Table of Contents
Topic Summary
A Booming Global Market Worth Billions
The global agarwood chips market is valued at USD 41.05 billion in 2024 and is projected to reach USD 67.45 billion by 2031 at a CAGR of 7.4%. This makes it one of the most lucrative aromatic commodity markets in the world.
Dubai Is a Natural Hub for Oud Trading
The UAE is home to world-renowned fragrance houses like Ajmal, Arabian Oud, and Rasasi, all built around agarwood as a core raw material. Emirati and GCC consumers have deep cultural traditions around burning oud and incense for home fragrance and ceremonial use.
Know Which Products Fall Under This License
Activity 4772.93 covers agarwood chips, oud wood, oud essential oil, bakhoor, frankincense, myrrh, incense sticks, and incense burners. Finished bottled oud perfumes are a separate category under activity 4772.03.
Two Clear Business Models to Consider
You can operate as a retail fragrance trader serving Arabic fragrance consumers directly, or as a wholesale importer supplying retailers, souk traders, and hospitality operators. Both models are supported under the same Meydan Free Zone activity.
No Third-Party Approval Required to Start
Obtaining a business license for agarwood and incense trading through Meydan Free Zone does not require any third-party regulatory approval. This streamlines the setup process significantly compared to many other product categories.
AML Compliance Is Not Required for This Activity
Unlike some trading activities in the UAE, agarwood and incense trading under activity 4772.93 is not subject to Anti-Money Laundering compliance requirements. This reduces administrative burden for new business owners.
How to Start a Agarwood & Incense Trading Business in Dubai with Meydan Free Zone
Agarwood -- known as oud in Arabic -- is among the most prized and culturally significant aromatic materials in the world, and the UAE is one of its most important global markets. The global agarwood chips market is estimated at USD 41.05 billion in 2024, projected to reach USD 67.45 billion by 2031 at a CAGR of 7.4%.[1] The UAE is home to world-renowned fragrance houses including Ajmal, Arabian Oud, Rasasi, Swiss Arabian, and Nabeel, all of which are built around oud and agarwood as their core aromatic raw material.
Emirati nationals and GCC consumers have a deep cultural tradition of burning incense and oud wood for home fragrance, personal scenting, and ceremonial use. Beyond oud, the incense category encompasses bakhoor (perfumed wood chips), frankincense, myrrh, and specialist Arabian incense blends -- all core products in the UAE fragrance market, which is one of the world's most culturally active.
Who is this for?
| Audience Segment | Profile |
|---|---|
| RETAIL FRAGRANCE | Agarwood and Oud Fragrance Retailers Specialist retailers and fragrance boutiques trading oud wood, agarwood chips, oud oil, and agarwood-based incense products for the UAE's large and culturally active Arabic fragrance consumer market. |
| WHOLESALE AND DISTRIBUTION | Incense and Agarwood Wholesale Traders Wholesale traders and importers supplying bakhoor, frankincense, myrrh, incense sticks, and agarwood products to fragrance retailers, souk traders, hospitality operators, and regional distribution channels. |
4772.93 - Agarwood & Incense Trading
Activity 4772.93 covers the trading of agarwood and incense, interpreted within the retail sale of pharmaceutical and medical goods, cosmetic and toilet articles in specialised stores. This encompasses agarwood chips and oud wood, oud essential oil, bakhoor (perfumed wood incense), frankincense and myrrh resins, Arabic incense blends, incense sticks and cones, incense burners and censers, and all agarwood-derived and incense products traded in retail and wholesale channels.
Activity 4772.93 covers agarwood and incense products. Finished oud and Arabic perfumes as consumer products fall under 4772.03.
General home fragrance products fall under 4772.94.
In short: if you are trading agarwood, oud, bakhoor, frankincense, and incense products, you are in. Finished bottled oud perfumes fall under 4772.03.
| Category | Scope |
|---|---|
| Agarwood chips and oud woodPremium and commercial-grade agarwood chips, oud wood pieces, and raw agarwood for burning and incense applications. | Frankincense and myrrh Frankincense resins, myrrh, copal, and traditional Middle Eastern aromatic resins traded alongside agarwood in the incense category. |
| Oud essential oil and attarsPure oud oil extracts, oud-based attars, oud-infused fragrance oils, and agarwood-derived aromatic oils for personal use and perfumery. | Incense accessories and burners Traditional Arabic incense burners, electric censers, incense holders, charcoal discs, and accessories for incense preparation and burning. |
| Bakhoor and perfumed incense | Bakhoor blends, perfumed wood chips, and traditional Arabic incense preparations for home fragrance and ceremonial burning. |
Third-Party Approval
This activity does not require third-party approval to obtain a business license from Meydan Free Zone.
Anti-Money Laundering Compliance
This business activity is not subject to AML compliance requirements.
References
- ¹ Persistence Market Research. (2024). Agarwood Chips Market Size, Trends and Leading Players 2031. persistencemarketresearch.com
