In August 2025, the United States made it more expensive to buy many products from India by putting higher tariffs on them. A tariff is like a tax on goods when they are sold to another country. Because of this, many Indian factories are finding it hard to sell to the US and still make profit.
To solve this, many Indian companies are moving part of their factories to Dubai. Why? Because Dubai is a global business hub where goods can be made and then sent easily to the US, Europe, Africa, and Asia. At CSPzone, we help Indian companies make this move step by step.
Starting from August 27, 2025, the United States imposed steep, new tariffs of up to 50 percent on many Indian exports. These tariffs struck particularly hard in sectors such as textiles and ready-made garments, gems and jewellery, leather goods and footwear, furniture, industrial chemicals, home textiles, shrimp and seafood, and carpets. These industries rely heavily on exports to the US, so the sudden tariff increase has made their goods less competitive and squeezed profit margins.
Dubai is close to India and is one of the biggest trade centres in the world. The tax on company profit is only nine percent, which is much lower than in many other countries. In some free zones, companies even pay zero percent tax if they qualify.
Dubai also has one of the best airports and seaports in the world. This makes it easy to import raw materials and export finished goods quickly. For Indian businesses that want to keep selling abroad after the tariffs, Dubai is the best choice.
When a company makes goods in Dubai, it can often label them as “Made in UAE.” This helps avoid some of the tariff problems with the US. Dubai also has a good reputation, which means buyers from Europe, the Middle East, and Africa trust products made here.
Industries like textiles, leather, food processing, and engineering are already moving their units to Dubai. By doing this, they can still sell their products to the world without losing money to tariffs.
When Indian manufacturers relocate to Dubai, they have to make changes or add value to their products in order to qualify for UAE origin. This means raw materials or semi-finished goods brought from India must go through finishing, assembling, packaging, or additional processing in Dubai.
By adding this local value, the products are officially recognised as “Made in UAE.” With a UAE-origin certificate, these goods can then be exported globally under Dubai’s trade agreements, helping businesses reduce the impact of US tariffs and remain competitive in international markets.
Moving a factory sounds big, but when broken into small steps, it becomes easy to understand.
Decide what kind of goods you want to make in Dubai.
You can choose mainland Dubai if you want to sell inside the UAE or a free zone if you want to focus only on exports.
Your business needs a name and permission from Dubai authorities to start.
You need to show your papers from India, like company certificates. These must be stamped and approved for use in Dubai.
Find a warehouse or industrial plot where you will run your operations.
This is your official permission to do manufacturing in Dubai.
You need a UAE business bank account to handle money. You also register for VAT and corporate tax.
As the owner, you get an investor visa. You can also get visas for workers and your family.
Because factories make and store goods, there are extra approvals required. You may need checks for fire safety, health rules, and sometimes environmental clearance. You also need to register with Dubai Customs if you plan to import or export.
CSPzone takes care of these approvals so the business owner does not face delays or confusion.
The tariffs are already in place. If Indian exporters do not move fast, they may lose customers and market share. By shifting to Dubai, they can protect their business and even grow bigger by selling to new markets.
CSPzone makes this move simple. We guide business owners in choosing the right place to register, preparing documents, renting space, applying for licenses, opening bank accounts, and getting visas. We also stay with you after setup to make sure your company follows all rules in Dubai.
With our help, your factory does not just move on paper but becomes fully ready to run.
Final Thoughts
The US tariffs made life difficult for Indian exporters, but Dubai has opened the door to new opportunities. With low taxes, excellent transport, and global credibility, Dubai is the best place for Indian factories to relocate in 2025.
If you are thinking of moving your factory, CSPzone is here to guide you step by step and make the process smooth and successful.
