Table of Contents
Frequently Asked Questions
What business activity licence is needed to trade scrap and metal waste in Dubai
The relevant activity code is 4669.75 — Scrap & Metal Waste Trading, which covers the wholesale trading of recovered and recyclable metals. This includes both ferrous materials such as steel and iron, and non-ferrous materials including copper, aluminium, brass, and zinc.
It is important to note that this licence covers sourcing, trading, and onward sale only — it does not permit processing or smelting of metals. Businesses wishing to carry out those activities would need to apply for separate or additional activity codes.
What types of metals can be traded under a scrap and metal waste trading licence in Dubai
A scrap and metal waste trading licence in Dubai covers two broad categories of material. Ferrous metals include steel and iron, which are commonly sourced from demolition projects, industrial producers, and construction contractors.
Non-ferrous metals covered include copper, aluminium, brass, and zinc. These materials are often in higher demand from foundries and specialist processors due to their value and versatility in manufacturing applications.
Who are the typical customers for a scrap metal trading business in Dubai
The customer base for scrap metal traders in Dubai is commercially well-defined and spans several industries. Primary buyers include steel mills and mini-mills that require consistent scrap feedstock, and foundries producing cast components for automotive and industrial sectors.
Other key customers include metal recycling and processing facilities, industrial manufacturers sourcing secondary raw materials, and construction and demolition contractors disposing of structural metal waste. Regional demand from buyers in India, Bangladesh, Pakistan, and East Africa also makes Dubai a significant re-export hub for these materials.
What are the main revenue models for a scrap metal trader in Dubai
There are three primary ways scrap metal traders in Dubai generate revenue. The most common is margin trading on volume, where traders source material at one price and sell it at a higher price to processors or end-users. Margins are typically thin, so scale and throughput are critical to profitability.
Traders can also operate on a brokerage basis, connecting buyers and sellers and earning a fee without taking physical ownership of the material. A third model involves longer-term volume-based supply contracts, which provide more predictable revenue but require reliable sourcing relationships and logistical capability.
What customs and import-export regulations apply to scrap metal trading in the UAE
Scrap metal trading is a regulated commodity category in the UAE. Import and export activity is subject to controls administered by the Ports, Customs and Free Zone Corporation (PCFC) and the Federal Customs Authority. Specific commodity codes apply to different metal categories, and these must be correctly declared at point of entry and exit.
Documentation requirements are enforced and typically include certificates of origin, material composition declarations, and shipper confirmations. Traders should ensure all paperwork is in order before shipments move, as non-compliance can result in delays or penalties at Jebel Ali or other UAE ports.
How does VAT apply to scrap metal transactions in the UAE
VAT registration is mandatory for any trading business with annual turnover exceeding AED 375,000. Registration, filing, and compliance are governed by the Federal Tax Authority (FTA).
The VAT treatment of scrap metal transactions depends on the nature of the supply. Transactions involving export are generally zero-rated, while domestic supplies between businesses are subject to the standard VAT rate. This distinction has a direct impact on invoicing practices and cash flow planning, so traders should factor it into their financial modelling from the outset.
Are there environmental or waste classification requirements for scrap metal traders in Dubai
Yes. The environmental classification of scrap material is a compliance consideration traders must address. Certain waste categories require documentation confirming that the material is not classified as hazardous before it can be imported, stored, or exported.
For businesses operating from a free zone, storage and handling of materials must comply with applicable waste management regulations set by the relevant free zone authority. Failure to meet these requirements can affect both licensing status and the ability to move goods through UAE ports and customs.
Why is Dubai considered a strategic location for scrap metal trading
Dubai's position as a scrap metal trading hub is structural rather than coincidental. It is built on port capacity at Jebel Ali, operated by DP World, which enables efficient bulk commodity movement at a scale few regional competitors can match. The emirate sits at the centre of a key trade corridor linking Asian manufacturing demand with Middle Eastern and African supply chains.
Policy factors are also reinforcing Dubai's role. Circular economy mandates across GCC member states are creating durable, policy-backed demand for recycled metals, while steel mills across South Asia and foundries throughout Africa are actively sourcing scrap as a lower-cost feedstock alternative to virgin ore. The IMARC Group projects GCC metal recycling market growth at a CAGR of approximately 5–6% through 2028, underlining the long-term commercial opportunity.
How to Start a Scrap and Metal Waste Trading Business in Dubai
Scrap metal moves in one direction through Dubai: in from demolition sites and industry, out to mills and foundries that would rather melt it than buy fresh ore. The emirate sits on the corridor between Asian factory demand and Middle Eastern and African supply, and the volumes are large enough that a well-run trading desk can make a living on thin margins.
This guide covers what activity code 4669.75 lets you trade, who buys the material, how to set up your license through Meydan Free Zone, and the customs and tax rules you have to work inside. Scrap is a controlled commodity, so the paperwork matters more than in most trading activities.
