Quick answer
RAKEZ industrial licenses start at AED 11,500 annually with 5–7 day issuance. Over 1,000 manufacturing activities permitted across four dedicated industrial zones.
- Promotional package: AED 11,500/year with 1 visa; Standard: AED 17,500 with 3 visas; Premium: AED 25,000+ with 6+ visas
- 100% foreign ownership, 0% personal income tax, 50-year industrial land leases available
- 30–50% cheaper than JAFZA; four zones include Al Hamra (largest), Al Ghail (heavy manufacturing), Al Nakheel (mixed light/medium), and Khasab
Best for: SMEs and mid-market manufacturers seeking affordable UAE industrial setup.
The Ras Al Khaimah Economic Zone (RAKEZ) operates the largest industrial free zone in the northern emirates and the most affordable industrial setup option across the UAE in 2026. With over 1,000 permitted activities, four dedicated industrial zones, and licence costs starting at AED 11,500, RAKEZ has become the default choice for SMEs and mid-market manufacturers entering the UAE — particularly those who would face JAFZA’s higher fee structure or DMCC’s commodity-focused positioning.
This guide covers everything for 2026: real fee structures (no “starting from” vagueness), approved activities, the 5–7 working day issuance, industrial land options, visa quotas by package, and where RAKEZ wins (or loses) against JAFZA, SHAMS, and Hamriyah.
What Is a RAKEZ Industrial License?
A RAKEZ Industrial License is the regulatory permission issued by the Ras Al Khaimah Economic Zone Authority to conduct manufacturing, processing, packaging, assembly, or any other production-related activity within the zone’s jurisdiction. It is one of seven license categories RAKEZ issues (alongside Commercial, Service, Educational, Media, E-commerce, and Freelancer permits) — and the only category that authorises physical industrial production at scale.
The licence operates under four dedicated industrial zones: Al Hamra Industrial Zone (largest, established hub), Al Ghail Industrial Zone (heavy manufacturing focus), Al Nakheel Industrial Zone (mixed light + medium), and Khasab (Musandam, primarily for cross-border Oman trade). Each zone has different infrastructure, plot sizes, and lease terms — and your choice affects both your setup cost and ongoing operational efficiency.
RAKEZ Industrial License Cost Breakdown 2026
RAKEZ packages its industrial license into three tiers, each scaling visa quota, workspace, and add-on flexibility. Below are the actual 2026 fees including the government fee components most other guides omit.
| Package | License fee (AED) | Workspace | Visa quota | Year-1 total (est.) |
|---|---|---|---|---|
| Promotional | AED 11,500 | Shared (smart desk) | 1 visa | AED 14,000–17,000 |
| Standard | AED 17,500 | Dedicated executive office | 3 visas | AED 22,000–28,000 |
| Premium | AED 25,000+ | Industrial unit / pre-built warehouse | 6+ visas | AED 45,000–70,000 |
| Industrial Land | AED 35,000+ (license) + land lease | Allocated plot 5,000+ sq m | Scaled to workspace | AED 200,000+ (incl. lease) |
Hidden costs to budget for: establishment card (AED 1,500), immigration card (AED 500), name reservation (AED 1,000), initial approval (AED 1,000), and notarisation/attestation of MOA (AED 2,000–3,000). For Industrial Land setups, add Civil Defense approvals (AED 5,000–8,000), environmental clearance (AED 3,000–6,000), and utility connections.
Industrial Activities Allowed Under RAKEZ License (2026)
RAKEZ approves over 1,000 industrial activities, grouped under nine major categories. Multiple sub-activities can be combined under one license (up to a defined cap) without surcharges — significantly more flexible than DED or DMCC.
| Category | Examples | Special approvals needed |
|---|---|---|
| Food & Beverage Manufacturing | Dairy, beverages, packaging, baked goods, confectionery | RAK Food Safety, MOCCAE |
| Plastics & Polymers | Injection moulding, extrusion, recycling, packaging | RAKEZ Environment, Civil Defense |
| Metal Fabrication & Engineering | Steel, aluminium, machining, welding, sheet metal | Civil Defense, MOCCAE |
| Chemicals & Pharmaceuticals | Industrial chemicals, cleaning products, intermediates | Ministry of Health (pharma), MOCCAE |
| Textile & Apparel | Garment manufacturing, fabric printing, packaging | None additional |
| Electronics & Electrical | Assembly, PCB, batteries, lighting, cables | TDRA / Civil Defense for hazardous |
| Construction Materials | Cement products, concrete, glass, ceramics, gypsum | RAK Municipality (mainland sales) |
| Wood & Furniture | Joinery, doors, kitchens, custom furniture | None additional |
| Recycling & Waste Management | Metal, plastic, paper, e-waste recycling | MOCCAE, RAKEZ Environment |
Activities involving hazardous chemicals, food production, or pharmaceuticals require additional clearances from the relevant federal authority (MOCCAE, Ministry of Health, or TDRA). RAKEZ assists with these but adds 2–4 weeks to setup timelines.
