How to Start a Manufacturing Business in Dubai, UAE (2025)

28 Aug 2025

By Vista Corp

Dubai has emerged as a global hub for trade, innovation, and industrial growth. With the UAE’s strategic location, world-class infrastructure, and pro-business government policies, entrepreneurs looking to enter the manufacturing sector will find the city a perfect launchpad. Whether you want to start a factory in Dubai or establish a large-scale industrial unit, understanding the process, regulations, and opportunities is crucial.

In this UAE manufacturing business guide, we’ll walk you through everything you need to know about manufacturing business setup in Dubai, from licensing and approvals to market opportunities and compliance requirements.

Into The Stats

Here are seven useful statistics and insights about Dubai’s manufacturing business (2025) for anyone considering entering the sector:

Sector Growth: Dubai’s manufacturing sector grew by 5% in Q1 2025, benefiting from expanded industrial zones and strong export demand.

GDP Contribution: In the first nine months of 2024, manufacturing contributed AED 28.3 billion to Dubai’s GDP, a significant share of the local economy.

Industrial Infrastructure: Dubai Industrial City hosts over 800 companies and 300 operational factories, with major plans to reach 500+ factories by 2026, supporting collaboration and reliable supply chains.

Key Growth Industries: Food & beverage processing, chemicals & plastics, and machinery & equipment are leading manufacturing fields, driven by the UAE’s food security push and regional demand for construction and consumer goods.

Rental Market Dynamics: Industrial property rents in Dubai rose by 12.9% year-on-year in Q3 2024, with growing demand for quality industrial space (average rent: AED 40.3/sq.ft/year).

Operation 300bn: The UAE’s “Operation 300bn” aims to boost industry contribution to GDP from AED 133 billion to AED 300 billion by 2031, with up to AED 30 billion allocated for the manufacturing sector support and incentives.

Global Standing: The UAE is a top global aluminium producer, accounting for 10% of global output, with Emirates Global Aluminium exporting to over 50 countries.

These stats highlight Dubai’s strong manufacturing sector momentum, government support, infrastructure expansion, and opportunities for local and international entrepreneurs.

Why Start a Manufacturing Business in Dubai?

The UAE’s Vision 2031 emphasises industrial diversification, making manufacturing one of the most encouraged industries. Key benefits include:

1. Stable and Resilient Economy

The UAE has one of the most reliable and steady economies in the region. With consistent industrial growth, manufacturers in sectors like machinery, petrochemicals, and renewable energy find long-term stability and promising opportunities.

2. Strategic Location and Global Trade Access

Dubai’s location makes it a natural bridge between East and West. Its two international airports, advanced seaports, and robust logistics network ensure smooth supply chains and fast access to markets across the Middle East, Africa, Asia, and Europe.

3. Skilled and Diverse Workforce

The city attracts professionals and experts from across the globe. Engineers, technicians, and innovators form a strong talent pool that supports manufacturers in achieving efficiency, innovation, and global competitiveness.

4. Business-Friendly Policies and Incentives

The UAE government is known for its pro-investment approach. With free zones, tax benefits, simplified regulations, and 100% foreign ownership options, Dubai provides an environment that encourages innovation and makes industrial growth easier.

5. Access to a Large and Diverse Market

By setting up in Dubai, manufacturers gain entry into not only the UAE market but also the wider Middle East, Africa, and South Asia. With established retail and distribution networks, businesses can quickly scale and expand their reach.

6. Strong Government Support for Industry

Authorities like the Department of Economy and Tourism (DET), Dubai Export Development Corporation, and the Dubai Chamber actively support manufacturing companies. From setup to exports, their initiatives make it easier to operate, comply with regulations, and grow sustainably.

These advantages make manufacturing in Dubai, UAE, not just viable but highly profitable.

Step-by-Step Guide to Starting a Manufacturing Business in Dubai

Now that you understand why Dubai is an ideal hub for industrial ventures, let’s break down the process of setting up your manufacturing company. From choosing the right business idea to obtaining your Dubai manufacturing business license and complying with legal requirements, this step-by-step roadmap will give you a clear picture of how to get started.

Step 1: Define Your Manufacturing Business Idea

Before diving into licensing, decide on the nature of your business. Popular Dubai manufacturing business ideas include:

• Food and beverage processing
• Textile and garment production
• Plastic and packaging products
• Construction materials (cement, steel, glass)
• Cosmetics and personal care products
• Electronics assembly and light engineering

Choosing the right business idea sets the foundation for obtaining the correct Dubai manufacturing business license and meeting regulatory standards.

Step 2: Choose Mainland or Free Zone

You can establish your manufacturing company set up in Dubai, either in the mainland or a free zone:

Mainland Manufacturing

• Allows you to trade freely within the UAE market.
• License issued by the Dubai Department of Economy & Tourism (DET).
• Requires approval from Dubai Municipality and other relevant authorities.

Free Zone Manufacturing

• Popular choices include JAFZA, RAKEZ, DIC, Sharjah Airport Free Zone, and Hamriyah Free Zone.
• 100% foreign ownership and customs duty exemptions.
• Streamlined processes but limited direct trading in the UAE without a local distributor.