Key Stats at a Glance
What This License Covers
Activity code 4669.75, Scrap and Metal Waste Trading, covers wholesale trade in recovered and recyclable metals. That splits into two families. Ferrous means steel and iron, usually off demolition sites, industrial producers and construction contractors. Non-ferrous means copper, aluminium, brass and zinc, which foundries and specialist processors want more of because the material is worth more.
Read the limit carefully. This license lets you source, trade and sell on. It does not let you process or smelt. If you want to do either of those, you need separate activity codes on top.
Who Your Clients Will Be
The buyer list in this trade is short and well known, which makes prospecting simpler than in most sectors.
- Steel mills and mini-mills that need a steady scrap feedstock
- Foundries casting components for the automotive and industrial trades
- Metal recycling and processing plants
- Industrial manufacturers buying secondary raw materials
- Construction and demolition contractors clearing structural metal waste
There is regional pull as well. Buyers in India, Bangladesh, Pakistan and East Africa take UAE material, which is a large part of why Dubai works as a re-export base rather than just a local market.
Money comes three ways. Margin trading on volume is the common one: buy at one price, sell higher to a processor or end user. Margins are thin, so throughput is what makes it work. Brokerage is the lighter option, where you match buyer and seller for a fee and never take ownership of the metal. Longer-term supply contracts pay more predictably but need reliable sourcing and the logistics to back it up.
Mainland or Free Zone
A free zone base gives you customs duty exemptions on goods moving through the zone, which matters a lot if most of your material is heading back out again. A mainland license from the Department of Economy and Tourism opens up broader domestic selling but treats import duty differently. Let your buyers decide it, not the price.
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Step by Step Setup Guide
- Step 1, confirm your activity and license type: Check code 4669.75 under the wholesale and trading category. The Meydan Free Zone team can confirm eligibility and any conditions attached to the activity before you go further.
- Step 2, pick your company structure: An FZ-LLC is the standard shape. A single shareholder is allowed, and you keep the company outright with no local partner or sponsor.
- Step 3, send in your documents: Passport copies for every shareholder and director, a completed application form, and a basic business plan. If you already hold a UAE residency visa, your current employer may need to issue an NOC.
- Step 4, take your license and confirm visas: Once approved, the trade license is issued and your visa count is set by the package you chose. Issuance usually runs 3 to 7 working days from complete documents.
- Step 5, open a corporate bank account: Meydan Free Zone can introduce you to banking partners. Commodity traders normally face extra KYC, so have trade references and clear commodity descriptions ready.
Indicative pricing for a trading license with one visa starts at roughly AED 12,500 to 15,000 a year, with scaled pricing on multi-visa packages. Flexi-desk access, warehouse referrals and accounting support are available as add-ons. The whole process can be done remotely.
Compliance and What You Need in Place
Customs
Import and export of scrap sits under controls run by the Ports, Customs and Free Zone Corporation and the Federal Customs Authority. Different metal categories carry different commodity codes, and you have to declare them correctly going in and coming out.
Shipping paperwork
Certificates of origin, material composition declarations and shipper confirmations are all enforced at the point of entry and exit. Get them right before the vessel arrives. Paperwork problems at Jebel Ali cost you time and money you cannot recover.
Environmental grading
Some waste categories need documentation confirming the material is not hazardous before it can be imported, stored or exported. If you work from a free zone, your storage and handling must also meet the waste management rules set by the zone authority. Fall short and it can affect both your license standing and your ability to move goods through UAE ports.
VAT
Register with the Federal Tax Authority once annual turnover passes AED 375,000. How VAT lands depends on the deal: exports are generally zero-rated, while domestic business-to-business supply is standard-rated. That split changes your invoicing and your cash flow, so build it into your pricing rather than discovering it at the first filing.
Market Opportunity
Mordor Intelligence puts the global scrap metal market on track to pass USD 600 billion by 2032, with the Middle East acting as a significant transit and consumption corridor. IMARC Group places GCC metal recycling growth at roughly 5 to 6% a year through 2028.
The demand behind those numbers is real rather than speculative. Steel mills across South Asia and foundries throughout Africa are buying scrap as a cheaper feedstock than virgin ore. Circular economy mandates across GCC states are pushing the same way, which makes this policy-backed demand rather than a cycle you have to time.
Dubai's own advantage is throughput. DP World's port capacity at Jebel Ali moves bulk commodity at a scale few regional rivals match, and the UAE consistently ranks among the top re-exporters of metal scrap in MENA. For a trader working on volume, that is a hard operational edge.
Conclusion
Scrap and metal waste trading in Dubai is a workable, lean business with real regional demand behind it, as long as you understand the customs and tax framework before you start rather than after your first shipment.
Three things decide how this goes: correct commodity codes and clean shipping paperwork, environmental documentation that stands up at the port, and VAT handled with the export and domestic split in mind. Get those right and the port infrastructure does the rest of the work for you.
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