Table of Contents
Frequently Asked Questions
What is activity code 4774.98 and what does it permit in Dubai
Activity code 4774.98 covers Used Heavy Equipment and Machinery Trading in Dubai. It permits the buying and selling of pre-owned industrial and construction machinery, including earthmoving equipment such as excavators, bulldozers, and graders, lifting equipment like cranes and forklifts, road-building machinery, and general industrial plant.
The licence covers import, local sale, and re-export of qualifying equipment. It does not automatically include equipment leasing or rental, which requires a separate activity designation, nor does it cover brokerage as a standalone service without a corresponding trading activity listed on the same licence.
Why is Dubai considered a strong hub for used heavy equipment trading
Dubai sits at the centre of one of the world's most active construction and infrastructure corridors, giving traders direct access to buyers across the GCC, East Africa, and South Asia. The secondary equipment market functions as a commercial layer supporting billions of dollars in regional project activity rather than operating as a niche segment.
The Jebel Ali port corridor and DP World infrastructure rank among the top 10 busiest container port operations globally, enabling traders to source machinery locally or internationally and move it onward with relatively low friction. This re-export model is a core revenue stream for many operators in the space.
What types of buyers typically purchase used heavy equipment in this market
Buyers in the Dubai used heavy equipment market include civil and MEP contractors, project developers, plant hire companies, and government procurement bodies. These are not one-off purchasers — many are repeat buyers with defined equipment specifications and established procurement processes.
Because buyers return regularly with consistent requirements, relationships and stock reliability matter as much as price. Traders who can guarantee equipment condition, documentation, and delivery timelines build stronger long-term commercial positions than those competing on price alone.
What is the typical price range for used heavy equipment compared to new machinery
Used heavy equipment typically trades at 40–70% of the equivalent new equipment value. This discount creates accessible entry points for buyers across emerging markets, particularly contractors and developers in East Africa and South Asia operating within tighter capital budgets.
For traders, this spread also creates margin opportunity when sourcing from fleet renewals, completed project liquidations, or international auction markets and reselling into regions where new equipment lead times or import costs are prohibitive.
Can a used heavy equipment trading company in Dubai sell directly to UAE mainland buyers
A free zone licence permits international trade and re-export without customs duty on goods that do not enter the UAE mainland market. However, selling directly to UAE mainland buyers from a free zone entity is not automatically permitted under the same structure.
If mainland sales are part of your business model, you will need either a mainland distributor arrangement or a dual-licence structure that includes a mainland trading entity. It is important to confirm the exact scope of permitted operations with your free zone adviser before committing to a company structure.
What are the key advantages of setting up through Meydan Free Zone for equipment trading
Meydan Free Zone offers 100% foreign ownership with no requirement for a local sponsor or service agent, making it commercially straightforward for international entrepreneurs. There is no corporate tax on qualifying income within the free zone framework, and the structure supports UAE residency visa issuance for shareholders and employees.
For a trading operation focused on re-export or international sourcing, the free zone model is particularly efficient. A single shareholder or multiple shareholders can be listed, and the trading licence can be structured to include activity code 4774.98 alongside any supplementary activities required for the business model.
What market size and growth figures support entering the UAE used equipment sector
The UAE construction market is projected to exceed USD 65 billion in output by 2027, according to Mordor Intelligence. This sustained pipeline of infrastructure, real estate, and energy projects drives consistent demand for both new and used plant and machinery, with the secondary market absorbing equipment from completed projects, fleet renewals, and contractor liquidations.
At a regional level, the GCC construction equipment market is growing at a compound annual rate driven by Saudi Vision 2030, UAE infrastructure expansion, and Expo legacy projects. These macro drivers create durable demand rather than cyclical spikes, supporting long-term business viability for well-positioned traders.
What are the first steps in the company name reservation and activity selection process for this licence
The setup process begins with name reservation, where you select and reserve a company name that complies with UAE naming conventions. Names must avoid offensive terms and cannot reference religious or governmental bodies without specific regulatory approval.
Following name reservation, you confirm activity code 4774.98 and any supplementary activity codes relevant to your business model. Getting the activity list right at this stage is important because adding or amending activities after incorporation involves additional approvals and fees. Working with a free zone adviser during this step reduces the risk of selecting an incomplete or mismatched activity scope.
How to Start a Used Heavy Equipment Trading Business in Dubai
Dubai sits at the centre of one of the world's most active construction and infrastructure corridors, making it a natural hub for used heavy equipment trade across the GCC, Africa, and South Asia. The secondary equipment market here is not a niche — it is a functioning commercial layer that supports billions of dollars in regional project activity.
This guide covers the commercial reality, licensing requirements, and practical setup steps for launching a used heavy equipment and machinery trading business in Dubai under activity code 4774.98.
Industry Overview and Market Opportunity
The UAE construction sector has sustained strong output through a pipeline of infrastructure, real estate, and energy projects. This drives consistent demand for both new and used plant and machinery — and the secondary market absorbs equipment from completed projects, fleet renewals, and contractor liquidations.
Dubai's position as a re-export hub amplifies this further. Through DP World and the Jebel Ali port corridor, equipment traders can source machinery locally or internationally and move it onward to East Africa, South Asia, and the broader Middle East with relatively low friction. This re-export model is a core revenue stream for many operators in this space.
