How to Get an Industrial Licence in the UAE

Manufacturing and production businesses fall under a different licensing category than trading companies or service firms in the UAE. Assembling parts, packaging goods, or processing raw materials may require an industrial trade licence rather than a commercial one. The paperwork differs, and so does the type of space that is permitted under the lease.

Many business owners researching company formation in Dubai only learn about the industrial route once their chosen activity gets flagged at the initial approval stage. An industrial licence comes with a higher bar than a commercial one. Factory space and production capacity are both reviewed. Compliance with safety and environmental rules matters just as much before approval is granted. This guide walks through what the licence covers and who needs to apply. It also lays out the paperwork involved. 

What is an Industrial Licence in the UAE?

An industrial licence is a permit issued by a UAE economic department or a Free Zone authority, allowing a company to carry out approved industrial activities such as manufacturing, processing, assembly or packaging of goods. The exact scope depends on the activities listed on the licence. That sets it apart from a commercial licence, built around buying and reselling, or a professional licence, which covers the provision of services. 

• The authority issuing an industrial licence UAE depends on the location. Mainland businesses apply through the Department of Economy and Tourism (DET) in Dubai, or the matching department in whichever emirate the business is based in. Free Zone businesses go through their chosen zone authority instead, with options including JAFZA, KEZAD, and Dubai Industrial City.
• Manufacturers also register with the Ministry of Industry and Advanced Technology (MoIAT), on top of the local licence. That places a company on the federal industrial registry and, in many cases, opens the door to customs duty exemptions on imported machinery and raw materials.
• The licence applies to physical production, so an actual factory or workshop is required. An office does not qualify. Regulators check that the space matches the scale and nature of the activity. Safety, health, and environmental standards also get reviewed before approval is granted.

Scale also plays into the classification:

• Small workshops, craft-style production, light assembly and auto repair generally fall under a light industrial licence. In Dubai, guides often place the cut-off near 2,000 square feet of premises.
• Larger factories handling food processing, textiles or electronics assembly move into the medium category.
• Operations involving chemical processing or hazardous materials are treated as heavy industrial. Applicants may need to share detailed technical reports and deal with a longer list of government approvals.

Disclaimer: Classification criteria, including premises size, vary by jurisdiction. The licensing authority confirms the applicable category. 

Knowing which category an activity falls into early helps size the facility search and the budget correctly.

Here is a table comparing industrial and commercial licences:

Note: Requirements vary by jurisdiction and activity. Confirm the details with the relevant licensing authority before applying. 

Because the two licence types serve different purposes, choosing the wrong one at the application stage can delay your launch. A trading company that also does light assembly, for example, may need both commercial and industrial licences, or a combined activity list approved by the authority in advance.

Who Needs an Industrial Licence in the UAE?

Not every business that comes into contact with a product requires an industrial licence. The requirement applies once a company physically changes the form, composition, or state of goods, instead of simply moving them from a supplier to a customer. Businesses that generally require this licence include:

• Furniture makers, garment producers, and metal fabricators, along with other manufacturers producing finished goods from raw materials
• Food and beverage processors that cook, package, or preserve products at scale, as opposed to serving them directly to customers
• Assembly operations that combine components into a finished product, electronics and machinery included
• Packaging businesses repackaging bulk goods into retail-ready units under a private label
• Chemical, cosmetics and pharmaceutical producers, which require additional approval from bodies such as the Ministry of Health and Prevention
• Printing and publishing houses engaged in physical print production, as distinct from reselling printed material
• Recycling and waste processing operations that transform raw or used materials into new products

Businesses that only import finished goods, distribute stock, or provide consulting and repair services generally fall under a commercial or professional licence instead. Where an activity list includes both trading and light production, the relevant authority should confirm whether a combined licence or two separate licences are required.

Documents Required to Apply for an Industrial Licence

Once you know your activity qualifies, gathering the paperwork ahead of time keeps things moving. Exact requirements vary by emirate and Free Zone, but most applications ask for:

• Passport copies and Emirates ID, where applicable, for all shareholders and managers
• An initial approval certificate confirming the activity is permitted
• A reserved trade name certificate
• A notarized Memorandum of Association (MoA), where required
• A tenancy contract for the factory, workshop, or industrial plot
• A detailed project report or business plan covering production process, machinery, and expected output
• A site layout or floor plan of the proposed facility
• No Objection Certificates (NOCs) from bodies such as civil defence, the municipality, or the Ministry of Health for regulated products
• Proof of capital, since most industrial activities carry a minimum threshold
• Power of attorney documents if an agent is handling the submission

Free Zone applicants may face a shorter list, since some approvals get handled inside the zone itself. Mainland applicants usually coordinate directly with the Department of Economy and Tourism and outside bodies like MoIAT and the municipality.

