The UAE has positioned itself as a strategic hub for manufacturing in the region, offering world-class infrastructure, tax benefits, and access to regional and global markets. If you are considering setting up a manufacturing business in Dubai or any other emirate, obtaining a Manufacturing License is a critical first step.
This guide outlines what you need to know, from the license types to the steps, costs, and common challenges.
What Is a UAE Manufacturing License?
A Manufacturing License (also referred to as an Industrial License) is issued to businesses that are involved in the production, assembly, processing, or packaging of physical goods.
This license is required whether you plan to manufacture products locally for export or for distribution within the UAE. Typical activities include producing cosmetics, food products, machinery, textiles, consumer goods, and more.
Mainland vs Free Zone Manufacturing License In UAE
You can obtain a manufacturing license either in the mainland (onshore) or in one of the UAE’s many free zones. Each has its own advantages:
Mainland (Onshore)
- License issued by the Department of Economic Development (DED) in each emirate.
- Allows direct trading within the UAE market.
- May require a local sponsor or service agent.
More about Mainland Business Setup in UAE
Free Zone
- 100% foreign ownership allowed.
- Often located in purpose-built industrial zones such as Dubai Industrial City, KIZAD, or SAIF Zone.
- Ideal for export-focused businesses.
More about Free Zone Bussiness Setup in UAE
The right option depends on your business model, target markets, and ownership preferences.
Key Requirements FOR Manufacturing License in UAE
To apply for a manufacturing license in the UAE, you will need:
1. Physical Facility
A manufacturing license requires a dedicated warehouse or industrial facility. Shared offices or virtual workspaces are not sufficient.
2. Industrial Feasibility Study
This is a short technical document that outlines:
- The nature of your production
- Required machinery and utilities
- Production capacity
- Staff numbers
- Environmental and safety considerations
3. Approvals from Relevant Authorities
Depending on the product type, you may need approvals from:
- Ministry of Industry & Advanced Technology (MOIAT)
- Civil Defense
- Municipality or Environmental Department
- Health or Food Safety Authorities (for relevant products)
4. Equipment & Layout Details
You will need to provide a layout of the factory, a list of machinery, and safety systems.
Step-by-Step Process for Obtaining Manufacturing License in UAE
- Identify your activity and business scope
- Choose your jurisdiction (mainland or free zone)
- Reserve your trade name
- Submit initial approvals and feasibility study
- Lease an approved industrial space
- Obtain environmental, fire, and technical approvals
- Apply for the manufacturing license
- Register with the relevant departments and obtain visas
Timeframes vary but are typically between 2 to 6 weeks, depending on the complexity of approvals.
Costs to Consider
Costs will depend on your location and business type, but usually include:
- License issuance and renewal fees
- Industrial lease costs
- Government approvals and inspections
- Visa and establishment card fees
- Optional consultant or PRO service fees
A basic manufacturing setup in the UAE typically ranges from AED 50,000 to AED 150,000+, depending on the scale and emirate.
Challenges to Be Aware Of
- Regulatory differences across emirates and zones
- Environmental and health compliance for certain industries
- Time-consuming paperwork and multi-agency coordination
- Language or legal barriers for foreign investors
While setting up a manufacturing business is achievable, the process can be complicated without expert guidance.
How Nexus Partners Can Help
At Nexus Partners, we specialize in helping international investors set up legally compliant, efficient, and scalable manufacturing operations in the UAE.
Our services include:
- Business structure and location consultation
- Obtaining all necessary approvals
- Handling license application and registration
- Ongoing compliance and PRO services
We manage the complexities so you can focus on building your business.
Book a Consultation
If you’re planning to start a manufacturing business in the UAE, it’s essential to set it up correctly from the start. A professionally managed setup not only saves time and cost but also ensures long-term compliance and growth potential.
Contact Nexus Partners to schedule a consultation and discuss your project.
