How to Start a Metal Scrap Trading Business in Dubai

A metal scrap and waste trading licence at Dubai South Business Hub Free Zone is available from AED 12,500 for one year, offering a regulated and commercially strategic base for businesses operating in the UAE's active scrap metal sector. 

The UAE occupies a significant position in the global scrap metal trade. A substantial construction industry generates consistent volumes of ferrous and non-ferrous scrap, complemented by active industrial operations and a large vehicle fleet. Export demand from steel mills and metal processors across South Asia and the Far East provides the primary commercial channel for UAE-based scrap traders.  

For traders, this creates a model built on volume, logistics efficiency, and export access. Dubai South Business Hub Free Zone delivers a licensed, free zone framework within which businesses can establish, operate, and scale their scrap trading activities. Located within the Dubai Logistics Corridor, the free zone connects Al Maktoum International Airport with Jebel Ali Port, giving scrap traders direct access to both air and sea freight routes from a single integrated hub. 

For a full overview of business setup costs, read the cost of starting a business in Dubai guide. 

What a Metal Scrap Trading License Covers 

Metal scrap trading at Dubai South Business Hub Free Zone requires Dubai Municipality pre-approval for waste and scrap trading codes, reflecting the regulatory framework governing waste material handling and environmental compliance in Dubai. New steel product trading codes carry no pre-approval requirements. A waste management consultancy code is also available without pre-approval. 

Before you negotiate with demolition contractors or international processors, you must ensure your chosen name is available and strictly compliant with UAE naming laws. The name check tool allows you to verify availability instantly, ensuring your setup remains fast and frictionless. 

Obtain Your Metal Scrap Trading License 

Licenses are available from AED 12,500, with Dubai Municipality pre-approval fees applicable to scrap and waste trading activity codes. Use the cost calculator for a complete estimate, or contact the Dubai South Business Hub Free Zone team directly. By using this tool, you eliminate financial ambiguity and ensure your scrap trading venture is built on a predictable fiscal foundation. 

Essential Activity Codes for Metal Scrap Trading 

• 4669.75   Scrap and Metal Waste Trading (Dubai Municipality pre-approval required) 

• 4669.08   Wholesale of Metal, Non-Metal Waste, Scrap and Materials for Recycling (Dubai Municipality pre-approval required) 

• 4669.00   Wholesale of Waste, Scrap and Other Products (Dubai Municipality pre-approval required) 

• 4669.78   Glass Waste Trading (Dubai Municipality pre-approval required) 

• 4752.31   Reinforcement Steel Bars Trading 

• 4752.75   Basic Steel Products Trading 

• 7020.73   Waste Management and Recycling Consultancy 

Scrap and Metal Waste Trading - 4669.75 / 4669.08 / 4669.00 

Scrap and Metal Waste Trading (4669.75) is the primary code for businesses trading ferrous and non-ferrous scrap metal.  

Wholesale of Metal, Non-Metal Waste, Scrap and Materials for Recycling (4669.08) covers the broader category of scrap and waste materials including metals, plastics, and recyclables. Wholesale of Waste, Scrap and Other Products (4669.00) is the widest classification covering all waste and scrap trading activities. All three require Dubai Municipality pre-approval before your Dubai South Business Hub Free Zone license is issued, reflecting environmental oversight of scrap and waste trading in Dubai. 

Under this license, you could operate a scrap metal trading company sourcing ferrous and non-ferrous scrap from UAE construction sites, industrial facilities, and demolition projects, and exporting to steel mills and metal processors in South Asia and the Far East. The export route is where most UAE scrap metal traders generate their primary commercial volume. 

Third-Party Approval: Pre-approval from Dubai Municipality for all three scrap trading codes.  |  AML / DNFBP: Exempt. 

Glass Waste Trading License - 4669.78 

Glass Waste Trading (4669.78) extends to the collection and trading of waste glass materials for recycling and reprocessing. This code also requires Dubai Municipality pre-approval. The UAE glass recycling and broader circular economy sector is actively growing, with increasing commercial focus on construction glass, container glass, and specialty glass waste streams. 

Third-Party Approval: Dubai Municipality PRE.  |  AML / DNFBP: Exempt. 

New Steel Products Trading License- 4752.31 / 4752.75 

Reinforcement Steel Bars Trading (4752.31) covers the commercial trading of rebar and reinforcement steel used in construction. Basic Steel Products Trading (4752.75) covers the wholesale trading of standard steel products including structural steel, sheet steel, and steel sections. Both codes carry no pre-approval requirements and are distinct from scrap trading, covering new manufactured steel products rather than waste or recycled material. 

Third-Party Approval: None.  |  AML / DNFBP: Exempt. 

Waste Management and Recycling Consultancy - 7020.73 

Waste Management and Recycling Consultancy (7020.73) covers advisory services on waste management strategy, recycling programme development, environmental compliance, and circular economy solutions. For businesses that provide consultancy to companies on their waste management and recycling operations alongside or instead of directly trading scrap, this code provides the consultancy regulatory basis. No pre-approval required. 

Third-Party Approval: None.  |  AML / DNFBP: Exempt. 

Why Dubai for Metal Scrap Trading? 

Dubai is among the most strategically positioned locations in the world for metal scrap trading. The UAE's large and active construction sector generates consistent volumes of ferrous and non-ferrous scrap. Industrial operations and a sizeable vehicle fleet further contribute to scrap supply. Steel mills and metal processors in South Asia and East Asia represent sustained and reliable demand for UAE-sourced material. 

