Dubai has positioned itself as a global manufacturing and industrial hub, attracting thousands of investors from around the world. The emirate’s robust infrastructure, modern logistics network, and investor-friendly policies have made it the go-to destination for industrial and manufacturing businesses in the Middle East.
If you’re planning to start an industrial venture, one of your first steps will be obtaining an industrial license in Dubai. But how much does it really cost? What are the legal requirements, and which authorities are involved in the process?
This in-depth guide breaks down everything — from costs, required documents, and approvals to renewal fees and benefits — to help you make an informed decision before setting up your manufacturing business in Dubai.
Understanding What an Industrial License Is
An industrial license is an official permit issued by the Dubai Department of Economy and Tourism (DET) — previously known as the Department of Economic Development (DED) — allowing businesses to engage in manufacturing, processing, and industrial production activities within Dubai.
Purpose of the Industrial License
The industrial license authorizes businesses to carry out production activities, such as transforming raw materials into finished or semi-finished products. This includes assembling goods, fabricating components, packaging, and exporting manufactured items.
Activities Covered Under an Industrial License
Some of the common industrial activities permitted under this license include:
- Textile and clothing manufacturing
- Food and beverage processing
- Furniture production
- Chemical and plastic manufacturing
- Printing and packaging
- Metal and machinery production
- Electrical equipment assembly
Types of Industrial Licenses in Dubai
Dubai offers several types of industrial licenses depending on the nature and scope of the business.
Light Industrial License
This license is issued for manufacturing activities that do not involve heavy machinery or large-scale operations — typically used for food production, packaging, and small-scale manufacturing.
Heavy Industrial License
For businesses that use heavy machinery or large plants, such as metal fabrication, construction materials, and automobile parts manufacturing, a heavy industrial license is required.
Specialized Industrial License
Issued to industries producing specific products like pharmaceuticals, medical equipment, or chemical goods, requiring compliance with safety and environmental regulations.
Authorities Involved in Issuing Industrial Licenses
While the primary authority for issuing licenses is the Dubai Department of Economy and Tourism (DET), you may also need approvals from other government entities depending on your business activity.
Key Government Entities Involved
- Dubai Municipality (DM) – for environmental and safety approvals
- Ministry of Human Resources & Emiratisation (MOHRE) – for labor-related permissions
- Dubai Civil Defense – for fire safety and building compliance
- Ministry of Industry and Advanced Technology (MoIAT) – for industrial activity approval
- Dubai Electricity and Water Authority (DEWA) – for power and water connections
For industrial activities involving chemicals, pharmaceuticals, or food production, additional approvals from the Ministry of Health, Dubai Civil Aviation Authority, or Dubai Customs may be required.
Cost of Getting an Industrial License in Dubai
The industrial license cost in Dubai typically ranges from AED 25,000 to AED 50,000, depending on factors like company size, business activity, approvals, and location (mainland or free zone).
Breakdown of Industrial License Costs
Here’s an estimated breakdown of the major expenses:
| Cost Component | Estimated Price (AED) | Description |
| Trade Name Reservation | 620 – 1,000 | Registering your company name with DET |
| Initial Approval Fee | 120 – 500 | Preliminary approval to begin registration |
| Industrial License Issuance | 10,000 – 15,000 | Fee for license issuance and registration |
| Local Service Agent Fee (if required) | 5,000 – 8,000 | Applicable for foreign-owned businesses |
| Office/Warehouse Lease | 15,000 – 30,000 | Depending on size and location |
| Approvals from Authorities | 1,000 – 3,000 | Based on required inspections |
| Trade License Renewal | 8,000 – 12,000 | Annual renewal cost |
These costs can vary slightly depending on whether you choose to establish your business on the mainland or within a free zone.
Free Zone vs Mainland Industrial License in Dubai
The type of jurisdiction you choose significantly affects the setup cost and ownership structure.
Mainland Industrial License
A mainland industrial license allows you to operate anywhere in Dubai and across the UAE market. You can also trade directly with local retailers and government agencies.
