Introduction
Below is a clear breakdown to help investors budget effectively and avoid unexpected expenses.
1. Industrial License & Government Fees
Industrial License Fee
- Mainland: AED 12,000–20,000+ per year
- Free Zone: AED 15,000–30,000+ (packages vary by zone)
Registration & Initial Approval
- Trade name reservation & initial approval: AED 500–2,000
- Government service charges: AED 1,000–5,000
External Approvals (Safety & Environment)
- Ministry of Industry & Advanced Technology (MoIAT) clearances
- Municipality / Environmental approvals
- Civil Defense approvals (varies by activity)
External approvals can range from AED 5,000–20,000+ depending on facility type and risk category.
2. Industrial Facility & Infrastructure Costs
Land or Factory Space Lease
- Industrial plots / warehouses: AED 20–60+ per sq. ft/year (location dependent)
- Factory space (fully built): AED 50,000–200,000+ per year
Utilities & Infrastructure Setup
- Electricity / water / utility deposits: AED 5,000–20,000+
- Internal fit-out, machinery platforms: Costs vary widely based on industry
Facility Compliance Requirements
- Fire systems & safety installations: AED 10,000–50,000+
- Environmental control systems: AED 5,000–30,000+
3. Machinery & Production Equipment
Industrial setup costs are highly dependent on the type of manufacturing but typical ranges include:
- Light manufacturing (small machinery): AED 50,000–150,000+
- Mid-scale production lines: AED 200,000–1,000,000+
- Large-scale manufacturing lines: AED 1,000,000–millions+
Equipment leasing may be an option to reduce upfront capital.
4. Visas, Medical & Labor Costs
Investor / Partner Visa
- Visa + Emirates ID + medical: AED 3,000–5,000+ per person
Employee Visas (per person)
- Visa + ID + medical: AED 3,000–5,000+
- Labor card / work permit fees
Labor Accommodation Compliance
- Ejari tenancy for staff housing (if applicable)
- Insurance & labor welfare requirements
5. Operational & Recurring Costs
Corporate Bank Account Setup
- Bank fees and initial deposits vary by bank
Insurance
- Property, liability, workers’ compensation
Customs & Logistics
- Customs clearance for imports/exports
- Warehousing and transportation
Conclusion
The industrial setup cost in the UAE can range widely depending on industry scale, facility size, location, and licensing choices. A small factory setup may start around AED 300,000–800,000, while mid to large industrial operations often require multiple millions in capital expenditure and compliance costs.