UAE Industrial License Uncovered

Table of Contents

What Is an Industrial License in the UAE?

An Industrial License in the UAE allows businesses to manufacture, process, assemble, and package products on a commercial scale. 

No matter if you’re building automotive parts, bottling beverages, or assembling electronics, this license legally enables you to operate a production-based business in the UAE.

Issued by the Department of Economic Development (DED) for mainland operations or by various Free Zone Authorities, the industrial license is a must for entities involved in any physical transformation of goods.

Unlike commercial or professional licenses that cater to trade or services, an industrial license focuses strictly on industrial activities and requires physical infrastructure, including a warehouse or production facility.

Why Choose an Industrial License?

A manufacturing license doesn’t just grant legal status, it offers serious operational advantages for growth-oriented companies.

Key Benefits:

  • 100% foreign ownership in Free Zones
  • Access to local and international markets
  • Custom duty exemptions on raw materials and equipment in Free Zones
  • Industrial land and warehouse leasing support
  • Ability to sponsor employees and technical workers
  • Eligible for export incentives and government industrial grants

Who Needs an Industrial License?

Any business that transforms raw materials into finished or semi-finished products is required to hold an industrial license.

Examples of Eligible Activities:

  • Manufacturing (food, furniture, textiles, cosmetics)
  • Assembly of electronics and machinery
  • Bottling and packaging of water or beverages
  • 3D printing and prototyping
  • Plastics or metal fabrication
  • Chemical processing and production
  • Automotive assembly or component manufacturing

Important: The company must operate a physical facility—virtual operations are not eligible for an industrial license.

Required Documents for Industrial License

Document

Description

Passport copies

Of all shareholders and managers

Visa copies (if applicable)

Required for UAE residents or employees

Emirates ID

For UAE residents

Trade name reservation certificate

From DED or Free Zone Authority

Initial approval certificate

Confirming eligibility for industrial activity

Lease agreement

For the factory or warehouse premises

Technical drawings (if required)

Floor plan, fire exits, ventilation for manufacturing units

Environmental clearance

For relevant industrial activities (chemicals, food, etc.)

Business plan

Production, staffing, logistics, waste disposal strategy

Industrial License Cost Breakdown in the UAE

Cost Component

Estimated Cost (AED)

Details

Trade Name Reservation

600 – 1,000

One-time fee during name approval

Initial Approval Certificate

1,000 – 1,500

Pre-approval from DED or Free Zone

Industrial License Issuance Fee

10,000 – 15,000

Varies by location and business activity

Industrial Facility Lease

20,000 – 60,000+

Warehouse or factory space, location-dependent

Environment & Municipality Approvals

3,000 – 7,000

Depends on nature of industrial activity

Immigration Card & Establishment Setup

1,000 – 2,000

Mandatory for visa and labor card issuance

Total Estimated Cost: AED 35,000 – 90,000+ depending on setup complexity and licensing authority.

Step-by-Step Guide to Getting an Industrial License in the UAE

Step 1: Define Your Industrial Activity

Begin by identifying exactly what you plan to manufacture, assemble, or process. Your selected activity must align with the approved list from the DED or relevant Free Zone. Activities like food production, metal fabrication, or chemical processing may need additional sector-specific approvals.

Decide where you want to set up: Mainland or Free Zone. Mainland allows broader access to UAE markets and public contracts. Free Zones offer 100% foreign ownership, tax benefits, and simplified logistics—ideal for export-focused businesses. Consider your expansion goals and client base when choosing.

Select a trade name that reflects your business and meets UAE naming rules. Submit it to the authority for approval. Avoid abbreviations, religious references, or duplicate names. Once approved, you’ll receive a trade name certificate valid for a limited time.

Apply for initial approval by submitting your chosen activity, trade name, and shareholder documents. This is a no-objection confirmation that permits you to move forward with leasing, legal documents, and regulatory compliance steps.

Lease or purchase a warehouse, factory, or industrial unit that suits your operations. The facility must be in a designated industrial zone and comply with local building, safety, and zoning standards. This step is essential for license approval.

Depending on your activity, you may need approvals from the Municipality, Civil Defense, or Environment Department.Submit technical documents like facility layout, ventilation, and safety systems for review before final licensing.

Prepare your Memorandum of Association (MoA) outlining business structure and ownership. Mainland setups often require notary public approvals. In Free Zones, a detailed business plan may also be needed to justify your production capacity and resources.

Once everything is in place—documents, approvals, lease—you can submit your final license application. After document verification and payment of fees, your industrial license will be issued, and you can begin operations legally.

Mainland vs. Free Zone: Which Is Right for Your Industrial Setup?

Complete Renewal Process of an Industrial License in the UAE

Step 1: Check Expiry Date

Begin by reviewing your license’s expiration date. Ideally, start the renewal process 2–4 weeks in advance to avoid penalties or service interruptions.

Your license is tied to your industrial premises. Ensure your warehouse or factory lease is renewed. Mainland companies must also update their Ejari certificate with the Dubai Land Department.

Depending on your activity, renew any required environmental, municipal, or safety approvals, such as fire safety clearance from Civil Defense or environmental permits from local authorities.

Gather key documents:

  • Renewed lease/Ejari
  • Updated clearances
  • Passport copies and Emirates IDs (if changed)
  • Copy of your current license
  • Immigration card (if visa-linked)

Submit your renewal request through the DED system or relevant Free Zone portal. Ensure all documents are complete to avoid delays.

Settle the license renewal fee, immigration charges, and any service or PRO fees. Charges vary by jurisdiction and business size.

Once approved, you’ll receive your updated license certificate, valid for another year. Your company’s records will be updated across government portals.

Final Thoughts

Setting up an industrial business in the UAE opens doors to one of the region’s most growing and logistics-ready economies. 

No matter if you’re launching a new production line, relocating from overseas, or scaling up a growing manufacturing operation, an industrial license offers the legal and operational framework to do it right.

By understanding your options Mainland vs. Free Zone and planning for the right approvals and costs, you can streamline your entry into the UAE’s industrial sector.

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