How to Get a Metals and Metal Ores Trading License in Dubai

Dubai sits at the crossroads of global commodity flows, and few sectors illustrate that position better than metals and metal ores trading. With the UAE's non-oil foreign trade surpassing AED 2.8 trillion in recent years and the country consistently ranked among the world's top re-export hubs, establishing a metals trading operation here offers genuine commercial advantage. Whether you are sourcing raw ores for onward shipment or trading processed metals across Asia, Africa, and Europe, a dedicated trading licence under Activity Code 4662 gives your business the legal framework to operate with confidence.

What the Metals and Metal Ores Trading Licence Covers

Activity Code 4662 falls under the wholesale and trading category and authorises the holder to buy and sell a broad range of metallic commodities. Covered activities typically include:

• Wholesale trade of ferrous and non-ferrous metal ores

• Trading of iron, steel, copper, aluminium, and related alloys

• Import, export, and re-export of raw and semi-processed metals

• Brokerage and agency activities connected to metals commodities

• Storage and distribution of metal products within licensed premises

The licence does not cover manufacturing or processing activities. If your business model involves smelting, refining, or fabrication, a separate industrial licence would be required alongside or instead of a trading licence.

Why Dubai South Business Hub Free Zone

Dubai South is a purpose-built economic zone centred around Al Maktoum International Airport, which is planned to become the world's largest airport by cargo capacity. For metals and metal ores traders, this location provides direct airfreight connectivity, proximity to Jebel Ali Port, and seamless access to the UAE's road network linking GCC markets.

The Business Hub within Dubai South offers a streamlined licensing environment with 100 per cent foreign ownership, zero personal income tax, and full repatriation of profits. Companies registered here can trade internationally without the need for a local Emirati sponsor, making it particularly attractive for overseas investors entering the UAE market for the first time.

Key Stats at a Glance

• Activity Code: 4662 - Wholesale of Metals and Metal Ores

• Licence Type: Trading Licence

• Free Zone: Dubai South Business Hub

• Foreign Ownership: 100 per cent permitted

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

• UAE Non-Oil Trade: Over AED 2.8 trillion annually

• Typical Licence Approval Timeline: 3 to 7 working days

• Minimum Share Capital: Subject to free zone requirements at time of application

Who This Licence Is Suited To

The 4662 trading licence is well matched to a wide range of operators, including international commodity traders looking for a tax-efficient regional base, mining companies seeking a distribution hub for their output, metal recycling firms engaged in cross-border trade, and procurement businesses sourcing industrial materials for construction or manufacturing clients across the Middle East and Africa.

Setup Costs and Steps

Costs vary depending on the office package and visa allocation chosen, but the process follows a clear sequence:

• Step 1 - Choose your business structure: Free zone companies at Dubai South can be set up as a Free Zone Company (FZCO) or a branch of an existing foreign entity.

• Step 2 - Reserve your trade name: The name must comply with UAE naming conventions and must not replicate existing registered entities.

• Step 3 - Submit your application: Provide passport copies, a business plan summary, and completed application forms to the free zone authority.

• Step 4 - Select an office or facility: Options range from flexi-desk packages for purely trading operations to warehousing units for businesses requiring physical storage of metal stock.

• Step 5 - Pay licence and registration fees: Fees are paid upon approval and cover the first year of operation. Annual renewal fees apply thereafter.

• Step 6 - Obtain your licence and open a corporate bank account: Once issued, the licence enables you to apply for UAE residence visas and open a business bank account with a UAE-regulated institution.

Licensing and Compliance Requirements

Metals and metal ores traders operating in Dubai must adhere to UAE customs regulations administered by the Federal Customs Authority, as well as any commodity-specific controls that apply to certain strategic metals. Anti-money laundering obligations under the UAE's AML framework apply to all trading entities, and businesses should maintain accurate records of counterparties and transactions. Value Added Tax at five per cent applies to domestic transactions, while exports and re-exports are generally zero-rated, preserving the commercial efficiency of using Dubai as a transit hub.

