VAZONE Expert Guide

Industrial License Dubai, UAE

An Industrial License in Dubai is a mandatory permit for businesses engaged in manufacturing, processing, assembling, or packaging goods within the UAE. It allows companies to legally operate industrial facilities, benefit from government incentives, and access local and global markets. With strong infrastructure, supportive regulations, and dedicated industrial zones, Dubai offers one of the most attractive environments for setting up manufacturing operations.

Financial Advisory in Dubai

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Industrial License Dubai, UAE – Complete Guide for 2026

Dubai has rapidly evolved into one of the leading industrial and manufacturing hubs in the Middle East. With world-class infrastructure, strategic geographic location, and investor-friendly regulations, thousands of entrepreneurs choose Dubai each year to set up factories, production units, and industrial facilities.

To operate legally, every manufacturing or production-based business must obtain an Industrial License in Dubai. In this comprehensive 2026 guide, we explain requirements, costs, documents, setup process, and the best free zones for industrial activities — along with expert guidance from VAZŌNE Business Setup.

What Is an Industrial License in Dubai?

Industrial License in Dubai

An Industrial License is an official permit issued to companies involved in:

  • Manufacturing

  • Processing raw materials

  • Assembling products

  • Packaging goods

  • Industrial fabrication

This license authorizes businesses to produce goods legally within the UAE. It covers both mainland and free zone manufacturing activities.

If your business involves converting raw materials into finished or semi-finished goods, you must obtain an industrial license before starting operations. You can learn more about company formation options at VA Zone Company Setup & Formation.

Why the Industrial License Is Important in the UAE

The industrial sector is central to the UAE’s economic diversification vision. By holding this license, companies gain:

  • Full legal protection

  • Access to industrial incentives

  • Recognition by Dubai authorities

  • Eligibility for customs duty exemptions

  • Permission to participate in UAE industrial growth initiatives

The UAE government continues to support manufacturing as part of its “Operation 300bn” strategy, making 2026 a strong year for industrial investors.

Activities Covered Under the Industrial License

The license covers all major industrial operations, including:

1. Manufacturing & Production

  • Textiles

  • Food & beverage production

  • Construction materials

  • Metal fabrication

  • Furniture and woodwork

  • Plastic & chemical production

2. Assembling & Packaging

  • Equipment assembly

  • Electronics assembly

  • Labeling and packaging products

  • Automotive parts assembly

3. Processing & Industrial Fabrication

  • Chemical processing

  • Plastic molding

  • Machinery production

  • Metal casting and cutting

Benefits of an Industrial License in Dubai

Access to Local & International Markets

Licensed manufacturers can trade within the UAE and export globally without restrictions.

Lower Import & Export Duties

Industrial companies enjoy reduced customs duties, especially in free zones such as JAFZA and DIC.

Government Incentives

The UAE frequently launches grants, discounts, and funding programs for manufacturers.

Affordable Industrial Land

Businesses can lease industrial land at competitive rates in dedicated industrial zones.

Higher Credibility

Industrial licensing increases trust among clients, investors, and global partners.

To explore all available zones, visit VA Zone – UAE Freezones.

Industrial License Requirements in Dubai

To qualify for an industrial license, the business must meet both basic operational requirements and legal conditions.

Basic Requirements

  • A physical factory, warehouse, or industrial facility

  • Compliance with environmental and safety standards

  • Approval from Dubai Municipality and Civil Defense

  • Machinery installation plan

  • Minimum capital investment (varies by activity)

Legal Requirements

The business must be registered as one of the following:

  • Mainland LLC

  • Free Zone Company

  • Industrial Entity within a regulated jurisdiction

For mainland registration, visit Dubai Mainland Company Formation.

Step-by-Step Process to Get an Industrial License in Dubai (2026)

1. Choose the Industrial Activity

Select your exact manufacturing activity as listed by the DET/Free Zone authority

2. Register Company Name & Legal Structure

Reserve a unique trade name and select your structure (LLC, free zone company, etc.).

3. Obtain Initial Approval

Initial approval from DET or the relevant free zone confirms that your business can proceed.

4. Secure Industrial Premises

You must lease:

  • A warehouse

  • A factory

  • Industrial land

Approvals from Civil Defense and the Municipality are required.

5. Submit Documents & Final Approvals

Submit your business plan, agreements, passports, and approvals. Once verified, the industrial license is issued.

Cost of Industrial License in Dubai, UAE (2026)

Cost Component Price (AED)
Industrial License Fee
12,000 – 18,000
Initial Approval
1,200 – 1,800
Trade Name Reservation
900 – 1,000
MOA Notarization
1,500 – 3,000
Ministry of Economy Industrial Approval
5,000 – 7,500
Dubai Municipality Approvals
2,000 – 5,000
Industrial Facility Ejari / Lease
30,000 – 150,000 yearly (depends on size)
Environmental & Civil Defense Inspection
2,000 – 8,000
Visa + Establishment Card (Optional)
3,500 – 5,000

Average Industrial License Setup Cost 2026:
AED 25,000 – AED 45,000 (license only)
AED 80,000 – AED 400,000 (with warehouse/factory)

Additional costs include warehouse rent, visas, and accounting needs. You can explore VAT, tax support, and accounting packages at:

Best Free Zones for Industrial License in UAE (2026)

Free Zones Perfect for
JAFZA – Jebel Ali Free Zone
Ideal for export-heavy industries with direct port access.
Dubai Industrial City (DIC)
Perfect for manufacturing, logistics, and heavy industries.
Sharjah Free Zones
Affordable industrial land and cost-effective setup.
Ras Al Khaimah (RAKEZ)
Known for low setup costs and flexible land options.
Abu Dhabi Industrial Zones
Excellent for large-scale industrial operations with government incentives.
If you plan to trade physical goods locally or internationally, you may need a General Trading License in Dubai instead of an e-commerce license.