Step-by-Step: How to Get a RAKEZ Industrial License in 2026
The end-to-end process takes 5–7 working days for licence issuance, plus 2–4 additional weeks if you require a physical industrial unit or land plot. Expect 6–8 weeks for fully operational standalone facility setup.
- Activity selection and name reservation (Day 1). Choose your industrial activities from the RAKEZ master list. Reserve your trade name (must include “Industries” or category-specific suffix). Cost: AED 1,000.
- Initial approval and structure decision (Day 1–2). Submit application with shareholder details, ownership percentages, and intended workspace. Choose between FZ-LLC (multi-shareholder), FZ-LLC Single Owner, or Branch of Foreign Company.
- Document submission (Day 2–3). Upload passport copies, visa pages (or NOC if currently UAE-resident), board resolution (for corporate shareholders), and proof of address. RAKEZ accepts attested documents from any GCC country directly.
- License approval and issuance (Day 4–7). RAKEZ issues digital license, share certificate, and Memorandum of Association. Establishment card and immigration card processed in parallel.
- Workspace allocation (Day 7–14 for offices, Day 14–28 for industrial units). For Promotional/Standard packages, smart desk or office is allocated immediately. For Industrial Land, plot identification and lease finalisation takes 2–4 weeks.
- Bank account opening (Day 14–28). RAKEZ has direct partnerships with Mashreq, ADIB, RAKBANK for fast-track corporate accounts. Allow 14–28 days from license issuance.
- Visa processing (Day 21–35). Establishment card → entry permit → status change → medical → biometrics → Emirates ID → visa stamping. Estimate 14–21 days per applicant.
- Operational setup and approvals (Day 28+). Civil Defense for fire safety (industrial units), environmental approval, utilities (FEWA), and any activity-specific federal approvals (food, pharma, chemicals).
Industrial Land at RAKEZ: Plot Sizes, Lease Terms, and Real Costs (2026)
If your operation requires a physical industrial unit beyond a pre-built warehouse, RAKEZ offers serviced industrial land in plot sizes from 5,000 sq m upward, on long-term leases. Lease rates are among the lowest in the UAE for serviced industrial land.
| Industrial Zone | Min plot (sq m) | Lease rate (AED/sq m/year) | Lease term | Best for |
|---|---|---|---|---|
| Al Hamra Industrial | 5,000 | AED 30–45 | 25 years (extendable to 50) | Mixed light/medium manufacturing |
| Al Ghail Industrial | 10,000 | AED 25–35 | 25 years (extendable to 50) | Heavy industry, large footprint |
| Al Nakheel Industrial | 5,000 | AED 35–50 | 25 years (extendable to 50) | Mixed light + commercial blend |
| Khasab (Musandam) | 10,000 | AED 20–30 | 25 years | Oman cross-border trade |
Pre-built warehouses are available from 250 sq m at Al Hamra, ranging from AED 110/sq m/year (cold-shell) to AED 180/sq m/year (turn-key with mezzanine). For a typical 1,000 sq m warehouse: budget AED 110,000–180,000/year.
Visa Quota by Industrial License Package (2026)
RAKEZ visa quotas scale with both the license package and the physical workspace allocated. Under federal MOHRE rules, free zone companies must demonstrate workspace adequacy for each visa applicant — typically 1 visa per 9–10 sq m of dedicated workspace.
- Promotional package: 1–2 visas (smart desk allocation)
- Standard package: 3–5 visas (executive office)
- Premium package: 6–10 visas (industrial unit)
- Industrial Land: Quota scales with workspace — typical 5,000 sq m plot supports 30–50 industrial visas
RAKEZ allows visa quota expansion mid-year by upgrading package or workspace, with pro-rata fee adjustments. The standard partner visa fee is AED 4,500–6,000 per applicant including all government fees, medical, and Emirates ID.
Tax and Customs Benefits (Why Manufacturers Pick RAKEZ)
RAKEZ Industrial License-holders benefit from the standard UAE free zone tax framework, which under the 2026 Corporate Tax regime translates to genuine cost advantages for manufacturing operations:
- 0% Corporate Tax on qualifying income earned from outside the UAE or from other free zone companies (Qualifying Free Zone Person status, where eligible)
- 0% Personal Income Tax on shareholder/employee income
- 0% Customs Duty on raw materials and finished goods imported into and re-exported from the zone
- 100% Foreign Ownership — no Emirati partner or sponsor required
- 100% Capital Repatriation — profits and dividends transferable abroad without restriction
- VAT — Standard 5% UAE VAT applies on UAE-domestic sales; 0% on exports
For mainland UAE sales, expect a 5% customs duty on goods crossing from the free zone to the mainland. This is a critical planning consideration — many RAKEZ-licensed manufacturers structure sales through a mainland distributor to optimise net margins.
RAKEZ Industrial vs JAFZA, SHAMS, Hamriyah: Which Is Best in 2026?
