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Industrial Licences in the UAE: Process and Requirements
An industrial licence UAE manufacturers need combines an emirate or free zone industrial licence with federal registration at the Ministry of Industry and Advanced Technology (MoIAT). This guide explains the framework, compares mainland and free zone routes, sets out the process, environmental and product approvals, explains incentives such as In-Country Value, and flags the mistakes that delay production.
Key pointIndustrial status is both an obligation and an asset: processing goods under a trading licence is a breach, but a proper industrial licence and MoIAT registration unlock customs exemptions, industrial land and In-Country Value scoring that trading companies cannot access.
At a glance
Two layers of approval
Manufacturers need an industrial licence from the emirate's economic department or a free zone, plus registration in MoIAT's national industrial registry.
Federal industry law
A federal law on the regulation and development of industry, issued in late 2022, modernised the framework and gave MoIAT responsibility for industrial policy.
Site-driven approvals
Environmental permits, building approvals, civil defence and utility connections depend on the site and process, and often take longer than the licence itself.
Incentives need confirming
Licensed industrial projects may access customs exemptions on qualifying inputs and machinery, industrial land and support programmes, subject to conditions and approvals.
In-Country Value matters
MoIAT's In-Country Value programme is used in many government and national company tenders, rewarding local manufacturing, spend and Emirati employment.
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The short answer: how an industrial licence UAE manufacturers need works
An industrial licence UAE manufacturers need combines two layers. The first is an industrial licence from the emirate's economic department or from an industrial free zone, which authorises manufacturing activity at a specific site. The second is federal: registration with the Ministry of Industry and Advanced Technology (MoIAT) in the national industrial registry, under the federal law on the regulation and development of industry. Environmental, civil defence and product conformity approvals complete the picture.
The distinction between an industrial licence and a commercial or trading licence matters. Assembling, processing, packaging and manufacturing goods are industrial activities, and carrying them on under a trading licence is a compliance breach. Equally, the industrial route unlocks benefits that trading companies cannot access, such as industrial land, potential customs exemptions on qualifying inputs and eligibility for national industrial programmes.
This guide, as of October 2026, explains the framework, compares mainland and free zone routes, walks through the process and highlights the mistakes that delay commercial production. Requirements differ by emirate and zone, so confirm the current position before committing to land or equipment.
The legal and regulatory framework
Federal industry law and MoIAT
In late 2022 the UAE issued a new federal law on the regulation and development of industry, as reported by WAM. It modernised the framework for industrial activity, gave MoIAT responsibility for industrial policy and the industrial registry, and linked industrial registration to incentives and support programmes. MoIAT's industrial registry service is where manufacturers register their facilities and keep their data current.
MoIAT also runs the national In-Country Value programme, which scores suppliers on their contribution to the UAE economy and is used in many government and state-owned procurement processes, and the Make it in the Emirates initiative to attract manufacturing investment. Product conformity and standards fall under MoIAT's conformity assessment schemes for regulated products.
Emirate-level licensing
The industrial licence itself is issued at emirate level. On the mainland, that is the economic department of the emirate, such as the Department of Economy and Tourism in Dubai or the Department of Economic Development in Abu Dhabi, sometimes through a dedicated industrial development unit. In free zones, the zone authority issues industrial licences for its own industrial areas; examples include the industrial zones of RAKEZ and the logistics and industrial areas of the larger Dubai and Abu Dhabi zones.
Company law and other federal rules
Mainland industrial companies are governed by the Commercial Companies Law, amended by Federal Decree-Law No. 20 of 2025 and in force since late 2025. Most manufacturing activities can be fully foreign-owned on the mainland, subject to the strategic-impact exceptions. Federal environmental, climate, labour, customs and tax rules apply wherever the factory is licensed; our article on the UAE climate change law covers emissions obligations.
Industrial licence UAE: mainland or free zone?
