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
Dubai sits at the centre of one of the world's most active scrap metal corridors, linking Asian manufacturing demand with Middle Eastern and African supply chains. The emirate's position as a re-export hub for both ferrous and non-ferrous scrap is not incidental — it is structural, built on port capacity, customs infrastructure, and decades of commodity trading expertise.
Regional demand is rising. Steel mills across South Asia and foundries throughout Africa are actively sourcing scrap as a lower-cost feedstock alternative to virgin ore. Circular economy mandates across GCC member states are reinforcing this shift, creating durable, policy-backed demand rather than cyclical opportunism.
- The global scrap metal market is projected to exceed USD 600 billion by 2032, with the Middle East representing a significant transit and consumption corridor (Mordor Intelligence)
- The UAE consistently ranks among the top re-exporters of metal scrap in the MENA region, driven by Jebel Ali's throughput capacity (DP World)
- UAE scrap and recycled metals trade supports downstream industries across India, Bangladesh, Pakistan, and East Africa
- The IMARC Group places GCC metal recycling market growth at a CAGR of approximately 5–6% through 2028 (IMARC Group)
Dubai's port infrastructure, operated through DP World at Jebel Ali, enables efficient bulk commodity movement at a scale few regional competitors can match. For a scrap metal trader, this is a material operational advantage.
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Activity code 4669.75 — Scrap & Metal Waste Trading — covers the wholesale trading of recovered and recyclable metals. This includes ferrous materials such as steel and iron, and non-ferrous materials including copper, aluminium, brass, and zinc. The licence does not cover processing or smelting; it covers sourcing, trading, and onward sale.
The customer base is commercially well-defined:
- Steel mills and mini-mills requiring consistent scrap feedstock
- Foundries producing cast components for automotive and industrial sectors
- Metal recycling and processing facilities
- Industrial manufacturers sourcing secondary raw materials
- Construction and demolition contractors disposing of structural metal waste
The business model is straightforward. Traders source material from demolition contractors, industrial producers, and importers, then sell to processors, exporters, or end-users. Revenue is generated through margin trading on volume, brokerage arrangements between buyers and sellers, and longer-term volume-based supply contracts. Margins are thin but scale is accessible given Dubai's throughput volumes.
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Scrap metal trading is a regulated commodity category in the UAE. Traders must understand both customs and tax obligations before commencing operations.
Import and export of scrap metals 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 documentation requirements — including certificates of origin, material composition declarations, and shipper confirmations — are enforced at point of entry and exit.
VAT registration is mandatory for any trading business with annual turnover exceeding AED 375,000. The Federal Tax Authority (FTA) governs registration, filing, and compliance. Scrap metal transactions between VAT-registered businesses are generally zero-rated for export but standard-rated for domestic supply — a distinction that affects invoicing and cash flow planning.
Environmental classification of scrap material matters. Certain waste categories require documentation confirming they are not hazardous. Free zone operators must store and handle materials in accordance with applicable waste management regulations.
Operating from a free zone such as Meydan provides customs duty exemptions on goods transiting through the zone, which is commercially significant for re-export-oriented traders. Mainland licences allow broader domestic market access but carry different customs duty treatment on imports.
Setting Up via Meydan Free Zone: Step-by-Step
Meydan Free Zone issues trading licences under activity 4669.75 and supports 100% foreign-owned company structures with no paid-up capital requirement. The process is direct.
- Select your activity and licence type. Confirm activity code 4669.75 under the wholesale/trading licence category. Meydan's team can verify eligibility and any activity-specific conditions before you proceed.
- Choose your company structure. The standard vehicle is an FZ-LLC. A single shareholder is permitted. Full foreign ownership is available without a local partner or sponsor.
- Submit documentation. Required documents include passport copies for all shareholders and directors, a completed application form, and a basic business plan. An NOC from a current UAE employer may be required if the applicant holds a UAE residency visa.
- Licence issuance and visa allocation. Once approved, the trade licence is issued and visa entitlements are confirmed based on the chosen package.
- Open a corporate bank account. Meydan can facilitate introductions to banking partners. Account opening for commodity trading businesses typically requires additional KYC documentation including trade references and commodity descriptions.
Costs and Timelines
Meydan Free Zone licence packages are competitively structured. Indicative costs for a trading licence with one visa start from approximately AED 12,500–15,000 per year, with multi-visa packages available at scaled pricing. Optional add-ons include flexi-desk access, warehouse referrals, and accounting support.
Licence issuance typically takes 3–7 working days from submission of complete documentation. Remote setup is fully supported — the entire process can be completed without travelling to Dubai.
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Scrap and metal waste trading is a commercially viable, operationally lean business in Dubai with genuine regional demand — provided the regulatory and customs framework is understood from the outset. The combination of Dubai's port infrastructure, the UAE's re-export position, and Meydan Free Zone's straightforward licence structure makes this an accessible market entry point for experienced commodity traders and new entrants alike.
Speak with the Meydan Free Zone team to confirm activity eligibility, receive a detailed cost breakdown, and begin your licence application.
References
- Mordor Intelligence (mordorintelligence.com)
- DP World (dpworld.com)
- IMARC Group (imarcgroup.com)
- Ports, Customs and Free Zone Corporation (PCFC) (pcfc.ae)
- Federal Tax Authority (FTA) (tax.gov.ae)
