Basic Non Ferrous Metal Products Trading License in Dubai

The global non-ferrous metals market continues to expand as industries from construction and electronics to aerospace and renewable energy demand reliable supplies of copper, aluminium, zinc, lead, and tin. Dubai sits at the crossroads of these supply chains, and entrepreneurs who secure a Basic Non Ferrous Metal Products Trading Licence in Dubai are well placed to capitalise on that position. Whether you are sourcing from Asia, supplying to Africa, or serving the GCC construction boom, this licence provides the legal framework to trade freely and profitably.

What the Licence Covers

Issued under Activity Code 4752.76 and classified as a Trading Licence in the Trading category, this licence authorises the wholesale and retail trade of basic non-ferrous metal products. Covered commodities typically include:

• Copper and copper alloy products such as rods, sheets, tubes, and wire

• Aluminium profiles, ingots, coils, and sheets

• Zinc, lead, tin, and nickel in primary and semi-fabricated forms

• Brass and bronze products

• Non-ferrous scrap and secondary metals intended for resale

The licence does not cover ferrous metals such as iron and steel, nor does it extend to the manufacturing or processing of these materials. Businesses that wish to add value through cutting, bending, or alloying would require a separate industrial or manufacturing licence.

The Dubai and UAE Market Context

The UAE is one of the Middle East's largest re-export hubs, and metals are among its most traded commodities. Dubai's Jebel Ali Port ranks among the top ten container ports in the world, giving traders direct access to over 150 shipping routes. The UAE's non-oil foreign trade exceeded AED 2.2 trillion in recent years, with metals and related products forming a significant share of that volume. Demand from Saudi Arabia, India, East Africa, and Central Asia continues to drive growth, making a Dubai-based metals trading operation commercially attractive.

Why Dubai South Business Hub Free Zone

Dubai South Business Hub Free Zone is strategically located adjacent to Al Maktoum International Airport and within close proximity to Jebel Ali Port. This dual connectivity makes it one of the most logistics-friendly free zones in the region. Key advantages include:

• 100 per cent foreign ownership with no local sponsor requirement

• Zero corporate and personal income tax

• Full repatriation of profits and capital

• Streamlined business registration and visa processing

• Access to world-class warehousing and logistics infrastructure

Key Stats at a Glance

• Activity Code: 4752.76

• Licence Type: Trading Licence

• Foreign Ownership: 100 per cent permitted

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

• Typical Setup Timeline: 3 to 7 working days

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

• Visa Eligibility: Multiple investor and employee visas available

• Port Access: Jebel Ali Port and Al Maktoum International Airport within close proximity

Who This Licence Suits

The Basic Non Ferrous Metal Products Trading Licence is well suited to a broad range of business profiles, including:

• International metals traders looking to establish a Middle East distribution hub

• Importers supplying construction and manufacturing companies across the GCC

• Entrepreneurs seeking to build re-export businesses targeting Africa and South Asia

• Existing businesses in Europe or Asia wishing to open a regional sales office with full trading rights

• Scrap metal dealers and commodity brokers requiring a compliant UAE entity

Setup Steps and Costs

Setting up a metals trading company in Dubai South Business Hub Free Zone follows a straightforward process:

1. Choose your business activity: Confirm Activity Code 4752.76 and any complementary activities you wish to include.

2. Select a company structure: Free zone limited liability company (FZ-LLC) is the most common choice for trading operations.

3. Reserve your trade name: Submit two or three preferred names for approval in line with UAE naming conventions.

4. Submit incorporation documents: Provide passport copies, visa pages, and any relevant business background documentation.

5. Obtain your licence: Once documents are approved and fees are paid, the licence is typically issued within three to seven working days.

6. Open a corporate bank account: Several UAE and international banks operate in the free zone ecosystem.

7. Apply for visas: Investor and employee visas can be processed once the licence is active.

Costs vary depending on the office package selected, the number of visas required, and any optional services such as nominee services or accounting support. Prospective investors should request a detailed cost breakdown from an authorised registration agent.

