Dubai is a global hub for construction and development, with a booming construction industry that has been growing steadily over the years. As a result, the market for construction materials suppliers in Dubai is quite competitive but also offers numerous opportunities for growth and expansion.
The demand for construction materials such as sand and gravel in Dubai is driven by various factors such as population growth, urbanisation, and the development of large-scale infrastructure projects. In addition, Dubai is a major hub for construction materials trade, with various international suppliers exporting construction materials to the region. This means that there is a wide range of options available to construction materials suppliers in terms of sourcing materials from various suppliers around the world.
As a construction materials supplier who engages in the wholesale of sand and gravel, you can provide customers with the materials they need to complete their construction projects efficiently and effectively. This involves ensuring a reliable supply of high-quality materials, competitive pricing, and excellent customer service. Being a supplier of construction materials, your role is significant in the construction industry as you provide crucial materials that are essential for constructing roads, buildings, and other infrastructure.
4663.04 – Wholesale of Construction Materials
A construction materials supplier who engages in the wholesale of sand and gravel typically purchases these materials in bulk from manufacturers or quarries and then resells them to businesses, contractors, or individuals who need them for construction purposes. Their primary focus would be on sourcing and distributing these materials to their customers.
Once they have acquired the sand and gravel, they would store it in their warehouse or storage yard and then sell it to construction companies, contractors, landscapers, and individuals who need it for their projects.
Exclusions:
This business activity does not have any exclusions.
Third-Party Approvals – Post License
This business activity does not require third-party approval.
Warehousing
A construction materials supplier who sells sand and gravel would require warehousing to store their inventory securely and in an organised manner. This allows for better inventory management by tracking stock levels, monitoring product quality, and rotating stock as necessary. With Meydan Free Zone’s “Grow from Dubai,” the all-in-one business solution for setting up and growing your business, you get access to fulfilment centres and distribution networks through air, land, and sea, available through its dedicated partners.
ESR
The UAE, being a no or low tax jurisdiction, has become an attractive destination for companies seeking to minimise their tax liabilities. However, some companies have been using this to their advantage for tax evasion purposes by shifting their income from a higher tax jurisdiction to a lower tax jurisdiction. To address this issue, the UAE government has introduced the Economic Substance Test (EST) to ensure that companies conducting certain activities have a sufficient presence/substance within the country. This requires companies to demonstrate that they have an adequate number of full-time employees based in the UAE, generate most of their income within the country, and have sufficient assets and operational expenses in the UAE.
To comply with the EST, companies are required to file an Economic Substance Return (ESR) within one year of the end of their fiscal year. Companies whose fiscal year began on or after January 1, 2019, and ended on or before December 31, 2019, for example, are required to file the ESR. New companies are also required to file an ESR in the following year if their activities fall under the scope of the EST.
Business activity 4663.04 is exempt from the ESR requirement.
AML
In the UAE, Designated Non-Financial Businesses and Professions (DNFBPs) are obligated to comply with anti-money laundering regulations and prevent the financing of terrorism and illegal organisations. In order to adhere to the standards set forth by the Ministry of Economy, an awareness campaign was conducted on April 30th, 2021, and existing license holders were already registered for goAML.
Failure to comply with the requirements prior to the deadline will lead to fines imposed by the Ministry of Economy. To avoid penalties, new licensees must fulfil the requirements after obtaining their license.
Note that business activity 4663.04 is not subject to AML regulations.
Why Apply for Your Trade License with Meydan Free Zone?
- Guaranteed bank account.
- Business license recognised by MoFA and Dubai Chamber of Commerce.
- Open an online shop and choose from over 30 plus marketplaces.
- Apply for unlimited visas.
- We provide clearing, forwarding, shipping, storage, and warehouse facilities.
- Apply for your import/export code directly with Meydan Free Zone.