Advantages:
- Access to local and international markets
- Ability to open showrooms or retail branches
- Eligibility to apply for government contracts
Limitations:
- Requires approvals from multiple government bodies
- May have higher setup costs than a free zone
Free Zone Industrial License
Free zones like Dubai Industrial City (DIC), Jebel Ali Free Zone (JAFZA), and Dubai Silicon Oasis (DSO) offer cost-effective solutions for manufacturing and logistics-based industries.
Advantages:
- 100% foreign ownership
- Tax exemptions on imports, exports, and profits
- Streamlined one-window approval process
Limitations:
- Restricted to operations within the free zone
- Cannot directly trade with the mainland without a distributor
Key Requirements to Obtain an Industrial License
Before applying, ensure that your company meets the eligibility criteria and complies with government regulations.
Eligibility Criteria
- Must have a physical industrial facility (warehouse or factory)
- Must employ a minimum number of skilled workers
- Must use machinery for production or assembly
- Must have environmental and safety measures in place
Documents Required
- Application form from DET
- Copy of shareholders’ passports and Emirates IDs
- Business plan and feasibility study
- Tenancy contract (Ejari) for premises
- No Objection Certificate (NOC) from the Dubai Municipality
- Approval from the Ministry of Industry and Advanced Technology
- Memorandum of Association (MOA) and Articles of Association (AOA)
Step-by-Step Process to Apply for an Industrial License in Dubai
Setting up an industrial business in Dubai involves several structured steps.
Step 1 – Identify Your Industrial Activity
Choose your business activity from the approved list by DET. Be specific, as your license and approvals depend on the category of production.
Step 2 – Reserve a Trade Name
Register your company’s trade name that aligns with the nature of your business. Avoid religious or political references.
Step 3 – Obtain Initial Approval
Submit your application for initial approval from the DET, confirming that your business activity complies with UAE regulations.
Step 4 – Secure a Physical Location
You must lease or own a warehouse or factory that meets Dubai Municipality and Civil Defense standards.
Step 5 – Get Approvals from Concerned Departments
Depending on your business activity, obtain necessary permits from relevant authorities such as DEWA, MoIAT, and Dubai Municipality.
Step 6 – Prepare and Submit Documents
Compile all necessary documents, including MOA, tenancy contract, and shareholder details, and submit them to DET.
Step 7 – Pay the Fees and Receive Your License
Once approved, pay the required fees and collect your industrial license to begin operations.
Additional Costs to Consider
Beyond the license fee, you’ll need to budget for the following operational expenses:
Warehouse and Facility Costs
Industrial activities require a physical location for production and storage. Renting a warehouse in Dubai Industrial City or JAFZA may cost between AED 20,000 and AED 80,000 annually.
Equipment and Machinery
Machinery and manufacturing tools can significantly increase your startup costs, especially for large-scale industrial setups.
Labor and Visa Costs
Hiring skilled workers and applying for employment visas through MOHRE or free zone authorities can cost AED 3,000 to AED 5,000 per employee.
Utilities and Maintenance
Monthly DEWA bills, air conditioning, maintenance, and raw materials can range between AED 2,000 and AED 10,000, depending on your production scale.
Renewal Cost for Industrial License in Dubai
Your industrial license must be renewed annually through DET or the respective free zone authority.
Renewal Fees
The renewal cost ranges from AED 8,000 to AED 12,000, depending on your business size and activity type. Late renewals may attract penalties.
Documents Required for Renewal
- Copy of the existing license
- Lease renewal agreement
- Updated trade name registration (if applicable)
- Updated audit and financial report
Benefits of Obtaining an Industrial License in Dubai
Getting an industrial license in Dubai offers several advantages for manufacturers and exporters.
Strategic Global Connectivity
Dubai’s ports and airports connect to over 200 international destinations, making it easy to export finished goods worldwide.
