How to start a manufacturing business in the UAE
Follow our proven formula for successfully setting up or relocating a production facility with the help of experts. Take advantage of government support for manufacturing businesses in the UAE.
The UAE is one of the best countries in which to start or relocate your manufacturing business. It offers proactive government support, a very advantageous tax system, strategically beneficial geographical location, a growing and affluent consumer base, as well as political and economic stability. SORP Group offers the vital expertise and support you need to establish and grow your manufacturing business in the UAE, from initial licensing to the day-to-day operational routine.
The most demanded spheres of production in the UAE
Construction Materials
Components used in construction, such as panels, windows, doors, fittings, glass, roofing products
Food and drinks
Production of all types of food products. The most in demand are dairy products, water, groceries
Medicine and healthcare
Manufacture of pharmaceutical and parapharmaceutica products and medicines, medical products and equipment
Rolled metal and components
Production of sheet metal, as well as metal components for any purpose
Textile production
Light industry: fabrics, clothing, including children's clothing, textile products
Transport and spare parts
Manufacture of cars, agricultural machinery, heavy vehicles, as well as spare parts
Electronic devices
Manufacture of all types of household appliances, measuring equipment, communications
Plastics and polymers
Manufacture of plastic products and products from composite materials or polymers
Chemical products
All types of paints and varnishes, fertilizers, basic chemicals, pesticides, household chemicals
Stages of organizing a manufacturing business in the UAE
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Choose a working business model
Different legal entities and business models have varying freedoms and restrictions. For example, to retail manufactured goods in the local UAE market, you need to register a mainland company. Choosing the correct model is crucial to ensure you can operate in the way you want.
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Get a preliminary permit to incorporate a manufacturing business
Learn the regulatory requirements for setting up a manufacturing facility. Prepare a project for the Ministry of Economy, which issues a preliminary permit once approved and also drafts a detailed list of other approvals you will require.
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Obtain additional permissions
Obtain approvals and permits from the relevant authorities specified in the Initial Approval, such as the Municipality, Department of Civil Defense, Planning Department, and others that oversee industrial or manufacturing business activities.
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License and register your company
Next you need to incorporate your chosen legal entity and confirm its address at the physical location of your proposed manufacturing facility.
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Pass certification checks
The certification procedure must be completed and passed. It may include laboratory tests for compliance with standards, examination by the Agency for Standardization and Metrology (ESMA), registration with the Municipality, the Department of Civil Defense and other departments.
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Engage professional support for your business
The final stage is engaging a service company that will provide high-quality administrative, legal, financial and tax accounting services as well as support for opening bank accounts, immigration procedures and registration of foreign employees.
SORP expert solutions for organizing a manufacturing business in the UAE
Business model preparation
We will select a suitable license and determine the type of legal entity
Business incorporation
Fast incorporation through close collaboration with licensing authorities
Outsourcing of core business processes
Administrative, tax, accounting, PRO and legal support from SORP Group specialists with vast experience
Dubai business address
Rent in our SORP business center for staff accommodation and regulatory licensing procedures
Opening bank accounts
Our close cooperation with UAE banks with assistance in passing KYC speedily
Nominee services
Professional service from SORP Investment LLC with waiver of rights registered in Dubai court
Outstanding benefits of operating a manufacturing business in the UAE
Government support
The level of support represents a golden opportunity for manufacturing businesses.
World’s largest trading hub
Ideal assembly point between the East and West makes logistics and trading sense.
Repatriation of Capital and Profit
Repatriate capital as tax-free foreign investments.
Labor advantages
The UAE is an attractive destination for medium and high grade skilled personnel.
Dedicated industrial zones
Many locations are pre-developed for industrial use with attractuve facilities.
No customs duties
Import of raw materials is not subject to customs duties .
Ready sales market
Enjoy free trade across 6 countries of the Gulf Cooperatoion Council (GCC).
Tax benefits
0% income tax and corporation tax. 5% VAT for some domestic categories.
Financial incentives
Attractive business loan rates and flexible repayment terms are worth investigating.
Factors to consider when setting up a manufacturing business in the UAE
Choosing the best location
Consider a location’s regional incentives, infrastructure, utilities and ease of procuring supplies, to name just a few important factors.
Choosing the trading area
Where do you intend to sell the products you will manufacture? Will it be local, export only, or both? Ensure your chosen jurisdiction does not restrict your plans.
Getting your raw materials
Can you obtain supplies locally or will you have to import some or all of them? If so, ensure you have the correct permits and that inbound logistics are smooth.
Recruiting your workforce
Investigate the local labor market for the skills you need. Check out potential quotas on foreign labor that might impact your resourcing plans.
Exporting your products
Proximity of seaports/airports and ease of logistics may be factors in choosing your location. Local knowledge should feed into your strategy decisions.
Getting your products certified
Before releasing a product on the domestic market of the UAE or a GCC country, you need to pass certification checks.
SORP Group’s solutions for successful manufacturing businesses in the UAE
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Business planning and the right model
We help you plan and implement a properly licensed business model and solid basis for production. We guide you in creating a retail network and accessing international or local markets.
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Advice, consultancy and support
We will analyze the market, the competition and the relevant legislation. We will suggest the best locations for your manufacturing business to ensure it can operate freely.
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Registration and licensing procedures
We can do everything that’s needed for registration, licensing and obtaining permits quickly and without fuss using our close working relationship with government agencies.
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Assistance with opening bank accounts
We guarantee professional support when opening bank accounts because we work closely with leading UAE banks and understand their compliance procedures.
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Outsourcing core business processes
Our administrative, tax, accounting support and PRO specialists allow you to save significantly compared with employing highly paid staff to perform the same tasks.
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Help for importing raw materials and equipment
We know the procedures for obtaining an import permit, approvals, certification and customs clearance. We guide you all the way.
SORP’s long experience guarantees the success of your operation in the UAE
Start a manufacturing business in the UAE
Reduce your logistics costs and exploit easy access to wider markets in Asia, Africa and Europe.
Contact us today. Take the first step to earning the prestigious ‘Made in the UAE’ Quality Mark for your products.