Raw Materials Trading License in Dubai

Dubai has long served as a crossroads for global commerce, and few sectors illustrate this better than the trade in raw materials. From industrial minerals and agricultural inputs to chemical compounds and base metals, raw materials flow through the emirate in enormous volumes every year. For entrepreneurs and established businesses looking to enter or expand within this market, obtaining a Raw Materials Trading Licence at Dubai South Business Hub Free Zone is one of the most strategically sound decisions available today.

This guide covers everything you need to know about Activity Code 4669.99, a Trading Licence under the Trading category, including what the licence covers, who it suits, how to set it up, and why Dubai remains the premier destination for this type of commercial activity.

Why Dubai for Raw Materials Trading?

Dubai's position at the intersection of Asia, Africa, Europe, and the Americas makes it a natural hub for commodity and raw materials trade. The UAE handled over USD 599 billion in total trade in 2023, with non-oil trade continuing to grow year on year. Dubai South, home to Al Maktoum International Airport and adjacent to Jebel Ali Port, the largest port in the Middle East, gives raw materials traders unparalleled access to global supply chains.

The UAE's zero personal income tax environment, competitive corporate tax framework, and extensive double taxation treaty network further reduce the cost of doing business. Dubai South Business Hub Free Zone specifically offers streamlined licensing, 100% foreign ownership, and full repatriation of profits, making it attractive to international traders at every scale.

What the Raw Materials Trading Licence Covers

Under Activity Code 4669.99, the Raw Materials Trading Licence permits the holder to buy, sell, import, export, and re-export a broad range of raw and unprocessed materials. This includes, but is not limited to:

• Industrial minerals and ores

• Agricultural raw materials such as grains, seeds, and fibres

• Chemical raw materials and base compounds

• Timber, wood pulp, and forestry products

• Rubber, plastics in primary forms, and synthetic materials

• Textile fibres and yarn in raw form

• Base metals and metal scrap

The licence does not cover retail sale to end consumers or the manufacture of finished goods. It is strictly a wholesale and trading activity, aligned with international ISIC classification standards for wholesale trade in other raw materials.

Who This Licence Suits

The Raw Materials Trading Licence is well suited to a wide range of business profiles, including:

• International commodity traders seeking a Middle East base of operations

• Manufacturers sourcing raw materials for production facilities in the region

• Logistics and supply chain companies adding a trading arm to their operations

• Entrepreneurs entering the wholesale trade sector for the first time

• Existing businesses looking to re-export materials to African, South Asian, or European markets

Key Stats at a Glance

Infographic: Raw Materials Trading in Dubai South

• Activity Code: 4669.99

• Licence Type: Trading Licence

• Foreign Ownership: 100% permitted

• Profit Repatriation: 100% allowed

• UAE Total Trade (2023): Over USD 599 billion

• Jebel Ali Port Ranking: Largest port in the Middle East

• Corporate Tax Rate: 9% on taxable income above AED 375,000

• Typical Licence Setup Timeline: 3 to 7 working days

Setup Costs and Steps

Setting up a Raw Materials Trading Licence at Dubai South Business Hub Free Zone is a straightforward process. Costs vary depending on office package, visa allocation, and additional approvals required, but the typical steps are as follows:

Step 1: Choose Your Business Activity

Confirm that Activity Code 4669.99 aligns with your intended operations. You may combine this with complementary activities where permitted.

Step 2: Select a Legal Structure

Most applicants register as a Free Zone Limited Liability Company (FZ-LLC). A single shareholder is sufficient, and there is no minimum capital requirement for standard trading licences.

Step 3: Prepare Documentation

Required documents typically include passport copies of all shareholders and directors, a completed application form, a business plan summary, and proof of address.

Step 4: Submit Application and Pay Fees

Submit your application to Dubai South Business Hub Free Zone. Licence fees, registration fees, and any applicable visa fees are paid at this stage.

Step 5: Receive Licence and Open Bank Account

Once approved, you will receive your trading licence. You can then open a corporate bank account in the UAE, after which trading operations may commence.

