How To Set Up A General-Purpose Machinery Manufacturing Business In The UAE

May 27, 2024

Every industry requires some type of machinery to function, be it a specialized sector such as automobile manufacturing that needs perfectly produced car parts or a marketing firm that needs essential office equipment. 

Developing the building blocks that help other companies run smoothly can be an incredibly profitable industry, particularly in a thriving region like the UAE. As of right now, the government aims to grow this industry to create jobs, boost non-oil exports, and strengthen the UAE’s industrial sector. 

For machinery companies looking to build their own general purpose machinery business in this region, here are a few business activities we at SPC Free Zone recommend. Under this group, manufacturers can make specialized parts for all sorts of machinery, or create equipment specifically designed to support general business operations.

SPC Free Zone offers business licenses instantly, cutting through the red tape for you. Other exclusive benefits of partnering with SPC Free Zone include unlimited visas for partners, employees, and investors, and a guaranteed banking account within three working days, amongst others.

2811.00 – Manufacture of engines and turbines, except aircraft, vehicle and cycle engines

This category refers to the manufacturing of engines and turbines that are used in a wide range of applications, excluding those that are used in airplanes, cars, motorcycles, and bicycles. These can include industrial engines, marine engines, railway engines, gas turbines, and steam turbines.

A range of activities fall under this category of machinery manufacturing, each referring to specific engine parts and types. Let’s explore these together. 

2811.0: Manufacture of internal combustion piston engines, except motor vehicle, aircraft and cycle propulsion engines: marine engines and railway engines

An incredibly common type of engine, the focus here is on marine and railway. These internal combustion engines are far larger and more powerful than those found in automobiles. Fuel type, size and power, durability, and customization are key aspects that set these engines apart.

2811.02: Manufacture of pistons, piston rings, carburetors and such for all internal combustion engines, diesel engines etc.

The essential components that allow a top-notch internal combustion engine to function at its optimum capacity fall under this activity, including pistons, piston rings, and carburetors.

2811.03: Manufacture of inlet and exhaust valves of internal combustion engines

Inlet valves control the flow of air entering the engine cylinders, whilst exhaust valves are crucial in releasing burned gasses from the cylinders after combustion. When it comes to marine and railway, the focus is on building valves that can withstand the demanding conditions of these engine environments. They need to be heavy duty, corrosion resistant, and perform well in high temperatures. 

2811.04: Manufacture of turbines and parts thereof: steam turbines and other vapor turbines, hydraulic turbines, waterwheels and regulators thereof, wind turbines, gas turbines, except turbojets or turbo propellers for aircraft propulsion

This describes the manufacturing of a wide range of turbines used for power generation and other applications. Commonly found in power plants and industrial facilities, steam turbines are key in producing electricity. Other vapor turbines use hot vapors such as geothermal. Meanwhile, hydraulic turbines use the energy of moving water to create electricity. Similarly, wind and gas turbines use wind energy and natural gas respectively for power generation. These are key in engines.

2811.05: Manufacture of boiler-turbine sets

This refers to a combined unit where the boiler and turbine are designed and manufactured to work together efficiently. These units are made differently for various engines. For example, in marine engines, their main function is to help propulsion. In a steam turbine, however, the boiler would directly supply steam for electricity generation. 

2811.06: Manufacture of turbine-generator sets

These self-contained power generation units can use either steam, water, or gas to spin a shaft and then convert rotational energy into electrical energy. Since these are complete units, they can be easy to install and operate, along with being a versatile power source. 

It’s important to note that specific activities aren’t enabled under this, including the manufacture of electric generators and prime mover generator sets (except turbine generator sets), manufacturing the electrical equipment and components of internal combustion engines, turbojets and turbo propellers, and, lastly, the manufacture of motor vehicle, aircraft, or cycle engines.

  • Third-party Approval: No third-party approvals are required for these business activities.
  • Filing of Economic Substance Return: Business activities under group 2811 are exempt from this requirement.
  • Anti-Money Laundering Compliance: Business activities under group 2811 are exempt from this requirement.

2812 – Manufacture of fluid power equipment

The manufacture of fluid power equipment deals with building components and systems that transfer and control power using pressurized fluids. These fluids can be liquids or compressed gasses. 

