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 License 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 License under the Trading category, including what the license 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 License Covers

Under Activity Code 4669.99, the Raw Materials Trading License 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 license 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 License Suits

The Raw Materials Trading License 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

• License Type: Trading License

• 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 License Setup Timeline: 3 to 7 working days

Setup Costs and Steps

Setting up a Raw Materials Trading License 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 licenses.

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. License fees, registration fees, and any applicable visa fees are paid at this stage.

Step 5: Receive License and Open Bank Account

Once approved, you will receive your trading license. 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 License must remain compliant with UAE federal regulations as well as free zone rules. Key compliance considerations include:

• Annual license 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 License 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.

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