Licensing and Compliance Requirements

Holders of a Raw Materials Trading Licence must remain compliant with UAE federal regulations as well as free zone rules. Key compliance considerations include:

• Annual licence renewal with updated documentation

• VAT registration if annual taxable turnover exceeds AED 375,000

• Corporate tax registration with the Federal Tax Authority

• Anti-money laundering (AML) compliance and Know Your Customer (KYC) procedures

• Adherence to UAE customs regulations for import and export activities

• Maintaining proper trade documentation including invoices, certificates of origin, and shipping records

Certain raw materials, particularly chemicals, minerals, and agricultural products, may require additional approvals from relevant UAE federal authorities such as the Ministry of Climate Change and Environment or the Ministry of Industry and Advanced Technology.

Re-Export Opportunities

One of the most commercially significant advantages of holding a Raw Materials Trading Licence in Dubai is the ability to re-export goods. Dubai's free zones are specifically designed to facilitate entrepot trade, meaning goods can be imported, stored, and re-exported to third countries without incurring UAE customs duties. This makes Dubai South an ideal platform for traders serving markets across South Asia, East Africa, and Eastern Europe.

Frequently Asked Questions

How much does a Raw Materials Trading Licence cost in Dubai South?

Costs depend on the package selected, including visa allocation and office type. Entry-level packages at Dubai South Business Hub Free Zone typically start from approximately AED 12,000 to AED 20,000 per year. It is advisable to request a tailored quote based on your specific requirements.

Can a foreign national own 100% of the company?

Yes. Dubai South Business Hub Free Zone permits 100% foreign ownership with no requirement for a local UAE sponsor or partner. Full profit repatriation is also allowed.

Are there any special approvals needed for raw materials trading?

In most cases, the standard trading licence is sufficient. However, certain categories of raw materials, such as chemicals, agricultural inputs, or restricted minerals, may require additional approvals from UAE federal ministries. Your licensing consultant can advise on a case-by-case basis.

How long does it take to set up the licence?

The typical timeline from application submission to licence issuance is 3 to 7 working days, assuming all documentation is in order. Bank account opening may take an additional 2 to 4 weeks depending on the chosen bank.

What profit margins can raw materials traders expect?

Margins vary significantly by commodity, volume, and market conditions. Wholesale raw materials traders typically operate on margins ranging from 2% to 15%, with higher margins achievable in niche or specialised materials. Dubai's tax-efficient environment helps preserve net returns.

Can I re-export goods purchased under this licence?

Yes. The Raw Materials Trading Licence explicitly permits re-export activities. Dubai's free zone structure allows goods to be imported and re-exported to international markets without UAE import duties, making it highly cost-effective for entrepot traders.

Do I need a physical office or warehouse facility?

A registered office address within the free zone is required to obtain and maintain the licence. Physical warehouse space is not mandatory for the licence itself, but traders handling physical stock will need to arrange appropriate storage, either within Dubai South or at a bonded warehouse facility.

Is there a minimum capital requirement?

There is no statutory minimum share capital requirement for a standard FZ-LLC trading licence at Dubai South Business Hub Free Zone, though some banks may request a minimum deposit when opening a corporate account.

Conclusion

A Raw Materials Trading Licence under Activity Code 4669.99 at Dubai South Business Hub Free Zone offers a compelling combination of strategic location, regulatory simplicity, tax efficiency, and commercial flexibility. Whether you are an established commodity trader looking for a Middle East hub or an entrepreneur entering the wholesale trade sector, Dubai South provides the infrastructure, connectivity, and legal framework to support sustainable growth.

To begin your application or receive a personalised cost breakdown, contact the Dubai South Business Hub Free Zone licensing team today and take the first step towards establishing your raw materials trading business in one of the world's most dynamic commercial environments.

References and Citations

• Dubai South Official Website

• UAE Ministry of Economy

• UAE Federal Tax Authority

• UAE Ministry of Climate Change and Environment

• UAE Ministry of Industry and Advanced Technology

• Dubai Customs

• Jebel Ali Free Zone Authority (JAFZA)