Industrial License in UAE: Complete Guide

Setting up a factory in the UAE involves more than registering a company and renting a warehouse. Once your business starts manufacturing, assembling, processing or packaging products, industrial licensing rules come into the picture.

An industrial license Dubai businesses use for manufacturing is different from a normal commercial licence. The premises must suit the production activity, machinery may need technical approval and some industries require environmental, municipal, Civil Defence or sector-specific clearance before production begins.

At the federal level, the UAE's industrial framework is governed by Federal Decree-Law No. 25 of 2022. The law gives local licensing authorities responsibility for issuing and renewing industrial licences, while the Ministry of Industry and Advanced Technology, or MoIAT, operates the Industrial Registry.

What Is an Industrial Licence in the UAE?

An industrial licence allows a company to carry out approved manufacturing or production activities.

Dubai's official business portal lists manufacturing, production, packaging, segregation and collection under the industrial licence category. Examples include producing food, textiles, paper, petroleum products, machinery, equipment and appliances.

You can check the broader licensing framework through the official Dubai business setup portal.

In practical terms, you may need an industrial licence when your facility takes raw materials, components or semi-finished products and physically converts them into another product.

That could include:

• Food processing and packaging

• Furniture production

• Metal fabrication

• Textile manufacturing

• Plastic products

• Electrical equipment assembly

• Machinery manufacturing

• Paper and packaging products

• Chemical production

• Building-material manufacturing

• Cosmetics or pharmaceutical manufacturing, subject to additional approvals

The words manufacturing license in Dubai and industrial licence are often used interchangeably in business setup discussions. The exact licence name and permitted activities still depend on the licensing authority and jurisdiction you choose.

MoIAT also operates a federal Industrial Registry for UAE manufacturers. It covers establishments conducting manufacturing activities under ISIC Category C, including businesses in free zones and specialised economic zones. Manufacturers registered there must update specified industrial information annually.

Who Needs an Industrial Licence?

You should investigate industrial licensing if physical production forms part of your main business operation.

Common examples include companies that:

• Convert raw materials into finished products

• Convert semi-finished goods into finished products

• Assemble components into a new product

• Process food or agricultural products

• Manufacture equipment or machinery

• Produce packaging materials

• Operate fabrication facilities

• Mix, refine or process industrial materials

• Carry out manufacturing-related packaging operations

JAFZA, for example, states that its industrial licence covers manufacturing processes involving raw-material purchases, imports for manufacturing, assembly, production and related activities. It also requires an appropriate production facility and warehouse inside the free zone.

There is an important distinction if you work in construction. A construction license in Dubai is generally classified separately from industrial manufacturing. Dubai's official guide places construction under the commercial licence category. A company manufacturing precast concrete, steel structures or other building materials may require an industrial licence for the factory while a separate contracting activity may be needed for construction work.

Industrial Licence Requirements in the UAE

Requirements vary by emirate, free zone and manufacturing activity. A food factory and a metal fabrication unit will not go through exactly the same approval process.

Still, most industrial projects need to address the following areas.

1. Approved industrial activity

   Choose the exact activity before leasing premises or buying machinery.

   Your activity affects the licence category, acceptable location, technical requirements and outside approvals.

2. Suitable industrial premises

   A basic office or flexi-desk normally will not work for manufacturing.

   The facility may need sufficient production space, storage, loading areas, electricity capacity, ventilation, waste management systems and fire-safety equipment.

   JAFZA specifically requires its industrial licence holders to have an appropriate production facility and warehouse.

3. Machinery and production details

   Authorities may ask for information about machinery, manufacturing processes, production lines, installed capacity, power requirements and raw materials.

   Get site approval before importing expensive equipment. Moving machinery later because the premises do not meet regulatory requirements can become costly.

4. Government approvals

   Depending on the activity, approvals may involve:

   • The local economic department or free-zone authority

   • MoIAT

   • Municipality authorities

   • Civil Defence

   • Environmental authorities

   • Food-safety regulators

   • Health authorities

   • Utility providers

   • Other industry-specific regulators

   Dubai's official setup guidance confirms that activities requiring outside approval must satisfy the relevant government authority's conditions before licensing is completed.

5. Federal industrial requirements

   For establishments using MoIAT's Industrial Production License service, the ministry requires an existing local industrial licence. Its published criteria also refer to a minimum of 10 employees and factory capital of at least AED 250,000 for qualifying applications.

