How to Open a Manufacturing Business in the UAE

In the United Arab Emirates, one can not only implement innovative ideas but also open traditional companies. Particularly, the industrial sector has seen significant growth in recent years, contributing substantially to the country's GDP. Opening a manufacturing business in the UAE is simple with expert support.

What is Produced in the UAE

In the UAE, engineering and metallurgy, pulp and paper industry, chemical production, light and food industries are developed, and the release of building materials is established.

In the Emirates, there are several steel and aluminum plants (for example, Hamriyah Steel Plant in Sharjah, a Metalloinvest group enterprise) that partially meet the needs of developers. Also, in the UAE, windows and doors, materials for finishing and decoration of premises, paint products are produced. Besides paint products, chemical productions manufacture cosmetics, perfumes, and cosmetic oils for consumption within the country and for export.

In the UAE, there are several pulp and paper mills that produce cardboard, office paper, and hygiene products. One of the largest manufacturers is Crown Paper Mill. Also, the book industry is developing in the country - Al Ghurair Printing and Publishing produces brochures, business cards, literature.

The food industry is oriented both to the domestic market and abroad. For example, canned products from California Garden are produced in the UAE, which can be found on supermarket shelves in different countries of the world. There are also large enterprises for meat processing, dairies, bakeries, and the production of bottled water and beverages is established.

Prospective Niches

The growing market and the high-income level of local residents determine a constant need for quality goods. Despite the fact that the industry is quite well developed, there are still several in-demand directions for manufacturing activities in the UAE:

Light industry. Textile production is one of the points of economic growth in the UAE. The high standard of living of the local population, a large number of tourists who consider shopping an important part of their holiday abroad, and developed infrastructure speak in favor of opening a textile production in the UAE.

Food products. The country has its own food productions, but they do not fully meet domestic demand. About 85% of food products are imported. For foreign investors, opportunities are open for developing their own business in sectors that are not occupied by local farmers due to the country's climate peculiarities.

Precious metals and jewelry. A UAE resident purchases on average 35 grams of gold per year (for comparison: citizens of other countries – 1 gram). The high demand is explained by the high standard of living and socio-cultural traditions of the UAE. Entrepreneurs can purchase raw materials cheaply, and finished products are not only in demand on the domestic market but also have high export potential.

Medicine and healthcare. The production of parapharmaceutical goods (dietary supplements, cosmetic products not intended for therapeutic purposes and decorative use, sanitary and hygienic means, for example, tooth powder, powders, mouth fresheners, shaving creams, etc.), medical equipment, and medical products is in demand.

Building materials. In Dubai and Abu Dhabi, the construction of residential complexes, business centers, infrastructure objects is actively underway. Other emirates – possible growth points. While in Dubai and Abu Dhabi free areas are very limited, in Fujairah and Sharjah the industry is relatively free. Developers need building materials and this need will not decrease in the near future.

Vehicles and parts, electronics. Particularly in demand is the introduction of innovative solutions: production of "smart" industrial equipment, chips, and automation systems. The stable development of the economy and a decent standard of living ensure that the business of producing transport and electronics will be in demand.

Chemical products. In addition to paint products, the production of fertilizers and pesticides for agriculture, household chemicals are in demand. These products enjoy steady demand.

Advantages of Opening a Factory in the UAE

Presence in the region opens new prospects for business. There are other pluses as well. For example, in the UAE, the cost of labor in manufacturing is low – workers from Pakistan, India, the Philippines come to earn money. Energy resources are also relatively inexpensive. At the same time, everything necessary for business is available (warehouses, port, airport are accessible), the country is a major international logistics hub and occupies a favorable location.

An important aspect of the manufacturing business in the United Arab Emirates, which should be paid attention to, is the possibility to mark products with "Made in the UAE". This positively affects the sales prospects and image component, which allows setting a higher price.

Launching Production in the UAE Step by Step

Briefly, we describe how to open a factory in the UAE:

Choose a prospective business model. Before opening an enterprise in the UAE, it is necessary to conduct market and competitor analysis, determine the target audience, choose a product line. The information should be structured and presented in the form of a business plan – the document will be useful when applying for business registration and licensing.

Get preliminary approval. It is necessary to contact the Ministry of Economy to approve the business model. The department issues preliminary permissions for business registration, based on which, for example, production workshops, warehouses, and office spaces can be rented.

Obtain the necessary permits. In the UAE, fairly strict requirements are presented to businesses. The list of necessary permits depends on the direction of the company's activities.

Register the company and obtain a license. After obtaining all permits, it is possible to register a legal entity and submit documents for the issuance of a license. The manufacturing license costs from 25,000 UAE dirhams (the actual cost depends on the emirate, type of products, size of business).

Certify products. In the UAE, it is necessary to certify building materials, chemicals, precious stones and metals, medicines and cosmetics, food and beverages, equipment and electronics, children's goods, etc. Requirements for different types of goods differ.

Ensure quality support. Opening a manufacturing business in the UAE is only half the job. It is necessary to ensure competent administration and legal support, marketing.

Experts of The Level Consulting are ready to advise on how to quickly go through registration and set up all necessary processes. We provide a full range of services for opening a business in the UAE and developing a company in various fields of activity. Contact us for consultation – we are interested in the development of your enterprise and will become a reliable partner in starting a business.

The business environment in the UAE is open to foreign investments in any sector of industry, the main thing is to choose a prospective business model. An additional advantage for the business is provided by the fact that UAE-made products are in high demand not only in the domestic market but also abroad. Stable demand allows the entrepreneur to maximize benefits.