The choice depends on where the output will be sold, where inputs come from and what incentives matter.
| Factor | Mainland industrial licence | Free zone industrial licence |
|---|---|---|
| Licensing authority | Emirate economic department or its industrial unit | Free zone authority |
| Land and premises | Mainland industrial areas, leased or allocated land | Zone plots, warehouses and pre-built factories |
| Sales to UAE customers | Direct | Restricted; goods entering the mainland are generally treated as imports |
| Customs treatment of inputs | Possible exemptions on qualifying inputs and machinery for licensed industrial projects | Goods held in the zone are generally outside the customs territory until they enter the mainland |
| Corporate tax | Standard regime, subject to reliefs | Potential 0% on qualifying income if all Qualifying Free Zone Person conditions are met |
| Government procurement | Strong fit for In-Country Value scoring | Eligible, but check ICV scoring and onshore sales rules |
| Typical fit | Factories supplying UAE construction, energy and government projects | Export-led manufacturing, re-export and regional distribution |
Free zone factories that plan significant onshore sales should model both customs duty on goods entering the mainland and the corporate tax effect of mainland revenue. Our guides to Qualifying Free Zone Person status and VAT in free zones explain the tax side.
Legal forms and ownership
Most mainland manufacturers operate as limited liability companies, which suit joint ventures with local partners and multiple shareholders; single-owner groups often use a one-person company. Free zone factories are usually free zone establishments or companies, or branches of foreign manufacturers. Joint ventures with local industrial groups are common where a partner brings land, distribution or procurement relationships, and they need a robust shareholders' agreement covering technology, deadlock, offtake and exit. Defence-related, certain energy and other strategic activities carry additional ownership restrictions and approvals, so confirm the position for your activity early.
The industrial licence process
Industrial projects take longer than commercial setups because approvals depend on the site and the process technology. A typical sequence runs as follows.
- Define the product and process. Describe the products, capacity, raw materials, technology, utilities and waste streams. Authorities assess the project on this basis.
- Choose the location and structure. Decide between mainland industrial land and a free zone, and choose the legal form and ownership.
- Obtain initial approval. Reserve the trade name and obtain initial approval for the industrial activity from the economic department or zone authority, usually with a project profile or feasibility study.
- Secure land or premises. Sign the lease or land agreement and confirm power, water, gas and access capacity with utilities.
- Obtain environmental and building approvals. Submit environmental assessments and building plans, and obtain civil defence approval for the facility.
- Issue the industrial licence. The licence is issued, sometimes first as a licence for construction or installation, followed by a licence for production once the plant is ready.
- Register with MoIAT and start operations. Register the facility in the national industrial registry, obtain product conformity approvals, register with customs and complete tax registrations.
Confirm utility capacity in writing before you sign for land. Power, water and gas availability is a frequent cause of delay for energy-intensive plants, and the cost of upgrading connections can change the economics of a site.
Documents to prepare
Every industrial licence UAE application rests on a technical file as well as a corporate one. Expect to prepare:
- A project profile or feasibility study describing products, capacity, process flow, raw materials, utilities, investment and employment.
- Passport copies of shareholders and managers, and legalised incorporation documents, resolutions and ownership charts for corporate shareholders.
- The land or lease agreement and site plan.
- Layout drawings, machinery lists and building plans for civil defence and building approvals.
- Environmental screening or impact assessment, with waste, wastewater and emissions management plans.
- Product specifications and test reports for conformity certification.
Our checklist of company incorporation documents covers the corporate side of the file.
Environmental, safety and product approvals
Environmental permits
Most industrial facilities need environmental approval before construction and an operating permit once running. The depth of assessment depends on the process: light assembly may need only a basic review, while chemical, metals or food processing plants may need a full environmental impact assessment, emissions controls and waste management plans. Environmental authorities differ by emirate and zone. Our guide to environmental permits and compliance explains the process.
Civil defence and health and safety
Civil defence approves fire safety design and inspects the facility. Hazardous materials need specific storage and handling approvals. Employers must also meet federal occupational health and safety requirements and any emirate-level rules for industrial workplaces.
