The tobacco industry faces significant regulation in many countries, which leads to increased costs and restricted market access. In the UAE, tobacco manufacturing is a regulated business activity, with Ras Al Khaimah Economic Zone (RAKEZ) being one of the authorities that permits it.
One of the primary reasons investors worldwide are drawn to RAKEZ for tobacco manufacturing or vape trading is the favorable tax environment. The UAE offers considerably lower taxes on tobacco products compared to other regions, enhancing profitability and easing entry barriers for new investors. This advantageous tax structure, combined with minimal operational costs, makes the UAE an attractive destination for those looking to enter the tobacco industry.
Well established companies
- Rhein Tobacco International FZ-LLC
- AlFakher Tobacco Factory
- VK TOBACCO FZE
- LAFRUTTA FZ-LLC
- JNR IMPEX FZ-LLC
- BMJ Industries FZ LLC
- TOBACCO PRODUCTS INTERNATIONAL FZ-LLC
- King Tobacco
Designated Areas in Ras Al Khaimah Economic Zone (RAKEZ) for Tobacco /E-cigarette (vapes) Manufacturing or Trading
- Al Hamra Industrial Zone – Al Hamara is one and a half hour drive from the Dubai & 30 minutes minutes drive from the Ras Al Khaimah airport & close to city center. Spread in 9.1 million square meters, Ideal place for the light to heavy industries. Give flexibility to set up either free zone or non-free zone entities, providing customized solutions to meet specific business needs.
- Al Ghail Industrial Zone—Al Ghail is approximately one and a half hours drive from Dubai. Investors looking to establish large-scale industrial manufacturing enterprises will definitely prefer this zone, which provides them with options of setting up free zone and non-free zone entities. The upcoming Eithad rail will also have the last station in the Al Ghail zone.
- Al Hulaila Industrial Zone -Al Hulaila is one and a half drive from the Dubai. Connected to multi-lane superhighways for efficient transportation. Close to Saqr Port, the largest bulk-handling port in the Middle East, this enhances import and export operations. Spread across 1.3 million square meters, perfect for heavy industries for setting up the plant & labour accommodation
Process for forming a Tobacco Manufacturing or E-cigarette (vape) Trading
Make a business plan
A business plan should cover complete purpose and should include some of this points to get it through from the licensing authority.
- Target market & customer base
- Type of equipment/machinery, quantity, dimensions, power capacity etc.
- Workforce requirement
- Detail of finished products
- Required size of warehouse or plot
- Requirement of water & electricity
- Waste management & storage management etc
Approvals from various authorities
- Civil defense
- General resource authority
- Environment protection authority etc
Setting up a tobacco trading or manufacturing business in the UAE can be a challenging endeavor, especially for international entrepreneurs unfamiliar with the local laws and regulations. At TFZ Business Set Up, we simplify the entire company formation process, making it faster and more efficient.
With years of experience and a proven track record, we’ve helped thousands of entrepreneurs turn their business visions into reality in the UAE. Our comprehensive services cover everything from company registration, custom code, and licensing to bank account setup, Corporate Tax Registration, VAT registration, and more—ensuring that you have everything you need to start and grow your business successfully.
Whether you’re looking to trade tobacco products, manufacture them locally, or expand your existing operations into the UAE, our expert team is here to guide you through each step of the process. Let us take care of the legalities and paperwork so you can focus on what matters most: growing your business.
Why Choose TFZ Business Set Up?
- End-to-end Services: From company formation to ongoing business support.
- Expert Guidance: We provide clear, concise advice to help you navigate local regulations.
- Fast & Efficient: We streamline the process to get your business up and running quickly.
- Tailored Solutions: We understand that every business is unique, and we provide customized services to meet your specific needs
