The United Arab Emirates is one of the world's booming economies. As the country aims to achieve 3-5% economic growth by 2025, it is the ideal time to start a manufacturing business in a UAE city like Dubai. There are seven cities in the UAE, and Dubai is the most prominent. Reports suggest that Dubai will likely grow faster than any other economic city.
If you plan to start a manufacturing business in Dubai, now is the ideal time to get started. The United Arab Emirates has made it easy for entrepreneurs to prosper and grow. The manufacturing sector in the UAE is now the third-largest industry, contributing significantly to the national GDP, following oil, gas, and trade.
The country experienced remarkable growth in the manufacturing industry in 2024. Following that, the UAE expects to double by 2025. This growth chart isn't achieved overnight. These advancements are balanced by the vision of supporting the nation's Net Zero 2025 targets.
Dubai's manufacturing growth is predicted to reach USD 16.1 billion and create 27,000 new specialised jobs by 2030. Given these figures, the government has launched a concentrated effort to promote, grow, and preserve Dubai's expanding manufacturing industry. In contrast, Dubai Industrial City is a free zone specifically designed for the industrial and manufacturing sectors.
Before taking a business step, it is essential to understand why and how the UAE, specifically Dubai, is a top choice for a manufacturing company.
Steps to Kick-start a Manufacturing Venture in Dubai
1. Choosing Location and Niche
This depends on the products you are making. Then, based on your business plan, decide between a Free Zone (generally for export and 100% ownership) and the Mainland (generally for local sales).
2. Name and Pre-approval
Reserve a unique business name with the relevant authority, as the UAE government doesn’t allow names that are associated with God. Get your manufacturing operation initially cleared before proceeding further.
3. Safe Industrial Area
One can purchase or lease a warehouse or industrial property located in a specific area. The facility is necessary for your manufacturing processes.
4. Get the Manufacturing License
Apply to the DED (Department of Economy and Tourism) or the Free Zone of your preference for the Industrial License. External approvals are also necessary, depending on the nature of your product.
5. Meet Workforce and Capital Requirements
Hiring workers and meeting the minimum capital requirements for manufacturing are additional steps an entrepreneur must complete. This would entail obtaining the necessary visas.
6. Operation
Business owners can operate their venture after completing the registration and payment process.
The remaining registrations and payments should be completed. After obtaining all necessary approvals, install your plants and commence production, ensuring complete compliance with all applicable regulations.
Why Choose Dubai for Manufacturing Business?
Booming Economy
As mentioned in this blog, the primary reasons for establishing a manufacturing company in the UAE are economic stability and government support. Regarding the economy, the UAE is clear about its goal of achieving the Net Zero 2030 target for a better business environment. UAE is recognised as the most financially stable country, surpassing the list of 89 nations in the assessment by the World Report.
With the growing economy, industries such as petrochemicals, pharmaceuticals, and green energy may find opportunities to thrive in the UAE-Dubai market.
Business Supportive Environment
The UAE's supportive business ecosystem unfolds multiple opportunities for entrepreneurs. Every company needs authority support at the initial business stage. The country's pro-business policy encourages minimum business setup costs, tax exemptions, and favourable rules and regulations. The government also offer grants and funds to small business owners to compete equally with others.
Global Connectivity
UAE offers one of the best trade connections from around the world. Situated in the Middle East, the country is positioned between Asia, Africa, and Europe, connecting it to some key global markets. As a member of the Gulf Cooperation Council (GCC), the UAE has a strong network of trade agreements.
With enhanced market access, manufacturing businesses can leverage their products to sell across the joint border countries and acquire customers worldwide.
Global-standard Infrastructure
The UAE, specifically Dubai, is way ahead in terms of technology. The world-class infrastructure, including the Burj Khalifa, Burj al Arab, and Dubai Frame, demonstrates the country's significant investment in global-standard infrastructure.
The interesting point here is that all are well-connected. The country offers designated zones for every business activity.
Alongside air freight, the UAE's maritime infrastructure is crucial for facilitating manufacturing and export activities. Khalifa Port, for instance, caters to all significant shipping lines and offers direct routes to 70 worldwide destinations. It will be the first port in the UAE linked to the forthcoming Etihad Rail, creating a strong new connection in the local transportation network.
Ease of Business Setup
Where other countries have a complex business setup, the UAE offers a hassle-free and easy company setup. As we discussed earlier, you need to fulfil only a few steps to get closer to your dream business formation. By meeting all the necessary rules and regulations, businesses can expedite licensure and expansion, tapping into the UAE’s potent industrial incentives.
The United Arab Emirates offers comprehensive growth opportunities, supported by global infrastructure, technology, and a strategic business location.
These all seem easy, but partnering with business solution providers is recommended to make a smooth dive into the competitive UAE market.
At Markai Corporate Services, we assist entrepreneurs from the outset and offer them the ideal licensing and business model tailored to their manufacturing goals.
