Start a Non-Ferrous Metals Wholesale Trading Business in Dubai
Global demand for non-ferrous metals continues to rise, driven by rapid growth in electric vehicles, renewable energy infrastructure, and advanced manufacturing. Dubai sits at the crossroads of the world's most active trade corridors, making it one of the most strategically valuable locations to establish a wholesale metals trading operation. For entrepreneurs and established traders alike, securing a trading license under activity code 4662.02 at Dubai South Business Hub Free Zone offers a direct, cost-effective route into this high-value market.
This guide covers everything you need to know about setting up a ferrous and non-ferrous metals wholesale trading business in Dubai, from what the license covers and who it suits, to costs, compliance requirements, and the competitive advantages the emirate provides.
What the License Covers
Activity code 4662.02 falls under the ISIC classification for the wholesale of metals and metal ores in primary forms. A trading license under this activity permits the holder to buy and sell non-ferrous metals and related ferrous metals in their primary state. This includes, but is not limited to:
Aluminium, copper, zinc, lead, tin, and nickel in primary forms
Precious metals including gold, silver, and platinum group metals
Metal alloys and semi-finished primary metal products
Ferrous metals such as iron and steel in primary forms
Metal ores and concentrates traded on a wholesale basis
The license does not cover the manufacture or further processing of metals. It is strictly a wholesale trading activity, covering procurement, storage, and resale across domestic and international markets.
The Dubai and UAE Market Context
The UAE is one of the world's leading re-export hubs, with Dubai accounting for the vast majority of the country's non-oil trade. The emirate's metals and commodities sector benefits from world-class port infrastructure, including Jebel Ali Port, which ranks among the top ten busiest container ports globally. The Dubai Multi Commodities Centre (Dubai’s commodities ecosystem) reported that the UAE's gold and precious metals trade alone exceeded USD 75 billion in recent years, underscoring the scale of commodity flows through the region.
Non-ferrous metals are critical inputs for the GCC's construction, automotive, electronics, and energy sectors, all of which are expanding rapidly under national economic diversification programmes. Dubai South, home to Al Maktoum International Airport and adjacent to Jebel Ali, positions license holders at the heart of this logistics network.
Key Stats at a Glance
Activity Code: 4662.02 | License Type: Trading License | Category: Trading
Free Zone: Dubai South Business Hub Free Zone
UAE non-oil foreign trade exceeded AED 2.2 trillion in 2023
Jebel Ali Port handles over 14 million TEUs annually
100% foreign ownership permitted in free zone entities
0% corporate tax on qualifying free zone income
Typical license setup timeline: 2 to 4 weeks
Who This License Suits
The 4662.02 trading license is well suited to a broad range of business profiles, including independent commodity traders looking to access Middle Eastern and African markets, multinational metals companies seeking a regional distribution hub, recycling and scrap metal businesses expanding into primary metals trade, and investors wanting exposure to commodity price movements through a regulated trading entity.
Setup Costs and Steps
Establishing a non-ferrous metals wholesale trading company at Dubai South Business Hub Free Zone involves a straightforward process. Indicative costs include the trading license fee, registration fee, and any applicable visa costs. License fees vary depending on the number of activities and shareholders, but businesses should budget in the range of AED 15,000 to AED 30,000 for the initial license and registration. Visa packages for shareholders and employees are priced separately.
The typical setup steps are as follows:
Choose your business structure (Free Zone Establishment or Free Zone Company)
Submit your application with passport copies, business plan, and relevant KYC documents
Receive initial approval and pay the license and registration fees
Sign the lease agreement for your registered office or flexi-desk
Receive your trading license and company incorporation documents
Open a corporate bank account and apply for employee visas as required
Licensing and Compliance Requirements
All license holders must maintain a registered address within the free zone. Wholesale metals traders operating in the UAE are subject to anti-money laundering (AML) and counter-financing of terrorism (CFT) obligations under the UAE's Federal Decree-Law No. 20 of 2018. Businesses dealing in precious metals and stones must also register with the UAE's goAML platform and comply with reporting thresholds for cash transactions.
Annual license renewal is mandatory, and companies must maintain accurate trade records and audited financial statements. VAT registration is required once taxable turnover exceeds the mandatory threshold of AED 375,000 per annum.
Why Dubai Is Well-Positioned for Non-Ferrous Metals Trade
Dubai's advantages for metals traders extend well beyond its geography. The emirate offers a zero-tariff environment for goods transiting through free zones, a large pool of trade finance institutions, and a well-developed commodities ecosystem. The UAE has signed over 100 bilateral investment treaties and free trade agreements, providing preferential market access to key trading partners across Asia, Africa, and Europe. Combined with a stable currency pegged to the US dollar and a transparent regulatory environment, Dubai offers a highly competitive base for wholesale metals trading at scale.
Conclusion
A non-ferrous metals wholesale trading license under activity code 4662.02 at Dubai South Business Hub Free Zone gives entrepreneurs and established businesses a powerful platform to access one of the world's most active commodity trade corridors. With full foreign ownership, favourable tax conditions, and proximity to major logistics infrastructure, Dubai is an exceptional location to build a metals trading operation with genuine regional and global reach.
If you are ready to take the next step, speak with a business setup specialist at Dubai South Business Hub Free Zone to receive a tailored cost estimate and begin your application today.
Related Activities
Precious Metals Wholesale Trading Trading License
Metals & Metal Ores Trading Trading License
Iron & Steel Wholesale Trading Trading License