Why Dubai Is Well-Positioned for Metals Trade

The UAE's geographic position places it within an eight-hour flight of approximately three billion consumers across South Asia, East Africa, and Eastern Europe. Jebel Ali Port, operated adjacent to the Dubai South zone, is the largest port in the Middle East and consistently ranks among the top ten container ports globally. The country has signed numerous bilateral trade agreements and benefits from a robust network of double taxation treaties, reducing the friction of cross-border transactions for registered businesses.

Furthermore, the UAE's political stability, transparent legal system based on civil law principles, and commitment to economic diversification under the UAE Vision 2031 framework make it a dependable long-term base for commodity trading operations.

Frequently Asked Questions

How much does a metals trading licence cost at Dubai South?

Licence fees at Dubai South Business Hub vary based on the package selected, including the number of visas and the type of premises. Entry-level packages for trading licences typically start from around AED 12,000 to AED 20,000 per year, though this figure can change. It is advisable to request a current fee schedule directly from the free zone authority or through a registered business setup consultant.

Can a foreign national own 100 per cent of the company?

Yes. Businesses registered within Dubai South free zone are permitted 100 per cent foreign ownership with no requirement for a local Emirati partner or sponsor. This applies to both individual investors and corporate shareholders.

Are any special approvals required to trade metals and metal ores?

In most cases, the standard trading licence under Activity Code 4662 is sufficient. However, certain metals classified as strategic or dual-use materials may require additional approvals from UAE federal authorities. Traders should verify the specific commodity codes of their products against UAE customs and export control lists before commencing operations.

How long does it take to get the licence?

Once all documents are submitted and fees are paid, approval typically takes between three and seven working days at Dubai South. The full setup process, including bank account opening, may take three to six weeks depending on the institution selected.

What profit margins can metals traders expect in Dubai?

Margins vary significantly by metal type, trade route, and market conditions. Traders operating through a zero-tax free zone benefit from retaining a higher proportion of gross margin compared with onshore structures, which is a key commercial driver for locating in Dubai South.

Can I re-export metals purchased internationally through my Dubai company?

Yes. Re-export is one of the primary commercial use cases for this licence type. Dubai's free zone framework is specifically designed to facilitate the import, storage, and re-export of commodities including metals, with customs duties generally suspended on goods that do not enter the UAE domestic market.

Do I need a physical warehouse or office to hold this licence?

A physical address within the free zone is required, but this does not necessarily mean a warehouse. For purely trading and brokerage activities, a flexi-desk or serviced office arrangement is usually acceptable. If you intend to physically receive and store metal stock, you will need to lease an appropriate warehousing or storage unit within the zone.

Is the licence renewable, and what are the ongoing obligations?

The licence must be renewed annually. Renewal requires payment of the applicable fee, confirmation that the business remains compliant with free zone regulations, and updated documentation where relevant. Businesses must also maintain their AML records, file VAT returns with the Federal Tax Authority, and comply with any UAE corporate tax obligations applicable to their structure.

Conclusion

A Metals and Metal Ores Trading Licence under Activity Code 4662 at Dubai South Business Hub represents a practical and commercially sound route into one of the world's most active commodity trade corridors. The combination of 100 per cent foreign ownership, a zero-tax environment on qualifying income, world-class logistics infrastructure, and a transparent regulatory framework makes Dubai a compelling choice for metals traders at any stage of growth. If you are ready to explore your options, speaking with a licensed business setup adviser familiar with Dubai South's current fee structures and documentation requirements is the most efficient first step.

References and Further Reading

• Dubai South Official Website

• UAE Ministry of Economy

• Federal Customs Authority UAE

• Federal Tax Authority UAE

• UAE Anti-Money Laundering and Countering the Financing of Terrorism

• UAE Vision 2031 - Official UAE Government Portal