Metal Ores Trading Licence in Dubai

Dubai sits at the crossroads of global metals supply chains, making it one of the most strategically valuable locations in the world for metal ores trading. Whether you are an established commodity trader or an entrepreneur entering the wholesale metals sector for the first time, Dubai offers infrastructure, tax efficiency, and market access that few jurisdictions can match. This guide explains how to obtain a Metal Ores Trading Licence (Activity Code 4662.99) at Dubai South Business Hub Free Zone, covering costs, steps, compliance requirements, and why Dubai is the right base for this trade.

Dubai's Metal Ores Market: Why the Opportunity Is Now

The UAE has long served as a re-export hub connecting Asia, Africa, and Europe for raw materials, and the metals sector is no exception. Dubai's non-oil foreign trade reached AED 2.2 trillion in 2023, with base metals and related products forming a significant portion of that volume. Regional demand for iron ore, copper ore, aluminium ore, and other base metal ores continues to grow, driven by infrastructure investment across the GCC, South Asia, and East Africa.

Dubai South's geographic position amplifies this advantage considerably. The free zone sits adjacent to Al Maktoum International Airport, planned to become the world's largest airport by capacity, and is within close proximity to Jebel Ali Port, the largest port in the Middle East and one of the busiest container terminals globally. This combination of air and sea freight infrastructure makes Dubai South an exceptionally practical base for sourcing metal ores from mining regions and redistributing them to end markets across three continents. For traders looking to capitalise on commodity flows between resource-rich nations and fast-growing industrial economies, the timing and location are well aligned.

What a Metal Ores Trading Licence Covers

Activity Code 4662.99 covers the wholesale trading of metal ores and related raw materials not classified elsewhere under standard industrial classification frameworks. A Trading Licence issued under this code at Dubai South Business Hub Free Zone authorises the holder to import, export, re-export, and wholesale distribute a broad range of metal ores and concentrates.

The scope of permitted commodities is wide and includes:

• Iron ores and concentrates

• Copper ores and concentrates

• Nickel ores and related raw materials

• Aluminium ores, including bauxite

• Precious metal ores such as gold and silver ore

• Other base metal ores not covered by more specific activity codes

The licence is categorised as a Trading Licence under the Trading category and is issued directly by the Dubai South Business Hub Free Zone authority. It does not authorise smelting, refining, or physical processing of ores, which would require a separate industrial classification.

Who This Licence Is Suited For

The Metal Ores Trading Licence under Activity Code 4662.99 is appropriate for a range of business profiles:

• Commodity traders and brokers dealing in raw metals and mining outputs who need a regulated, tax-efficient entity

• Mining companies seeking a UAE-based distribution or re-export hub to serve regional buyers

• International trading firms looking to consolidate GCC, African, and Asian market operations under a single entity

• First-time entrepreneurs entering the metals wholesale sector who want a straightforward, cost-effective setup

Setup Costs and Steps at Dubai South Business Hub Free Zone

Licence fees at Dubai South Business Hub Free Zone are competitive relative to other UAE free zones. Indicative costs for a Trading Licence typically start from approximately AED 12,000 to AED 20,000 per year depending on the chosen package, with annual renewal fees in a similar range. Visa allocations are tied to the office or flexi-desk package selected, with flexi-desk options generally supporting one to three visas and dedicated office spaces supporting larger teams.

One of the most significant advantages for international investors is that Dubai South Free Zone permits 100% foreign ownership with no requirement for a local UAE sponsor or partner. Full profit repatriation is also permitted, meaning there are no restrictions on moving earnings out of the UAE.

For straightforward applications, the timeline from submission to licence issuance is typically three to seven working days.

Step-by-Step Licence Application Process

• Step 1: Confirm your business activity as Activity Code 4662.99 with the Dubai South Business Hub Free Zone authority and ensure it aligns with your intended trade flows.

• Step 2: Submit your application along with passport copies for all shareholders and directors, a brief business plan, and shareholder details including UBO declarations.

• Step 3: Select your preferred office or flexi-desk package and pay the applicable licence registration and facility fees.

• Step 4: Receive your trading licence, proceed to open a UAE corporate bank account, and apply for investor or employee visas as required.

Licensing and Compliance Requirements

Standard metal ores trading under Activity Code 4662.99 does not require special ministerial approval, distinguishing it from certain regulated commodities such as precious metals in refined form or radioactive materials. However, traders must observe several compliance obligations under UAE federal law.

Anti-money laundering (AML) and Know Your Customer (KYC) obligations apply under UAE Federal Law No. 20 of 2019 on combating money laundering and the financing of terrorism. Metal ores traders are expected to conduct due diligence on counterparties, maintain transaction records, and report suspicious activity where required.

For import, export, and re-export operations through Jebel Ali or Al Maktoum, traders must maintain accurate customs documentation including certificates of origin, packing lists, and commercial invoices. Annual licence renewal is required, and companies may be required to submit audited financial statements depending on their structure and transaction volumes.

Compliance with UAE Cabinet Decision No. 74 of 2020 on Ultimate Beneficial Owner (UBO) registration is mandatory. All companies must file UBO information with the relevant authority and keep records updated to reflect any changes in ownership structure.

