The industrial equipment and machinery market in Dubai is an important sector of the economy and plays a crucial role in supporting the growth of various other industries. It is expected to continue growing in the coming years, driven by the expansion of various industries and increasing demand for advanced and sustainable technologies.
As a Wholesale Industrial Equipment and Machinery Supplier or a Wholesale Machinery Supplier with a Meydan Free Zone license, your business can buy and sell industrial equipment and machinery in large quantities to retailers, contractors, and other businesses. You can collaborate with manufacturers or distributors to procure equipment at a lower cost and then sell it at a higher price to their clients, earning a profit margin.
The product offerings may include various types of industrial equipment and machinery, such as machine tools, measuring instruments, production-line robots, electrical materials, transport equipment, computer-controlled machinery, and more. Depending on your expertise and experience, you may specialize in specific types of equipment or cater to a particular industry.
The specific products you can offer may vary depending on their specialty, target market, and business model, but here are some examples:
- Machine tools, such as lathes, drills, milling machines, and grinding machines
- Measuring instruments and equipment, such as gauges, metres, and sensors
- Production-line robots and automation equipment for manufacturing processes
- Electrical materials, such as motors, transformers, and switches
- Transport equipment, such as cranes, forklifts, and conveyor systems
- Computer-controlled machinery and equipment, such as CNC machines and industrial robots
- Office machinery and equipment, such as printers, copiers, and shredders
- Office furniture, such as desks, chairs, and filing cabinets
- Sewing and knitting machines for the textile industry
- Wires, cables, and other installation equipment for industrial use
4659.00 – Wholesale of Other Machinery and Equipment
Your business may engage in the wholesale of office machinery and equipment, excluding computers and computer peripheral equipment. This may include items such as printers, photocopiers, fax machines, and other office equipment that businesses need to run their operations. As a Wholesale Machinery Supplier, you may also undertake the wholesale of office furniture. You can wholesale items such as desks, chairs, filing cabinets, and other furniture commonly used in an office environment.
Another area in which you can operate as a Wholesale Machinery supplier is the wholesale of transport equipment, excluding motor vehicles, motorcycles, and bicycles. You can engage in the wholesale of cranes, forklifts, and other items used for material handling within warehouses or other industrial settings.
You may also specialise in the wholesale of production-line robots, which are used in manufacturing and other industrial processes to automate tasks and increase efficiency. This can be in the wholesale of wires, switches, and other installation equipment used in industrial settings. This may include items such as electrical cables, circuit breakers, and other equipment needed for electrical installations.
Being a Wholesale supplier of machinery, you may also provide a range of other electrical materials, such as electrical motors and transformers, which are used in many industrial applications. Additionally, you can sell machine tools of all types and materials under your license. This includes items such as lathes, milling machines, and other tools used in manufacturing and other industrial processes.
Apart from these general categories, you may also specialise in the wholesale of other machinery not elsewhere classified (n.e.c.). This covers a wide variety of machinery and equipment used in different industries and services, such as trade and navigation.
In addition to these general categories, you may also engage in the wholesale of specialised machinery and equipment, such as computer-controlled machine tools or computer-controlled machinery for the textile industry and computer-controlled sewing and knitting machines. Under your trade license, you can also sell measuring instruments and equipment.
Exclusions
The wholesale of motor vehicles, trailers, and caravans is a specialised area that requires expertise and resources beyond what Wholesale Machinery Suppliers typically have. The same applies to the wholesale of motor vehicle parts, which is a separate market with different supply chains and distribution channels.
Motorcycles and bicycles fall outside the scope of machinery and equipment that Wholesale Machinery Suppliers typically offer. These products have their own specialised supply chains and distribution channels, which require a different set of expertise and resources.
Wholesale Machinery Suppliers do not sell computers and peripheral equipment, as well as electronic parts and telephone and communications equipment because they fall under the domain of electronics and technology, which is a specialised market with different industry dynamics and supply chains.
Wholesale Machinery Suppliers focus on providing machinery and equipment for industrial and commercial use rather than for personal or household use. As a result, they exclude products that are typically used in personal or household settings, such as computers and electronic devices.
Third-Party Approvals – Post License
This business activity does not require third-party approval.
ESR
The UAE government has established the Economic Substance Test (EST) to ensure that certain types of enterprises are administered or guided from within the country. This includes having a sufficient number of full-time employees located in the UAE, generating most of their income within the UAE, and having adequate assets and operational expenses in the UAE. Enterprises must report their evaluation through the submission of an Economic Substance Return (ESR) within one year of the fiscal year-end.
Companies with fiscal years that began on or after January 1, 2019, and ended on or before December 31, 2019, for example, must file the notification. Even new companies must file an ESR the following year if this activity requires it.
Business activity 4659.00 is exempt from the ESR requirement.
AML
Designated Non-Financial Businesses and Professions (DNFBPs) in the UAE are required to follow anti-money laundering laws and combat the funding of terrorism and illegal organisations. To meet the Ministry of Economy’s standards, an awareness campaign was held on April 30th, 2021, and existing licensees were already registered for goAML. Failure to comply with the requirements before the deadline will result in fines imposed by the Ministry of Economy.
To avoid penalties, new licensees must meet the requirements after obtaining their license.
Note that business activity 4659.00 is not subject to AML regulations.
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