Manufacture of luggage, handbags and the like, saddlery and harness

Under Ministerial Decision No. 229 of 2025, the manufacturing of consumer leather goods is a Qualifying Activity. Forensic focus is on the 'substantial transformation' test; simple assembly or repackaging of imported components may be disqualified and treated as 'Excluded Activity' (Trading/Distribution) if the 5% de minimis threshold is exceeded.

Audit Red Flag

Contract manufacturing or 'toll manufacturing' arrangements where the Free Zone entity lacks legal title to raw materials or does not perform the significant transformation, potentially reclassifying income as 'Service' rather than 'Manufacturing'.

Which UAE zones permit this activity?

Scout checks the current permission status for this activity across every UAE zone against your specific structure.