The United Arab Emirates (UAE) has emerged as one of the most attractive global destinations for manufacturing company setup, factory establishment, and industrial license formation, especially within its well-developed free zones. With world-class infrastructure, strategic port access, tax benefits, and 100% foreign ownership, UAE free zones offer an ideal ecosystem for local and international manufacturers. 

In this guide, Corpin Consultants explains everything you need to know about setting up a manufacturing company in UAE free zones. It covers major free zones, key advantages, available facilities, ownership structures, logistics, visas, banking, the step-by-step incorporation process, and important considerations before starting a factory. 

Major Manufacturing-Friendly Free Zones in the UAE 

1. JAFZA – Jebel Ali Free Zone (Dubai) 

JAFZA is one of the largest and most established free zones globally and a preferred choice for large-scale manufacturing and industrial operations. 

JAFZA offers direct access to Jebel Ali Port, one of the world’s largest ports, providing seamless global connectivity. It features extensive land plots and ready-built warehouses to support businesses at every stage of growth. The zone is well suited for heavy, medium, and light manufacturing activities and is supported by excellent customs integration and advanced logistics facilities, making operations efficient and cost-effective. 

2. RAKEZ – Ras Al Khaimah Economic Zone 

RAKEZ is a cost-effective and flexible free zone popular among SMEs and large manufacturers alike. 

This free zone offers competitive license and warehouse costs, making it a cost-effective choice for businesses. It provides flexible options such as pre-built warehouses, land leasing, and custom factory construction to suit different operational needs. The zone supports industrial, trading, and manufacturing licenses and benefits from easy access to Ras Al Khaimah ports, ensuring smooth logistics and distribution. 

3. Sharjah SAIF Zone 

Located adjacent to Sharjah International Airport, SAIF Zone is ideal for manufacturers requiring air, sea, and road connectivity. 

This location offers excellent logistics connectivity, ensuring smooth movement of goods across key trade routes. It provides ready-built warehouses and industrial land to support quick and efficient setup. With competitive setup costs and strong support for export-oriented manufacturing, it is an ideal choice for businesses focused on international markets. 

4. Hamriyah Free Zone (Sharjah) 

Hamriyah Free Zone is one of the largest industrial free zones in the UAE, designed specifically for heavy manufacturing and large factories. 

This free zone provides direct access to Hamriyah Port, enabling efficient import and export operations. It offers large industrial land plots designed to support large-scale projects and is ideal for industries such as steel, petrochemicals, food processing, and other heavy manufacturing sectors. The zone is backed by strong utilities and reliable power infrastructure to meet high operational demands. 

5. DAFZA – Dubai Airport Free Zone 

DAFZA is suitable for light manufacturing, assembly, and high-value industrial activities. 

This free zone is strategically located near Dubai International Airport, offering excellent connectivity for air freight and global trade. It features advanced infrastructure designed to support high-value and technology-driven operations. The zone is well suited for electronics, pharmaceuticals, and precision manufacturing and is positioned as a premium free zone with strong regulatory support. 

6. UAQ Free Trade Zone 

UAQ Free Zone is a growing industrial hub offering affordable solutions for manufacturing startups. 

This free zone offers cost-effective factory and warehouse options, making it ideal for businesses looking to manage setup costs efficiently. It provides convenient access to Umm Al Quwain Port and offers flexible business setup packages to suit different requirements. The zone is especially suitable for SMEs and first-time manufacturers seeking a practical and affordable manufacturing base. 

Advantages of Setting Up a Manufacturing Company in a UAE Free Zone 

• 100% foreign ownership 

• 0% corporate tax (subject to qualifying free zone conditions) 

• Full repatriation of capital and profits 

• No import or export customs duty within the free zone 

• World-class infrastructure for factories and warehouses Simplified company formation and licensing 

• Strong government and free zone authority support 

Facilities Available: Land and Warehouses 

UAE free zones offer multiple industrial facility options, including: 

• Ready-built warehouses 

• Standard industrial units 

• Cold storage facilities (for food & pharma) 

• Open land plots for custom factory construction 

• Flexibility to expand operations 

Facilities are offered on lease with options based on power requirements, ceiling height, storage capacity, and production needs. 

Ownership Structure 

 
Free zone manufacturing companies in the UAE offer flexible ownership options, including single individual ownership, multiple shareholders, corporate ownership by a UAE or foreign parent company, or a combination of individual and corporate shareholders. This flexibility makes UAE free zones an ideal choice for global manufacturing groups and holding companies looking to establish or expand their operations. 

Logistics & Customs Facilities 

 
The UAE’s logistics and customs infrastructure is one of its strongest advantages for manufacturers. Free zones provide direct access to major ports such as Jebel Ali, Hamriyah, Ras Al Khaimah, and Umm Al Quwain, along with integrated customs clearance systems and on-site customs offices in major zones. Businesses benefit from efficientimport of raw materials, smooth export of finished goods, and seamless road connectivity across the GCC region. 

Employment Visas for Manufacturing Companies 

Manufacturing licenses issued by free zones allow companies to apply for various visa types, including investor visas, employment visas, technician and labor visas, as well as managerial and administrative visas. The number of visas permitted depends on factors such as warehouse or land size, the nature of the manufacturing activity, and the specific regulations of the free zone authority. 

Bank Account Opening for Manufacturing Companies 

Once the company is formed, manufacturing businesses can proceed with opening a UAE corporate bank account. Banks typically evaluate the nature of the manufacturing activity, the shareholder profile, the source of funds, and the submitted business plan and contracts. Corpin Consultants supports clients throughout the bank account opening process by coordinating with leading banks in the UAE. 

Final Thoughts

Setting up a manufacturing company in a UAE free zone offers significant advantages, including 100% ownership, world-class infrastructure, strong logistics connectivity, and a business-friendly regulatory environment. With multiple free zone options catering to different manufacturing needs, the UAE continues to be a preferred destination for regional and global manufacturers. Partnering with an experienced advisor like Corpin Consultants ensures a smooth and compliant setup process. From selecting the right free zone and obtaining licenses to visas, banking, and ongoing support, Corpin Consultants provides end-to-end assistance to help businesses establish and grow their manufacturing operations in the UAE with confidence.