If you have reached out to this blog, it proves that you have a dream of starting a textile manufacturing business setup in Dubai. You don’t have to worry because you have come to the right people in the market. UAE is undoubtedly one of the best nations for setting up a business. With its significant mark as the fastest growing economy in the world and the incomparable support provided by the government, this nation is truly a gem. In this blog, we are all set to explore the reasons and information on setting up a manufacturing business and grabbing the license stress free.
Opportunities of starting a manufacturing business setup in Dubai, UAE
Dubai’s dynamic economic landscape, bolstered by strategic initiatives like “Operation 300 billion” and the “Make it in the Emirates” campaign, has propelled the United Arab Emirates (UAE) to the 31st rank in the world in the Competitive Industrial Performance Index. Renowned as the most competitive industrial sector in the Arab world, Dubai’s manufacturing prowess spans building materials, metals, fabrics & weaving, petrochemicals, pharmaceuticals, food, beverages, consumer goods, and aerospace and defense manufacturing.
1) Strategic Location and Connectivity:
Dubai’s commitment to sustainability aligns with COP28’s emphasis on an orderly energy transition. Businesses involved in renewable energy, energy efficiency, and green technologies can thrive in Dubai’s supportive ecosystem.
2)Pro-Business Government Policies:
The Dubai government actively fosters business growth through pro-business policies, including low registration costs, favorable regulations, tax exemptions, and support for startups and incubator programs. These initiatives create a welcoming atmosphere for international investors, particularly in the manufacturing sector.
3)Competitive Industrial Sector:
Dubai’s textile production industry significantly contributes to the UAE’s GDP and is hailed as the most competitive in the Arab world. The city’s Industrial Strategy 2030 aims to further boost the industry’s GDP contribution. The “Made in UAE” label symbolizes quality and value, positioning it as a top contender for all of the manufacturing business setup in Dubai among the whole world.
Dubai’s world-class transportation, communication, and logistical infrastructure adhere to the highest standards. This ensures that manufacturing companies can efficiently transport their products across borders and reach their target markets, guaranteeing smooth operations for businesses establishing themselves in the UAE
5) Talented Workforce:
Dubai boasts a skilled workforce, including engineers, technicians, and laborers, capable of operating and managing manufacturing facilities. This local talent pool mitigates the need to source skilled labor from other countries, simplifying the process for companies launching their manufacturing operations in Dubai.
How to Obtain a Textile Manufacturing License in Dubai:
To operate a textile manufacturing business setup in Dubai, securing a manufacturing trade license is unavoidable. The process involves approval from the Department of Economic Development (DED) and obtaining municipality permission for plant construction. Approval from various authorities, such as the Ministry of Health and the Ministry of Environment and Water, may also be necessary.
Industries requiring an industrial license include bread manufacturing, textile manufacturing, metal casting, equipment and engine manufacturing, petroleum product manufacturing, and paper manufacturing. Eligibility for a manufacturing trade license mandates physical premises, a minimum startup capital of AED 250,000, and a workforce of at least 10 employees.
Permits and licenses needed to set up an industrial company in Dubai include a trade license, industrial license, environmental permit, fire safety approval, and connection approval from Dubai Electricity and Water Authority (DEWA). Additionally, industries involving chemical trading or manufacturing may require extra approvals from relevant agencies and the Dubai police due to the controlled nature of certain chemicals.
Cost of Starting a Textile Manufacturing Business in Dubai:
The cost of starting a textile manufacturing business in Dubai ranges from AED 15,000 to AED 50,000. This includes expenses for trade licenses, tools and machinery, equipment, property or warehouse rental, visas, government approvals, and staff solutions. Obtaining an industrial license in Dubai costs between AED 25,000 to 27,000, covering application fees, registration fees, and procedural costs. The exact amount varies based on the nature of the industrial activity, location, and other factors.
Benefits for Industrial License Holders:
Industrial license holders in the UAE can have various benefits, including favorable terms for renting industrial space, reduced rates for land, electricity, and water, guidance on industry best practices, lower interest rates for innovative products, financial assistance during research and development, and prioritization of high-quality products by the UAE government.
Obligations for Industrial License Holders:
While enjoying these benefits, industrial license holders must adhere to certain obligations. These include starting construction within six months of approval, submitting necessary data to the DED, registering the industry in the Industrial Registry, and compliance with all laws and regulations related to land, hygiene, and industrial safety.
Obtaining a trade license for your business setup in Dubai , UAE is a one-time process, but remembering to renew it on schedule is crucial. License renewal ensures your company remains legal and in good standing; failure to do so may lead to heavy fines and legal actions against the company.
The renewal process for a manufacturing business license involves several key procedures, including:
- Typed BR/1 Form
- Ejari Registration Certificate
- Copy of Tenancy Contract
- Copy of the Current business trade license
- Certificate of Continuity of Existence or Good Standing
- Copies of Business Partners’ Passports
- No Objection Certificate from External Authorities (if applicable)
While these procedures generally apply, variations may occur. Thus, it’s advisable to engage a business setup consultant in Dubai to ensure a seamless process.
Hiring a Business Setup Consultant in Dubai for a Stress-Free Process
So, there you have it. We’ve covered everything related to textile manufacturing business setup in Dubai , UAE, and the details of obtaining a business license. It’s evident from the blog that the process can seem a bit complicated, but there’s no need to worry.
Marqueway, a professional business setup company in Dubai , has over five years of invaluable experience in the market. We’ve successfully guided more than 4000 clients to turn their business dreams in UAE into reality. If you find any aspect of setting up a business in Dubai challenging, feel free to call us. We’re fully equipped and ready to assist you. Grab your manufacturing business license in Dubai and live your dream in the city of the future.