How to start an Edible Oils Trading Business in Dubai with Meydan Free Zone?

Armaan Khanna

Armaan Khanna

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Wholesalers play a significant role as intermediaries, facilitating the sourcing and distribution of products to various businesses such as retailers, restaurants, and food processors. The Wholesale of edible oils and fats is a dynamic and crucial aspect of Dubai’s food industry’s supply chain. It involves buying and selling substantial volumes of animal- and vegetable-based oils and fats. The activity also includes sourcing suppliers, negotiating prices, managing inventory, ensuring quality control, and arranging transportation logistics. 

4630.04 Wholesale of edible oils and fats of animal or vegetable origin

Apply for your business license under Wholesale of food and beverages and choose business activity Wholesale of edible oils and fats of animal or vegetable origin with activity code 4630.04.

Wholesale of edible oils and fats of animal or vegetable origin refers to buying and selling large quantities of edible oils and fats to retailers, food processors, and other businesses involved in the food industry.

“Edible oils and fats” encompass a wide range of products that are used for cooking, baking, frying, and food preparation. They can be derived from either animal or vegetable sources. Animal-based oils and fats include butter, lard, tallow, and ghee. Vegetable-based oils and fats encompass commonly used oils such as olive oil, soybean oil, sunflower oil, palm oil, coconut oil, and many others.

As a Wholesaler in this industry, you can purchase these oils and fats directly from manufacturers, processors, or importers in large quantities. They then store and distribute these products to retailers, restaurants, food service providers, and other businesses that require them in bulk. You will act as an intermediary between the producers and end-users, providing a convenient and efficient supply chain for edible oils and fats. 

Inclusions:

When applying for Wholesale of edible oils and fats of animal or vegetable origin business activity with Meydan Free Zone, you can sell a wide range of food and beverage products in large quantities. For example, you can sell a variety of fruits; vegetables; and dairy products such as milk, cheese, and yogurt, as well as eggs and egg products with your trading license. You can also trade in meat and meat products, such as beef, chicken, and mutton.

Moreover, you can include other products, such as fishery products, chocolate, sugar confectionery like candy, cake, and ice cream, and bakery products like bread, pastries, and cakes. You are also authorized to wholesale beverages like soda, juice, energy drinks, coffee, tea, cocoa, and spices like cinnamon, nutmeg, and pepper.

In addition to the above products, this license also permits you to buy wine in bulk and bottle it without any alterations to its taste or quality. You can also offer wholesale feed for pet animals, including pet food for dogs, cats, and birds.

Exclusions

The Wholesale of Edible Oil activity firmly disallows on-site bakery product production. This means that you are strictly prohibited from manufacturing various bakery items, including bread, rolls, fresh pastry, cakes, pies, tarts, rusks, biscuits, and other “dry” bakery products. Additionally, the production of preserved pastry goods, cakes, and snack products, such as cookies, crackers, and pretzels, whether sweet or savory, is not permitted. Furthermore, the creation of tortillas or the manufacturing of frozen bakery items like pancakes, waffles, and rolls is also strictly restricted. 

Third-Party Approval – Post license

Once you have obtained your wholesale food and beverage license, you must apply for a range of permits and approvals from the Food Control Department and the Dubai municipality for your business.

Food Safety Department approval is required post-issuance of your business license from Meydan Free Zone. Food safety departments within the Dubai Municipality are accountable for evaluating and managing best practices in the foodstuff businesses in Dubai. Therefore, as a Wholesaler of Edible oils, you must register with the Dubai Municipality. For your business’s smooth operation, we can assist in securing the required approvals from the Food Safety Department of Dubai Municipality.

If your shop sells imported products, you must also obtain an import license from the Dubai Customs Authorities.

  • List your company in the Food Import and Re-Export System (FIRS) in the DM. This will allow you to request food imports, and you can effortlessly check the status of your import from its inspection to release.  
  • You must acquire a food label approval for all imported food to confirm that your food labeling meets the government standard.  
  • For the importing items, you should also obtain a FIT analysis.  
  • It is also advised that you register all food items in the FIRS before importing them.

4669.79 Used Cooking Oils Trading 

Apply for your business license under Other Specialized Wholesale and choose business activity Used Cooking Oils Trading with activity code 4669.79.

With your Used Cooking Oils Trading license from Meydan Fre Zone, you can sell waste cooking oils collected from restaurants for recycling. You can use these recycled oils to produce soap and biodiesel. 

Biodiesel is a renewable and environmentally friendly alternative to traditional fossil fuels. By collecting and processing used cooking oils, you can contribute to the production of biodiesel, which can be used as a substitute for diesel fuel in vehicles, machinery, and other diesel-powered engines. Used cooking oils can also be processed and transformed into soap through a refining and purification process. 

Exclusions

Your Used Cooking Oils Trading license does not permit the collection of household and industrial waste. Furthermore, it restricts waste treatment, specifically stating that it should not be for further use in an industrial manufacturing process. In addition, the license strictly forbids the retail sale of any used goods.

Third-Party Approval – Post license

Once you have obtained your wholesale food and beverage license, you must apply for a range of permits and approvals from the Food Control Department and the Dubai municipality for your business.

ESR

As a wholesaler of edible oils, you are not subject to regulatory obligations like UBO or ESR. 

AML

Wholesalers of edible oils businesses or Used Cooking Oils Trading in Dubai are exempt from Anti-Money Laundering (AML) regulations.

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