Licensing and Compliance Requirements

Holders of this licence must comply with the following ongoing obligations:

• Annual licence renewal and payment of renewal fees

• Maintenance of a registered office address within the free zone

• Adherence to UAE Anti-Money Laundering (AML) regulations, particularly important in metals trading

• Compliance with UAE customs procedures for import, export, and re-export of goods

• Corporate tax registration with the Federal Tax Authority where applicable under the UAE Corporate Tax Law effective from June 2023

• VAT registration if annual taxable supplies exceed AED 375,000

Re-Export and Logistics Advantages

One of the most commercially significant benefits of holding a non-ferrous metals trading licence in Dubai is the ability to re-export goods efficiently. Dubai South's proximity to Jebel Ali means traders can consolidate shipments from multiple origins, store them in bonded or non-bonded warehouses, and redistribute them across more than 100 countries. The UAE has signed free trade agreements and preferential trade arrangements with numerous markets, further reducing costs for compliant re-exporters.

Frequently Asked Questions

How much does it cost to obtain a Basic Non Ferrous Metal Products Trading Licence in Dubai South?

Total costs depend on the chosen office package, number of visas, and any additional services. Licence fees, registration fees, and facility costs are the primary components. It is advisable to request a tailored quote from a registered business setup consultant for an accurate figure.

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

Yes. Dubai South Business Hub Free Zone permits 100 per cent foreign ownership with no requirement for a UAE national sponsor or local partner.

Are there any special government approvals required for metals trading?

Most basic non-ferrous metals trading activities do not require additional ministerial approvals beyond the standard free zone licence. However, traders dealing in scrap metals or certain regulated materials should verify requirements with the relevant UAE authorities, including Dubai Municipality and UAE Customs.

How long does it take to set up the company and receive the licence?

Once all documents are submitted and fees are paid, the licence is typically issued within three to seven working days. Bank account opening may take additional time depending on the chosen bank's due diligence process.

What profit margins can metals traders typically expect?

Margins in non-ferrous metals trading vary considerably based on commodity type, market conditions, and trade volumes. Traders dealing in copper and aluminium often work on margins of one to five per cent per transaction, with volume being the key driver of profitability. Specialist or value-added product lines can command higher margins.

Is re-exporting goods through Dubai permitted under this licence?

Yes. The trading licence permits import, export, and re-export of non-ferrous metal products. Dubai's free zone framework is specifically designed to facilitate re-export trade, and goods can be stored in bonded warehouses without attracting import duties until they are released into the local UAE market.

Do I need a physical warehouse or office facility?

A registered office address within the free zone is mandatory. Physical warehousing is not compulsory for the licence itself, but traders moving physical stock will typically lease warehouse or yard space within the free zone or at a nearby logistics facility. Flexi-desk and virtual office options may be available for trading companies operating on a broker or agent model.

Does the UAE's Corporate Tax affect free zone metals traders?

The UAE introduced a nine per cent corporate tax rate effective June 2023. However, qualifying free zone businesses that meet the substance and activity requirements may benefit from a zero per cent rate on qualifying income. Businesses should seek advice from a UAE-registered tax adviser to confirm their specific position.

Conclusion

A Basic Non Ferrous Metal Products Trading Licence in Dubai South Business Hub Free Zone offers a compelling combination of strategic location, full foreign ownership, tax efficiency, and world-class logistics infrastructure. With Activity Code 4752.76 covering a wide range of non-ferrous commodities and the UAE's position as a global re-export hub continuing to strengthen, this licence is an excellent foundation for any serious metals trading business. To explore your options and receive a tailored cost breakdown, speak with an authorised business setup specialist who can guide you through every step of the registration process.

References and Citations

• Dubai South Official Website

• UAE Ministry of Finance - Corporate Tax

• Federal Tax Authority UAE

• Dubai Customs

• UAE Federal Competitiveness and Statistics Centre

• Jebel Ali Free Zone Authority (JAFZA)