Industrial License In Dubai, UAE
Acquire Your industrial License for Business Ventures
The superior and wide-spread logistics and infrastructure of
Dubai facilitate industrial growth. Being a trading hub that
connects the east to the west, Dubai has a geographical
advantage too. If you are into industrial manufacturing and
would like to set up an industrial concern in Dubai or UAE – it
is a prerequisite to attain an Industrial License. Getting an
industrial license in Dubai facilitates manufacturing and
industrial businesses to produce semi-manufactured or fully-
manufactured items. The activities under industrial license in
Dubai essentially indicate production, segregation, collection,
packaging, etc. The industrial trade license in the UAE requires
the business to have a physical warehouse inside the nation.
The license is commonly granted by the Department of
Economic Development (DED) Dubai. As a company owner,
you need to get approval from the Dubai Municipality and
other concerned authorities for the issuance of this license.
Acquire Your industrial License for Business Ventures
The superior and wide-spread logistics and infrastructure of
Dubai facilitate industrial growth. Being a trading hub that
connects the east to the west, Dubai has a geographical
advantage too. If you are into industrial manufacturing and
would like to set up an industrial concern in Dubai or UAE – it
is a prerequisite to attain an Industrial License. Getting an
industrial license in Dubai facilitates manufacturing and
industrial businesses to produce semi-manufactured or fully-
manufactured items. The activities under industrial license in
Dubai essentially indicate production, segregation, collection,
packaging, etc. The industrial trade license in the UAE requires
the business to have a physical warehouse inside the nation.
The license is commonly granted by the Department of
Economic Development (DED) Dubai. As a company owner,
you need to get approval from the Dubai Municipality and
other concerned authorities for the issuance of this license.
Dubai Industrial License Sector
The sophisticated and well-organized seaports and airports in
Dubai effectively cater to the growing needs of the industrial
sector. The industrial sector utilizes this logistics advantage in
the best possible manner. The transport of raw materials,
equipment spare-parts, machinery and exchange of goods and
all other associated activities can be performed smoothly and
in a cost-effective manner. In the last decade, the industrial
sector of UAE witnessed a growth of 31% and it is predicted to
achieve a marginal increase by 2027. Dubai witnessed a 6%
growth in the industrial sector in the last decade and is a
major contributor towards the GDP. Electricity, water and gas,
quarrying, mining and manufacturing are the major industrial
sectors of Dubai
What Is Mean By Industrial License?
Production or manufacture of goods or commodities in an
industrial environment or space requires a valid Industrial
License. Production can be termed as the transformation of
raw materials or natural resources from the crude state to the
final or refined state. Here the raw materials are subjected to
structural or appearance-oriented transformation and the end
product could either be in the semi-manufactured or fully-
manufactured state. The transformation must be carried out
via manual or mechanical intervention. Production,
accumulation, Industrial segregation, and final packaging of
products – all come under Industrial activity and therefore
necessitates a valid Industrial License. The license issuance is
carried out by the Department of Economic Development or
DED. The approvals and permissions from other external
agencies and ministries may be required for license issuance
when it comes to Industrial License in Dubai, UAE. The license
is issued with validity in compliance with the terms and
condition specified at the time of issuance. The investors who
are planning to set up an industry in Dubai should possess a
physical warehouse. And yes – it is a mandatory requirement.
Activities That Come Under Industrial Production
Prior to the application for a commercial license in Dubai, one
needs to decide on the trading activities that are going to be
conducted under the same. Have a clear understanding of the
type or category of your business activity before you set up a
business in Dubai. Business activities related to buying and
selling and certain service-oriented endeavours come under
Commercial License. The major activities that come under the
commercial license in Dubai, UAE are listed below.
Prerequisites To Apply For An Industrial License In Dubai
There are certain prerequisites that an investor needs to
accomplish before applying for an Industrial License in Dubai.
And they are listed below.
51% sponsor share – You should find a local sponsor for your
company. The local sponsor holds 51% of the company share
and the remaining 49% goes to the foreign investor.
Local license – A local industrial license is mandatory for
industrial concerns. And the local license is issued from the
area of operation.
Office and warehouse – A physical office space and a
warehouse in Dubai is mandatory to obtain Industrial License.
Having a virtual office in Dubai will not serve the purpose
here.
Employees – A minimum of 10 employees or workers is
mandatory.
Capital Investment – Minimum Dhs 250,000 must be set aside
as the capital of your company. 5HP specification machines
are mandatory
Documents Needed For Industrial License In Dubai
Certain Ministries and external agencies are involved in the
License issuance. Here are the documents needed to attain an
Industrial License in Dubai.
A detailed report – You should submit a detailed report of the
factory or industry that comprises the plan, objectives behind
factory setup, information about the equipment involved in
the production, manufacturing cost, capital involved and
source of finance. You may furnish the employee details too.
Non-citizens are supposed to submit the residence and
passport copy.
Feasibility study
Partnership contract in case of partnership firms
National Media Council Approval
Approval from the Ministry of Health
Copy of the Balance Sheet
Approval from the Ministry of Environment and Water
Privileges Of Firms With Industrial License
The authorities in the UAE have extended some privileges to
the firms with an industrial license. Envisaged to promote
industries and attract more investments in the sector.
The privileges of having industrial license in Dubai are:
Terms for renting industrial space exclusively formulated
to benefit the investor
The government will provide land at a subsidised rate or
free of cost for establishing your industry
Discounted rates for electricity, water and other
essential requirements
Guidance based on modus operandi of similar industries,
to enhance your industry
Innovative products can get a loan at reduced rates
If your product is expected to strengthen the national
economy, the government will support you financially
during the course of R&D
The products with exceptional quality will be given
priority by the UAE government during official
procurement
Obligations Of An Industrial License Holder
The federal authorities have specified certain obligations for
the industrial license holder in Dubai. You must abide by the
same for the smooth functioning of your industry and for
avoiding unwanted repercussions.
Once your project is approved, you must commence
construction of the industrial space within six months of
receipt of the approval
Submit all the requisite data to the Department of
Economic Development (DED), Dubai, as directed
A letter to be submitted to the DED as and when you are
ready to start the industrial activity. The DED will issue a
certificate of authorization subsequently
Your industry must be included in the register of
industries. Submit a letter to the concerned authority for
the same.
In case of any alterations or amendments in the data
pertaining to the factory, submit a letter, in the
prescribed format, to the DED detailing the changes
You are unauthorized sell or lease the property that has
been allocated by the government for establishing the
industry
The data of employees enrolled in the company has to be
prepared and a copy of the same must be submitted to
the DED
All the products and materials imported after claiming
exemption from customs duties shouldn’t be used unless
specified during the import
Federal laws stipulate a minimum of 25% employment
for local Emiratis
Strictly follow the rules, regulations and policies of the
land
All the directives to maintain hygiene, health conditions
and industrial safety must be pursued without fail
Any changes, including the appointment of a director,
must be informed to the DED in writing. In that case, the
shareholders along with the director will be responsible
for all the activities, law enforcement, and maintaining
stringent regulations for the industrial safety of the
company
Reports have to be submitted to the authorities on a
regular basis.
