How to Start a Manufacturing Company in Dubai: License, Cost & Step-by-Step Guide (2025)

The idea of opening a manufacturing business in Dubai in 2025 is a brilliant one due to several reasons. The city is expanding rapidly, and it also has modernized factories, highly advanced machines, and world-class ports. Dubai links Asia, Europe, and Africa due to its location, and hence it is easy to trade goods across the globe. Also, the government assists the investors by creating friendly laws, tax incentives, and powerful schemes such as the Dubai Industrial Strategy 2030. But first, you have to get the process straight.

The rules will require you to have the appropriate license, the correct documents, and the relevant approvals. The process is made easy step by step. Through a proper strategy, it is possible to begin small and expand to larger sizes and penetrate not only local markets but also international markets.

About the manufacturing business in Dubai

Dubai is a manufacturing business that contributes significantly to the economy of the UAE. It adds billions of GDP annually. The government is interested in turning Dubai into one of the leading global centres with the Dubai Industrial Strategy 2030. The strategy undertakes investment into the contemporary factories, intelligent technology, and environmental friendliness.

Dubai has attractiveness to investors because of its simple rules for setting up a company and tax incentives. You can sell locally or internationally. Many industries develop here, including food and textiles, industrial machinery, and chemicals. Therefore, many entrepreneurs prefer a manufacturing company arrangement in the city of Dubai for long-term achievements.

Why the UAE is Becoming a Key Manufacturing Hub for Global Trade

UAE is not just oil and tourism. It has established a reputable manufacturing centre. Why? Due to its good positioning between Asia, Africa, and Europe. Goods can be transported very quickly within ports, airports, and roads.

Another initiative that the government initiated was the UAE Operation 300bn manufacturing growth. It is aimed at expanding the GDP of the industrial sector to AED 300 billion by 2031. Such perks as low-cost utilities and land discounts facilitate it.

The other main reason is customs support. Customs duty exemption is given to UAE manufacturers on importing raw materials and exporting goods. Such advantages facilitate investing in business in the UAE of a manufacturing nature.

Documents required for a manufacturing company setup in Dubai

Any company formation in Dubai in the manufacturing industry involves paperwork. You will have to fill out and turn in papers to obtain approvals.

Here is the list:

1. Business plan, factory details, and costs

The first step is to draw a clear business plan. It should describe how you plan to set up your factory, anticipated expenses, and business expansion plan.

2. Passport copies of the shareholders and managers

Fowl then provides passport copies of the shareholders and managers. These are documents that authenticate them and are required when registering them in the law.

3. Reservation of trade name

One of the steps is to reserve a trade name at the Department of Economy. It makes sure that your company name is an approved, unique, and legal name.

4. Memorandum of Association (MoA)

This legal paper provides an overview of the activities of the company, ownership structure, and the duties of the management to ensure the smooth running of the company.

5. Lease agreement of warehouse

You have to present a tenancy agreement and an Ejari certificate. These ensure that your business location is accepted, legal, and can be used industrially.

6. Dubai Municipality

Obtain all necessary approvals. Every authority verifies the safety, health, and environmental compliance before the authorization of manufacturing operations in Dubai.

7. NOC by the present sponsor

In case the shareholders already reside in the UAE, present a No Objection Certificate. It will ascertain that their sponsor permits new company registration.

8. Evidence of capital, usually AED 250,000

Submit proof of the required minimum capital. This thing demonstrates financial capacity, it helps build business credibility, and it is, in many cases, required to obtain a business license in an industry.

9. Staff/factory insurance

Last but not least, demonstrate insurance policies. These include the safety of your workers and guarding your factory assets to meet the UAE business laws.

Proper document submission will make your manufacturing license in Dubai authorized easily.

How to start a manufacturing business in the UAE

It may not seem easy to start a manufacturing business in the UAE, but it is easy when you follow the steps. You can develop and expand easily with proper planning, the right documents, and governmental backing.

1. Select business activity

The first step is to select your product. It may be food, textiles, machinery, or chemicals. It is a significant selection as any approvals, expenses, and setup are all based on your activity.

2. Pick a location

The second step is to select an area. Choose between the Free Zone and mainland manufacturing in Dubai. Free zones have full ownership, and the mainland has no restrictions on UAE markets.

3. Reserve trade name

Select the company name. It should comply with the UAE regulations, not use obscene language, and be original. It is an easy but important step to keep on with registration.

4. Draft MoA

It establishes the objectives of the company, ownership, and regulations. Before setup, this document should be signed by partners and notarised.

5. Lease space

Rent or buy factory space now. The warehouse in the Dubai Industrial City facilities is trendy. The license approvals and the operations of a business require the lease agreement and Ejari registration.

6. Seek approvals

Seek Civil Defence, Municipality, and Environment approvals. Various sectors require special permits, e.g., food by the MoHAP or chemicals by the police. These certifications are safety and compliance assurances.