Key Stats at a Glance
- The UAE construction market is projected to exceed USD 65 billion in output by 2027, according to Mordor Intelligence
- Jebel Ali is ranked among the top 10 busiest container ports globally, supporting high-volume equipment re-export
- The GCC construction equipment market is growing at a compound annual rate driven by Vision 2030, UAE infrastructure expansion, and Expo legacy projects
- Used equipment typically trades at 40–70% of new equipment value, creating accessible entry points for buyers across emerging markets
Buyers in this market include civil and MEP contractors, project developers, plant hire companies, and government procurement bodies. Many are repeat purchasers with defined equipment specifications — meaning relationships and stock reliability matter as much as price.
Business Activities List
Explore Over 2,500+What the Activity Licence Covers
Activity code 4774.98 — Used Heavy Equipment and Machinery Trading — permits the buying and selling of pre-owned industrial and construction machinery. This includes earthmoving equipment such as excavators, bulldozers, and graders; lifting equipment including cranes and forklifts; road-building machinery; and general industrial plant.
The licence covers import, local sale, and re-export of qualifying equipment. It does not automatically cover equipment leasing or rental, which requires a separate activity designation, nor does it cover brokerage as a standalone service without a corresponding trading activity.
Under a free zone licence, you can trade internationally and re-export without customs duty on goods that do not enter the UAE mainland market. If you intend to sell directly to UAE mainland buyers, you will either need a mainland distributor arrangement or a dual-licence structure. Confirm the exact scope of permitted operations with your free zone adviser before committing to a structure.
Setting Up via Meydan Free Zone
Meydan Free Zone offers a straightforward structure for equipment traders: 100% foreign ownership, no corporate tax on qualifying income within the free zone framework, and access to UAE residency visas. For a trading operation focused on re-export or international sourcing, the free zone model is commercially efficient.
The licence type required is a trading licence under the relevant activity code. A single shareholder or multiple shareholders can be listed. There is no requirement for a local sponsor or service agent.
The setup process follows these steps:
- Name reservation: Select and reserve a company name that complies with UAE naming conventions — no offensive terms, no references to religious or governmental bodies without approval
- Activity selection: Confirm activity code 4774.98 and any supplementary activities required for your business model
- Document submission: Passport copies for all shareholders and directors, a basic business plan, and a No Objection Certificate if the applicant holds a current UAE residence visa under another sponsor
- Licence issuance: Upon approval and fee payment, the trade licence is issued — typically within a few working days for standard applications
- Visa and banking: Apply for investor or employee visas based on your visa allocation, then open a corporate bank account using the issued licence
Flexi-desk options are available if you do not require a dedicated yard or warehouse immediately. For equipment storage and inspection, you will need to arrange a separate yard or logistics facility — typically through a bonded warehouse or port-adjacent storage provider.
Documents and Costs
Standard documentation includes passport copies for all shareholders and directors, a completed application form, a brief business plan outlining trading activity and target markets, and an NOC if applicable. Licence fees, visa costs, and any flexi-desk or establishment card fees vary. Use the cost calculator below for current figures rather than relying on indicative numbers that may be out of date.
Free Business Setup Cost Calculator
Calculate NowRegulatory and Compliance Considerations
VAT applies to equipment sales within the UAE at the standard rate of 5%. If you are importing equipment for re-export, specific customs procedures apply and VAT treatment differs. The Federal Tax Authority publishes guidance on VAT obligations for goods trading, and registration is mandatory once taxable turnover exceeds the threshold.
Used machinery imports require supporting documentation: certificates of origin, pre-shipment inspection reports, and in some cases decommissioning certificates from the country of export. Customs clearance through the Ports, Customs and Free Zone Corporation framework governs these processes for goods moving through Dubai's port infrastructure.
If you employ technicians, yard staff, or sales personnel, labour compliance under the Ministry of Human Resources and Emiratisation (MOHRE) applies — including employment contracts, WPS salary processing, and end-of-service entitlements.
Used heavy equipment trading also falls within the scope of UAE anti-money laundering regulations for high-value goods dealers. Businesses dealing in goods above AED 55,000 per transaction are required to implement AML controls, maintain transaction records, and register with the relevant supervisory authority. This is a compliance requirement, not an optional one, and should be built into your operational setup from day one.
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Let's ConnectConclusion
Used heavy equipment trading is a commercially sound activity in Dubai, backed by sustained regional infrastructure demand and strong re-export infrastructure — provided the licence structure, customs compliance, and banking setup are handled correctly from the start. The market is active, the logistics infrastructure is in place, and the free zone model gives international founders a clean, ownership-friendly entry point.
Speak to the Meydan Free Zone team to confirm your activity scope, get a current cost breakdown, and move from decision to licensed entity without unnecessary delay.
References
- DP World (dpworld.com)
- Mordor Intelligence (mordorintelligence.com)
- Federal Tax Authority (tax.gov.ae)
- the Ports, Customs and Free Zone Corporation (pcfc.ae)
- Ministry of Human Resources and Emiratisation (MOHRE) (mohre.gov.ae)