   Review the current requirements directly through the MoIAT Industrial Production License service because federal requirements and available services can change.

Documents Required for an Industrial Licence

• The final document list depends on the company structure and industrial activity.
• For a standard application, prepare documents such as:

• Passport copies of shareholders

• Emirates ID copies, where applicable

• UAE residence visa copies, where applicable

• Proposed trade name

• Business activity details

• Initial approval documents

• Memorandum of Association

• Company incorporation documents

• Manager identification

• Business plan or project description, where requested

• Factory or warehouse lease

• Site plan

• Machinery and equipment details

• Production-process description

• External authority approvals

• Environmental or safety documents where required

Corporate shareholders may need a certificate of incorporation, constitutional documents, board resolution and power of attorney. Overseas corporate documents may also require legalisation and Arabic translation.

MoIAT's current Industrial Registry service lists local initial approval or an industrial licence plus identification of the owner or manager among its core requirements.

Prepare the technical documents early. With industrial licensing, delays often come from the premises or external approvals rather than the passport and incorporation paperwork.

How to Apply for an Industrial Licence in the UAE

The process changes slightly between emirates and free zones, but the overall route usually looks like this.

1. Select your manufacturing activity

   Describe exactly what you intend to manufacture, process or assemble.

   If several products are involved, check whether they can sit under one licence or require additional activities.

2. Choose mainland or free zone

   Look at customers, logistics, factory size, customs arrangements, utility requirements and where you intend to sell your products.

3. Select the company structure

   An LLC is common for mainland projects. Free zones may offer an FZE, FZCO, FZ-LLC or branch structure depending on their rules.

4. Reserve the trade name and obtain initial approval

   Submit the shareholder details, activity and proposed company structure to the licensing authority.

   Initial approval lets you continue with the remaining setup steps. It does not normally mean you can start production immediately.

5. Secure suitable industrial premises

   Confirm that the site supports your approved activity before signing a long-term lease.

   Check power requirements, loading access, storage, fire systems, ventilation, waste disposal and machinery layout.

   For specialised production businesses, you can also review areas such as Dubai Production City and its industrial facilities.

6. Complete external approvals

   Submit technical plans and obtain municipality, environmental, Civil Defence or sector regulator approvals where applicable.

7. Receive the local industrial licence

   Once the licensing authority accepts the incorporation documents, premises and necessary approvals, the local industrial licence can be issued.

8. Complete MoIAT requirements

   Manufacturing establishments subject to the federal framework should complete the relevant Industrial Registry or production-licensing requirements.

   The legal basis sits within Federal Decree-Law No. 25 of 2022 on industry. The law places local industrial licensing with the competent licensing authority and establishes the federal Industrial Registry.

Mainland vs Free Zone Industrial Licence

Both structures can support manufacturing, but the practical setup can be very different.

Dubai's official free-zone guidance states that free-zone companies need the relevant licence or mainland branch where direct mainland activity requires it.

For large manufacturing projects, do not choose a free zone because its normal company package looks inexpensive. Confirm that it actually supports your machinery, production activity and utility load.

Industrial Licence Cost and Renewal

There is no single UAE-wide industrial licence price.

Your total setup cost can depend on:

• Emirate or free zone

• Manufacturing activity

• Company structure

• Number of activities

• Factory or warehouse size

• Industrial land

• Machinery

• Electricity requirements

• Environmental approvals

• Civil Defence requirements

• Inspections

• Visas

• Customs registration

• Sector-specific permits

JAFZA currently publishes an industrial licence fee starting at AED 5,000 per year for one activity group, with other licence configurations priced differently. It clearly states that these figures can change. The production facility, warehouse and other setup costs are separate.

You can check JAFZA's current structure through its official industrial licence guide.

At the federal level, MoIAT currently lists the Industrial Registry issuance service as free. Its published Industrial Production License service guide lists an AED 100 inspection fee and a five-working-day service time for the ministry stage.

These figures should not be treated as the total cost of opening a factory.

Industrial licences also need to stay valid. Renewal may involve the licence fee, facility lease, external NOCs and confirmation that the premises continue to meet safety or operational requirements. Industrial establishments registered with MoIAT must also update Industrial Registry information annually.

Start renewal checks before the expiry date, especially when another authority's approval must be renewed first.

Frequently Asked Questions