Table of Contents
Frequently Asked Questions
How large is Dubai's wholesale trade sector?
Dubai wholesale and retail trade contributes approximately 23 percent to the emirate's GDP based on Q1 2025 statistics, per Dubai Media Office, alongside Dubai recording 7.2 percent trade growth in Q1 2025 and non-oil trade hitting record highs.
What can a general trading licence cover?
General trading covers electronics, mobile phones, computers, textiles and garments, food products, cosmetics and personal care, automotive parts, industrial supplies, machinery, construction materials, consumer goods and FMCG under a single non-specialised wholesale trade activity, per Meydan Free Zone Activity Hub.
What supports UAE trading hub status?
UAE trading hub status is supported by advanced logistics infrastructure, tax-friendly policies, over 40 free zones, modern port and airport infrastructure and Jebel Ali Port among the world's largest container ports, per Mordor Intelligence and IMARC Group.
Do I need third-party approval to open a general trading firm?
No third-party approval is required for activity 4690.87. You still need to comply with UAE commercial regulations, customs and import duties for imported goods and any product-specific approvals for regulated product categories carried under the general trading scope.
What does activity 4690.87 cover?
Activity 4690.87 covers general trading wholesale of a variety of goods without any particular specialisation, including multi-category wholesale distribution, import-export and re-export operations, non-specialised industrial and consumer goods distribution and specialty portfolio trading firms.
Topic Summary
Choose Between Mainland and Free Zone
A mainland license lets you sell freely across the UAE market and to government buyers, while a free zone license offers lower setup costs and 100% foreign ownership with a faster process. Let your target clients guide this decision, not just the upfront price.
General Trading Covers Multiple Product Categories
Unlike a single-category license, a general trading wholesale license lets you buy and sell goods like food, electronics, textiles, and building materials all under one license. This flexibility is a major advantage as your business expands into new product lines.
Follow Nine Clear Steps to Get Licensed
The setup process runs from booking a trade name and getting initial approval through to opening a corporate bank account and applying for visas. Following the steps in order avoids delays and ensures each authority requirement is met before you move on.
Budget Realistically From Day One
Free zone licenses start from AED 12,500 at Meydan Free Zone, while mainland costs run higher due to office rental and registration fees. Plan for both your license cost and your first year of operating expenses before you commit to a structure.
Register for VAT Once Turnover Hits AED 375,000
If your annual turnover crosses AED 375,000, you are required to register with the Federal Tax Authority and begin charging VAT on eligible sales. Filing returns regularly becomes a compliance obligation at that point, so build this into your financial planning early.
Secure Import and Export Codes Before Moving Goods
Customs registration and import/export codes must be in place before you ship any goods across borders. Skipping this step can halt your operations, so treat it as a non-negotiable part of the setup process.
Match Your Office Setup to Your License Type
Trading firms that hold physical stock need a warehouse or storage unit, while businesses that do not stock goods locally can often operate from a flexi-desk. Always confirm with your licensing authority what your specific license permits before signing any lease.
How to Start a General Trading Wholesalers Business in Dubai
Dubai sits at the centre of trade routes connecting Asia, Africa, and Europe. That makes it one of the most practical places in the world to run a wholesale trading operation. This guide covers the license you need, where to set up, and the steps to get trading fast.
What This License Covers
A general trading wholesale license lets you buy and sell goods in bulk across multiple product categories. You are not locked to one type of product. That is the key difference from a single-category trading license, which limits you to one defined product group.
With a general trading license, you can trade food, electronics, textiles, building materials, and more under one license. This gives you flexibility as your business grows.
| License type | General Trading – Wholesale |
|---|---|
| Ownership | 100% foreign ownership available |
| Visa allocation | Depends on office size and jurisdiction |
| Minimum capital | Varies by jurisdiction; check with your authority |
| VAT threshold | AED 375,000 annual turnover |
You can explore the full list of permitted activities on the Meydan Free Zone business activities page before you commit to a structure.
