Definition
An industrial licence is a specialised form of business permit that authorises an entity to engage in manufacturing, assembly, processing, or production activities. Unlike commercial or professional licences, industrial licences typically require additional regulatory approvals related to environmental impact, health and safety standards, zoning compliance, and production capacity. Industrial licences are fundamental to a country’s manufacturing sector and are closely monitored by environmental and industrial regulators.
UAE Context
In the UAE, industrial licences are issued by the Department of Economic Development of the relevant emirate in coordination with the Ministry of Industry and Advanced Technology (MoIAT). Applicants must secure approvals from environmental agencies, civil defence, and municipal authorities, and demonstrate compliance with industrial zoning requirements. Industrial zones such as KIZAD in Abu Dhabi, Dubai Industrial City, and the Sharjah Industrial Area provide purpose-built infrastructure for licence holders. Free zones including JAFZA and Hamriyah Free Zone also issue industrial licences under their own regulatory frameworks. The licence must be renewed annually and may require periodic environmental and safety audits.
Key Data
- Issuing bodies: Emirate DEDs in coordination with MoIAT; free zone authorities
- Additional approvals: Environmental, civil defence, municipal, and health authorities
- Key industrial zones: KIZAD, Dubai Industrial City, Sharjah Industrial Area, Hamriyah
- Renewal: Annual, with periodic compliance audits
- Alignment: Operation 300bn industrial growth strategy
Significance for Vision 2031
Industrial licences are a gateway to the UAE’s manufacturing expansion under Operation 300bn, which targets AED 300 billion in industrial sector output. Vision 2031 promotes advanced manufacturing through streamlined industrial licensing, incentivised facility development, and integration with ICV procurement requirements, positioning the UAE as a regional manufacturing hub.
Related Terms
- Trade License — The broader licensing framework of which industrial licences are a category
- KIZAD — Abu Dhabi’s major industrial zone for licence holders
- Operation 300bn — The UAE’s industrial growth strategy driving demand for industrial licences