Product conformity
Regulated products, from electrical goods to building materials and food, must meet UAE standards and, for many categories, carry a conformity certificate or mark under MoIAT's schemes before they are placed on the market. Food manufacturers also need food-authority approval; see our guide to food business licensing.
Incentives and the In-Country Value programme
An industrial licence UAE manufacturers hold can open doors that a trading licence cannot. Licensed industrial projects may qualify for customs exemptions on qualifying raw materials and machinery, subject to conditions and approval. Some emirates and zones offer industrial land on favourable terms, utility tariffs for industry or financing support through national development institutions.
The In-Country Value programme is often the most commercially important. Many government entities and national companies use ICV scores in tender evaluation, so a local manufacturing footprint, local spend and Emirati employment can improve a supplier's competitiveness. Certification is issued by approved certifying bodies based on audited financial data, so plan accounting systems accordingly.
Incentives change over time and are discretionary in many cases. Treat them as an upside to be confirmed in writing, not as the basis of the investment case.
Ongoing compliance after licensing
Industrial status brings continuing obligations. The licence, environmental operating permit, civil defence certificate and conformity certificates each have their own renewal cycle, and changes to capacity, products or process may require amendments and fresh approvals. Authorities can inspect the plant, request emissions or waste data and review whether customs-exempt inputs were used for licensed production. Keep a compliance calendar, assign an owner for each permit and record how exempt materials are consumed, because exemptions may be clawed back if goods are diverted to other uses.
An illustrative scenario
This scenario is illustrative only; it does not describe a real client. A manufacturer of electrical cables from South Asia wants to build a plant in the UAE to supply contractors on large infrastructure projects and to export to East Africa.
The investor might compare a mainland industrial site, which suits direct sales to contractors and ICV scoring for government-linked projects, with a free zone factory, which suits exports. If most revenue is from UAE projects, a mainland industrial licence is likely to fit better, with the export business served from the same plant. The company would confirm customs exemptions on imported copper and machinery, secure utility capacity, obtain environmental and civil defence approvals and register with MoIAT.
It would also obtain product conformity certification for its cables before launch, since contractors cannot install non-certified products, and set up its accounts to support ICV certification from the first year.
Risks and common mistakes
Manufacturing under a trading licence
Assembly, processing, blending and repackaging can all count as industrial activity. Carrying them on under a commercial or trading licence is a common breach that can lead to fines, problems with customs exemptions and difficulty registering products. It also prevents the business from accessing industrial incentives. If your process transforms goods, check with the licensing authority whether an industrial licence UAE regulators recognise is required.
Signing for land before environmental screening
A site that looks commercially attractive may not be permitted for your process, may sit too close to residential areas or may need costly environmental controls. Environmental screening and a conversation with the regulator before signing can avoid a stranded lease. Include conditions in the land agreement allowing exit if key approvals are refused.
Neglecting MoIAT registration and data updates
Registration in the national industrial registry is not a formality. It supports access to incentives and programmes and is used by authorities to verify industrial status. Facilities that fail to register or let their data lapse can lose eligibility for benefits. Assign responsibility for keeping registry information, licences and certificates current.
Under-estimating product certification time
Regulated products cannot be sold without conformity certification, and testing and certification can take time, particularly for new product lines or where overseas test reports must be accepted. Plan certification in parallel with plant construction so that the first production run can be sold. Contracts with customers should not promise delivery dates that assume certification is already in place.
Cross-border angle and next steps
Industrial investors often bring technology, machinery and management from a parent group. Technology licences, equipment supply contracts and management fees need careful drafting on intellectual property, warranties and pricing, and transfer pricing rules apply to related-party flows. Investors from Bangladesh, India, China, the United Kingdom and Singapore should also consider home-country outbound investment approvals and export control rules on equipment. Our foreign direct investment practice coordinates these workstreams.
