Setting up a manufacturing or industrial business in Dubai offers unmatched access to logistics, infrastructure, and global trade opportunities. But before starting operations, getting the Free Zone Industrial License in Dubai is essential. This license allows you to produce, assemble, and package goods within a designated Dubai Free Zone—with attractive benefits like 100% foreign ownership, tax exemptions, and easy access to ports and airports.
This guide will walk you through everything you need to know—from requirements and costs to the step-by-step process—so you can confidently set up your industrial business in Dubai Free Zones in 2025.
What Is a Free Zone Industrial License in Dubai?
A Free Zone Industrial License is a permit issued by the relevant Dubai Free Zone Authority that allows a company to carry out industrial and manufacturing activities. These activities may include assembling products, packaging, fabricating, importing raw materials, and exporting finished goods.
Why Choose a Free Zone for an Industrial Business?
Operating in a Free Zone provides several advantages:
- 100% foreign ownership
- Zero import/export duties
- Full repatriation of profits
- No personal or corporate tax (as per current rules for small businesses)
- State-of-the-art industrial infrastructure
- Proximity to ports, airports, and logistics centers
Types of Activities Permitted Under a Free Zone Industrial License
The industrial license typically covers activities like:
- Manufacturing and production
- Fabrication and assembly
- Processing and refining
- Packaging and labeling
- Import of raw materials
- Export of finished goods
However, specific activities allowed can vary by Dubai Free Zone, so it’s important to choose the right zone based on your business model.
Examples of Common Industrial Sectors:
- Food and beverage processing
- Automotive parts assembly
- Electronics manufacturing
- Furniture and metalworks
- Packaging materials
Best Free Zones in Dubai for Industrial Licenses
Dubai offers several ideal free zones for industrial activities. Some top choices include zones with advanced infrastructure, easy logistics, and investor-friendly regulations. These zones support manufacturing, assembly, and packaging operations. Choosing the right location depends on your business size, target market, and operational needs for long-term efficiency and growth.
Dubai Industrial City (DIC)
Known for manufacturing and logistics. Offers large warehouses, plots, and industrial facilities.
Jebel Ali Free Zone (JAFZA)
Ideal for companies needing port access. Offers customs-free operations and advanced warehousing.
Dubai Silicon Oasis (DSO)
Suitable for electronics and tech manufacturing. Offers R&D labs and smart warehouses.
Dubai South (DWC)
Perfect for aviation-linked manufacturing, logistics, and aerospace industries.
Steps to Obtain a Free Zone Industrial License in Dubai
Start by selecting a suitable free zone based on your industry. Prepare and submit the required documents, including your business plan. Apply through the free zone authority, await initial approval, and sign the lease agreement. Pay the license fees, complete registration, and receive your industrial license upon approval.
Step 1: Choose the Right Free Zone
Research Free Zones based on:
- Your industry type
- Budget
- Proximity to ports or airports
- Facility size and requirements
Each zone has different setups, lease terms, and regulations.
Step 2: Define Your Business Activity
Select the exact industrial activity you’ll carry out. You must match it to the activity codes listed by the Free Zone Authority. This affects approval, facility size, and inspection needs.
Step 3: Submit Application and Initial Documents
You’ll need to submit:
- Proposed business name
- Passport copies of shareholders
- Business plan
- Letter of intent (brief explanation of operations)
- Application form
After review, the Free Zone Authority will give initial approval.
Step 4: Lease Industrial Facility or Warehouse
Industrial licenses require physical premises within the Free Zone. You must lease a warehouse, factory unit, or land plot based on your production needs.
Some Free Zones offer pre-built units, while others allow you to construct your facility.
Step 5: External Approvals & Inspections
Depending on the activity, additional approvals may be needed:
- Civil Defense approval (fire safety)
- Dubai Municipality (health or environment clearance)
- Dubai Electricity & Water Authority (DEWA) for utility setup
Inspections may follow to verify compliance.