This equipment is used extensively in multiple industries, such as construction, agriculture, aerospace, and automotive. Remember, some machinery companies produce general-purpose components, while others specialize in building custom systems for particular applications. Here are specific business activities you can choose from under this category:

2812.01: Manufacture of hydraulic and pneumatic components (including hydraulic pumps, hydraulic motors, hydraulic and pneumatic cylinders, hydraulic and pneumatic valves, hydraulic and pneumatic hose and fittings)

A range of hydraulic components fall under this activity, all of which are essential in making a fluid power system functional. Each component has a specific, irreplaceable function and is, therefore, vital.

2812.02: Manufacture of air preparation equipment for use in pneumatic systems

Pneumatic systems are a versatile and cost-effective solution in many industries, for power machinery and automation processes. This refers to creating components specifically designed to treat compressed air before it enters pneumatic systems, ensuring its clean, dry, and regulated.

2812.03: Manufacture of fluid power systems

This refers to building an entire fluid power system that will be used to transmit and control power. A wide range of parts, most of which are mentioned above, come together and are expertly assembled. The manufacturing industry considers various requirements like pressure needs flow rates, customisation, and performance optimization when manufacturing. 

2812.04: Manufacture of hydraulic transmission equipment

These components are specifically designed to transmit power using pressurized hydraulic fluid. With speed control and a relatively compact design, a well-designed hydraulic system can generate larger forces with smaller motors.

Here are a few components you can’t manufacture with this activity: compressors, pumps and valves for non-fluid power applications, and mechanical transmission equipment. 

  • Third-party Approval: No third-party approvals are required for these business activities.
  • Filing of Economic Substance Return: Business activities under the group 2812 are exempt from this requirement.
  • Anti-Money Laundering Compliance: Business activities under the group 2812 are exempt from this requirement.

2814.00 – Manufacture of bearings, gears, gearing and driving elements

Each of the elements mentioned above are essential components in creating various machines and devices. This machinery manufacturing also requires precise craftsmanship and stringent quality control. 

2814.01: Manufacture of ball and roller bearings and parts thereof

Bearings allow smooth, low-friction rotation between moving parts. They reduce wear and tear, improve efficiency, and ensure proper alignment of components. There are different types of bearings, however, including ball, roller, thrust, and plain. An experienced machinery company will understand the fluctuating demands for each.

2814.02: Manufacture of mechanical power transmission equipment: transmission shafts and cranks (camshafts, crankshafts, cranks etc.) bearing housings and plain shaft bearings

Manufacturing transmission shafts is a complex process, involving forging, machining, heat treatment, grinding, and balancing. Bearing housings, meanwhile, provide support and alignment for bearings; made from cast iron, aluminum, or steel. Plain shaft bearings allow rotational movement between a shaft and housing. In plain words, these are essential components in creating many machines.

2814.03: Manufacture of gears, gearing and gear boxes and other speed changers

Gears are the heart of many mechanical power transmission systems. Their creation, too, is a multi-step process, involving gear blank production and machining, finishing, and gearbox assembly. Each process is as intricate as the next.

2814.04: Manufacture of clutches and shaft couplings

Anyone familiar with vehicles understands the basic function of a clutch. Although quite distinct from each other, both clutches and shaft couplings play an important role in transmitting power in mechanical systems. 

2814.05: Manufacture of flywheels and pulleys

Flywheels store kinetic energy and help maintain consistent rotational speed. They are commonly found in larger vehicles like trains and trucks. Certain machinery like power hammers are used to create short bursts of high power. Pulleys, meanwhile, are more of a household term and can be used in a variety of settings, from construction cranes and elevators to even garage door openers.

Articulated link chains, also known as conveyor chains or simply link chains, require a specific manufacturing process because of their precise components and need for smooth articulation. An experienced manufacturer can tackle this with ease.

2814.07: Manufacture of power transmission chain

The manufacturing process for power transmission chains, also known as roller chains, shares some similarities with articulated link chains but involves additional steps. Due to their high efficiency, they’re quite common in vehicles like bicycles and motorcycles, machinery, and agricultural equipment.

