Table of Contents
Frequently Asked Questions
What is scrap trading and why is it in demand in Dubai
Scrap trading involves buying and selling waste materials such as metals, paper, plastics, and electronic waste, typically in bulk quantities. In Dubai, the thriving construction and industrial sectors generate substantial scrap materials, creating a consistent and growing demand for scrap trading businesses.
Environmental sustainability goals and waste management regulations further drive the need for proper scrap disposal and recycling, making scrap trading a commercially viable and socially responsible business activity in the emirate.
Which business activity codes apply to scrap trading in Dubai's Meydan Free Zone
There are three primary activity codes relevant to scrap trading. Activity code 4669.00 covers the wholesale of waste, scrap, and other products not elsewhere classified (n.e.c.), allowing trade in a broad range of recyclable and surplus goods in bulk.
Activity code 4669.75 specifically covers Scrap & Metal Waste Trading, focusing on the collection and trade of nonhazardous metal scrap from households, industrial establishments, and agricultural facilities. Activity code 4669.77 covers Aircraft Scrap & Used Spare Parts Trading, permitting the resale of parts obtained by dismantling old aircraft.
What types of scrap materials can be traded under a Meydan Free Zone scrap trading license
A scrap trading license under codes 4669.00, 4669.75, and 4669.77 permits the wholesale of a wide range of materials. These include metal and non-metal waste, plastic materials, rubber, textile fibers, paper in bulk, and electronic waste, among other recyclable materials.
The license also covers industrial chemicals such as aniline, printing ink, essential oils, industrial gases, chemical glues, colorants, synthetic resin, methanol, paraffin, acids, sulfurs, and starch derivatives, as well as fertilizers and agrochemical products.
What activities are excluded from a scrap trading license in Dubai
Certain activities are explicitly not permitted under scrap trading license codes 4669.00, 4669.75, and 4669.77. These exclusions include the collection of household and industrial waste intended solely for disposal rather than further industrial use.
Additionally, the processing of waste and scrap into secondary raw materials is excluded unless a genuine transformation process is involved that results in secondary raw materials suitable for direct use in an industrial manufacturing process. Treating waste not intended for further industrial use is also excluded.
Can a scrap trading license cover dismantling of vehicles and electronics
Yes, a scrap trading license under the applicable activity codes does permit the dismantling of automobiles, computers, televisions, and other equipment, but only for the specific purpose of obtaining reusable parts for resale.
This means the license does not authorize full-scale processing or transformation of these items into new raw materials. The focus remains on recovering and reselling usable components rather than manufacturing or refining secondary materials.
What is Aircraft Scrap and Used Spare Parts Trading under activity code 4669.77
Activity code 4669.77 specifically licenses businesses to trade in aircraft scrap and used spare parts. These items are typically acquired through the process of dismantling and scrapping old or decommissioned aircraft.
As a licensee, you are permitted to offer these goods for sale to customers in the aviation industry or other relevant sectors that may have use for aircraft components and spare parts.
How should I prepare before starting a scrap trading business with Meydan Free Zone
Before beginning the setup process, it is advisable to check your preferred company name for availability to ensure it meets Meydan Free Zone's naming requirements. You should also use a business setup cost calculator to estimate the total expenses involved in establishing your scrap trading venture.
Exploring support options such as Meydan Plus can help you identify the best business structure for your specific scrap trading needs. Selecting the correct activity code — whether 4669.00, 4669.75, or 4669.77 — from the outset is also critical to ensuring your license covers all intended operations.
Under which license category does scrap trading fall in Meydan Free Zone
Scrap trading businesses in Meydan Free Zone apply for a business license under the category of Other Specialized Wholesale, specifically under the subcategory of wholesale of waste and scrap and other products not elsewhere classified (n.e.c.).
Depending on the specific nature of your trading activities, you then select the most appropriate activity code — 4669.00 for general waste and scrap wholesale, 4669.75 for metal waste trading, or 4669.77 for aircraft scrap and used spare parts trading.
Topic Summary
Why Dubai Is Ideal for Scrap Trading
Dubai's booming construction and industrial sectors generate large volumes of scrap materials, creating consistent market demand. Strong logistics infrastructure and a focus on environmental sustainability further support the scrap trading industry.
Choose the Right Business Activity Code
Scrap traders in Dubai can select from activity codes like 4669.00 for general waste and scrap wholesale, 4669.75 for metal scrap trading, or 4669.77 for aircraft scrap and used spare parts. Picking the correct code ensures your license covers your intended trading operations.
Metal Scrap Trading License Explained
The 4669.75 Scrap and Metal Waste Trading license allows you to collect and trade nonhazardous metal scrap sourced from households, industrial establishments, and agricultural facilities. This makes it ideal for businesses focused on recyclable metal materials.
Aircraft Scrap Opens a Niche Market
With activity code 4669.77, you can legally trade aircraft scrap and used spare parts obtained by dismantling old aircraft. This niche license lets you sell to buyers in the aviation industry and other relevant sectors.
Know What Your License Includes
A scrap trading license under Meydan Free Zone covers a wide range of wholesale goods, including industrial chemicals, fertilizers, plastics, rubber, textiles, and metal waste for recycling. It also permits dismantling of vehicles and electronics to recover reusable parts for resale.
