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Industrial Licence in Dubai, UAE

How to get your Industrial License in Dubai?

Dubai's superior logistics and infrastructure make it easier for businesses to expand. Dubai has a geographical advantage as a commerce hub that connects the east and the west. If you work in industrial manufacturing and want to open a business in Dubai or the United Arab Emirates, you must first obtain an Industrial License. Obtaining an industrial license in Dubai allows manufacturing and industrial companies to produce semi-manufactured or fully-manufactured goods.Production, segregation, collecting, packing, and other activities covered by an industrial license in Dubai are essentially the same. In order to obtain an industrial trade license in the UAE, a company must have a physical warehouse within the country. The Department of Economic Development (DED) in Dubai is responsible for issuing the license. For the issue of this license, you must obtain clearance from the Dubai Municipality and other relevant authorities. Thus, we at Dhanguard pioneer at providing you with exemplary services and guidance to help you getting your Industrial License. Do exempt few minutes to read the below mentioned information which has been carefully devised by our Experts to provide you up to the mark services.

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Economic Diversification in Dubai

In the meantime, the Emirate of Dubai, with its strategic location in the Middle East, is focusing on recruiting foreign entrepreneurs, international firms, and organizations by providing easy access to the local and worldwide markets, modern infrastructure, and pro-business policies. In addition, the government has lifted limitations on bringing foreign technology, investment, and trained talent to Dubai in order to boost the economy and diversify it away from oil and gas, with a focus on commerce, manufacturing, exports, tourism, and engineering.

So, what does an Industrial License refers to?

When a commercial operation is of an industrial nature, such as the manufacturing or refining of petrochemicals, an Industrial Manufacturing License is given in Dubai or anywhere else in the United Arab Emirates. If you're not sure whether a commercial activity is industrial or not, the rule of thumb is that if it includes the use of specialist plant equipment, it's probably industrial. A few examples of industrial activity are:

  • Paper and/or paper-based product manufacturing
  • Bread production on a commercial scale
  • Anything that involves large-scale chemical synthesis or mixing
  • Casting of various metals.
  • Machines, equipment, and engines are forged and/or assembled.
  • Food product packaging, including carbonated beverage bottlingli>

Why is an Industrial Manufacturing License required in Dubai?

An Industrial Manufacturing License is required for every company that engages in manufacturing or industrial activities. Although it is provided by the Department of Economic Development of the emirate in which you intend to establish your business, there are a number of certifications and approvals that must be obtained before an Industrial Manufacturing License may be applied for in Dubai. Your industrial establishment, for example, must have the appropriate firefighting equipment in place, which must be certified. You must also ensure that your employees' health is protected at all times, which typically necessitates filing a thorough plan to the authorities.

Furthermore, depending on the machinery and/or plant equipment that you intend to utilize, the location must have an electrical power connection that allows the equipment to continue to operate. You are also responsible for the electrical safety of your facilities, thus any failsafe electrical protection system that you want to install (which must meet UAE standards) must be mentioned in the Business Plan, which will be thoroughly evaluated by relevant technical authorities.

  • After the Department of Economic Development has approved your Industrial Manufacturing License, you must begin building within six months.
  • The Department of Economic Development will give you authorization to begin operating after the construction is completed.
  • Any changes to your industrial operations must be reported to the authorities as soon as possible. You'll also need to submit an application to be included to the Industrial Register.
  • You must keep accurate records of all your employees at all times.
  • You must ensure that all of your employees are qualified to operate plant machinery in order to reduce the risk of an industrial accident.
  • You may not use any raw or input materials brought into the nation for purposes other than those for which they were brought.
  • You must notify the Department of Economic Development if you appoint a director for your industrial establishment.
  • Your industrial institution's Director in Charge will be responsible for ensuring that all laws are faithfully followed by your industrial establishment.