Remember that the manufacture of other chains, electromagnetic clutches, and sub-assemblies of power transmission equipment used for vehicle or aircraft parts are not enabled under this activity.

  • Third-party Approval: No third-party approvals are required for these business activities.
  • Filing of Economic Substance Return: Business activities under the group 2814 are exempt from this requirement.
  • Anti-Money Laundering Compliance: Business activities under the group 2814 are exempt from this requirement.

2817.00 – Manufacture of office machinery and equipment (except computers and peripheral equipment)

Well-functioning office machinery and equipment will always be in high demand, with its significant role in improving the overall function of almost all businesses. Even for companies that rely mostly on digital means, office staples are an absolute must. 

So, here’s a comprehensive list of office equipment you, as an entrepreneur, can manufacture and produce a reliable profit from:

2817.01: Manufacture of calculating machines 

2817.03: Manufacture of calculators, electronic or not

From engineers to construction workers, fashion designers to accountants, a calculating  machine is always a must-have at an office.

2817.02: Manufacture of adding machines, cash registers

2817.15: Manufacture of cash registers, mechanically operated
Every retail outlet will always need reliable and efficient cash registers, so a smart manufacturer may target supermarkets, malls, and small businesses.

2817.04: Manufacture of postage meters, mail handling machines (envelope stuffing, sealing and addressing machinery; opening, sorting, scanning), collating machinery 

Despite popular belief, the postal system is very much a part of our modern lives. These items are incredibly helpful in modernizing and optimizing the industry. 

2817.05: Manufacture of typewriters 

2817.06: Manufacture of stenography machines 

2817.19: Manufacture of dictating machines 

These items come in handy in court reporting, captioning, and parliamentary reporting—although stenography machines are far more in use currently.

2817.07: Manufacture of office-type binding equipment (i.e. plastic or tape binding) 

2817.08: Manufacture of cheque writing machines 

2817.09: Manufacture of coin counting and coin wrapping machinery 

These specific items all have unique uses, particularly in financial institutions such as banks and security-conscious organizations.  

2817.12: Manufacture of voting machines 

Electronic voting machines that resemble bank ATMs are used around the world to record votes during an election without using paper.

2817.10: Manufacture of pencil sharpeners 

2817.11: Manufacture of staplers and staple removers 

2817.13: Manufacture of tape dispensers 

2817.14: Manufacture of hole punches

2817.16: Manufacture of photocopy machines 

2817.17: Manufacture of toner cartridges

2817.18: Manufacture of blackboards; white boards and marker boards

A range of office staples, these items will always be in demand for the general functioning of an office, from an advertising agency to a recruitment company.

While the above diverse range of items can all be manufactured under this business activity, the manufacturing of computers and peripheral equipment such as keyboards, etc. are not allowed.

  • Third-party Approval: No third-party approvals are required for these business activities.
  • Filing of Economic Substance Return: Business activities under the group 2817 are exempt from this requirement.
  • Anti-Money Laundering Compliance: Business activities under the group 2817 are exempt from this requirement.

2818.00 – Manufacture of power-driven hand tools

Portable tools come in handy for a variety of tasks, and are used to build other pieces of machinery as well. 

Electrical hand tools are powered by an electric motor which is integrated into the tool itself, such as drills and impact drivers, saws, sanders, grinders, and power screwdrivers. 

Meanwhile, pneumatic hand tools are powered by compressed air and require an external air compressor to operate. These can be nail guns and staplers, impact wrenchers, die grinders, and paint sprayers, amongst many. Both categories of tools are incredibly powerful, efficient, and versatile. They’re purchased by construction companies, handymen, and even regular homeowners. keeping them in high demand in the market. 

  • Third-party Approval: No third-party approvals are required for these business activities.
  • Filing of Economic Substance Return: Business activity 2818.00 is exempt from this requirement.
  • Anti-Money Laundering Compliance: Business activity 2818.00 is exempt from this requirement.

Did you find what you were looking for? Explore the other guides in our Activity Hub for exploring unique business ideas in Dubai and navigate the essentials of business setup with ease.

You can also calculate your business setup costs easily using our handy cost calculator and choose from our customized company setup packages to find your perfect fit.

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