. You will also need to apply to be included in the Industrial Register.

At all times, you will need to maintain accurate records of all your workers. You must see to it that all your workers are qualified enough to operate plant machinery in order to minimize the chances of an industrial accident happening. You must also not use any raw or input materials imported into the country for any purpose other than what they were imported for. If you appoint a Director for your industrial establishment, this must be informed to the Department of Economic Development. The Director in charge of the industrial establishment will be responsible for seeing that all laws are strictly adhered to by your industrial establishment.

In Abu Dhabi, 25% of all your workers must be of Emirati nationality.

Requirements to Get Industrial Manufacturing License in Dubai

You need to submit a report which includes all the details about the industrial establishment, including the reason for starting it or expanding current industrial operations. The latter assumes significance if you already own an industrial establishment, but your current Industrial Manufacturing License does not include the scope of activity that you propose to undertake.
This report must include everything possible about the production tools, including detailed technical information, as well as the estimated cost of production. Your report must also contain how you plan to finance this industrial operation – whether you plan to set up the industrial unit with your own funds or with help from a financial institution. Since the objective behind this is to see to it that you are successfully able to continue operations after you have established your unit, you must show proof of funds, such as a bank statement or a letter of credit / bank guarantee from a bank or financial institution in the United Arab Emirates.
The report should include the number of employees that you plan to hire for the operation of the industrial establishment. It is important that your establishment be large enough to accommodate all of them. Additionally, the consent of the Municipality must be obtained and included along with the report in your application for an Industrial Manufacturing License. You must also be a member of the local Chamber of Commerce and Industry; and documentation to this effect needs to be enclosed.

Apart from these, you will need to submit a copy of the Emirates ID of all the partners (if they are already in the UAE, failing which a copy of the passport will do), plus all company formation documents that clearly show who the owners are. The location plan showing the area where the industrial unit is to come up must also display where the different constituent units will be (such as cooling towers / electrical power unit / chemical storage tanks) and be approved by the Government before you can get your Industrial Manufacturing License. This too needs to be attached along with your application for an Industrial Manufacturing License.

Requirements to Get Industrial Manufacturing License in Dubai

The Government will provide land for free or at reduced rates, plus assistance in R&D if your product is expected to add value to the UAE economy. You will need to get permission from the local Municipality to build your plant, if it is located outside of a free zone. Electricity and water will be provided at subsidized rates to your plant as per its needs. As the holder of an Industrial Manufacturing License, you are expected to comply with industrial safety regulations as well as follow Labour Law strictly when it comes to your workers.

If your product is new to the market (that is to say, a similar product does not exist in the market already), you could be granted financing by a Government bank in the UAE.
A more detailed list of industrial activities in the United Arab Emirates would be as follows
  • Raw materials processing
  • Petroleum and metal extraction
  • Fabric production & Textiles manufacturing
  • The casting of metals such as iron & steel
  • Appliances and machinery manufacturing
  • Bread production and food products production
  • Manufacturing of paper products
  • Metal casing, containers & boxes manufacturing
  • Structural steel, steel workshop and tool manufacturing
  • Coating, insulations, seals & protection materials manufacturing
  • Waste collection and treatment
  • Manufacturing of wood, wood products and Furniture
  • Adhesive & paper slitting
  • Glass industries & chinaware manufacturing
  • Agricultural equipment & accessories manufacturing
  • Lenses cutting & glass repairing
  • Manufacture of gold and precious stones cutting
  • Light aircraft manufacturing & maintenance
  • Meat processing
  • Manufacture of batteries
  • Plastic industries manufacturing home appliances
  • Air conditioning units assembly
  • Advertising & decorative models manufacturing
  • Production of petroleum products
  • Manufacture of motor vehicles, motorcycles & its spare parts
  • Processing like filling, segregating and packaging of products

Procedure to Get Industrial Manufacturing License

For more information on securing an Industrial Manufacturing License in Dubai or elsewhere in the United Arab Emirates, please get in touch with us.

How to Get an Industrial Manufacturing License in Dubai?

The Industrial Manufacturing License is granted by the Department of Economic Development in the emirate where the plant is located. For instance, if one were to establish a pharmaceutical plant in Ras Al Khaimah, the competent issuing authority would be the Department of Economic Development – RAK. Depending on the emirate, additional rules may apply. For Dubai, both a physical office and a warehouse for storage are mandatory. A virtual office cannot be used in lieu of your physical office.

A Local Sponsor must also own 51% of the stock, so your company needs to be incorporated accordingly. Before applying to the Department of Economic Development for an Industrial Manufacturing License, all other permissions must have been taken, such as from the Ministry of the Interior, the Ministry of Environment and Water, and the Ministry of Health and Prevention. If everything is in order, you can expect your Industrial Manufacturing License to be granted in as little as 3-4 weeks.

Need Help Getting an Industrial Manufacturing License in UAE?

We are a team of passionate company formation specialists dedicated to helping entrepreneurs establish businesses in the UAE. We help foreign investors through the array of paperwork and everything needed for setting up an industrial unit, including securing all the necessary permissions from the respective Government agencies concerned. If you have a dream, we can help convert it into a reality.
Our business setup consultants work closely with our legal team to achieve the desired outcome. We also have professional accountants on board, so that when you submit your Business Plan as part of the application for an Industrial Manufacturing License, all the financials will check the boxes. Our experts leave no stone unturned in the quest for perfection, and we have a 98% client satisfaction rate so far.
If you would like us to assist you procure an Industrial Manufacturing License in the UAE, please give us a call or use the form to send us a message. We can also be contacted over email, and a senior member of A&A Associate will get in touch with you shortly. We assure you of the utmost degree of confidentiality, as we hold ourselves to the highest standards of ethics and professionalism.