Industrial Licence in the UAE
How to get an industrial or manufacturing licence in the UAE: factory activity scope, municipality and civil defence approvals, warehouse requirements, fee bands by industrial zone and timelines.
Business Setup AE editorial review Last reviewed 2026-09-09
Quick answer
An industrial licence authorises manufacturing, assembly, processing or packaging in the UAE. It requires an industrial-zoned premises, municipality and civil defence clearance, an environmental approval and, on the mainland, registration with the Ministry of Industry and Advanced Technology. Licence fees typically run AED 15,000–30,000 a year before rent, fit-out and machinery.
- Ownership
- 100% foreign ownership permitted
- Premises
- Industrial-zoned warehouse or plot required
- Key approvals
- Municipality, Civil Defence, Environment
- Licence fee band
- AED 15,000 – 30,000 per year
- Typical timeline
- 4 – 10 weeks including approvals
- Visa quota
- Driven by warehouse area and labour accommodation
An industrial licence is the UAE permit for turning inputs into finished or semi-finished goods — manufacturing, assembly, processing, packaging, recycling and light fabrication. It is issued by the emirate's economic department on the mainland or by an industrial free zone such as KEZAD, Hamriyah, JAFZA or RAKEZ.
It is the most approval-heavy licence category, because a production site touches building safety, worker welfare and environmental rules. Expect civil defence sign-off on fire systems, municipality approval of the layout, and an environmental permit tied to the emissions, effluent or waste your process generates.
This page covers what the licence allows, which approvals apply in what order, realistic cost bands including warehouse rent, and the mistakes that cause the largest delays.
| Item | Cost band (AED) | Notes |
|---|---|---|
| Industrial licence fee | 15,000 – 30,000 | Annual, authority dependent |
| Warehouse rent (small unit) | 45,000 – 180,000 | Per year, size and emirate dependent |
| Civil Defence approval | 1,500 – 8,000 | Scales with system complexity |
| Municipality / layout approval | 1,000 – 5,000 | Per submission |
| Environmental permit | 1,500 – 10,000 | Depends on process category |
| Establishment card and visas | 2,000 + 3,500 per visa | Labour quota tied to area |
What does an industrial licence allow?
It permits production activity at a named, inspected premises: converting raw material, assembling components, processing food or chemicals, packaging, and re-manufacturing. It also permits selling the goods you produce, and importing raw materials and machinery under your own customs code.
It does not by itself permit general trading in goods you do not make. If you want to buy and resell third-party stock alongside your own production, add a commercial or general trading activity to the same licence or hold a second licence.
Approvals required before issuance
- Initial approval and trade name reservation from the licensing authority
- Industrial-zoned tenancy — warehouse, plot or pre-built factory unit with a registered lease
- Municipality approval of layout, drainage and building modification
- Civil Defence approval of fire detection, suppression and escape routes
- Environmental permit covering emissions, effluent and hazardous waste handling
- Ministry of Industry and Advanced Technology (MoIAT) industrial registration for mainland producers
- Sector approvals where relevant — food control, ESMA/MoIAT conformity, pharmaceuticals, chemicals
Mainland vs free zone for manufacturing
| Factor | Mainland industrial | Industrial free zone |
|---|---|---|
| Sell directly in the UAE market | Yes | Via distributor or 5% duty on entry |
| Customs duty on imported inputs | 5% on entry | Suspended inside the zone |
| Export orientation | Good | Strongest — port and duty advantages |
| Land and warehouse cost | Higher in prime zones | Competitive long-lease plots |
| Labour accommodation | Arranged separately | Often on-zone at KEZAD, Hamriyah, RAKEZ |
| Corporate tax | 9% above AED 375,000 | 0% possible if QFZP conditions are met |
Manufacturing licence cost by industrial zone
"Industrial licence", "manufacturing licence" and "factory licence" describe the same permit — what changes the cost is the zone. The bands below are indicative annual licence and facility ranges reported by the zones and by formation providers; confirm the current figures with the authority before budgeting.
| Zone | Licence band (AED/yr) | Facility note |
|---|---|---|
| KEZAD, Abu Dhabi | 15,000 – 25,000 | Pre-built units and long-lease plots, on-zone worker housing |
| Hamriyah Free Zone, Sharjah | 12,000 – 22,000 | Port-side plots, lowest entry warehouse rents |
| RAKEZ Industrial, Ras Al Khaimah | 12,000 – 20,000 | Small units from around AED 45,000 per year |
| JAFZA, Dubai | 20,000 – 30,000+ | Highest rents, best Jebel Ali port access |
| Dubai Industrial City (mainland) | 20,000 – 30,000 | DET licence plus MoIAT industrial registration |
| Ajman Free Zone | 10,000 – 18,000 | Light manufacturing and packaging units |
Who this option suits best
- Manufacturers relocating or opening a regional production line
- Food processing, packaging and bottling businesses
- Assembly and light fabrication operations serving GCC clients
- Recycling and materials-processing ventures
- Exporters wanting duty-suspended inputs at a port free zone
Step-by-step process
- 1
Define the exact production activities1 – 3 days
Activity codes decide which approvals and inspections apply.
- 2
Reserve the trade name and take initial approval2 – 5 days
Three name options aligned with the manufacturing activity.
- 3
Secure an industrial-zoned premises1 – 4 weeks
Warehouse or plot with a registered lease; zoning must match the activity.