Conditions and Requirements for Obtaining a Dubai Industrial License

A Local Sponsor

To obtain an industrial license in Dubai, the firm must have a local sponsor in Dubai owning 51% of the shares, with foreign investors allowed to own the remaining 49%.

Industrial License (Local)

To operate in the UAE market, a firm registered in the UAE must have a local industrial license

Investment Requirements

AED 250,000 in financial capital is required for the company

Physical Warehouse

To receive the licence, you must own a physical warehouse within the country.

Workers & Machinery

A minimum of ten employees are required. Also you will need machines that are capable of producing 5 horsepower

Further Requirements

  • You must submit a report that contains all relevant information about the industrial facility, including the purpose for launching it or extending current operations.
  • If you already own an industrial facility, but your present Industrial Manufacturing License does not cover the type of operation you want to execute, the latter becomes important.
  • This report must include as much information as possible regarding the manufacturing tools, including specific technical details and a cost estimate.
  • Your report must also detail how you intend to support this industrial operation, including whether you want to do so with your own finances or with the assistance of a financial institution.
  • You must produce proof of finances, such as a bank statement or a letter of credit / bank guarantee from a bank or financial institution in the United Arab Emirates, because the goal is to ensure that you can successfully continue operations once you have created your unit.
  • The number of people you propose to hire for the industrial establishment's operation should be included in the report. It's critical that your business be large enough to accommodate them all.
  • In addition, the Municipality's consent must be requested and included in your application for an Industrial Manufacturing License, along with the report.
  • You must also be a member of the local Chamber of Commerce and Industry, and you must provide proof of membership.
  • Aside from this, you'll need to submit a copy of each partner's Emirates ID (if they're already in the UAE; otherwise, a copy of their passport will suffice), as well as all company formation documents that identify who the owners are.
  • Before you can get your Industrial Manufacturing License, you must submit a location plan that shows the area where the industrial unit will be built as well as the location of the various constituent units (such as cooling towers, electrical power units, and chemical storage tanks) and have it approved by the government.
  • Along with your application for an Industrial Manufacturing License, this must also be attached.
  • If your product is considered to contribute value to the UAE economy, the government will grant land for free or at a reduced rate, as well as R&D help.
  • If your plant is not in a free zone, you will need authorization from the local municipality to construct it. Your facility will receive subsidized electricity and water based on its requirements.
  • When it comes to your employees, as a holder of an Industrial Manufacturing License, you are obligated to respect all industrial safety standards as well as Labor Law.
  • If your product is fresh to the market (i.e., there is no equivalent product on the market), you may be able to obtain funding from a UAE government bank.

In Dubai, how can you Obtain an Industrial Manufacturing Licence?

The Department of Economic Development of the emirate where the plant is located issues the Industrial Manufacturing License. The Department of Economic Development – RAK, for example, would be the relevant issuing body if a pharmaceutical plant were to be established in Ras Al Khaimah. Additional rules may apply depending on the emirate. Both a physical office and a storage facility are required in Dubai. A virtual office is not a substitute for a physical workplace.

Your company must be incorporated in such a way that a Local Sponsor owns 51 percent of the equity. All additional approvals, such as those from the Ministry of the Interior, the Ministry of Environment and Water, and the Ministry of Health and Prevention, must have been obtained before applying to the Department of Economic Development for an Industrial Manufacturing License. Your Industrial Manufacturing License could be awarded in as little as 3-4 weeks if everything is in order.

Documents Required to Obtain an Industrial License

The following describes the various types of documents you need in order to obtain an Industrial License in Dubai.

  • Registration of a business or a contract for the establishment of a business
  • a copy of the shareholder's passport
  • Copy of the UAE local sponsor's national identity
  • With the local sponsor and shareholders, a Memorandum of Association (MOA) was signed.
  • Plans for the Factory Blueprint
  • The factory's business strategy
  • A feasibility assessment that explains why and why not to open the factory/plant.
  • Proof of financial support or backing, as well as documentation demonstrating the methods by which the business activity is financed
  • Location map of the property where the company will be established
  • If the location is accepted, a signed land lease agreement

Approvals Required Following the Acquisition of an Industrial License

After you acquire the Industrial License, there are other approvals you need to obtain as well.

