Packaging is having ‘a moment’ all across the globe. As technologies like AI and automation accelerate and more customers turn online, demands for high-quality and sustainable packaging are rising rapidly. And, in Dubai, this growth has been amplified thanks to government initiatives to boost manufacturing, a thriving e-commerce sector and a commitment to becoming one of the world’s leading sustainable cities. Put simply, if you’re considering launching a packaging business, Dubai is the perfect launchpad. In this article, we will discuss how to start a packaging business in Dubai.
Packaging business in Dubai: Overview
The packaging industry in the UAE is thriving. According to many forecasts, the industry is estimated to reach 10.20 billion by 2028, driven in part by an ever-expanding e-commerce sector and increasing demands for sustainable packaging solutions. The region is now home to key major players in the packaging industry, including global entities like Tetra Pak and regional leaders such as Hotpack Packaging LLC and Al Bayader International too.
Unsurprisingly, food and beverage packaging takes the largest share of the packaging market, with cosmetics and pharmaceuticals closely behind. In these industries, flexible packaging solutions, like stand-up pouches and intelligent liners, are in high demand. Many of the region’s most innovative companies are now integrating the Internet of Things (IoT) to allow for impressive improvements, like real-time tracking, temperature monitoring and tools to extend shelf-life. If you plan to build a business rooted in the future, this is the place to be.
Why is packing in Dubai experiencing such impressive growth? Firstly, the UAE is committed to embracing the latest technological developments, which means entrepreneurs can benefit from the latest advancements in automation, AI and 3D printing to improve processes and efficiency. The whole region has also intensified its commitment to environmental sustainability, making it easier for packaging businesses to respond to increasing consumer demands for cleaner, greener packaging solutions.
How to start a packaging business in Dubai: Step-by-step
Starting a packaging business in Dubai is a straightforward process, which we’ve broken down into five steps.
Step 1: Research
Don’t launch your business without understanding the landscape first. Even if you are a packaging pro elsewhere in the world, market trends, competitors and regulations may be very different to those you are used to. Identify gaps, opportunities and choose a niche that will ensure success.
Step 2: Choose a business structure
There are several business structures to choose from in Dubai, but two of the most popular options are mainland and free zone. Free zone businesses are an excellent option for those looking to boost the bottom line through tax advantages like 0% income tax and capital gains and, in some cases, 0% corporate tax rates. Entrepreneurs can also choose to set up in a specialised logistics and manufacturing hub, like JAFZA, to benefit from incentives and additional support. Mainland businesses also offer significant financial benefits and also offer the option to trade anywhere within the UAE.
Step 3: Register your business and apply for your license
Once you have decided on a structure, you will need to register your business. Choose a business name that accurately reflects your business and is not too similar to existing businesses, as it may be rejected. It’s worth investigating the UAE’s naming requirements too, as there are rules around avoiding abbreviations and offensive language.
All businesses require a license to operate legally in the UAE. A packaging business typically requires an Industrial License. To apply, you will need to provide a completed application form, along with a selection of documents including passport copies, business plans, visa copies and a proof of trade name registration. Depending on the specifics of your business, you may also need to get additional approval from other regulatory authorities. Set Hub will be able to provide advice on this.
Step 4: Secure your premises
Packaging businesses require a streamlined operational infrastructure to operate efficiently. You will need to lease an industrial or commercial space, invest in machinery and hire labour. You might want to consider choosing a location designed for industries aligned with packaging, which are usually situated close to major highways and ports to ensure faster logistics.
Step 5: Start operations
Once you have received your license, you can open a corporate bank account, activate marketing and sales strategies and launch your business.
Benefits of starting a packaging business in Dubai
If you’re considering starting a packaging business and want to give your business the best chance of success, Dubai is an excellent option. Here’s why:
Strategic location between East and West
Dubai is conveniently located at the crossroads of Europe, Africa and Asia. This provides easier access to emerging markets, such as GCC food manufacturers with high demands for flexible packaging, pharmaceutical exporters in India seeking compliant tamper-proof packaging and African markets looking for durable solutions. Easy access to sea, air and road makes regional distribution easier too.
High demand for e-commerce and retail expansion
E-commerce is thriving all across the globe, but Dubai boasts one of the fastest-growing sectors in the world due to its high digital penetration rates, tax-free shopping and young, digitally native population. With more online shopping comes higher demands for protective and sustainable packaging solutions, ranging from custom boxes to insulated mailers.
Specialised free zones
Dubai is home to more than two dozen free zones, some of which are tailored to industries such as packaging and light manufacturing. As well as 100% foreign ownership and full repatriation of profits, these offer specific advantages, such as turnkey industrial units and fast-track customs support for imports and export operations, making business smoother and more cost-efficient.
Supportive business environment and policies
Business owners in Dubai benefit from a range of incentives, including 100% foreign ownership for e-commerce and tech activities, 0% personal income tax and low import and export duties. Other benefits include simplified, streamlined visa and work permit processes, making it easier to hire talent.
Unique startup environment
If you’re launching a new business, Dubai is the ideal launchpad thanks to its ever-expanding ecosystem of VCS, angel investors and accelerators. Plus, with thousands of other startups and hundreds of networking events every year, you’ll have the funding and opportunities to succeed right from the get-go.
Start your packaging business with Set Hub.
Set Hub is a leading business setup consultancy in Dubai. We have served over 25,000 clients through our comprehensive suite of services, which range from business license applications to sourcing office space.
We understand that every business is different, and we pride ourselves on our tailored and dynamic approach to providing personalised solutions. If you’re ready to launch a packaging operation in Dubai, get in touch with our team to find out how we can help make the process as efficient and enjoyable for you as possible.