Groups serving the wider Gulf should note that GCC rules on industrial products and customs give UAE-made goods certain advantages in other member states where rules of origin are met. Documenting origin, local value added and production processes from the start makes it easier to claim those benefits later. A UAE factory can therefore serve as a regional manufacturing hub, but only if its supply chain, records and certifications are designed for it.
Before you apply, work through this checklist for your industrial licence UAE project:
- Describe the product, process, capacity and waste streams in a project profile.
- Decide between mainland and free zone based on customers and inputs.
- Screen the site for environmental and utility constraints before signing.
- Obtain initial approval, then environmental, building and civil defence approvals.
- Register with MoIAT and plan product conformity certification.
- Confirm customs exemptions and ICV certification in writing.
- Complete corporate tax, VAT and customs registrations.
TRW & Co advises manufacturers and investors on industrial licensing, structuring and contracts from our Dubai office, working with our mainland company structures team. Where representation before UAE courts is required, we work alongside locally licensed advocates. Contact us at info@trw.co or +971 58 942 1012 to discuss your industrial licence UAE project.
Frequently asked questions
01What is an industrial licence in the UAE?
An industrial licence authorises manufacturing, processing, assembly or similar industrial activity at a specific site. It is issued by the emirate's economic department on the mainland or by a free zone authority for its industrial areas. Industrial facilities must also register with the Ministry of Industry and Advanced Technology in the national industrial registry. A commercial or trading licence does not authorise transforming goods.
02What is the difference between an industrial licence and a trading licence?
A trading licence allows buying and selling goods without transforming them. An industrial licence allows manufacturing, processing, assembly, blending or similar activity. Industrial licensing involves site, environmental and safety approvals and MoIAT registration, but it also gives access to industrial land, potential customs exemptions on qualifying inputs and machinery, and programmes such as In-Country Value that trading companies cannot use.
03Do I need to register with MoIAT?
Industrial facilities are expected to register in the national industrial registry maintained by the Ministry of Industry and Advanced Technology and keep their data up to date. Registration supports verification of industrial status and access to incentives and national programmes. Requirements and procedures are set out on MoIAT's website, and investors should confirm how registration interacts with their emirate or free zone licence.
04Should a factory be on the mainland or in a free zone?
It depends on customers and inputs. Mainland factories can sell directly to UAE customers and fit well with In-Country Value scoring for government-linked projects. Free zone factories suit export-led manufacturing and re-export, but goods entering the mainland are generally treated as imports and onshore revenue can affect Qualifying Free Zone Person tax status. Model customs and tax for both routes before choosing.
05Can a foreign investor own 100% of a factory in the UAE?
Full foreign ownership is available in free zones and for most manufacturing activities on the mainland since the 2021 reforms to the Commercial Companies Law, subject to exceptions for activities with strategic impact. Some sensitive sectors, such as defence-related or certain energy activities, have additional restrictions or approvals. Confirm the position for your specific activity with the licensing authority before agreeing the shareholder structure.
06How long does it take to obtain an industrial licence in the UAE?
The licence itself can be issued relatively quickly once the project is approved, but the overall timeline depends on the site and process. Environmental assessments, building and civil defence approvals, utility connections and construction typically drive the schedule. Some authorities issue a licence for construction first and a production licence once the plant is ready. Plan for approvals in parallel with design and procurement.
Sources and official materials
- WAM: UAE President issues new law on regulation and development of industry — Federal industry law issued in 2022
- Ministry of Industry and Advanced Technology — Federal industrial regulator and programmes
- MoIAT: industrial registry — National industrial registry service
- Federal Decree-Law No. 32 of 2021 on Commercial Companies — Federal companies law for mainland companies
- Federal Tax Authority — Corporate tax and VAT registration
General information only, current as at 27 October 2026. It is not legal advice and does not create a lawyer–client relationship. UAE law differs between the onshore jurisdiction, the DIFC, ADGM and the free zones, and changes frequently; check current official sources and take advice on the facts of your matter.
