Start a Ghee and Vegetable Oil Trading Business in Dubai

Global demand for edible oils and dairy fats continues to rise, and the UAE sits at the centre of one of the world's most active food trading corridors. Whether you are looking to import, export, or re-export ghee and vegetable oil across South Asia, Africa, or the wider Middle East, Dubai offers the infrastructure, regulatory clarity, and market access to make it happen efficiently. Setting up under Activity Code 4721.85 at Dubai South Business Hub Free Zone gives traders a structured, cost-effective route into this high-demand sector.

Why Dubai for Ghee and Vegetable Oil Trading?

The UAE is one of the largest re-export hubs in the world, with Dubai handling a significant share of global edible oil and dairy fat trade flows. The country imports substantial volumes of palm oil, sunflower oil, soybean oil, and clarified butter (ghee) to serve both domestic consumption and re-export markets stretching from East Africa to South and Southeast Asia.

Key advantages of operating from Dubai include:

• Strategic location bridging Asia, Africa, and Europe

• World-class port and logistics infrastructure at Jebel Ali

• Zero corporate tax on qualifying free zone income

• 100 per cent foreign ownership permitted in free zones

• Streamlined customs procedures and strong bilateral trade agreements

• A stable regulatory environment with transparent licensing processes

According to the UAE Federal Competitiveness and Statistics Centre, the food and beverage sector consistently ranks among the top contributors to non-oil trade. Edible oils alone represent a multi-billion-dollar segment within this category.

What Activity Code 4721.85 Covers

Activity Code 4721.85 falls under the Trading license category and covers the wholesale and retail trading of ghee and vegetable oils. This includes clarified butter (desi ghee), palm oil, sunflower oil, canola oil, soybean oil, corn oil, and blended cooking oils. The license permits import, export, re-export, and local distribution of these products within the scope of applicable food safety and customs regulations.

Holders of this license can trade with suppliers and buyers across the GCC, Asia, Africa, and beyond, making it particularly well suited to businesses with international sourcing and distribution networks.

Who Should Consider This License?

This trading activity is well suited to a broad range of business profiles, including:

• Established food commodity traders looking to establish a UAE base

• South Asian entrepreneurs with existing ghee or edible oil supply chains

• International importers seeking a re-export platform into Africa or the GCC

• Distributors supplying supermarkets, food service operators, and wholesalers

• Investors looking to diversify into the fast-moving consumer goods sector

Key Stats at a Glance

Infographic: Ghee and Vegetable Oil Trading in Dubai

• Activity Code: 4721.85

• License Type: Trading License

• Free Zone: Dubai South Business Hub

• Foreign Ownership: 100 per cent permitted

• Corporate Tax: 0 per cent on qualifying free zone income

• Typical Setup Timeline: 2 to 4 weeks

• Minimum Share Capital: Subject to free zone authority requirements

• UAE Edible Oil Market: Valued in the billions of USD, with consistent year-on-year growth

Setup Costs and Steps

Setting up a ghee and vegetable oil trading company at Dubai South Business Hub Free Zone involves the following general steps:

1. Choose your business activity and confirm Activity Code 4721.85 applies to your intended trade

2. Select a company structure, typically a Free Zone Limited Liability Company (FZ-LLC)

3. Reserve your trade name in line with UAE naming conventions

4. Submit your application along with required documents including passport copies, business plan, and proof of address

5. Obtain initial approval from the free zone authority

6. Sign your lease agreement for a flexi-desk, office, or warehouse facility

7. Pay license fees and receive your trading license

8. Open a corporate bank account and begin operations

License fees at Dubai South Business Hub Free Zone are competitive, with packages typically starting from AED 12,000 to AED 20,000 per year depending on the office configuration selected. Additional costs may include visa fees, notarisation, and any food-related regulatory approvals.

Licensing and Compliance Requirements

Beyond the free zone trading license, businesses dealing in food products including ghee and vegetable oils must comply with food safety standards governed by the Dubai Municipality and the UAE Food Safety Law (Federal Law No. 10 of 2015). Key compliance considerations include:

• Registration with Dubai Municipality's Food Safety Department for food trading activities

• Compliance with Emirates Authority for Standardisation and Metrology (ESMA) standards for labelling and packaging

• Halal certification where applicable for ghee and animal-derived fat products

• Customs registration with the Federal Customs Authority for import and export operations

• Maintaining proper storage conditions if holding stock within the UAE

Related Activities

• Vegetables & Fruit Trading Trading License

• Fresh, Chilled & Frozen Meat Trading Trading License

• Fresh Fish & Marine Animals Trading Trading License