For pure industrial activity, RAKEZ competes most closely with JAFZA (Dubai), Hamriyah Free Zone (Sharjah), and SHAMS (Sharjah Media City — limited industrial scope). Below is a fair-comparison table for a typical 5,000 sq m manufacturing setup.
| Free Zone | License (AED) | Land lease/yr (5,000 sq m) | Setup time | Best for |
|---|---|---|---|---|
| RAKEZ | AED 35,000+ | AED 125,000–225,000 | 6–8 weeks | Cost-conscious manufacturers |
| JAFZA | AED 50,000+ | AED 200,000–350,000 | 8–12 weeks | Port logistics, global trade |
| Hamriyah FZ | AED 25,000+ | AED 100,000–175,000 | 6–8 weeks | Heavy industry near port |
| SHAMS | AED 11,500+ | Limited industrial land | 5–7 days | Light manufacturing only |
Verdict for 2026: RAKEZ is the value leader for medium-scale industrial. Hamriyah edges it for very heavy industry near Khalid Port. JAFZA wins only when you specifically need Jebel Ali Port adjacency. SHAMS is not a serious option for anything beyond light packaging or assembly.
Common Mistakes to Avoid When Setting Up at RAKEZ
From advising hundreds of UAE manufacturing setups in 2024–2026, these are the costly mistakes that derail timelines and budgets:
- Underestimating Civil Defense approvals. Industrial units require fire safety clearance before operations begin. Allow 4–6 weeks; engage your contractor early.
- Choosing wrong package. Promotional packages are tempting at AED 11,500 but only support 1 visa. Most operations need at least 3 — Standard is usually the right starting tier.
- Ignoring environmental approvals. Activities involving chemicals, food, or waste require MOCCAE clearance. Submit in parallel with license application, not after.
- Misclassifying activities. RAKEZ approves activities under specific codes; a slightly wrong classification can block approvals or limit your customs benefits. Get this right at activity-selection stage.
- Not planning for mainland sales. Free zone-to-mainland sales attract 5% customs. Plan distributor relationships before licensing if domestic UAE is a major market.
Talk to Our Experts
Set up your RAKEZ industrial license with a dedicated advisor — license, land, visas, banking and federal approvals handled end-to-end. Free 20-minute consultation.
Related guides: For a full overview of all UAE trade license options, see our Dubai Trade License — Complete Guide. To compare RAKEZ against all other UAE free zones, read our UAE Free Zone Business Setup pillar. For the standard process of obtaining a Dubai trade license, see How to Get a Trade License in Dubai 2026.
Frequently Asked Questions
How much does a RAKEZ industrial license cost in 2026?
A RAKEZ industrial license starts at AED 11,500 for the Promotional package (1 visa quota, shared facility), AED 17,500 for Standard (3 visa quotas, dedicated workspace), and AED 25,000+ for Premium with industrial land allocation. Costs scale with activities, plot size, and storage requirements.
What activities are allowed under a RAKEZ industrial license?
Over 1,000 industrial activities including light manufacturing, food processing, plastics, metal fabrication, packaging, textile production, chemicals, electronics assembly, recycling, and heavy industry. RAKEZ approves multiple sub-activities under one license without surcharges (up to a defined cap).
How long does it take to get a RAKEZ industrial license?
Initial approval takes 5–7 working days once documents are submitted. Industrial land allocation and warehouse fit-out adds 2–4 weeks depending on the zone (Al Hamra, Al Ghail, Al Nakheel, or Khasab). Complete operational setup typically completes within 6–8 weeks for standalone facilities.
Can I get industrial land at RAKEZ?
Yes. RAKEZ offers industrial land plots from 5,000 sq m upward in four zones, on 25-year leases extendable to 50 years. Pre-built warehouses are available from 250 sq m. Land lease rates start around AED 25/sq m/year with significant discounts for long-term commitments.
What is the visa quota for a RAKEZ industrial license?
Visa quotas depend on the package and physical workspace: Promotional package allows 1–2 visas, Standard 3–5, Premium 6–10, and dedicated industrial plots scale with workspace size (typically 1 visa per 9–10 sq m of dedicated workspace, capped by company structure).
Does RAKEZ allow 100% foreign ownership for industrial licenses?
Yes. As a UAE free zone, RAKEZ allows 100% foreign ownership with no requirement for an Emirati partner or local sponsor. Profit and capital can be fully repatriated without restrictions.
Is RAKEZ industrial license better than JAFZA or DMCC for manufacturing?
RAKEZ is significantly cheaper than JAFZA and DMCC for industrial activities. Setup costs run 30–50% lower, industrial land is more affordable, and approvals are faster. JAFZA wins on port-adjacent logistics; DMCC wins on commodities trading. For pure manufacturing, RAKEZ is typically the best value in the UAE.
Can I sell to the UAE mainland with a RAKEZ industrial license?
Yes, but indirectly. Free zone companies cannot directly invoice mainland UAE customers without a local distributor or 5% customs duty. RAKEZ industrial license-holders typically work through mainland distributors or appoint a commercial agent for UAE-domestic sales while exporting freely globally.
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