RAKEZ Industrial Licence: Activities, Facilities and Setup Process

Ras Al Khaimah is a practical location for manufacturers that need industrial land, warehouses, utilities and access to regional shipping routes. If your company plans to manufacture, process, assemble or package products, a RAKEZ industrial licence is usually one of the first approvals you need.

The licence itself is only part of the setup. Your production activity, factory space, machinery, environmental approvals, fire safety, customs registration and federal industrial requirements can all affect when you can actually start operating.

For a broader introduction to the economic zone, read Nexture's RAKEZ company setup guide.

What Is a RAKEZ Industrial Licence?

A RAKEZ industrial licence allows a company to carry out approved manufacturing and production activities within Ras Al Khaimah Economic Zone. RAKEZ describes its industrial licence as covering the manufacturing, importing, packaging and exporting of products.

In practical terms, it is designed for businesses that convert raw materials or components into finished or semi-finished products. This can include businesses producing food, furniture, metal products, plastics, machinery, packaging materials, chemicals, electrical equipment and medical products.

RAKEZ maintains a detailed business activity list with individual activity codes. Examples include medical and surgical equipment manufacturing, adhesives manufacturing, agricultural machinery manufacturing and many food-processing activities.

For a wider comparison of manufacturing rules across the country, see Nexture's industrial licence in UAE guide.

RAKEZ Industrial Licence Activities

The exact activity on your licence should match what happens inside your factory. A company making aluminium components, for example, should not register under a general trading activity simply because it plans to sell those products afterwards.

Common industrial categories available through RAKEZ include food and beverage processing, chemicals, plastics and rubber, metals, building materials, glass and ceramics, wood and furniture, packaging, automotive components, machinery, electronics, medical equipment and textiles. RAKEZ's industrial portfolio also includes businesses in robotics, pharmaceuticals and industrial machinery.

One detail is easy to miss. RAKEZ currently states that a Free Zone Industrial Licence permits two activities from the same activity group. Activities falling under a different licence type normally require another licence.

So, if your factory manufactures furniture and also wants to operate an unrelated consultancy or separate trading business, check the licensing structure before filing.

RAKEZ Industrial Zones and Facilities

RAKEZ operates three main industrial zones. Choosing between them should depend on your manufacturing process, required land area, power demand, logistics needs and legal structure.

Al Ghail is positioned for large industrial projects and allows both free zone and non-free-zone company formations.

Al Hamra supports both light and heavy industry. Its current RAKEZ page lists warehouses from 150 m² up to 10,000 m² and industrial plots from 5,000 m².

Al Hulaila is aimed mainly at heavier industrial manufacturing and sits close to Saqr Port. RAKEZ also offers warehouses and land there.

RAKEZ's general land-for-development offering starts from 2,500 m², while individual zone pages may specify larger minimum plots. That means the actual minimum depends on the location and available inventory.

Warehouses for Manufacturing

You do not necessarily need to construct a factory from scratch.

RAKEZ offers customisable warehouses starting from 150 m² for light manufacturing, storage and general assembly. Current warehouse specifications include loading and unloading space, an internal office and heat-insulated roofing and doors. The standard lease term is one year and renewable annually.

A ready warehouse may suit packaging, assembly or smaller production lines.

Large manufacturers may prefer industrial land so they can design the factory around production equipment, raw-material storage, finished-goods storage and internal logistics.

Before you sign a lease, confirm the required electrical load, ventilation, floor loading, wastewater arrangements, fire-safety design, truck access and machinery dimensions.

Documents Required for a RAKEZ Industrial Licence

The exact documents depend on your shareholders, activity and facility, but industrial projects generally require more technical information than an office-based company.

You should be ready with passport copies for shareholders and managers, visa and Emirates ID copies where applicable, company registration forms, UBO information and a business plan where requested.

For the industrial operation itself, you may also need a production layout, manufacturing process flow, machinery list, information about raw materials and products and a detailed application for your warehouse or land.

RAKEZ's current registration checklist also includes additional incorporation and good-standing documents where the shareholder is another company.

Nexture's manufacturing licence guide provides another useful checklist for planning factory documents and government approvals.

RAKEZ Industrial Licence Setup Process

1. Confirm your manufacturing activity

   Start with the actual product and production process. Identify your raw materials, machinery, production stages and finished product. Then match them to the correct RAKEZ industrial activity code.

2. Choose free zone or non-free-zone formation

   RAKEZ provides both options within parts of its industrial portfolio. Your customer locations, customs arrangements and planned UAE operations should guide this decision.

3. Choose the industrial zone and facility

   Decide whether your operation can work from an existing warehouse or needs industrial land and a purpose-built facility.