Requirements for an Industrial Licence in UAE

Approval takes more than paperwork. Authorities also want to see a working setup that generally includes:

• Fire safety and civil defence sign-off
• Environmental clearance covering how waste, emissions, and resource use are handled
• Equipment matching the stated activity, checked in person during inspection if required.
• Additional approvals for regulated goods such as food, cosmetics, pharmaceuticals, or anything hazardous
• Yearly reports to MoIAT once registered, covering inputs, outputs, and energy figures

Free Zones and the Mainland do not work the same way here. Dubai Industrial City and KIZAD, for instance, often fold leasing, approval, and licensing into one process. On the Mainland, a business ends up dealing with the Department of Economy and Tourism, the municipality, and MoIAT as three separate steps, so it helps to know which path applies before signing a lease.

Paperwork alone will not clear an inspection. Inspectors check the layout, the safety gear, and the machinery against what was filed. A mismatch is one of the more common reasons a licence application gets held up.

Capital and staffing requirements depend on the licensing jurisdiction and the federal services applicable to the business. For manufacturers seeking MoIAT’s Industrial Production Licence, the Ministry specifies a minimum capital requirement of AED 250,000 and at least 10 employees. These thresholds should not be treated as universal requirements for every local industrial licence. 

How to Get an Industrial Licence in UAE: Step-by-Step Process

Getting an industrial licence in the UAE generally follows the same broad sequence. The exact order shifts somewhat by emirate, Free Zone, and activity. The stages behind how to get industrial licence in UAE approval are outlined below.

• Activity and jurisdiction selection: The process begins with selecting a specific manufacturing activity and deciding between a Mainland or Free Zone setup, based on production, distribution, and ownership objectives. This decision determines which authority is responsible for every later stage.
• Trade name reservation: A trade name must be reserved in accordance with UAE naming conventions, subject to confirmation that it is not already registered elsewhere in the country.
• Initial approval: This is obtained from the relevant economic department or Free Zone authority, confirming that the chosen activity is permitted and compatible with the intended ownership structure.
• Facility search and lease: A suitable factory, workshop, or industrial plot must be identified and leased, with the tenancy contract required as part of the licence application itself.
• External approvals and NOCs: No Objection Certificates must be collected from the bodies relevant to the activity, which may include civil defence, the municipality, or health and environmental authorities, depending on the nature of production.
• Application submission: The Memorandum of Association, tenancy contract, project report, and supporting approvals are compiled into a single application and submitted to the licensing authority.
• Site inspection: An inspector may visit the facility before the licence is issued. Where a visit takes place, the inspector  confirms that the layout, safety measures and machinery match the details declared in the application. 
• Federal industrial registration: Once the local licence is ready, the business registers with MoIAT and is added to the federal industrial registry. Eligible manufacturers may then apply for customs duty exemptions on qualifying machinery, equipment and industrial inputs, subject to MoIAT’s licensing, registration and approval requirements. Holding an industrial licence does not by itself entitle a business to these exemptions. 
• Visas and banking: Once the required licensing and operational approvals are in place, the business can proceed with relevant immigration, staffing and corporate banking arrangements.

Documentation requirements, processing time, and potential delays vary by stage. Inspections and No Objection Certificates for regulated products are the most common sources of delay. Costs also vary by activity, facility size, and jurisdiction. A fixed cost estimate is often inaccurate; a budget range is more appropriate.

Licensing involves several authorities at once, including the relevant economic department, MoIAT, and the municipality. The overall timeline depends largely on how thoroughly the application has been prepared. A missing NOC or a discrepancy between the project report and the actual facility is often sufficient to return an application for correction.

Free Zones often combine leasing, approval, and licensing into a single process. Mainland applicants generally manage these as separate steps. This distinction accounts for why comparable applications can result in markedly different timelines.

Conclusion

An industrial licence in the UAE covers manufacturing, processing, and production activities that a commercial licence does not. Requirements typically include a physical factory or workshop, minimum capital, and minimum staffing. Safety and environmental compliance are required, along with registration with more than one authority. These conditions reflect the risks associated with industrial operations.

Planning for these requirements in advance supports better budgeting, facility selection, and timeline management. An application built around a clear activity and complete documentation moves faster than one submitted without preparation.

For manufacturers preparing an application, 10XMHub provides guidance on activity selection and documentation. Businesses considering an industrial licence can contact 10XMHub for assistance.

Disclaimer: The information in this blog is for general guidance only. Licensing conditions, including documentation, minimum capital, approval procedures and other applicable criteria, are subject to change. Always confirm the latest information with the relevant UAE authorities or seek professional advice before making business decisions.