Telephone Numbers
Telephone Numbers
For detailed information +90 542 381 3868'Call.
Setting up a factory in Dubai is a highly strategic decision for investors who want to manufacture at the crossroads of the Middle East, Africa and Asia. The United Arab Emirates (UAE) offers a competitive tax environment, advanced logistics infrastructure and industry-focused free zones that make a production facility investment both scalable and export-ready. In this guide we cover, as of July 2026, the steps to establish an industrial and manufacturing company in Dubai, the required licenses and permits, the current tax framework and the main cost items, from a Google SEO and UAE regulatory perspective.
Important Notice: The rates, fees and cost figures in the tables on this page were prepared for July 2026 and are subject to change. For binding and up-to-date amounts and rates, please verify with the relevant official authorities' websites (e.g. tax.gov.ae, moiat.gov.ae, DET).
Table of Contents
Thanks to its geographic position, Dubai is a manufacturing and re-export hub connecting Europe, Asia and Africa. Reaching most of the world within an eight-hour flight radius through Jebel Ali Port and Al Maktoum International Airport significantly lowers supply-chain costs for manufacturers.
Industrial zones are directly linked to port, airport and road networks, accelerating raw-material imports and finished-goods exports.
With a low 9% corporate tax rate and a potential 0% on qualifying free zone income, the UAE is an attractive jurisdiction for producers.
Planned industrial clusters offering ready factory units, warehouses, power and water connections and logistics services shorten the setup timeline.
Attracting engineers, technicians and operators from around the world, Dubai enables production teams to be built quickly.
In addition, thanks to its network of international trade agreements and customs facilitation, the UAE gives manufacturers preferential access to Gulf Cooperation Council (GCC) markets. Political stability, a strong banking infrastructure and 100% foreign ownership are factors that enhance the long-term security of a production investment. Relatively predictable energy costs and the ready-built infrastructure offered in organized industrial zones shorten the payback period for capital-intensive manufacturing projects.
The core document for manufacturing in Dubai is the industrial license. On the mainland, this license is issued by the Dubai Department of Economy and Tourism (DET); additionally, an industrial production registration must be made at the federal Ministry of Industry and Advanced Technology (MoIAT). In free zones, the license is issued by the relevant free zone authority (e.g. JAFZA, Dubai Industrial City, Dubai South).
| License / Registration | Issuing Authority | Purpose |
|---|---|---|
| Industrial License | DET (mainland) / Free Zone Authority | Authorizes manufacturing, processing, assembly, packaging |
| Industrial Production Registration | MoIAT (federal) | Federal industrial registry and access to incentives |
| ICV Certificate | MoIAT / authorized auditors | Documents In-Country Value, advantage in public tenders |
Manufacturing companies are usually established as a Limited Liability Company (LLC) or a free zone company (FZCO/FZE). The company type is determined by factors such as the number of shareholders, liability level, target market and future investor participation. In industrial license applications, some zones require minimum capital and a physical facility (factory/warehouse); therefore capital planning should cover not only setup fees but also machinery investment and working capital. Building a scalable structure lowers the cost of restructuring during future capacity expansions.
In addition to the industrial license, several approvals may be required depending on the nature of the facility:
The order of the approval processes varies according to the risk class of your facility. For high-risk production (e.g. chemicals or flammable materials), environmental and civil defence approvals are critical steps that must be obtained before the license. Preparing complete approval files prevents delays caused by re-applications and significantly shortens the total setup time. An experienced consultant reduces process risk by planning the correct order of authorities and document set from the outset.
The following flow summarizes the typical order of establishing a manufacturing company in Dubai:
| Step | Stage |
|---|---|
| 1 | Define the product to be manufactured and the activity code |
| 2 | Obtain trade name approval and initial permits |
| 3 | Choose the company type and location (mainland/free zone) |
| 4 | Prepare the Memorandum of Association (MoA) and lease the factory/warehouse (Ejari) |
| 5 | Complete environmental, fire and DEWA approvals |
| 6 | Obtain the industrial license and MoIAT registration |
| 7 | Register for corporate tax and, if required, VAT; open a bank account |
If you plan to manufacture in an industry-focused free zone such as RAKEZ, you can review our guide on establishing a factory and manufacturing in RAKEZ for detailed process and incentive information.
