Apply for an Agarwood & Incense Trading License in Dubai
The global agarwood and incense market is valued in the billions, and the UAE sits at the very heart of it. From traditional Emirati oud burning rituals to the rapidly growing international luxury fragrance sector, demand for high-quality agarwood and incense products continues to climb. If you are looking to enter this lucrative trade, obtaining an Agarwood & Incense Trading License at Dubai South Business Hub Free Zone is one of the most strategically sound business decisions you can make.
This guide covers everything you need to know, from what the license covers and who it suits, to setup costs, compliance requirements, and why Dubai remains the world's premier hub for this ancient and highly profitable commodity.
What the Agarwood & Incense Trading License Covers
Issued under Activity Code 4772.93, this is a Trading License in the Trading category. It authorises the holder to buy, sell, import, export, and re-export agarwood products, incense, bakhoor, oud oils, and related aromatic goods. The license permits wholesale and retail trading activities, enabling businesses to operate across both domestic UAE markets and international supply chains from a single free zone entity.
Permitted activities typically include:
Trading in raw and processed agarwood (oud)
Import and export of incense sticks, cones, and chips
Distribution of bakhoor and oud-based fragrance products
Re-export of agarwood products to GCC, Asian, and European markets
Wholesale supply to retailers, perfumeries, and hospitality businesses
Why Dubai Is Perfectly Positioned for This Trade
The UAE is consistently ranked among the world's top importers and re-exporters of agarwood. The country's cultural affinity for oud and incense, combined with its world-class logistics infrastructure, makes it an unrivalled trading gateway. Dubai's ports and airports connect traders to sourcing markets in Southeast Asia, South Asia, and the Indian subcontinent, while providing seamless access to high-value consumer markets in Europe, the Americas, and across the GCC.
Dubai South Business Hub Free Zone offers additional advantages, including 100% foreign ownership, zero personal income tax, zero corporate tax on qualifying income, and full repatriation of profits. Its proximity to Al Maktoum International Airport makes it especially valuable for time-sensitive, high-value commodity trading.
Key Stats at a Glance
Activity Code: 4772.93
License Type: Trading License
Category: Trading
Free Zone: Dubai South Business Hub
Foreign Ownership: 100% permitted
Corporate Tax: 0% on qualifying free zone income
UAE agarwood re-exports: among the highest globally
Typical license setup timeline: 3 to 7 working days
Minimum share capital: subject to authority requirements
Who This License Is Suited For
The Agarwood & Incense Trading License is ideal for a wide range of entrepreneurs and established businesses, including:
International traders looking to use Dubai as a re-export hub
Fragrance and perfumery brands sourcing raw oud materials
Southeast Asian exporters seeking a UAE distribution base
Retail entrepreneurs targeting the GCC luxury goods market
Hospitality and wellness businesses requiring bulk incense supply
Setup Costs and Steps
Setting up at Dubai South Business Hub Free Zone is a straightforward process. Costs vary depending on the office package, visa requirements, and additional approvals, but the following outlines the general structure:
Component | Details |
|---|---|
License Fee | Payable annually to the free zone authority |
Office / Flexi-Desk Package | Flexi-desk options available for cost efficiency |
Visa Allocation | Dependent on office space selected |
Registration Fee | One-time company incorporation fee |
CITES Compliance (if applicable) | Permits for regulated agarwood species |
The general steps to obtain your license are:
Select your business activity and confirm it under code 4772.93
Choose your company structure (FZE or FZC)
Submit your application with required documents (passport copies, business plan, NOC if applicable)
Receive initial approval and pay license fees
Sign the lease agreement for your chosen office package
Obtain your trade license and company incorporation certificate
Open a corporate bank account
Apply for relevant CITES permits if trading in protected agarwood species
Licensing and Compliance Requirements
Agarwood is listed under CITES (the Convention on International Trade in Endangered Species), specifically Aquilaria and Gyrinops species. Traders must ensure all sourced products carry valid CITES documentation confirming legal and sustainable harvesting. The UAE Ministry of Climate Change and Environment oversees CITES compliance domestically.
Additional compliance considerations include:
Customs documentation for each import and export shipment
Adherence to UAE Federal Customs Authority regulations
Product labelling requirements for retail-facing goods
Anti-money laundering (AML) compliance for high-value commodity trading
Profit Margins and Market Opportunity
Agarwood is one of the most valuable natural commodities in the world, with premium grades commanding prices of thousands of dollars per kilogram. Gross margins in the agarwood trading sector can range significantly depending on grade, origin, and end market. The UAE's position as a luxury fragrance hub means traders with access to quality sourcing and strong buyer relationships can achieve highly attractive returns, particularly on re-export to European and East Asian markets.
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