Step 6: Receive License and Register the Company
Once approvals are done:
- Pay license fees
- Sign lease agreement
- Collect your Industrial License
- Open corporate bank account
- Start operations legally
Key Documents Required
To simplify, here are common documents needed:
- Passport copies of all shareholders
- Visa page or UAE entry stamp
- Business plan
- NOC (if shareholder is on an existing UAE visa)
- Lease agreement (within Free Zone)
- No-objection certificates for specific activities
- Third-party approvals (if needed)
Costs of Industrial License in Dubai Free Zones
Costs vary depending on the Free Zone, warehouse size, and business scale.
Estimated Breakdown:
- License cost: AED 10,000 – AED 30,000 annually
- Facility lease: AED 20,000 – AED 200,000+ annually (based on size and zone)
- Visa quota: AED 3,000 – AED 5,000 per visa
- External approvals: AED 5,000 – AED 10,000 (if required)
- Utility deposits and fit-out: Varies significantly depending on need
Some Free Zones offer packages that bundle license, visa, and facility together for startups.
Advantages of Holding a Free Zone Industrial License
Holding a Free Zone Industrial License in Dubai offers full foreign ownership, tax exemptions, and repatriation of profits. It also provides access to modern infrastructure, strategic logistics support, and simplified import-export procedures. Businesses enjoy flexibility, reduced bureaucracy, and a strong platform for regional and international trade expansion.
100% Ownership
Foreign investors don’t need a local partner. You have full control over business decisions and operations.
Strategic Infrastructure
Free Zones are built near logistics hubs like Jebel Ali Port and Al Maktoum Airport, which simplifies global trade.
Business Support
Free Zone authorities offer assistance with customs, licensing, visas, and recruitment—helping you focus on growth.
Tax Efficiency
While corporate tax applies to businesses earning above AED 375,000, small industrial firms may stay under the threshold and benefit from zero tax.
Renewing Your Industrial License
Renewal is an annual process:
- Submit updated lease agreement
- Pay license renewal fees
- Submit renewal application form
- Ensure compliance with inspections or environment regulations
Non-compliance can lead to fines or license suspension.
Also Read: Company Registration in Dubai, UAE
Things to Consider Before Applying
Before applying for a Free Zone Industrial License in Dubai, consider your business activity, required warehouse size, and compliance needs like fire safety and environmental approvals. Ensure your business plan is detailed, check the total setup cost, and confirm visa eligibility. Choosing the right Free Zone is also critical.
Business Plan Clarity
Clearly outline your production process, machinery, labor needs, and waste disposal.
Warehouse Layout
Some Free Zones require you to submit layout drawings for fire safety and utility connection approvals.
Environmental Compliance
If your activity involves emissions, chemicals, or heavy waste, you may need an environmental impact report.
Staff Accommodation
For industrial licenses, you’re expected to provide housing for factory workers if hiring large numbers.
Conclusion
Obtaining a Free Zone Industrial License in Dubai, UAE is a smart move for businesses aiming to manufacture or assemble products in a tax-friendly, investor-driven environment. With the right Free Zone, facility, and activity selection, your setup can be both cost-efficient and growth-ready.
GCS offers end-to-end support for investors looking to secure industrial licenses in Dubai. Our team will help with everything from choosing the right Free Zone to license approvals, visa processing, and banking.
Ready to build your industrial future in Dubai?
Contact our expert consultants today and let us streamline your business journey.
FAQs
How long does it take to get an industrial license in Dubai Free Zone?
It typically takes 7 to 21 working days, depending on document readiness and external approvals.
Can I open a bank account with a Free Zone Industrial License?
Yes, once your license and company are registered, you can open a corporate bank account in the UAE.
Is a physical warehouse required?
Yes, an industrial license requires a warehouse or factory facility within the Free Zone.
Can I export goods globally from a Free Zone?
Absolutely. Free Zones are designed for import-export businesses, with customs-friendly services and tax benefits.
Do I need to pay corporate tax?
If your business profits are under AED 375,000, corporate tax may not apply. For higher earnings, a 9% tax rate may apply under UAE’s new corporate tax law.