Mainland or Free Zone: Which to Pick
This is the biggest choice you will make when setting up. Let your clients decide it, not the price.
A mainland license from DET lets you work directly with UAE government bodies and sell freely across the local market. A free zone license through Meydan Free Zone gives you 100% ownership, lower setup costs, and a faster process. Most of your sales will be international or to other free zone entities.
| Factor | Mainland (DET) | Free Zone (Meydan Free Zone) |
|---|---|---|
| Client access | Open UAE market, government buyers | Mainly international clients |
| Ownership | 100% foreign ownership now permitted | 100% foreign ownership |
| Office needs | Physical office required | Flexi-desk options available |
| Customs duties | Standard UAE import duties apply | Duty-free within free zone |
| Setup cost | Higher overall | Lower starting cost |
If you plan to sell mostly into the UAE market, mainland is the right base. If you are re-exporting or serving regional buyers, a free zone setup works well and costs less to start.
Free Business Setup Cost Calculator
Calculate NowHow to Set Up Step by Step
The process is direct. Follow these steps in order.
- Step 1, book your trade name: Use the DET portal for mainland or the Meydan Free Zone portal for a free zone company.
- Step 2, choose your jurisdiction: Confirm your activity code is approved in that jurisdiction before you go further.
- Step 3, get initial approval: Submit your application and wait for the authority to confirm it.
- Step 4, prepare your documents: You will need a passport copy, a business plan, and a no-objection letter if you are already employed in the UAE.
- Step 5, pay your fees: License fees vary by jurisdiction and office type. Get a quote before you commit.
- Step 6, get your license: Once fees are paid, your license is issued. Keep a digital copy.
- Step 7, open a corporate bank account: Get business banking support to speed up this step.
- Step 8, apply for visas: Visa allocation depends on your office size and license type.
- Step 9, register for import and export codes: You need these before you move any goods across borders.
You can also start a business remotely if you are not yet based in the UAE.
Costs, Compliance, and What You Need in Place
Free zone license costs start from AED 12,500 at Meydan Free Zone. Mainland costs are higher, mainly because of office rental and registration fees. Budget for both the license and your first year of running costs.
VAT duties
If your annual turnover passes AED 375,000, you must register with the Federal Tax Authority (FTA). You will then charge VAT on eligible sales and file returns regularly.
Warehouse or office space
If you hold physical stock, you need a warehouse or storage unit. For trading firms that do not hold stock locally, a flexi-desk is often enough. Check with your authority what your license allows.
Customs registration
Register with Dubai Customs before you import or export. Assign the correct HS code to each product category. Wrong codes cause delays and can trigger fines.
- Register with Dubai Customs before your first shipment
- Get an importer or exporter code from the relevant authority
- Classify goods with the correct HS codes
- Keep records of all transactions for at least 5 years
Market Opportunity in Dubai
Dubai re-exports goods to over 180 countries. It is a real distribution hub, not just a transit point. The port at Jebel Ali is one of the busiest in the world, and the logistics network here is built for speed.
Key trading corridors run to South Asia, East Africa, and across the GCC. Demand is strong in food and beverages, electronics, building materials, and textiles.
- Food and beverages: strong demand across GCC and Africa
- Electronics: high re-export volumes to South Asia
- Building materials: driven by ongoing construction across the region
- Textiles: active trade with South and Southeast Asia
Conclusion
A general trading wholesale license in Dubai gives you broad product scope, strong logistics, and access to one of the world's busiest trade corridors. The setup process is clear and the costs are manageable, especially through a free zone.
Speak to a Meydan Free Zone advisor to confirm your activity code and get a cost estimate before you commit.
Ready to Launch Your Business in Dubai?
Let's ConnectReferences
- Invest in Dubai
- Federal Tax Authority (FTA)
- DP World
- Ports, Customs and Free Zone Corporation (PCFC)
