How To Set Up A Games And Toys Manufacturing Business In The UAE

May 31, 2024

Easily one of the most rewarding and exciting manufacturing businesses to be involved in, producing and selling games and toys can be a profitable industry. The UAE holds a significant share of the Middle Eastern toys and games market. Although growth is slow and steady, the market is projected to reach US$44 million in revenue by 2024.

Games are popular amongst many age categories, but toys are most beloved by children. With increasing urbanization and a growing expat population in the UAE, this market is booming. According to a 2024 estimate, the 0-14 age group makes up roughly 15.12% of the UAE’s population. Consumers are confirmed to be spending a considerable amount on toys.

Considering this strong consumer base, there’s potential for growth in the manufacturing of toys and games. For an aspiring games and toys manufacturer, there are a range of business activities to choose from, under the umbrella 324 (Manufacture of Games and Toys).

As the fastest free zone, SPC Free Zone provides these licenses instantly, along with a guaranteed banking account in three working days and unlimited visas for partners, employees, and investors. 

3240.01 – Manufacture of dolls and doll garments, parts and accessories

Dolls are a significant segment of toy sales globally. They come in various materials like vinyl, plastic, porcelain, fabric, and wood. A manufacturer’s choice of material depends on factors such as target audience, desired features, and price point.

In terms of the manufacturing process, there are two popular ways to create dolls. The first is through large-scale production at factories, using techniques such as injection, molding, sculpting, and rotocasting. The second is through small-scale production where individual artists or small workshops create porcelain, fabric, or wooden dolls. These dolls tend to have a high level of craftsmanship. While they take more detailed effort, they are often worth more.

Every doll is always clothed to perfection, and fabrics most commonly used include cotton, polyester, and blends. With such a diverse range of styles, we recommend understanding your market and place of retail, along with keeping up with trends in the industry, before embarking on manufacturing. 

  • Third-party Approval: No third-party approvals are required for this business activity
  • Filing of Economic Substance Return: Business activity 3240.01 is exempt from this requirement
  • Anti-Money Laundering Compliance: Business activity 3240.01 is exempt from this requirement

3240.02 – Manufacture of action figures

Action figures aren’t just coveted by children. The demand for action figures is high amongst adult action figure collectors as well. Action figures make popular gifts for both of these segments. 

The process of manufacturing action figures is a fascinating one, that begins with design and prototype. Under this stage, character design, sketches, and 3D models bring a character to life. Sculpting comes into play here as well, to capture the intricate details of the figure.

This is followed by mold making, material selection, and injection molding, where molten plastic is injected under high pressure. Finally, the manufacturer begins painting – often by hand or through automated painting techniques – to create meticulous designs. The painted parts are then carefully assembled through a myriad of techniques. 

Action figures have a significantly large demand globally, with some figures being simple and some incredibly complex. This affects their price point as well. Note that many popular action figures fall under specific copyright laws, so it’s important to be aware of these when deciding which characters you, as an entrepreneur, want to create.

  • Third-party Approval: No third-party approvals are required for this business activity
  • Filing of Economic Substance Return: Business activity 3240.02 is exempt from this requirement
  • Anti-Money Laundering Compliance: Business activity 3240.02 is exempt from this requirement

3240.06 – Manufacture of board games and similar games

Board games are all the rage, amongst both children and adults. Each game differs in complexity, age recommendations, duration of play, and theme. Apart from the classics like Monopoly, however, the market is always wide open for new ideas. 

Game design and development takes up a majority of the pre-production process. Here, designers create the core gameplay mechanics, artwork, and game components. Prototypes might be made using readily available materials to test and refine the concept. During production, a manufacturer must keep in mind production volume, game complexity, and budgets as well. 

The manufacturing process itself involves boards and cards, game pieces, and other elements such as dice and tokens. A manufacturer can choose to create their own games, with game designers, to patent and sell. However, a manufacturer can also connect with large game companies to take on the production of their already successful games. This is a strategic business decision that a manufacturer would have to make.

  • Third-party Approval: No third-party approvals are required for this business activity
  • Filing of Economic Substance Return: Business activity 3240.06 is exempt from this requirement
  • Anti-Money Laundering Compliance: Business activity 3240.06 is exempt from this requirement

3240.10 – Manufacture of articles for funfair, table or parlor games

Toys and games manufacturers don’t need to limit themselves to toy wholesaling and retailing, such as malls. A range of other games are at your disposal as well.

Funfair games can refer to carnival games that delight both kids and adults. For example, ring toss, bean bag toss, hoop shoot, darts are all funfair games. These can be sold or rented out to carnivals and other play areas. 

Table and parlor games, meanwhile, can refer to board games, tile games such as mahjong and dominoes, and miniatures games such as dungeons and dragons. They can also include checkers, backgammon, charades, pictionary, and more. They are typically designed for smaller groups of people and are meant to be social and entertaining

  • Third-party Approval: No third-party approvals are required for this business activity
  • Filing of Economic Substance Return: Business activity 3240.10 is exempt from this requirement
  • Anti-Money Laundering Compliance: Business activity 3240.10 is exempt from this requirement

3240.11 – Manufacture of wheeled toys designed to be ridden, including plastic bicycles and tricycles

Bought by parents for their toddlers, restaurant play areas, amusement parks, malls, and more, these wheeled toys are always a hit. To begin the process, designers create the initial concept and blueprints for the toy, considering factors like age appropriateness, safety, and functionality.

Engineers then develop molds for the various plastic parts of the toy, like the frame, wheels, handlebars, pedals, etc. These molds are typically made of steel or aluminum for durability during production.

Once the material is selected, plastic pellets are fed into machines that heat and melt them into a moldable consistency. Colors can be added during this stage to create vibrant toys. Injection molding, followed by assembly and finishing.

Remember, for plastic bicycles and tricycles, additional parts like pedals and wheels might be sourced from pre-manufactured suppliers. These parts may be made from various materials like plastic, metal, or rubber. Along with this, safety testing is crucial to ensure the toys are free of harmful chemicals and have no sharp edges. 

  • Third-party Approval: No third-party approvals are required for this business activity
  • Filing of Economic Substance Return: Business activity 3240.11 is exempt from this requirement
  • Anti-Money Laundering Compliance: Business activity 3240.11 is exempt from this requirement

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