100% Repatriation of Profits
Businesses can repatriate 100% of profits and capital, ensuring total control over financial resources.
Advanced Infrastructure and Logistics
Dubai offers world-class industrial facilities, such as Dubai Industrial City, TechnoPark, and JAFZA, equipped with modern logistics and utilities.
Low Corporate Tax and Zero Import Duties
Most industries enjoy tax-free operations, with corporate tax applicable only to oil, gas, and banking sectors.
Access to Skilled Workforce
Dubai attracts a highly skilled, multilingual workforce suitable for industrial and manufacturing sectors.
Common Mistakes to Avoid When Applying for an Industrial License
Many investors overlook documentation, choose unsuitable locations, or delay renewals. Ensuring complete paperwork, correct approvals, and timely renewals prevents costly delays and license rejections.
Incomplete Documentation
Many applications get delayed due to missing approvals or incomplete business plans. Always verify all documents before submission.
Choosing the Wrong Location
Each industrial zone in Dubai caters to specific sectors. Selecting a zone not suited to your activity can lead to operational restrictions.
Ignoring Environmental Regulations
Industrial projects must meet environmental standards set by Dubai Municipality and the Ministry of Climate Change and Environment.
Delaying License Renewals
Delays in renewals can result in fines or license suspension. Always track your renewal date well in advance.
How Long Does It Take to Get an Industrial License?
On average, it takes 10 to 15 business days to obtain an industrial license in Dubai, provided all documents and approvals are in order. Complex projects involving hazardous materials or specialized manufacturing may take longer due to additional inspections.
The Future of the Industrial Sector in Dubai
Dubai is continuously investing in its industrial economy through initiatives like the Dubai Industrial Strategy 2030, which focuses on innovation, sustainability, and technology-driven production.
Focus on Advanced Manufacturing
Industries involving AI, robotics, 3D printing, and renewable energy are receiving priority incentives from the government.
Growing Export Opportunities
Dubai’s strategic location positions it as a gateway for exports to Asia, Africa, and Europe, enhancing profitability for industrial firms.
Conclusion
Obtaining an industrial license in Dubai is a crucial step for anyone planning to start or expand a manufacturing business in the UAE. While the overall cost can range from AED 25,000 to AED 50,000, the benefits of operating in Dubai — including global access, modern infrastructure, and favorable tax laws — far outweigh the investment.
Understanding the detailed process, preparing the necessary documents, and choosing the right business zone are key to ensuring a smooth setup experience.
If you want professional assistance with company registration, approvals, and compliance, consulting experienced business setup consultants in Dubai can simplify your journey and help you start your industrial operations quickly.
FAQs
How much does it cost to get an industrial license in Dubai?
The cost generally ranges from AED 25,000 to AED 50,000, depending on business size, location, and required approvals.
Which authority issues the industrial license in Dubai?
The Dubai Department of Economy and Tourism (DET) issues industrial licenses for mainland businesses.
Can foreigners own 100% of an industrial business in Dubai?
Yes, foreign investors can own 100% of industrial businesses in Dubai under UAE’s updated investment laws.
Is a physical warehouse mandatory for an industrial license?
Yes, industrial licenses require a physical facility, warehouse, or factory that complies with Dubai Municipality standards.
What is the validity period of an industrial license?
The license is valid for one year and must be renewed annually.
How long does the approval process take?
It typically takes 10–15 business days, depending on the business activity and documentation.
Can I operate an industrial business in a free zone?
Yes, several Dubai free zones like JAFZA and Dubai Industrial City offer industrial licenses for foreign investors.
Are there additional costs for environmental approvals?
Yes, industries dealing with chemicals, waste, or emissions may incur extra fees for environmental compliance and inspections.
Do I need local sponsorship for an industrial license?
Not necessarily most industrial businesses now allow 100% foreign ownership under UAE law.
What are the renewal charges for an industrial license?
Renewal typically costs AED 8,000 to AED 12,000 per year, depending on your business activity.