Key Stats at a Glance

• Activity Code: 4662.99 (Wholesale of Metal Ores, NEC)

• Licence Type: Trading Licence, Trading Category

• Foreign Ownership: 100% permitted, no local sponsor required

• Corporate Tax Rate: 0% within the free zone (subject to qualifying conditions)

• Typical Licence Issuance Timeline: 3 to 7 working days

• UAE Non-Oil Foreign Trade (2023): AED 2.2 trillion

• Jebel Ali Port: Largest port in the Middle East, connected to over 200 shipping lines

• Import/Export Duties: 0% within the free zone

Why Dubai South Is the Right Base for Metal Ores Trading

Dubai South occupies a unique position in global trade infrastructure. It is home to Al Maktoum International Airport, which is being developed to become the world's largest airport by passenger and cargo capacity, and sits in close proximity to Jebel Ali Port, the region's busiest port and one of the top ten container terminals in the world. Access to over 200 shipping lines and extensive air freight connections to mining regions in Africa, Central Asia, and South America means that sourcing and distribution can be managed efficiently from a single location.

The free zone's tax framework is a further draw. Businesses operating within Dubai South benefit from 0% corporate and personal income tax, full profit repatriation, and no import or export duties on goods moving within the zone. These conditions make it considerably easier to manage margins in a sector where commodity price volatility can be significant.

Dubai's legal and regulatory environment also provides trader confidence. The UAE's alignment with international trade law standards, combined with access to DIFC-aligned dispute resolution mechanisms, means that commercial agreements are enforceable and counterparty risk can be managed within a well-established legal framework.

Frequently Asked Questions

What is the cost of a Metal Ores Trading Licence at Dubai South Business Hub Free Zone?

Indicative licence fees start from approximately AED 12,000 to AED 20,000 per year, depending on the package selected. This typically includes the trading licence and a flexi-desk or office facility. Additional costs include visa fees, registration charges, and any notarisation or attestation of documents required for foreign shareholders.

Can a foreign national own 100% of a metal ores trading company in Dubai South?

Yes. Dubai South Business Hub Free Zone permits 100% foreign ownership with no requirement for a UAE national sponsor or local partner. This applies to all nationalities subject to standard eligibility checks.

Are any special government approvals required for metal ores trading under Activity Code 4662.99?

Standard metal ores trading under this activity code does not require additional ministerial or regulatory approvals beyond the free zone licence itself. However, traders dealing in certain specific ores that may be subject to international sanctions or export controls should seek legal advice to confirm their compliance position before commencing trade.

How long does it take to receive the trading licence?

For straightforward applications with complete documentation, the licence is typically issued within three to seven working days. More complex structures involving multiple shareholders or corporate entities may take slightly longer.

What profit margins can metal ores traders expect?

Margins in metal ores trading vary considerably depending on the commodity, trade route, and market conditions. Wholesale traders typically operate on margins ranging from 2% to 8% on transaction value, though this can fluctuate with global commodity prices, freight costs, and currency movements. The tax-free environment in Dubai South helps preserve net margins compared to trading from higher-tax jurisdictions.

Can a company licensed at Dubai South re-export metal ores to third countries?

Yes. Re-export is explicitly permitted under Activity Code 4662.99. Dubai South's proximity to Jebel Ali Port and Al Maktoum International Airport makes it well suited for re-export operations, and the free zone's customs procedures are designed to facilitate efficient transit and re-export of goods.

What facility requirements apply to metal ores trading companies?

Metal ores traders operating under a Trading Licence are not required to maintain physical warehousing or storage within the free zone unless they intend to hold physical stock. A flexi-desk or virtual office arrangement is sufficient for a trading and brokerage model. Companies that wish to store ore samples or manage physical inventory may opt for warehouse space within or adjacent to the free zone.

What ongoing compliance obligations apply after the licence is issued?

Licence holders must renew their trading licence annually, maintain AML and KYC records, keep UBO registration information updated in line with UAE Cabinet Decision No. 74 of 2020, and comply with customs documentation requirements for each import, export, or re-export transaction. Audited financial statements may be required depending on the company's structure and applicable regulations.

Conclusion

A Metal Ores Trading Licence at Dubai South Business Hub Free Zone under Activity Code 4662.99 gives traders full foreign ownership, tax efficiency, and unmatched logistics access to global metals markets. With a straightforward setup process, competitive costs, and a regulatory framework that supports international trade, Dubai South is well positioned as the base of choice for metal ores traders serving markets across Asia, Africa, and Europe.

Contact our business setup specialists today to receive a tailored cost breakdown and start your metal ores trading licence application at Dubai South.

References

• Dubai South Free Zone Official Website

• UAE Ministry of Economy

• UAE Cabinet Decision No. 74 of 2020 on Ultimate Beneficial Owner Procedures

• UAE Financial Intelligence Unit: AML/CFT Framework

• Jebel Ali Free Zone Authority (JAFZA)

• Dubai Chamber of Commerce: Trade Statistics

• UAE Federal Competitiveness and Statistics Authority