Step 3: Understand the Dubai Industrial License Process

To start manufacturing, you’ll need an industrial license, which is more detailed than a trading license. The Dubai industrial license process generally includes:

1. Business Activity Approval – Choose your activity from the DET or free zone list.
2. Initial Approval – Permission to proceed with company setup.
3. Factory Location Approval – Select and lease land, warehouse, or industrial space.
4. Special Approvals – Depending on your industry, approvals may be required from:
   • Dubai Municipality
   • Ministry of Industry and Advanced Technology (MOIAT)
   • Dubai Civil Defence
   • Dubai Electricity and Water Authority (DEWA)
5. Issuance of Dubai Manufacturing Business License – Final license granted upon completing requirements.

Step 4: Arrange Factory Space & Equipment

Whether you want to start a factory in Dubai or a small-scale unit, securing industrial space is mandatory. Options include:

• Leasing plots in industrial zones for large-scale factories.
• Ready-made warehouses for medium enterprises.
• Custom-built facilities are available if your manufacturing requires specialised infrastructure.

Pro tip: Ensure your facility complies with Dubai’s environmental, fire, and safety standards before applying for inspections.

Step 5: Legal and Compliance Requirements

Your industrial company set up in Dubai must comply with the UAE’s regulatory framework:

• Environmental Standards – Compliance with UAE environmental laws is crucial.
• Health & Safety – Fire safety approvals and occupational health measures are mandatory.
• Product Approvals – Some products, like food, cosmetics, or pharmaceuticals, need registration with the Dubai Municipality or MOHAP.
• Corporate Tax & VAT – As of 2023, most companies fall under the UAE’s 9% corporate tax regime and VAT regulations.

Step 6: Hire Workforce & Secure Visas

Manufacturing requires manpower. You can apply for employee visas through the Ministry of Human Resources & Emiratisation (MOHRE). Benefits include:

• No restriction on hiring foreign workers.
• Access to Dubai’s skilled and semi-skilled workforce.
• Sponsorship options for dependents once you secure your own investor visa.

Step 7: Banking & Financing Your Manufacturing Unit

Open a corporate bank account in Dubai to handle international trade smoothly. Some banks require a business plan, projected cash flow, and proof of operations. Financing can be secured via:

• UAE commercial banks
• Free zone financial incentives
• Government-backed SME support programs

Industry-Specific Manufacturing Opportunities in Dubai

While Dubai supports all kinds of manufacturing, certain industries have higher demand and clearer regulatory pathways. Below is a quick guide to three of the most popular sectors:

Challenges to Consider Before Starting a Manufacturing Business in Dubai

While Dubai offers immense opportunities, it’s important to be aware of the challenges that come with setting up a manufacturing business. Understanding these hurdles upfront will help you plan smarter and avoid delays.

1. High Initial Investment and Capital Risk

Setting up a manufacturing unit requires significant upfront capital. Costs include industrial licenses, machinery, factory rentals, utility connections, and workforce expenses. Without careful financial planning, the initial burden can strain cash flow.

2. Regulatory Complexity in Certain Sectors

Industries such as chemicals, pharmaceuticals, and food production involve stricter regulatory frameworks. Multiple approvals from authorities like Dubai Municipality, MOIAT, and Civil Defence may extend timelines if not managed properly.

3. Talent and Workforce Challenges

Finding and retaining skilled labour in Dubai’s competitive market can be challenging. Manufacturing requires specialised skills, and without proactive hiring strategies, training, and employee retention programs, businesses may face shortages.

4. Rising Industrial Space and Utility Costs

With growing demand for industrial space, warehouse and factory rental rates have been rising steadily. Similarly, electricity, water, and cooling costs can significantly impact profit margins if not budgeted carefully.

5. Intense Market Competition and Innovation Pressure

Dubai attracts both local and global manufacturers, leading to a highly competitive environment. To stay relevant, businesses must continuously innovate, adopt new technologies, and align with sustainability trends.

Quick Checklist for Manufacturing Business Setup in Dubai

✅ Select your manufacturing business activity
✅ Choose between the mainland and the free zone
✅ Apply for initial approval & industrial license
✅ Secure factory space and inspections
✅ Get special authority approvals (MOIAT, Municipality, DEWA, Civil Defence)
✅ Hire workforce and process visas
✅ Open a bank account and secure financing

Final Thoughts

Starting a manufacturing business in Dubai in 2025 presents immense opportunities for entrepreneurs and investors. With a clear understanding of the Dubai industrial license process, compliance requirements, and market opportunities, you can confidently launch your venture. Whether you’re planning a small-scale unit or want to start a factory in Dubai, this guide provides you with everything you need.

If you’re ready to take the next step, Vista Business Setup is here to guide you. From securing your Dubai manufacturing business license to handling approvals, factory space, and compliance, our experts simplify the process so you can focus on growth. Partner with Vista today and launch your manufacturing company in Dubai without delays.

