Metal Scrap & Recycling Materials Trading License in Dubai: Cost and Requirements

Dubai's position as a global trade gateway, combined with the UAE's rapidly expanding circular economy agenda, makes it one of the most strategically sound locations in the world to establish a metal scrap and recycling materials trading business. This guide covers everything you need to know about obtaining Activity Code 4669.08 under a Trading Licence at Dubai South Business Hub Free Zone, including costs, compliance requirements, and why this market presents a compelling opportunity.

Key Stats at a Glance

• Activity Code: 4669.08 - Wholesale of metal scrap, non-metal waste, and recycling materials

• Licence Type: Trading Licence, issued via Dubai South Business Hub Free Zone

• Estimated Setup Cost: AED 15,000 to AED 30,000

• Foreign Ownership: 100% permitted

• Typical Approval Timeline: 5 to 10 working days

• Corporate Tax: 0% on qualifying free zone income

• Global Scrap Metal Market: Valued at over USD 400 billion

• Visa Allocation: 1 to 6 visas depending on office package

Why Dubai Is a Strategic Hub for Scrap and Recycling Materials Trade

The UAE's commitment to its circular economy policy and net-zero 2050 targets has created a robust regulatory and commercial environment for businesses operating in the scrap and recycling materials sector. Government-led initiatives are actively encouraging the formalisation of waste-to-resource trade, making a properly licensed operation both a legal necessity and a commercial advantage.

Dubai's logistics infrastructure is arguably unmatched in the region. Jebel Ali Port, one of the world's largest container ports, and Al Maktoum International Airport provide direct access to re-export corridors stretching into Asia, Africa, and Europe. For a commodity trader dealing in ferrous and non-ferrous scrap, this connectivity translates directly into faster turnaround times and lower freight costs.

The regional construction boom and the expansion of Gulf manufacturing sectors continue to generate consistent volumes of industrial scrap, ensuring a reliable supply base for traders operating from the UAE. Dubai South Free Zone's proximity to Expo City and major industrial clusters in the emirate further strengthens its appeal as a commercial address for this activity, placing licence holders close to both suppliers and logistics partners.

What the Metal Scrap and Recycling Materials Trading Licence Covers

Activity Code 4669.08 specifically authorises the wholesale trading of metal scrap, non-metal waste, and materials designated for recycling. Issued as a Trading Licence under the Trading category through Dubai South Business Hub Free Zone, this licence grants the holder the legal right to buy, sell, and re-export a broad range of materials, including ferrous metals such as steel and iron, non-ferrous metals such as aluminium, copper, and brass, along with industrial waste and recyclable raw materials.

It is important to note that this licence covers commercial and trading activity only. Physical processing, smelting, or manufacturing operations fall outside its scope. Businesses seeking to refine or transform materials would require a separate industrial or manufacturing licence. For pure trading, brokerage, and re-export operations, Activity Code 4669.08 provides comprehensive coverage within the free zone framework.

Who This Licence Is Suited For

This licence is well matched to a specific range of business profiles:

• Scrap metal brokers and commodity traders looking to establish a credible UAE base with access to international markets

• International recycling firms seeking entry into GCC and emerging market supply chains through a cost-effective free zone structure

• Entrepreneurs entering the waste-to-resource sector under the UAE's green economy framework, where regulatory clarity and government support are growing

• Re-exporters who intend to use Dubai as a transit and value-added trading hub, taking advantage of its customs duty exemptions and port infrastructure

Licence Requirements and Compliance Obligations

The documentation required to incorporate under this activity is straightforward by international standards. Applicants will typically need to submit passport copies for all shareholders and directors, a business plan, shareholder details and ownership structure, and a No Objection Certificate where an applicant holds existing UAE residency under another sponsor.

Registration is processed directly through Dubai South Business Hub Free Zone as the issuing authority. One of the most commercially significant features of this structure is that 100% foreign ownership is permitted under the UAE's 2021 Companies Law reform, removing the historical requirement for a local partner. The licence must be renewed annually, and up-to-date trade documentation should be maintained throughout the licence term.

Compliance with UAE Federal Law on waste management is mandatory. Where applicable, approvals from the Ministry of Climate Change and Environment (MOCCAE) may be required for regulated or restricted material categories.

Regulatory Approvals to Be Aware Of

Traders should be aware of several additional compliance layers depending on the specific materials being traded:

• Certain categories of scrap and recyclable materials may require additional clearance from Dubai Municipality or MOCCAE prior to import or re-export

• The import and re-export of hazardous recyclable materials is subject to Basel Convention compliance, which governs the transboundary movement of hazardous wastes

• Customs registration with the Federal Customs Authority is required for any cross-border trade activity, and this step should be completed shortly after licence issuance

Setup Costs and Steps to Get Licensed

The total estimated cost to establish a Metal Scrap and Recycling Materials Trading operation at Dubai South Business Hub Free Zone typically ranges from AED 15,000 to AED 30,000. The variation depends on the office package selected, the number of visa allocations required, and the chosen share capital structure.

