Interesting facts:
Full versionThe UAE's rapid economic growth, which began with the discovery of significant oil fields in the mid-20th century, has been a key driver of the country's industrial sector. As of 2026, industry accounted for approximately 70% of the UAE's GDP, but the economic structure has changed significantly in recent decades. The oil and gas sector has historically been the backbone of the UAE's industry, but its share of GDP has gradually declined as the economy diversifies.
The UAE is among the largest oil producers in the Persian Gulf region and a leading player in the Middle East oil market. Daily oil production in the UAE amounts to several million barrels per day and is dependent on OPEC quotas and the country's current energy policy. Most oil production is concentrated in the emirate of Abu Dhabi, where most of the country's oil fields are located.
Other important industries include energy, construction materials and metalworking, water desalination, food processing, and light industry. The country's large-scale construction and infrastructure development largely drives the growth of these industries. The construction of new hotels, shopping centers, and skyscrapers required thousands of kilometers of plastic pipes, tons of cement, electrical equipment, and other goods. Furthermore, it was necessary to provide the ever-growing population with essential goods and food.
The construction and industrial sector began to actively develop in the UAE in the 1960s. Initially the industry was represented by small factories producing tiles, marble slabs, building blocks, prefabricated pools, etc, whereupon some large cement factories and others were built. Besides, small companies engaged in manufacture of PVC and polyethylene sheets, tubes and other materials and components for construction operate in the UAE. Such enterprises provide a significant portion of domestic demand and also export products to other countries in the region.
Since the late 60s of the last centuries, factories producing soft drinks and food have boosted their presence in the United Arab Emirates. They include canning plants, companies producing fish, meat, dairy products, flour mills, plants producing carbonated drinks, etc. Light industry in the UAE is largely concentrated in free economic zones, including the Jebel Ali Free Zone, as well as the industrial zones of Sharjah and Ajman. In addition to large enterprises, the rest are medium-sized and small factories. Clothing manufacturing is a prominent sector of light industry, but key positions in the industry are held by the oil and gas sector, aluminum, and petrochemicals.
In recent years, pharmaceuticals, electronics, high-tech manufacturing, and other innovative industries have been rapidly developing.
Clarify the cost of opening company, corporate or personal bank account, obtaining a residence visa, or another question regarding business in Dubai, UAE:
Any kind of manufacturing activities in the UAE require a company to obtain an Industrial License. This license permits official production, assembly, processing, packaging and other activities.
Industrial licenses are available both on the mainland of the UAE and in free zones. Depending on the type of production, infrastructure needs, sales markets and size of business will determine the place of registration.
Mainland industrial licenses are issued by the concerned Department of Economic Development (DED) of the emirate. This model is ideal for firms looking to enter the UAE local market, bid for government tenders and establish large scale manufacturing facilities. It generally involves a manufacturing facility or industrial warehouse ownerships, followed by municipal approval and finally the federate government agency approvals if needed such as in the case of MoIAT (Ministry of Industry and Advanced Technology) in UAE for specific types of activities.
Manufacturing companies can also benefit from free zones such as Jebel Ali Free Zone (JAFZA), Khalifa Industrial Zone Abu Dhabi (KIZAD), Sharjah Airport International Free Zone (SAIF Zone) and other industrial clusters. Free zones provide developed infrastructure, ready-made production units and warehouses, logistical advantages, tax and administrative incentives for businesses.
An industrial license grants companies the right to undertake a broad spectrum of operations, such as fabrication of building materials, food products, plastic manufacturing. metal structure generation, electronics development and production, pharmaceuticals manufacture, and other items pertaining to industry. Depending on the type of activity, it may be necessary to obtain additional permits and certifications for products and compliance with technical standards.
Our firm offers 360-degree assistance for getting an industrial license in both mainland and free zones of UAE. We will assist you in choose the optimal location for setting up production, coordinate activities with regulatory authorities, prepare and submit documents, arranging the lease of production facilities — including all required permits and licenses to launch business. Based on our experience with company registration and business support in the UAE, we guarantee that opening a manufacturing business there will be a rapid and legitimate affair.
More articles from "Dubai & UAE business news":