7. File application

Present all the documents to the Department of Economy or the free zone authority. Fees are paid to obtain your industrial license in Dubai. This license renders your business legal.

8. Open a bank account

When you get a license, open a company bank account. Business payments, supplier transactions, and management of import or export of goods are transactions that require this account.

9. Make visa applications

Lastly, make visa applications. Begin with an investor visa and then an employee visa. Medical approval and tests are needed. Visas enable you and your employees to work legally.

These steps will establish your manufacturing company in Dubai.

Types of manufacturing licenses in Dubai

You should choose the type when you apply to obtain a manufacturing license in Dubai. Both alternatives are cost, rule, and advantage regulated. Make good decisions to suit business objectives.

1. Industrial (Big Scale) License

It is a license for heavy industries. It deals with petrochemicals, metals, steel, and pharmaceuticals. It is more capital-intensive and strict.

2. SME Manufacturing License

It is a license that suits small and medium-sized factories. It covers food products, textiles, and consumer goods. It enables a low-cost setup and approvals.

3. Free Zone Manufacturing License

This license provides 100 per cent foreign ownership. It fits the export-oriented enterprises. It includes tax exemptions, benefits in customs, and the quick formation of companies in free zones as well.

4. Specialised License

This license is related to sensitive industries. It comprises drugs, chemicals, and controlled foodstuffs. It involves additional licenses, safety checks, and strict adherence to the UAE regulations.

There are various needs of each type. The selection of the appropriate one will hinge on your product and target market.

How to Obtain a Manufacturing License in Dubai

Applying to obtain an industrial license in Dubai can be seen as a challenge, but it is easy to do when you have the proper steps. Every phase matters and therefore take them slowly and gradually.

1. File preliminary approval

First, file preliminary approval. You should provide your name and the trade of your choice. This step will prove that your business idea is officially accepted.

2. Rent a warehouse or an industrial space

Now rent a warehouse or an industrial space. Present a tenancy proposal and an Ejari permit. It demonstrates that you have a good business location at your disposal.

3. Seek approvals

Subsequently, seek Civil Defence, MoHAP, Environment, and Dubai municipality approvals. Each department verifies safety, health, and environmental standards before your business is permitted to commence.

4. Pay license fees

Pay license fees after approvals. The cost tends to be AED 15,000-40,000. It is determined by the type of business, location of choice, and approvals that you will need.

5. Get a license issued

Lastly, file all these. After verification, you will be given your manufacturing license in Dubai. This document makes your company legal and prepared to do business.

The license will enable you to work under the law and benefit from incentives such as customs duty exemption UAE manufacturers have.

Activities Covered Under Manufacturing License in UAE

There are numerous activities that the manufacturing license in Dubai permits. Some examples are:

• Processing of foods and beverages.
• Textile and cloth production.
• Production of machinery and equipment.
• Furniture and wood products.
• Plastics, chemicals, and paper products.
• Metals, cables, and auto parts.
• Pharmaceuticals and medical equipment.
• Make-up, fragrance, and personal care.

Dubai is a good place to form manufacturing companies in various industries due to its broad spectrum.

free zone vs mainland manufacturing Dubai

The one large decision is the selection of free zone vs mainland manufacturing in Dubai.

• Mainland: Access to the UAE market in full, allowed to become a participant in government contracts, must be approved by DET and MOIAT. It requires higher capital, usually AED 250,000 or more.
• Free Zone: The area is 100 per cent foreign-owned, tax-exempt, and easy to export. Popular areas are the JAFZA, DMCC, RAKEZ, and Dubai Industrial City.

Both are advantageous and disadvantageous depending on whether you are selling in the UAE or not. An export-oriented manufacturing business in Dubai is more appropriate in free zones.

Manufacturing License Renewal in the UAE

It is extremely important to renew your manufacturing license in Dubai on an annual basis. Your company can be fined or suspended without the need for renewal. It is easy once the steps are adhered to.

1. Typed BR/1 form

First, prepare the typed BR/1 form and submit it. It is an official report to acknowledge your request to obtain the renewal of the license on a legal basis.

2. Copy of current license

Copy of your current license. This step is to show that your company is active and already registered.

3. Tenancy contract and Ejari

Next, feed your tenancy contract with the Ejari certificate. It will verify that your business location is legal, current, and permits operations.

4. Passport copies of shareholders

Submit passport copies of shareholders after that. This information confirms the names of owners and maintains the company records in order.

5. Any NOC that authorities may need

Lastly, submit a No Objection Certificate where requested by authorities. It demonstrates that there are no limitations to your license renewal.

The cost of renewal is between AED 8,000 and 15,000 per annum. Keeping your manufacturing company establishment in Dubai on track is legal.

