How to set up an Industrial Licence in UAE Free Zones

The United Arab Emirates is possibly one of the most investor-friendly countries in the world. It offers tax benefits, complete business ownership rights and a robust service support system, which combine with the opportunities available in multiple designated free zones to create an overall attractive business environment. The UAE’s industrial strategy aims to create an appealing business environment for local and international industrial investors, support the growth of national industries, enhance their competitiveness, and empower the innovation and adoption of advanced technologies.

An industrial license in the UAE, is a certificate provided by a free zone’s authority, which allows the investors and entrepreneurs to manufacture their line of products inside the relevant free zone jurisdiction.

What benefits can Free Zones offer industrial investors?

Due to the UAE’s structuring of each emirate into multiple free zones, which each operate in specific geographical areas for differing industries and sectors, and under their own set of regulations – setting up in the UAE can offer a wide variety of options and opportunities for businesses. Among the benefits available to companies establishing in a free zone are:

1. Customs exemption in UAE – A prominent objective of companies exploring doing business in free zones is to reduce taxes. Materials imported must be directly related to the finished product to meet the exemption criteria.

2. 100% foreign ownership – All free zones provide the opportunity, for the majority of business activities to be 100% foreign owned, removing the requirement for a local partner.

3. World-class infrastructure – free zones based in the UAE rank as one the world’s best destinations for industrial infrastructure, including secure warehouses and land space for industrial plants to setup.

4. Low Energy and Labour costs – providing a cost effective base for manufacturing and logistics

5. Administrative & logistical facilities – The quality of support offered by the free zones – i.e., license processing, visa processing, etc.

Which UAE Free Zones have the best infrastructure to support industrialists?

The UAE is known across Europe, Asia and the America’s for its safe and organized infrastructure, which supports major industrialists in setting up their operations. This could be through providing them with a lease for a warehouse or land, depending on the size, utilities and power usage required. Many free zones are suitable for large-scale heavy-duty manufacturing industries because of their proximity to logistical hubs which provide them accessibility to major business centres.

Some of the free zones which are best suited to industrial activities are outlined below.

1. Khalifa Industrial Zone Abu Dhabi (KIZAD) – One of the region’s largest integrated commercial and industrial centres, linked to Khalifa Port. KIZAD free zone has great transportation infrastructure, together with multimodal connectivity by road, sea and air. Establishing in the KIZAD free zone can be a great strategical decision, as it’s located between Abu Dhabi and Dubai. Opting for the KIZAD free zone has allowed for plenty of production companies to establish their company and trade inside the UAE.

2. Saif Zone – Based in Sharjah, this free zone boasts accessibility to world class trading opportunities across all industry sectors. They offer multiple benefits and competitive advantages in a trustworthy regulatory environment that adheres to the highest standards of international compliance.

3. Jebel Ali Free Zone Authority (JAFZA) – JAFZA has a great business ecosystem attracting various businesses operating in areas such as petrochemicals, logistics, automotive, FMCG, electronics, food, livestock and agriculture. Its connectivity to the Jebel Ali port makes it appealing to those in the import/export business.

Are production companies required to register their product to trade inside the UAE?

UAE is a hub for top brands from a variety of industries to showcase their products to clients from all over the world. To begin trading these products government authorities require that businesses register their products with the relevant Municipality authority. For example, with regards to the food industry, please refer to our Food Product Registration Blog.

Do production companies in Free Zones require approvals from external authorities?

Different business activities may require approval from government authorities, as well as local federal authorities. The main requirement is for companies to meet and maintain international standards of health and safety, and to ensure they are not performing any illegal or prohibited activities on their premises.

How can PRO Partner Group help?

Whether you are considering setting up an industrial company and operating in the UAE or considering which of the UAE’s free zones to set up in, it is important to make sure you’re fully informed and compliant while getting licenced. Hiring a professional to guide you through the company set up, licencing process and will ensure that you don’t encounter any unnecessary difficulties or delays.

PRO Partner Group has close ties with key government departments as well as an expert legal team, who can advise you on the requirements and process of planning for setting up an industrial licence in the UAE.

If you need guidance on industrial licencing in the UAE or any other related company setup, restructuring, local partner or PRO support matter in Abu Dhabi, Dubai, the wider UAE, Saudi Arabia, Bahrain, Oman or Qatar, then please do get in touch with us on +971 (0)4 456 1761 for Dubai or +971 (0)2 448 5120 for Abu Dhabi, email us at info@propartnergroup.com or complete the contact form below and we will be delighted to assist you.