How to step up Manufacturing Business in Dubai, UAE

Opening a manufacturing company in Dubai can be profitable, especially in the increasingly globalised business climate. While the Emirate will remain primarily dependent on the oil sector, the government is working on redirecting its other major sectors to improve its economy and not be majorly dependent on oil.

Manufacturing Industry in Dubai is on the Rise

It is expected that the manufacturing sector will contribute 25% towards the UAE’s GDP by 2025, given the strong growth it has seen in recent years.  Dubai’s industrial growth is expected to reach US$ 16.1 billion and generate 27,000 new specialised jobs by 2030. Given these numbers, the government of Dubai has embarked on a concerted effort to promote, develop, and sustain a prolific manufacturing sector in Dubai. In that regard, there is a dedicated free zone for the industrial and manufacturing sector known as Dubai Industrial City. 

Benefits of Starting a Manufacturing Company in Dubai

Here are a few reasons why Dubai is the go-to place for manufacturing businesses:

• Location and Connectivity

Dubai is a strategic geographical location and is easily accessible through two international airports. It acts as the connecting hub between the markets of the East and the West and is ideally located to bridge the crucial time zone gap and enable 24*7 connectivity.

• Talent Pool

Dubai is home to exceptional home-grown talent and a magnet for the world’s most ambitious, forward-thinking, and sophisticated engineers, innovators, and technologists. Setting up a manufacturing company in the Emirate will enable you to get access to these bright minds. 

• Foreign Direct Investment

Abundant and pro-investment policy decisions have set Dubai on a path toward achieving inclusive and sustainable growth based on innovation and high productivity.

• Diverse Consumer Base

With its varied and mature consumer base, Dubai has a proven track record of being the launchpad to test and expand operations across the Middle East, Africa, and South Asia.

• Governmental Support 

The Department of Economic Development (DED) has a pivotal role to play in association with the Dubai Export Development Corporation and the Dubai Chamber of Commerce and Industry. The support offered by them helps entrepreneurs like you to set your manufacturing business in Dubai.

How to Start a Manufacturing Company in Dubai, UAE?

Here's your roadmap to forge your path in the UAE's manufacturing landscape: 

• Choose Your Business Activity

The first step is to choose an appropriate activity in terms of manufacturing a product.

• Appoint a Local Sponsor

After you select the right activity, you need to choose a reliable local sponsor in Dubai, UAE. It is necessary if the manufacturing company is started in the UAE mainland.

• Decide on a Trading Name

You need to decide on a trade name for the business and submit the necessary documents to the DED.

• Sign MoA

After getting the trade name and initial approval, you need to sign the Memorandum of Association (MoA) with the notary public along with the local sponsor.

• Choose a Warehouse

You will need to opt for a proper warehouse to establish your manufacturing plant. As part of this step, you can get the tenancy contract and Ejari from the warehouse landlord.

• Get the Industrial Clearance

Once the above-mentioned things are done, you can submit documents to the Environment Department for industrial clearance and  No Objection Certificate (NOC) from the civil defence.

• Get the External Approvals

You need to avail external approvals from the relevant departments for setting up select manufacturing units. The approvals needed are: 

• Approval from food control, if the manufacturing of food products
• Narcotics department for chemical production
• Police department if you plan to manufacture jewellery.

• Make Payment

After getting all approvals, make the payment of the requisite fees and your industrial permit will be issued.

• Obtain Your License

The next step is to get an industrial license by submitting all the papers to the Economic department. You need to get approval from the municipality of the particular Emirate for the license.

How to Obtain a Manufacturing License in UAE

Here are the steps to get a manufacturing license in UAE:

• Partner with Trade License Zone
• Choose a company name
• Define your business activity
• Select your business jurisdiction
• Get local municipality approval
• Apply for your trade license

It is also important to gather knowledge about which documents are required to step into the manufacturing industry in Dubai. 

Documents required to start a Manufacturing Company in Dubai

Below are the documents required to start a manufacturing company in Dubai, UAE:

• A duly filled manufacturing trade license application form
• Copies of passports of all the shareholders and directors
• A proper business plan

What Lies Ahead for the Manufacturing Industries in Dubai?

The manufacturing industry in UAE is on an upward trajectory when it comes to the UAE. Here are the initiatives taken by the Government of Dubai, UAE, to grow this sector, besides the Dubai Industrial Strategy 2030.

• UN’s 2030 Agenda

Sustainable Development Goals (SDGs), also known as Global Goals, are a set of 17 goals that aim to provide better living conditions for all. The SDG’s part of the agenda includes Industry, Innovation, and Infrastructure. It involves building resilient infrastructure, promoting inclusive and sustainable industrialisation, and fostering innovation.

• Abu Dhabi Economic Vision 2030

Abu Dhabi's Economic Vision 2030 envisages the development of strategic sectors capable of attracting both local and foreign investment, notably in export-oriented industries, including manufacturing industries in UAE, telecommunications, transport, tourism, and energy. 

Owing to the non-existence of taxation in Dubai and other benefits, setting up a manufacturing company of your own can be considered. It can not only work as the cost optimiser for the final product in the manufacturing chain but also as a structuring of manufacturing processes between countries. Should you decide to incorporate your manufacturing business in Dubai, contact us. Our experts will be glad to assist you in setting up your dream business in the Emirate.