Dubai South's connectivity to Jebel Ali Port via the Dubai Logistics Corridor gives scrap exporters direct access to one of the world's largest container ports, enabling efficient movement of bulk scrap cargo for export. The free zone structure offers 100% foreign ownership, zero paid-up capital requirements, zero personal income tax, and customs duty suspension on goods re-exported without entering UAE domestic consumption, a commercially advantageous foundation for scrap trading businesses operating internationally. 

How to Apply for Your Metal Scrap Trading License at Dubai South Business Hub Free Zone 

Dubai South Business Hub Free Zone provides a structured platform for scrap trading businesses. Licensing starts from AED 12,500 per year, and all founders interested can start application digitally by browsing the business activities list to confirm relevant metal scrap codes.  

Scrap and waste trading activity codes require Dubai Municipality pre-approval before a Dubai South Business Hub Free Zone licence is issued. New steel product trading codes and the waste management consultancy code carry no pre-approval requirements and can be licensed without additional regulatory steps.  

Navigating Approvals at Dubai South Business Hub Free Zone 

Because scrap trading involves environmental oversight, the Beyond Hub team acts as your regulatory liaison assisting with Dubai Municipality pre-approval processes and post-licensing needs. 

• Dubai Municipality Assistance: Assisting with the documentation and submission required for pre-approval for waste-related codes. 

• Residency & Logistics: Managing UAE residency visas and Emirates IDs for your procurement and port-operations staff. 

• Banking: Expert introductions to UAE corporate banks that specialize in international trade and commodity transactions. 

• Taxation: Guidance on VAT registration, crucial for exporters who benefit from zero-rated tax on international shipments. 

Multiple activity codes, including both scrap trading and new steel product trading, may be held on a single license, providing flexibility for businesses operating across the full range of scrap and steel trading activities. 

Frequently Asked Questions

Q1. How much does a metal scrap trading license cost in Dubai? 

Licenses start from AED 12,500 per year at Dubai South Business Hub Free Zone, with additional Dubai Municipality pre-approval fees for scrap trading activities. New steel trading codes carry no pre-approval. However, most founders are unsure how the total cost is structured, especially with Dubai Municipality pre-approval requirements. Use the cost calculator for a fully itemised estimate based on your setup, or contact our team for guidance. 

Q2. Do all scrap trading codes require Dubai Municipality approval? 

Yes. Scrap and Metal Waste Trading (4669.75), Wholesale of Metal, Non-Metal Waste, Scrap and Materials for Recycling (4669.08), Wholesale of Waste, Scrap and Other Products (4669.00), and Glass Waste Trading (4669.78) all require Dubai Municipality pre-approval. However, New steel trading codes (4752.31, 4752.75) carry no pre-approval requirements. 

Q3. Can I combine steel trading with scrap trading on one license? 

Yes. New steel product trading codes (4752.31, 4752.75) and scrap trading codes can be combined on a single Dubai South Business Hub Free Zone license. This integrated structure is commercially useful for businesses that buy and sell both new steel products and scrap material to different customer segments. The scrap codes require Dubai Municipality pre-approval; the steel trading codes do not. 

Q4. Can I export scrap metal from Dubai? 

Yes. Scrap and Metal Waste Trading (4669.75) covers the export of scrap metal materials. Dubai is a major scrap metal export hub, with consistent outbound volumes of steel mills and metal processors in South Asia and East Asia. The free zone structure and proximity to Jebel Ali Port support efficient bulk export operations, with customs duty suspension on goods re-exported without entering UAE domestic consumption makes it commercially attractive to setup export scrap business. 

Q5. Can a foreigner own 100% of a scrap trading business in Dubai? 

Yes. Dubai South Business Hub Free Zone permits 100% foreign ownership of metal scrap and waste trading businesses subject to Dubai Municipality pre-approval for relevant scrap codes. No local sponsor or UAE national partner is required. 

Q6. What does the Dubai Municipality pre-approval involve? 

Dubai Municipality pre-approval for scrap trading typically involves demonstrating environmental compliance, confirming the nature and source of materials to be traded, and meeting requirements for scrap material handling, storage, and transport. The specific documentation requirements vary by activity code and scrap material category. Beyond Hub guides applicants through the pre-approval documentation and submission process as part of the integrated Dubai South Business Hub Free Zone application. 

Q7. Is Jebel Ali Port accessible from Dubai South? 

Yes. Dubai South connects to Jebel Ali Port via the Dubai Logistics Corridor. This proximity gives scrap metal exporters efficient access to container handling and bulk shipping facilities at Jebel Ali, one of the largest ports in the world by container throughput. The logistics corridor enables efficient movement of bulk scrap cargo from free zone storage to port export facilities. 

Q8. Can I provide waste management consultancy alongside scrap trading? 

Yes. Waste Management and Recycling Consultancy (7020.73) can be combined with scrap trading codes on the same Dubai South Business Hub Free Zone license, covering both the product trading and strategic advisory dimensions of the waste and recycling business from one entity. The consultancy code carries no pre-approval requirement and can be added to a license that also holds Dubai Municipality-regulated scrap trading codes. 

Q9. How long does a metal scrap trading license take? 

Dubai Municipality pre-approval determines the overall timeline for scrap trading codes. Once approval is confirmed by Dubai Municipality, the Dubai South Business Hub Free Zone license is issued promptly. New steel trading codes are licensed within one business day without pre-approval. Beyond Hub assists with the Dubai Municipality application and documentation process. 

Q10. How do I start a metal scrap trading business at Dubai South Business Hub Free Zone? 

Confirm your activity codes, complete your name check, and begin the application process. Contact the Dubai South Business Hub Free Zone team for guidance on the Dubai Municipality pre-approval process and a full cost breakdown for your specific activity combination.