   RAKEZ itself presents company formation as selecting the legal entity, licence and facility, submitting the required documents and then making payment before licence issuance. Industrial projects add technical and regulatory stages to that basic process.

4. Submit company and technical documents

   Submit the incorporation application together with the required industrial information. Warehouse and land projects can require more detailed plans than a standard office licence.

5. Obtain external approvals

   Your activity may require approvals from authorities such as the Environmental Protection and Development Authority and Civil Defence. Food, medical, chemical or other regulated manufacturing can require further approvals from the relevant government body.

   RAKEZ's own facility procedures specifically refer to EPDA and Civil Defence NOCs for industrial activities where applicable.

6. Complete fit-out and HSE requirements

   Any warehouse modification or factory construction must follow the applicable approvals.

   RAKEZ's July 2026 Health, Safety and Environment fee schedule lists Operational Fitness Certificate issuance or renewal at AED 1,000 for low-risk facilities, AED 2,000 for medium-risk facilities and AED 5,000 for high-risk facilities. Additional charges can apply for extra warehouses or larger land areas.

7. Receive the industrial licence

   Once the applicable requirements and payments are completed, RAKEZ can issue the licence. You can then proceed with visas, customs arrangements and operational registrations.

MoIAT Requirements for RAKEZ Manufacturers

Getting the RAKEZ licence does not necessarily finish your industrial compliance.

The UAE Ministry of Industry and Advanced Technology states that the Industrial Registry applies to establishments carrying out manufacturing activities under ISIC Section C, including companies operating in free zones and specialised zones. Industrial establishments must update their registry information annually.

Manufacturers subject to federal industrial production licensing should also check the Industrial Production Licence requirements.

MoIAT currently lists criteria including a valid local industrial licence, an industrial facility, at least 10 employees and capital of at least AED 250,000 for the Industrial Production Licence. The ministry currently charges AED 100 for the inspection and lists a five-working-day service time once the application requirements are met.

Customs Registration and Industrial Imports

Manufacturers importing machinery, components or raw materials should plan customs registration early.

Ras Al Khaimah Customs handles import, export, re-export, free-zone deposits and other customs procedures. Its services also include importer registration and industrial exemption procedures.

MoIAT also offers customs duty exemption applications for eligible industrial inputs, including machinery, equipment and raw materials. An Industrial Production Licence is one of the listed requirements.

This can matter considerably for a factory importing expensive production equipment.

How Much Does a RAKEZ Industrial Licence Cost?

There is no reliable single price for every factory setup. RAKEZ's current service pages state that charges can vary according to the licence type, activity and facility.

Your total budget may include the company licence, warehouse or land rent, utilities, factory construction or fit-out, HSE fees, environmental approvals, Civil Defence approvals, visas, customs registration, machinery installation and insurance.

This is why entry-level RAKEZ promotional packages for small office businesses should not be treated as the budget for an industrial company.

Get a quotation based on your exact activity, square metres, power requirement and approvals.

Corporate Tax and VAT

A RAKEZ free zone company still falls within the UAE Corporate Tax system.

Under Ministerial Decision No. 229 of 2025, manufacturing of goods or materials and processing of goods or materials are listed as Qualifying Activities. Manufacturing includes production, improvement or assembly using raw materials or components.

A qualifying free zone manufacturer may therefore benefit from the 0% Corporate Tax rate on Qualifying Income, provided it satisfies the full Qualifying Free Zone Person conditions. The 0% rate is not automatic simply because you have a free zone licence.

VAT is separate. UAE-resident businesses generally need to register when taxable supplies and imports exceed AED 375,000.

Common Setup Mistakes

The biggest problems usually start before production begins.

Choosing a cheap warehouse without checking power capacity can force you to move later. Using a trading activity when the company is actually manufacturing can create licensing problems. Ordering machinery before confirming the approved plant layout can also delay installation.

Another common mistake is assuming that the RAKEZ licence replaces environmental, Civil Defence, customs and MoIAT requirements.

Plan the activity, facility and regulatory approvals together.

Conclusion

A RAKEZ industrial licence can work for anything from a small assembly or packaging operation to a large manufacturing plant.

The right setup depends on what you produce. A light manufacturer may be able to operate from a 150 m² warehouse. A heavy industrial project may need thousands of square metres of land, custom construction, higher utility capacity and several government approvals.

Start with your production process. Then select the activity, industrial zone, facility and approval route around it.

Nexture can assist with RAKEZ company formation, industrial activity selection, licensing documentation and the wider UAE business setup process before you commit to a factory or warehouse.

Frequently Asked Questions