FAQs – Manufacturing Business in Dubai

Q1. What license is required for manufacturing in Dubai, UAE?
To operate a manufacturing unit, you must obtain an Industrial License. This license is issued either by the Dubai Department of Economy & Tourism (DET) for mainland businesses or by the respective free zone authority if you choose to set up in a free zone. 

The license authorises you to carry out industrial and manufacturing activities, including importing raw materials, producing goods, and exporting finished products. Depending on your product category, you may also need additional approvals from authorities like Dubai Municipality or the Ministry of Industry and Advanced Technology (MOIAT).

Q2. How long does it take to set up a factory in Dubai?
The timeline generally ranges from 2 to 6 weeks, depending on factors such as approvals, facility readiness, and whether you choose mainland or free zone. If you already have an industrial space and the required documentation, the process is faster. 

Free zones are usually quicker, offering streamlined approvals, while mainland setups may involve multiple government departments, which can extend the timeframe slightly.

Q3. Can I have 100% ownership of a manufacturing business in Dubai?
Yes. Free zones allow 100% foreign ownership with full repatriation of profits. On the mainland, the UAE has updated its commercial companies law, enabling 100% foreign ownership in most sectors, including many industrial activities. 

However, some strategic or restricted sectors may still require local participation, so it’s important to verify your chosen activity with DET or MOIAT.

Q4. What are the best Dubai manufacturing business ideas in 2025?
Dubai offers a wide range of profitable manufacturing opportunities. Some of the top manufacturing business ideas include:

• Food & Beverage Processing – aligned with the UAE’s food security strategy.
• Sustainable Packaging & Plastics Alternatives – driven by the UAE’s green agenda.
• Textile & Apparel Manufacturing – leveraging Dubai’s growing fashion and retail sectors.
• Construction Materials (Steel, Glass, Cement) – fueled by ongoing real estate growth.
• Cosmetics & Skincare Products – with strong export demand across GCC and Asia.
• Electronics Assembly & Light Engineering – meeting regional demand for affordable tech solutions.

Q5. Do I need environmental clearance for manufacturing in Dubai?
Yes, environmental clearance is mandatory for all manufacturing units. You’ll need approvals from Dubai Municipality and MOIAT to ensure your facility complies with environmental and sustainability regulations. 

For industries like chemicals, plastics, or food processing, specific environmental impact assessments (EIA) may be required. Additionally, fire safety approvals from Dubai Civil Defence and waste management compliance are crucial for factory operations.

Q6. What is the cost of setting up a manufacturing business in Dubai?
The investment varies depending on the scale of operations, location (mainland or free zone), and type of activity. Costs generally include license fees, factory rent or land lease, equipment and machinery, labour visas, and utility connections. 

While free zones offer cost-effective packages with bundled benefits, mainland setups may require higher investment but allow greater flexibility in local trading. For an accurate figure, a detailed feasibility study is recommended.

Q7. What approvals are required apart from the Industrial License?
In addition to the Dubai manufacturing business license, you may need approvals from:

• Dubai Municipality (health, food safety, and environmental compliance)
• MOIAT (industrial activity permissions and compliance with Operation 300bn standards)
• Dubai Civil Defence (fire safety and facility inspection)
• DEWA (electricity and water connections)
• Customs Authority (for importing raw materials and exporting finished goods)

Q8. Can I export products manufactured in Dubai?
Yes. Dubai’s strategic location and trade agreements give manufacturers easy access to GCC, MENA, Europe, and Asia. Free zone companies especially benefit from customs duty exemptions and simplified export processes. 

Mainland companies can export as well, but may require additional trade documentation.

Q9. Is financing available for manufacturing businesses in Dubai?
Yes. Entrepreneurs can access financing through UAE banks, private equity, free zone incentives, and government-backed SME support programs. Many free zones also partner with banks to provide flexible loan schemes for factory set-up and machinery purchase. 

Having a solid business plan with cash flow projections increases your chances of securing financing.

Q10. Do manufacturing companies in Dubai pay corporate tax?
Yes. As of June 2023, the UAE applies a 9% corporate tax on business profits exceeding AED 375,000. However, companies based in free zones may qualify for exemptions, provided they meet regulatory requirements. 

In addition, 5% VAT applies to most goods and services. Businesses engaged in export-oriented manufacturing often benefit from zero-rated VAT on exports.

Q11. Can I sponsor employees for my factory?
Yes. Once your manufacturing company is set up in Dubai, you can apply for employee visas through MOHRE. The number of visas you can sponsor usually depends on the size of your facility and business activity. 

As an investor or owner, you are also eligible for your own investor visa and dependent sponsorship for family members.

Q12. Which free zones are best for manufacturing in Dubai and the UAE?
Some of the top free zones for manufacturing include:

• Jebel Ali Free Zone (JAFZA) – ideal for heavy industries, logistics, and exports.
• Dubai Industrial City (DIC) – focused on F&B, chemicals, and light manufacturing.
• RAKEZ (Ras Al Khaimah Economic Zone) – cost-effective with flexible packages.
• Hamriyah Free Zone – great for petrochemicals, steel, and heavy industries.
• Sharjah Airport Free Zone (SAIF Zone) – suitable for electronics and light assembly.