Understand the Key License Exclusions
Your scrap trading license does not cover the collection of household or industrial waste intended solely for disposal. Processing scrap into secondary raw materials is also excluded unless a genuine industrial transformation process is involved.
Prepare Before Applying for Your License
Before starting, check your company name availability, use a business setup cost calculator to estimate expenses, and consult support services like Meydan Plus for guidance. Proper preparation helps you choose the best business structure for your scrap trading venture.
How to Start Scrap Trading in Dubai with Meydan Free Zone?
Scrap trading in Dubai has significant potential due to the city's robust infrastructure and logistics capabilities. As Dubai's construction and industrial sectors thrive, substantial scrap materials are generated, creating a consistent scrap trading demand. In addition, environmental sustainability and waste management further drive the need for proper scrap disposal and recycling. You can trade various types of scrap, including metals, paper, plastics, and electronic waste.
Before you start: Make sure to check your company name for availability, use a business setup cost calculator to estimate expenses, and explore top-notch support via Meydan Plus to find the best structure for your scrap trading venture.
4669.00 Wholesale of waste and scrap and other products n.e.c.
Apply for your business license under Other specialized Wholesale and choose the business activity wholesale of waste and scrap and other products n.e.c. with activity code 4669.00.
Wholesale of waste and scrap, as well as other products, refers to the business activity of buying and selling these items in bulk quantities. You can include various types of waste and scrap materials such as metal, paper, plastic, electronic waste, and other recyclable materials. Additionally, "other products" may encompass a wide range of goods bought and sold in large quantities, including items like wholesale merchandise, surplus goods, excess inventory, and more.
4669.75 Scrap & Metal Waste Trading
Apply for your business license under wholesale of waste and scrap and other products n.e.c. and choose the business activity Scrap & Metal Waste Trading with activity code 4669.75.
Your Scrap & Metal Waste Trading license allows you to engage in the collection and trade of nonhazardous metal scrap, which is obtained from households, industrial establishments, and agricultural facilities after its use.
4669.77 Aircraft Scrap & Used Spare Parts Trading
Apply for your business license under wholesale of waste and scrap and other products n.e.c. and choose the business activity Aircraft Scrap & Used Spare Parts Trading with activity code 4669.77.
You can resale aircraft scrap and used spare parts with your Aircraft Scrap & Used Spare Parts Trading license. You can acquire these items by dismantling and scrapping old aircraft. As a licensee, you can trade these specific goods, offering them for sale to customers in the aviation industry or other relevant sectors.
Inclusions
Your trade license for Scrap Trading (4669.00, 4669.75 & 4669.77), encompasses the wholesale of various products. This includes industrial chemicals such as aniline, printing ink, essential oils, industrial gases, chemical glues, colorants, synthetic resin, methanol, paraffin, scents, flavorings, soda, industrial salt, acids, sulfurs, starch derivatives, and more. The license also covers wholesale trade in fertilizers, agrochemical products, plastic materials, rubber, textile fibers, paper in bulk, metal and non-metal waste, and scrap for recycling, as well as materials for collecting, sorting, separating, packing, repacking, storing, and delivering. However, it does not involve a process of real transformation. Furthermore, your license permits dismantling of automobiles, computers, televisions, and other equipment only to obtain reusable parts for resale.
Exclusions
Certain activities are explicitly excluded from your scrap trading (4669.00, 4669.75 & 4669.77) license under wholesale of waste and scrap and other products not elsewhere classified (n.e.c.). These exclusions include the collection of household and industrial waste and treating waste not intended for further use in an industrial manufacturing process but for disposal. Additionally, the processing of waste and scrap, and other articles into secondary raw materials is excluded unless a genuine transformation process is involved, resulting in secondary raw materials suitable for direct use in an industrial manufacturing process (but not as final products). Furthermore, your license does not cover dismantling automobiles, computers, televisions, and other equipment for material recovery. The shredding of cars using a mechanical process, ship-breaking, and the retail sale of second-hand goods are also not included within the scope of your license.
Third-Party Approvals
| Activity Code | Business Activity | Approving Authority | When Required |
|---|---|---|---|
| 4669.00 | Wholesale of Waste and Scrap and Other Products N.E.C. | Dubai Municipality (DM) | After obtaining the business license |
| 4669.75 | Scrap & Metal Waste Trading | Dubai Municipality (DM) | After obtaining the business license |
| 4669.77 | Aircraft Scrap & Used Spare Parts Trading | Dubai Civil Aviation Authority (DCAA) | Before obtaining the business license |
AML
AML regulations in Dubai primarily focus on preventing and detecting money laundering and terrorist financing activities.
In Conclusion
Scrap trading in Dubai offers strong potential thanks to the city's thriving construction and industrial sectors, efficient logistics, and growing focus on sustainability. Whether trading metal, paper, plastic, electronic waste, or aircraft scrap, businesses can meet consistent market demand while contributing to recycling and proper waste management.
With Meydan Free Zone, setting up your scrap trading business is straightforward. You can choose from over2,500 business activities, including wholesale of waste and scrap, scrap & metal waste trading, and aircraft scrap & used spare parts trading. Third-party approvals from the Dubai Municipality or Dubai Civil Aviation Authority ensure your operations comply with regulatory standards, while AML regulations apply only to select activities.
Start your business with Meydan Free Zone to access expert guidance, seamless licensing, and a flexible framework to grow your trading venture in Dubai.
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