11 May

ALL ABOUT STARTING A MANUFACTURING BUSINESS IN THE UAE

As the fastest growing hub of the Middle East, the UAE provides a highly conducive environment and all the right support for a manufacturing business to thrive. Any business activity related to the production or manufacturing of goods requires an industrial licence to operate in the UAE. Moreover, designated zones and industrial areas effectively cater to the needs of manufacturers.

What is industrial production?

In basic terms, the transformation goods from one state to another by manual or mechanical intervention is industrial production. The materials could be ranging from raw materials to natural resources, changed to achieve the final product. In a factory, the goods are produced, segregated, stored and packed.

Some of the major production done by the UAE manufacturing industry include:

  1. Textile and ceramic products
  2. Construction material
  3. Petroleum products
  4. Automobile and spare parts
  5. Packaging material
  6. Metal and metal components
  7. Foodstuff production
  8. Plastic and polymers
  9. Chemical products
  10. Medicine and healthcare equipment
  11. Electronic equipment and appliances

Process of obtaining an industrial licence


Prepare the required documents:

  1. Your business plan
  2. Fill-in the detailed application form
  3. The layout of your production plant
  4. Process flow chart
  5. A list of your equipment and machinery
  6. A copy of your passport and visa/entry stamp

Follow the step-by-step process:

  1. Unlike before you do not require to show any proof of funds or deposit capital to get started
  2. Submit your documents for reviewing and licensing
  3. Lease a warehouse suitable for your operations
  4. Hire 10 or more workers

Manufacturing company set-up cost

While the cost for obtaining the license along with company registration, administration and immigration charges would approximately come up to AED 18,000, the cost of leasing a warehouse depends on the size, power and chosen location, etc…

Furthermore, you should also bear in mind the additional space for storing your goods, the cost of visa application for your employees and their accommodation facilities.

Top industrial areas in the UAE

The UAE’s industrial areas are equipped to aid in operational and manpower aspects of your business. Listed below are some of the top locations in Ras Al Khaimah (RAK industrial areas):

Al Ghail

Al Ghail Industrial Zone is suitable for large-scale, heavy industries. It includes land plots of 5,000 m2 and more which you can develop for your facility. Moreover, the area also consists of on-site staff and labour accommodation facilities. Here, you can either form a free zone or a non-free zone company and avail visas for your investing partners as well as employees.

Al Hamra

Al Hamra Industrial Zone caters to both light and heavy industries with warehouses ranging from 150 m2 to 10,000 m2. In this area, too, you the option of establishing either a free zone or a non-free zone entity and avail investor and employee visas. Other facilities include labour accommodation, offices and land for development.

Al Hulaila

Al Hulaila Industrial Zone is ideal for those involved in heavy industrial manufacturing. One of the main benefits of setting up your free zone company here is its close proximity to the region’s largest bulk logistical hub, Saqr Port, providing accessibility to leading business centres. The area includes land, warehouses, staff accommodations and offices.

Manufacturing company set-up in RAKEZ

Setting up a manufacturing business in Ras Al Khaimah Economic Zone (RAKEZ) is simple and beneficial in many ways. One of the main benefits of setting up your factory in RAKEZ is that you will be exempt from paying custom duties for importing your machinery and equipment. To further enable your business, you may even be spared from paying import duties on spare parts, non- and semi-manufactured materials and packaging materials.

Here is how you can get started:


Obtain an industrial licence

RAKEZ will be reviewing your documents and issue your business license, which is valid for one year. Once approved, you will also be provided the leasing options.

Get necessary approvals

Once the licence is issued, you have to apply for approvals from external as well as local federal authorities, including, Ras Al Khaimah Environment Protection and Development Authority (RAK EPDA), RAK Municipality and the Department of Civil Defence. Furthermore, you also need Health Safety and Environment (HSE) and Technical Support Service (TSS) approvals which prove your warehouse is ISO compliant and ensure that no illegal or prohibited activities will be carried out in your premises.

Book a free consultation

Contact us and get a complimentary session to discuss your manufacturing business requirements with the business set-up experts at RAKEZ. To learn more about incorporation of company in the UAE, call +971 7 204 111 or send an email to info@rakez.com.

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