The principal cost components include the licence fee, the free zone registration fee, a flexi-desk or physical office lease, and government processing fees. Most free zone trading licences under this structure do not impose a minimum share capital requirement, though maintaining a nominal share capital is considered standard practice for banking purposes. Visa allocation generally starts at one visa and can extend to six visas depending on the office package chosen.

Step-by-Step Setup Process

1. Step 1: Select business activity code 4669.08 and confirm the preferred legal structure, either a Free Zone Establishment (FZE) for a single shareholder or a Free Zone Company (FZCO) for multiple shareholders.

2. Step 2: Submit incorporation documents to Dubai South Business Hub Free Zone, including passport copies, shareholder details, and any required NOC.

3. Step 3: Receive initial approval from the free zone authority and sign the office or flexi-desk lease agreement.

4. Step 4: Pay the licence and registration fees, following which the trade licence certificate is issued.

5. Step 5: Open a corporate bank account with a UAE-registered bank and complete registration with the Federal Customs Authority for cross-border trade.

For standard applications with complete documentation, the typical processing timeline is 5 to 10 working days.

Market Opportunity and Commercial Considerations

The global scrap metal market is valued at over USD 400 billion, and the Middle East occupies a strategically important position within it as both an import destination and a re-export corridor. The UAE has historically handled significant volumes of ferrous and non-ferrous scrap destined for South Asian and East African markets, creating well-established trade lanes that a Dubai-based licence holder can access from day one.

Operating within Dubai South's free zone structure provides a range of financial advantages. Qualifying income is subject to 0% corporate tax, full profit repatriation is permitted with no restrictions on moving capital out of the UAE, and goods re-exported through the free zone benefit from customs duty exemptions. These factors collectively support strong margin potential for well-run trading operations.

Looking ahead, rising demand for steel and aluminium across GCC infrastructure and construction projects is expected to sustain long-term trading volumes, providing a stable commercial backdrop for businesses entering this sector.

Frequently Asked Questions

How much does it cost to obtain a Metal Scrap and Recycling Materials Trading Licence in Dubai?

The total estimated setup cost ranges from AED 15,000 to AED 30,000, covering the licence fee, registration fee, office or flexi-desk lease, and government processing charges. The final figure depends on the office package selected and the number of visa allocations required.

Can a foreign national own 100% of this business?

Yes. Under the UAE's 2021 Companies Law reform, 100% foreign ownership is permitted for businesses registered within Dubai South Business Hub Free Zone. No local partner or UAE national sponsor is required.

What regulatory approvals may be needed beyond the trading licence?

Depending on the materials being traded, additional clearances from Dubai Municipality or the Ministry of Climate Change and Environment (MOCCAE) may be required. Hazardous recyclable materials must also comply with Basel Convention obligations, and customs registration with the Federal Customs Authority is mandatory for cross-border trade.

How long does it take to receive the licence?

For standard applications submitted with complete documentation, the typical processing timeline is 5 to 10 working days from submission to licence issuance.

What profit margins can scrap metal traders expect in this market?

Margins vary based on commodity type, sourcing efficiency, and market conditions. Dubai's free zone tax advantages, customs duty exemptions on re-exports, and access to established trade corridors into South Asia and East Africa support competitive margins for well-structured trading operations.

Can goods be re-exported from Dubai under this licence?

Yes. Activity Code 4669.08 permits the re-export of ferrous and non-ferrous metals and recyclable materials. Dubai South's free zone status provides customs duty exemptions on re-exported goods, making it a commercially attractive hub for transit and re-export operations.

Is a physical office required, or is a flexi-desk sufficient?

A flexi-desk arrangement is typically sufficient for a trading licence of this nature. Physical office space is available for businesses that require it, and the choice of office package will affect the total setup cost and the number of visa allocations available.

Is there a minimum share capital requirement for this licence?

Most free zone trading licences at Dubai South Business Hub Free Zone do not impose a mandatory minimum share capital. However, maintaining a nominal share capital is standard practice, particularly for the purposes of opening a corporate bank account.

Conclusion

A Metal Scrap and Recycling Materials Trading Licence (Activity Code 4669.08) at Dubai South Business Hub Free Zone offers a cost-effective, fully foreign-owned entry point into one of the world's most active commodity trade corridors, backed by strong regulatory clarity and world-class logistics. With setup costs starting from AED 15,000, a streamlined approval process, and access to global re-export routes through Jebel Ali Port and Al Maktoum International Airport, this structure is well suited to traders, brokers, and recycling businesses looking to establish a credible UAE presence.

Speak with a business setup specialist today to get a tailored cost breakdown and begin your licence application for scrap and recycling materials trading in Dubai.

References

• UAE Net Zero by 2050 Strategic Initiative - UAE Government Portal

• Ministry of Climate Change and Environment (MOCCAE) - Official Portal

• Jebel Ali Port - DP World

• Dubai South Business Hub Free Zone - Official Portal

• Basel Convention on the Control of Transboundary Movements of Hazardous Wastes

• Federal Customs Authority UAE - Official Portal

• UAE Corporate Tax - Federal Tax Authority