A Simple Guide to Starting Manufacturing Companies in UAE

The “Made in UAE” label is becoming a global symbol of quality and innovation. This is a major priority for the leaders of the country, and such an opportunity should not be passed on by those who want to set up a manufacture company in the UAE.

The UAE is serious about growing its industrial sector. The government’s “Operation 300bn” industrial strategy aims to more than double the sector’s contribution to the national economy by 2031. This is a clear signal that now is an excellent moment to start thinking about becoming part of the list of successful manufacturing companies in UAE.

This is not just about trading goods. It is about making them right here. The government has created a very supportive environment for this. This guide covers the advantages, the costs, and the simple steps you need to take to get started.

The Big Benefits of Setting Up in UAE

Why are so many entrepreneurs choosing to set up manufacturing companies in UAE? The advantages are clear and very practical.

• You get access to amazing roads, ports, and other world-class infrastructure facilities.
• The government offers great perks, like big tax breaks for setting up industries in certain areas.
• World-class ports makes it easy to bring in raw materials and ship out your finished products.
• UAE’s convenient location acts as a bridge to billions of customers in nearby regions like Asia, Europe, and Africa.
• The country has a strong focus on new technology, enabling you to access latest solutions required in a modern factory.

Key Industrial Sectors to Consider

The government is focusing on making the region a hub for all kinds of new manufacturing companies in UAE. Here are some of the upcoming sectors: 

• Food and Beverage: With a keen interest for food security, the UAE government is heavily backing local food production. That encompasses every-thing from processing and packaging to innovative vertical farming methods.
• Plastics and Petrochemicals: Being one of the largest oil producers makes the UAE a suitable place to set up downstream industries. A vast market exists for manufacturing plastic goods that are used in construction or packaging or consumer products.
• Metals and Aluminum: The UAE has one of the world’s biggest aluminum producers. This makes for a robust system for businesses that make end-use metal components for construction or industrial products.
• Technology and Renewables: In line with the green projects, the UAE is an excellent base for assembling renewable energy components such as solar panels or producing parts for the expanding technology industry.

What is the Cost for Manufacturing Companies in UAE?

Then, how much does it cost to start manufacturing company in UAE? That number would obviously change based on your project, but here are some of the main factors that can help determine your budget.

• Industrial License: The cost of your license your license will vary, depending on the specific manufacturing you conduct and the jurisdiction. 
• Warehouse or Factory: Leasing or purchasing industrial space is a significant expense. Prices can range widely based on where you live and the size of the space you need.
• Machinery and Equipment: The cost of your equipment will depend on your industry. You will also need to budget for its import and installation.
• Visas and Staff: You need to account for the costs of your employee visas, salaries, and accommodation of staff.

Simple Steps to Start Manufacturing Companies in UAE

The process for setting up manufacturing companies in UAE is very clear. It is a structured path from your idea to your operational factory.

1. Finalize Your Business Plan. Your first step is to have a detailed plan. This should outline your product, your target market, and your financial projections.
2. Choose Your Location. You need to decide if a Dubai mainland company formation or a business setup in Dubai freezone is better for you.
3. Register Your Company. You will submit all your documents to the official UAE company registrar to get your initial approvals and trade name.
4. Get Your Industrial License. You will then apply for your specific industrial license. This is the key document for all manufacturing companies in UAE.
5. Set Up Your Factory. Once your license is issued, you can lease your facility, import your machinery, and hire your staff. Arnifi can guide you through every one of these steps.

Key Documents You Will Need

To get your license, you will need to prepare a set of key documents. Having these papers ready will make the process much smoother for you.

• A detailed business plan for your manufacturing project.
• Passport copies for all the shareholders and the appointed manager.
• A completed official application form for the license.
• A signed Memorandum of Understanding in UAE if you have partners.
• A Board Resolution Registration in Dubai appointing the company manager.

Where Should You Set Up?

Choosing the right location is one of the most important decisions for manufacturing companies in UAE. Your two main options are a free zone or the mainland. Free zones are incredibly popular for industrial setups. In fact, zones like JAFZA contribute to a huge portion of Dubai’s non-oil foreign trade.

Free zones offer 100% foreign ownership, zero corporate taxes, and streamlined customs processes, which is ideal for businesses that export. The mainland is a great choice if your main goal is to sell your products directly within the local UAE market. The best choice depends completely on your business model.

Frequently Asked Questions (FAQs)

Conclusion

The UAE has communicated very openly that it aspires to become a global industrial hub. With the highest level of incentives and a dynamic business-friendly environment, the government is vigorously backing the new manufacturing companies in UAE. With the proper process and the correct preparation, you can create a successful and lucrative manufacturing business in this country. Now is your opportunity to be part of the nation’s cycle industrial future.

Ready to build your factory in the UAE? Talk to Arnifi. We specialize in helping manufacturing companies in UAE get started. Let us handle the setup so you can focus on what you do best: making great products.