If your business mainly sells products online, a SHAMS E-Commerce License may be a more cost-effective option.

Extended Manufacturing Registration – What It Means

Businesses expanding into new manufacturing categories require extended registration. This includes:

  • Updating business plans

  • Obtaining new approvals

  • Paying additional fees

This is required when scaling production or adding new product lines.

Documents Required for Industrial License in Dubai

Prepare the following documents:

  • Passport copies of all shareholders

  • Emirates ID & visa copies (if resident)

  • Initial approval certificate

  • Detailed business plan

  • Memorandum & Articles of Association

  • NOC from local sponsor (if required)

  • Lease agreement or Ejari

  • Environmental, Civil Defense, and Municipality approvals

  • Board resolution (for corporate shareholders)

  • Shareholding certificates

Proper documentation ensures faster approval with fewer delays.

Common Challenges in Obtaining an Industrial License

The industrial license application process can be complex, and being aware of potential challenges early on allows investors to plan better and avoid delays.

High Startup Cost

Factory setup, machinery, and warehouse rent can be expensive.

Multiple Approvals

Industrial projects require approvals from several departments.

Land Availability

Finding suitable industrial land in prime zones can be challenging.

Regulatory Compliance

Strict safety and environmental standards must be maintained.

Why Hire Professional Consultants for Industrial Licensing?

Working with experts significantly reduces the risk of delays. VA Zone consultants help with:

  • Faster approvals

  • Free zone vs mainland guidance

  • Cost optimization

  • Avoiding penalties

  • Complete documentation support

Explore professional services:
VA Zone Services
Banking Advisory
Business Process Outsourcing

Mainland vs Free Zone Industrial License

Feature Mainland Dubai UAE Free Zones
Ownership
Up to 100% foreign ownership allowed
100% foreign ownership guaranteed
Market Access
Full UAE market + international
Mainly export-focused; UAE trade via distributor
Regulatory Authority
Dubai DET + Ministry of Economy
Individual Free Zone Authority
Industrial Land Cost
Medium to high (depends on area)
Lower options in DIC, RAKEZ, HFZA
Customs Duty
Standard UAE customs
Many free zones offer duty exemptions
Business Flexibility
High (multiple activities allowed)
Limited to free-zone-approved activities
Ideal For
Medium-large factories, local distribution
Export-oriented manufacturers, SMEs
Visa Quota
Depends on space & activity
Depends on facility size; often higher

Get Your Industrial License in Dubai With VA Zone

Setting up a manufacturing company in Dubai offers long-term growth, access to global markets, and unmatched business stability. However, navigating approvals, documentation, and compliance can be overwhelming — especially for first-time investors.

At VA Zone, we help you with:

  • End-to-end industrial license setup

  • Mainland, free zone, and offshore options

  • Cost-efficient business formation

  • Visa, tax, and accounting support

  • Ongoing compliance and expansion guidance

Start your business journey with the UAE’s trusted partner for industrial setups.

Ready to set up your industrial business in Dubai?

Get expert guidance today.

Book a free consultation now

Frequently Asked Questions– Dubai Industrial License

What is an Industrial License in Dubai?

It is a legal permit that allows companies to manufacture, assemble, process, or package goods inside the UAE for local or international markets.

How much does an industrial license cost in Dubai?

The industrial license cost starts from AED 25,000, but total setup costs depend on warehouse size, machinery, and approvals.

Can foreigners own 100% of an industrial company in Dubai?

Yes. Both mainland and free zone setups allow 100% foreign ownership for industrial and manufacturing businesses.

How long does it take to get an industrial license?

It generally takes 10–25 working days, depending on activity approvals and facility inspections.

Do I need a warehouse or factory before applying?

Yes. You must lease an industrial facility (warehouse, land, or factory) BEFORE final approval is issued.

Which free zones offer industrial licenses?

JAFZA, Dubai Industrial City (DIC), SAIF, HFZA, RAKEZ, and KIZAD are the top industrial free zones.

What approvals are required for an industrial license?

Dubai Municipality, Civil Defense, Environment Department, Ministry of Economy, and DET.

Is an environmental impact report required?

For many industries (metal, chemical, plastic, food production), yes — an EIA or safety plan is mandatory.

Can I add more manufacturing activities later?

Yes. You must apply for an extended manufacturing registration with updated approvals.

Is VAT registration required for industrial companies?

Yes, if your revenue crosses AED 375,000, VAT registration is mandatory.

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