  • The approval of Ministry of Economy and Commerce
  • The approval of Dubai Municipality Planning Department
  • In some cases, special permission from Dubai Civil Defense is required.
  • Dubai Power and Water Authority (DEWA) approval and permit for electricity, water, and other utilities
  • The Approval of Dubai's Ministry of Health (if you are setting up pharmaceutical manufacturing)
  • Permits from the Ministry of Climate Change and the UAE Ministry of Interior's Environmental Approval

Dubai's Industrial Strategy for 2030

The government of Dubai is committed to fostering innovation and a knowledge-based economy, which will be bolstered by cutting-edge industrial research and advanced manufacturing, as well as revenue from trade and commerce. The unveiling of Dubai Industrial Strategy 2030 brings together the benefits of Dubai's strategic position, modern infrastructure, and cutting-edge business-friendly ecosystem to achieve the objective of creating a long-term industrial growth destination.

The reforms are being implemented as part of the Dubai Industrial Strategy 2030, which intends to take advantage of the country's sophisticated infrastructure to create a transformative environment. In which the UAE as a global manufacturing platform draws innovative companies, international firms, and research and innovation hubs with a primary focus on knowledge, science, and research, laying a solid basis for the region's industries.

Dubai's Industrial Strategy's Key Focus Industries

  • Pharmaceuticals
  • Food and Beverages
  • Machinery and Equipment
  • Aerospace
  • Maritime Industry
  • Aluminum and Fabricated Metals

Even if the method for forming a company in the UAE with a local sponsor is simple, the process is lengthy because the firm must be legally registered and meet the partnership requirements in order to receive an industrial licence.

How can Dhanguard Help?

Furthermore, obtaining an industrial business licence in Dubai by meeting all of the requirements is complicated because there are a number of approvals and permits that must be obtained before the industrial licence can be obtained. We at Dhanguard can assist you with drafting all essential papers, receiving permissions and approvals from regulatory organizations, and making the process of obtaining an industrial licence for your firm an easy one. Contact us right away to get a hassle-free industrial licence in Dubai.

Industrial Licence Related FAQ

Frequently Asked Questions

  • What is an Industrial License?

    The industrial licence allows you to engage in industrial operations such as manufacturing, processing, and other related activities as an individual, a business, or a company established in Dubai or the UAE. According to the UAE Industries (Development & Regulations) Act 1951, obtaining an industrial licence is required before beginning commercial operations in the industry.

  • What is the cost of an Industrial Licence in Dubai?

    The cost of acquiring an industrial licence and establishing an industry in Dubai, UAE is determined by whether your firm is located on the mainland or in a free zone, as well as other pertinent considerations. Depending on the type of industry you're starting, you may need additional approvals and registrations. The overall cost might be around AED 25,000. However, due to changes in existing pricing guidelines, this may change from time to time. Starting a business in the Free Zone jurisdiction would be more cost-effective, given the initial set-up fees and other expenses.

  • What are the Industrial License Holders' Privileges?

    The authorities in the United Arab Emirates have granted several rights to companies that have obtained an industrial licence. The goal is to promote industries and increase investment in the industry. The following are some of the benefits of holding an industrial licence in Dubai:
    • Terms for renting industrial space that have been specifically designed to benefit the investor
    • For developing your industry, the government will grant land at a reduced rate or for free.
    • Electricity, water, and other necessities are available at reduced costs.
    • Guidance based on the methods used by similar sectors to improve your own.
    • Innovative items may qualify for a loan with lower interest rates.
    • The government will financially support you during the R&D process if your product is projected to improve the national economy.
    • Exceptional quality products will be prioritized by the UAE government during official procurement.

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