- 4
Submit layout, civil defence and environmental files2 – 6 weeks
Run these in parallel; each has its own inspection.
- 5
Pass inspection and pay the licence1 – 2 weeks
Site inspection precedes issuance in most emirates.
- 6
Register with MoIAT, customs and immigration1 – 3 weeks
Industrial register, importer code, establishment card, labour quota.
Documents required
- Passport copies (valid 6+ months) for every shareholder and manager
- Passport-size photo with white background for each applicant
- Proof of address or a recent utility bill / bank statement
- Three proposed trade names in order of preference
- Business activity list and a short business description
- Emirates ID and visa copy or entry stamp if you are already in the UAE
- Registered industrial tenancy contract or plot lease
- Approved layout drawing and machinery list
- Process description with inputs, outputs and waste streams
- Civil Defence and environmental application forms
Realistic timeline
| Stage | Duration |
|---|---|
| Name and initial approval | 2 – 5 working days |
| Premises and lease registration | 1 – 4 weeks |
| Technical approvals and inspection | 2 – 6 weeks |
| Licence, customs code and visas | 2 – 4 weeks |
Bands reflect 2026 published authority schedules. Machinery, fit-out and labour accommodation dominate the real budget and vary far more than the licence fee itself.
Common mistakes and how to avoid them
Signing a warehouse lease before checking zoning
Fix: Confirm the unit's permitted use covers your specific process before paying a deposit.
Treating civil defence as a formality
Fix: Budget for a sprinkler or detection upgrade; most fit-outs need one.
Ignoring the environmental category
Fix: Classify emissions and waste early — chemical and food processes need extra permits.
Underestimating labour accommodation
Fix: Visa quota and worker housing are separate costs from the licence.
Assuming free zone production can sell freely onshore
Fix: Selling into the UAE market from a free zone means a distributor or 5% import duty.
Myth vs reality
| Myth | Reality |
|---|---|
| An industrial licence needs a local partner | 100% foreign ownership is allowed for manufacturing activities in both mainland and free zones. |
| You can manufacture from an office or flexi-desk | Production requires an industrial-zoned, inspected physical facility. |
| Free zone factories always pay 0% corporate tax | Only qualifying income of a Qualifying Free Zone Person is at 0%, and conditions must be met continuously. |
Compliance after licensing
- Corporate tax registration with the FTA — 9% applies on taxable profit above AED 375,000; 0% below it. Small Business Relief may apply to revenue under AED 3m.
- VAT registration is mandatory once taxable turnover passes AED 375,000 in 12 months, and voluntary from AED 187,500.
- Economic Substance Regulations (ESR) notifications for relevant activities such as holding, IP, headquarters and distribution.
- Ultimate Beneficial Owner (UBO) register kept with the licensing authority and updated within 15 days of any change.
- Anti-Money Laundering (AML) registration on the goAML portal for designated non-financial businesses and professions.
- Annual licence and establishment-card renewal, plus audited financials where the free zone or activity requires them.
Regulators referenced: Ministry of Economy (UAE) · Dubai Department of Economy and Tourism (DET) · Abu Dhabi Department of Economic Development (ADDED) · Federal Tax Authority (FTA) · General Directorate of Residency and Foreigners Affairs (GDRFA) · Ministry of Human Resources and Emiratisation (MOHRE)
Frequently asked questions
How much does an industrial licence cost in the UAE?
Can I get 100% ownership of a UAE factory?
Do I need MoIAT registration?
How long does approval take?
Can I import raw materials duty free?
People also ask
What is the difference between an industrial and a commercial licence?
An industrial licence permits producing goods at an inspected facility. A commercial licence permits buying and reselling goods you did not manufacture.
Which UAE free zone is best for manufacturing?
KEZAD in Abu Dhabi, Hamriyah in Sharjah, JAFZA in Dubai and RAKEZ in Ras Al Khaimah are the established industrial zones, differing mainly on plot cost and port access.
Is a warehouse mandatory?
Yes for production. A shared or flexi facility does not satisfy inspection requirements for an industrial activity.
Founder checklist
- Confirm the exact activity codes you need before paying any fee
- Compare at least three verified providers on total year-one cost, not licence cost alone
- Check the visa quota attached to your chosen facility (flexi-desk vs office)
- Ask what is excluded: establishment card, e-channel deposit, medical, Emirates ID, PRO fees
- Verify the premises zoning matches your exact process
- Price civil defence and environmental works before signing the lease
- Confirm labour quota and accommodation arrangements
Why you can trust this guide
- Independent marketplace — Business Setup AE does not form companies and takes no commission on provider pricing
- Every listed provider holds a valid UAE trade licence and publishes fixed prices
- Costs reviewed against 2026 published government schedules
- Written and reviewed by advisers who have processed UAE licences and residence visas
Editorial ownership: Business Setup AE Editorial Team. See our editorial and corrections policy and package verification method.
Related guides and services
Official government sources
Fees, thresholds and licensing rules on this page are checked against these official UAE government and regulator sources.
- Ministry of Industry and Advanced Technology (MoIAT)National industrial register and manufacturing policy
- Ministry of Economy — UAEFederal commercial registration, trade names and company law
- Federal Tax Authority — corporate tax and VATSource for the 9% corporate tax threshold and VAT registration limits
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