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 licence 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 licence covers and who it suits, to costs, compliance requirements, and the competitive advantages the emirate provides.

What the Licence Covers

Activity code 4662.02 falls under the ISIC classification for the wholesale of metals and metal ores in primary forms. A trading licence 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 licence 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 (DMCC) 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 licence holders at the heart of this logistics network.

Key Stats at a Glance

• Activity Code: 4662.02 | Licence Type: Trading Licence | 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 licence setup timeline: 2 to 4 weeks

Who This Licence Suits

The 4662.02 trading licence 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 licence fee, registration fee, and any applicable visa costs. Licence 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 licence 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 licence and registration fees

• Sign the lease agreement for your registered office or flexi-desk

• Receive your trading licence and company incorporation documents

• Open a corporate bank account and apply for employee visas as required

Licensing and Compliance Requirements

All licence 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 licence 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 licence 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.

Frequently Asked Questions

How much does it cost to set up a non-ferrous metals trading licence in Dubai South?

Indicative costs for the trading licence and company registration typically range from AED 15,000 to AED 30,000, depending on the number of shareholders and activities selected. Visa packages and office space are priced separately. It is advisable to request a formal quotation from the free zone authority for an accurate breakdown.

Can a foreign national own 100% of the company?

Yes. Companies incorporated within Dubai South Business Hub Free Zone are permitted to have 100% foreign ownership, with no requirement for a UAE national shareholder or local sponsor.

Are there any special approvals required for trading metals?

Traders dealing in precious metals and stones must register with the UAE's goAML platform and comply with AML and CFT obligations. Businesses should also ensure compliance with any import or export permit requirements applicable to specific metals in the countries they trade with.

How long does it take to obtain the licence?

The typical timeline from application submission to licence issuance is two to four weeks, provided all required documents are submitted correctly and no additional regulatory approvals are needed.

What profit margins can metals wholesale traders expect?

Margins in non-ferrous metals wholesale trading vary significantly depending on the metal type, market conditions, and trade volumes. Traders typically operate on margins of one to five per cent on large-volume transactions, though niche or speciality metals can command higher margins. Thorough market research and hedging strategies are advisable.

Can the company re-export metals purchased in Dubai?

Yes. Re-export is a core function of free zone trading entities. Goods can be imported into the free zone, stored, and re-exported to international markets without attracting UAE customs duties, subject to compliance with applicable trade regulations.

What facility or warehouse requirements apply?

A registered office or flexi-desk address within the free zone is the minimum requirement for the trading licence. If you intend to physically store metals, you will need to lease appropriate warehouse or storage facilities, which are available within Dubai South's logistics and industrial zones.

Is VAT applicable to metals trading in the UAE?

The UAE applies a standard VAT rate of five per cent. Businesses with taxable turnover exceeding AED 375,000 per annum must register for VAT. Certain transactions involving investment-grade precious metals may qualify for zero-rating under UAE VAT legislation, so specialist tax advice is recommended.

References and Citations

• UAE Federal Decree-Law No. 20 of 2018 on Anti-Money Laundering and Combating the Financing of Terrorism

• UAE Ministry of Economy: VAT Information

• Dubai South Official Website

• Dubai Multi Commodities Centre (DMCC) Press Releases

• DP World: Jebel Ali Port Overview

• UAE Free Trade Agreements Portal

• Federal Tax Authority UAE: VAT on Precious Metals