Choosing the production location depends on your target market and tax planning. Mainland companies can sell directly to the UAE domestic market, while free zone companies focused on export and re-export may benefit from a 0% corporate tax on qualifying income under the Qualifying Free Zone Person (QFZP) status.
| Criterion | Mainland | Free Zone |
|---|---|---|
| Domestic market sales | Direct | Via distributor/agent |
| Tax advantage | Standard corporate tax | 0% with QFZP (conditional) |
| Example locations | DET jurisdiction | JAFZA, Dubai Industrial City, Dubai South, NIP |
Prominent free zones for manufacturing in and around Dubai include the logistics-focused JAFZA, Dubai Industrial City with its industrial clustering, Dubai South suited to aviation and light industry, and National Industries Park. In neighbouring emirates, zones such as RAKEZ and Hamriyah are preferred especially by medium and large manufacturers thanks to competitive land and warehouse costs. Determining criteria in zone selection include facility size, ceiling height, power capacity, distance to port and available visa quotas.
Free zone manufacturers wishing to benefit from the 0% corporate tax advantage must meet conditions such as having adequate economic substance, earning income from qualifying activities, complying with transfer pricing rules and maintaining audited financial statements. Breaching any of these conditions may cause the income to become subject to the standard 9% rate.
Manufacturing companies in the UAE are subject to the following core tax framework:
| Tax / Item | Rate / Threshold (2026) |
|---|---|
| Corporate Tax | 0% up to AED 375,000; 9% above |
| VAT | Standard 5%; registration threshold AED 375,000 |
| Small Business Relief | For taxpayers with revenue not exceeding AED 3,000,000 |
| QFZP (Free Zone) | 0% on qualifying income (conditional) |
Factory setup cost varies significantly depending on the activity type, facility size, chosen location and headcount. When planning your total budget, consider the following main items:
An accurate budget requires an activity-specific feasibility study. To receive a current, project-specific cost breakdown, you can request a free quote and consultation.
Once the factory is operational, obligations for regular bookkeeping, the annual corporate tax return and, if required, the VAT return continue. VAT-registered taxpayers must file their returns within 28 days of the end of the tax period. Depending on the nature of your product, AML (anti-money laundering) compliance, product standards and labelling requirements may also arise. Setting up these processes correctly from the start both prevents penalties and enables you to benefit from potential incentives and tender advantages.
Setting up a factory in Dubai opens production to both the UAE domestic market and global markets with the right location, license and tax planning. Our expert team manages the entire process from incorporation to licensing.
Manufacturing requires an industrial license. On the mainland it is issued by DET and in a free zone by the relevant free zone authority; an industrial production registration is also made with MoIAT.
If you target direct sales to the UAE domestic market, the mainland is usually more suitable; if you target export and the 0% QFZP tax advantage, a free zone is often preferable. The decision depends on your activity and market plan.
Corporate tax is 0% on taxable income up to AED 375,000 and 9% above it. Qualifying free zone income may be taxed at 0% on a conditional basis (Source: tax.gov.ae, July 2026).
Depending on the activity, a Dubai Municipality environmental permit, Civil Defence fire safety approval and DEWA water-electricity connection are required. Chemical, food or pharmaceutical production requires further regulatory approvals.
The timeline varies by location, approvals and facility readiness. When documents and approvals are complete, the licensing process is typically finished within a few weeks; facility installation should be planned separately.
Cost depends on the activity type, facility size, chosen free zone/mainland, machinery investment and headcount. For a current, project-specific breakdown, verification from official sources and consultancy are recommended.
+90 542 381 3868
+971 58 5204103