Advantages of manufacturing company formation in Dubai

The setting up of a factory in Dubai is not only a business. It is accompanied by numerous advantages that can make investors grow quickly. All these benefits allow the choice of manufacturing company formation in Dubai as a promising option in 2025.

1. The strategic location

Dubai is conveniently connected to Europe, Asia, and Africa. This hub assists companies in transporting goods in a short time, reduces expenses, and provides access to the international market without unnecessary postponement.

2. Tax concession

Investors are given a zero corporate tax in most instances. This thing lowers costs, maximizes returns, and makes Dubai more appealing in terms of long-term manufacturing.

3. Infrastructure

Dubai boasts of well-developed ports, busy international airports, and extensive roads. These facilities make goods, raw materials, and finished goods transportation smooth all over the world.

4. Qualified labour force

Engineers, managers, and labourers across the globe are attracted to the city. Such a diverse workforce facilitates innovation, growth, and good business performance.

5. Government incentives

The government of the UAE subsidises, discounts land, and offers industrial schemes to manufacturers. These efforts decrease the expenses and simplify the growth, and expedite it.

6. Stability

There is political and economic stability in Dubai. Such a secure environment will attract investors, safeguard their capital, and secure the uninterrupted long-term operations of the manufacturing business.

It is the reason why a lot of investors call business setup experts in Dubai before commencement.

Prominent Manufacturing Companies in Dubai

Numerous manufacturers are located in Dubai. These firms emphasize the power of the industry and make new players come into the industry with confidence. Their success stories testify that Dubai is a very strong industrial country.

1. Emirates Global Aluminium

It is among the largest manufacturers of aluminium in the world. It manufactures quality products in the world market and contributes to the industrial development in the UAE tremendously.

2. Dubai Cable Company (Ducab)

Ducab is the manufacturer of state-of-the-art cables and wires. It supplies energy to the construction and telecom sectors, and is concentrated on innovativeness and high safety standards.

3. National Paints

This company is involved in manufacturing home, office, and industrial paints and coatings. It is a reputed brand in Dubai and globally.

4. Masafi

Masafi is also known for its bottled water and juices. It is the robust food and beverage industry in Dubai, and it has exports to numerous countries across the world.

5. Al Ghurair Group

It is a diversified company that operates businesses in food, construction, and textiles. Its factories emphasize manufacturing, quality, and the industrial excellence of the UAE.

6. Al Futtaim Group

Al Futtaim has automotive and industrial units that are known all over the world. It still serves the Dubai economy through manufacturing and distribution services that are of a global standard.

New investors get motivated to venture into the manufacturing business in the UAE due to the influence of these companies.

Get help from us

Opening up a manufacturing company in Dubai can be challenging, not to mention that you are a newcomer to the UAE system. Rules, documents, and approvals might be confusing. Therefore, a lot of astute investors prefer to deal with business setup consultants in Dubai. These professionals know all the procedures and simplify them. They assist you in preparing papers, licensing, and acquiring the appropriate approvals without hurrying anymore. Besides this, they also lead you in the decision-making between mainland and free zone arrangements.

You can contact us in cases when you need no more than assistance in forming a company in Dubai; you can also contact us in cases when you need long-term business assistance. Under our guidance, you are going to have a row of smooth, clear, and fast passage. We are with you right through to the commercial factory.

FAQs

Q1. What is the cost of starting a manufacturing business in Dubai?

It costs AED 15,000–40,000 for licenses. But now consider warehouse rent, machines, and visas, and so total costs tend to be greater.

Q2. Are foreigners allowed to own manufacturing companies in Dubai?

Yes, they can. In free zones, foreigners own 100%. In the mainland, industrial projects can also be owned 100 per cent under new regulations.

Q3. What is an industrial license Dubai, and a manufacturing license Dubai?

Both are almost the same because they enable enterprises to refine raw materials into completed products and conduct activities in Dubai in legal terms.

Q4. What is the time to acquire a license?

Typical simple setups take 3-4 weeks. Nonetheless, more approvals can bring complex projects 3 to 6 months.

Q5. Are manufacturers in Dubai tax advantaged?

Yes, they do. Tax exemptions, reduced costs, and customs duty exemption UAE manufacturers when importing and exporting goods.

Conclusion

Dubai has emerged as the epicentre of the manufacturing industry in the world, and the trend is only intensifying in 2025. The city has got the new factories, advanced and good laws that safeguard investors. Moreover, the government has been funding the industry through tax incentives, liberal trade policies, and initiatives such as Dubai Industrial Strategy 2030. Due to such undertakings, it is safe and profitable to open a factory here. Nevertheless, the effectiveness of this operation lies in the fact that the right license must be obtained and the appropriate documents must be prepared at the initial stage.

Therefore, it is always prudent to collaborate with business setup experts in Dubai. They help you to save time and prevent expensive errors. You want a small workshop or a big plant; either way, you find a clear, bright path to go forward in Dubai.