How to Get a Sand, Gravel and Stones Trading Licence in Dubai

Dubai's construction boom and its position as a regional logistics gateway make sand, gravel and stones trading one of the most consistently in-demand commodity activities in the UAE. This guide explains exactly how to obtain a Sand, Gravel and Stones Trading Licence (Activity Code 4752.45) at Dubai South Business Hub Free Zone, covering costs, steps, compliance requirements and why this jurisdiction suits the trade.

Key Stats at a Glance

• UAE construction sector value: over USD 60 billion

• Activity Code: 4752.45 (Sand, Gravel and Stones Trading)

• Licence Type: Trading Licence

• Free Zone: Dubai South Business Hub

• Foreign Ownership: 100% permitted

• Licence packages: from approximately AED 12,500

• UAE Corporate Tax exemption on qualifying income up to AED 375,000

• VAT rate: 5% (mandatory registration above AED 375,000 taxable supplies)

UAE Market Context for Sand, Gravel and Stones Trading

The UAE construction sector is valued at over USD 60 billion, generating sustained and substantial demand for raw building materials including sand, gravel and crushed stone. These commodities are classified under ISIC activity code 4752.45 as essential wholesale trading goods, reflecting their central role in the supply chains that underpin infrastructure and real estate development across the region.

Dubai South's strategic proximity to Al Maktoum International Airport and Jebel Ali Port, one of the largest container ports in the world, enables traders to import, stockpile and re-export aggregates efficiently across the GCC and into broader markets including South Asia, East Africa and the wider Middle East.

Long-term demand is further reinforced by a robust infrastructure pipeline. The Expo City legacy projects, the Dubai 2040 Urban Master Plan and a series of regional mega-developments across Saudi Arabia, Qatar and Oman continue to drive aggregate consumption at scale. For traders seeking a durable commodity business with predictable demand fundamentals, this activity represents a well-timed market entry.

What the Sand, Gravel and Stones Trading Licence Covers

The Sand, Gravel and Stones Trading Licence is issued as a Trading Licence under the Trading category, with the specific activity code 4752.45. It authorises the holder to engage in wholesale and retail trading of sand, gravel, crushed stone, pebbles and similar construction aggregates.

The licence covers the full range of trading activities including import, export, re-export and local distribution of construction-grade raw materials within and from the UAE. This makes it particularly versatile for businesses operating across multiple supply chain roles simultaneously.

It is important to note that this licence does not cover extraction or quarrying activities. Any business wishing to operate a quarry or undertake physical extraction of minerals would require separate industrial permits issued by the relevant authorities. The trading licence is specifically designed for commercial buying and selling of these materials rather than their production.

Who This Licence Is Suited To

This licence is well-suited to a broad range of operators within the building materials and commodity trading sector, including:

• Commodity traders and aggregate suppliers looking to serve GCC construction markets from a strategically located free zone base

• International exporters seeking a UAE free zone entity for re-export operations into Africa, South Asia and the Middle East

• Entrepreneurs and SMEs entering the building materials supply chain without requiring a physical quarry or extraction facility

• Existing mainland UAE businesses seeking a free zone entity to benefit from tax efficiency and 100% foreign ownership

The relatively low barriers to entry, combined with strong regional demand and the logistical advantages of Dubai South, make this an accessible and commercially attractive licence category for both new market entrants and established operators expanding their footprint.

Setup Costs and Steps at Dubai South Business Hub Free Zone

Licence fee structures at Dubai South Business Hub are competitive relative to mainland DED licences. Packages typically start from approximately AED 12,500 to AED 20,000, depending on visa allocation and the type of facility selected. The free zone offers 100% foreign ownership with no requirement for a local sponsor, in line with UAE free zone regulations. Under the UAE Corporate Tax Law, which came into effect in June 2023, qualifying income up to AED 375,000 is subject to a zero rate, providing a meaningful cost advantage for smaller and growing trading businesses.

Step-by-Step Licensing Process

1. Choose your activity: Confirm business activity code 4752.45 and the Trading Licence category as your intended structure.

2. Reserve your trade name: Submit a trade name reservation and initial application to Dubai South Business Hub.

3. Provide shareholder documents: Supply passport copies, proof of address and a business plan if required by the free zone authority.

4. Pay fees and receive initial approval: Settle the applicable licence and registration fees to obtain your initial approval certificate.

5. Sign a lease agreement: Select and sign a lease for a flexi-desk, serviced office or warehouse facility within the free zone, depending on your operational requirements.

6. Obtain residency visas: Apply for Emirates ID and residency visas for shareholders and employees where applicable.

7. Open a corporate bank account: Establish a UAE corporate bank account and commence trading operations.

Compliance Requirements and Why Dubai South Suits This Trade

Ongoing compliance for this licence is straightforward but must be maintained consistently. Annual licence renewal is required, accompanied by updated shareholder documents and a valid lease agreement. Goods traded must comply with UAE customs regulations, and construction materials may be subject to Dubai Municipality quality standards where applicable.

Re-export activities require standard customs documentation, including a certificate of origin and commercial invoices. Businesses whose taxable supplies exceed AED 375,000 annually are required to register for UAE VAT at the standard rate of 5%.

Dubai South is particularly well-suited to this trade for several structural reasons. Its dual connectivity via Jebel Ali Port and Al Maktoum International Airport significantly reduces logistics costs for bulk aggregate traders handling large shipments. Free zone status permits full profit repatriation and exemption from import and export duties on goods passing through the zone, enhancing overall margin potential.

The strategic location of Dubai South also positions licence holders to serve construction demand across the UAE, Saudi Arabia, Qatar, Oman and East Africa from a single operational base, reducing the complexity and cost of managing multi-market distribution networks.

Frequently Asked Questions

How much does a Sand, Gravel and Stones Trading Licence cost at Dubai South Business Hub?

Licence packages at Dubai South Business Hub Free Zone typically start from approximately AED 12,500, rising to around AED 20,000 depending on the visa allocation and office or facility type selected. Additional costs may include registration fees, lease charges and visa application fees.

Can a foreign national own 100% of a trading company at Dubai South?

Yes. Dubai South Business Hub is a free zone, which means 100% foreign ownership is permitted without the need for a UAE national sponsor or local partner. This applies to all trading licences including activity code 4752.45.

Are there any special approvals required to trade sand, gravel and stones in Dubai?

In most cases, a standard Trading Licence under activity code 4752.45 is sufficient to begin operations. Goods must comply with UAE customs regulations, and certain construction materials may require conformity with Dubai Municipality standards. Re-export activities require standard customs documentation including certificates of origin.

How long does the licence application process take?

The licensing process at Dubai South Business Hub is generally efficient. From submission of a complete application to receipt of initial approval, the process can typically be completed within a few working days to two weeks, depending on document readiness and any additional approvals required.

What are the profit margins like in the sand, gravel and stones trading sector?

Margins in aggregate trading vary depending on sourcing country, logistics costs and end-market pricing. Businesses operating from a free zone benefit from zero import and export duties and full profit repatriation, which supports stronger net margins compared to mainland operations. Regional demand from GCC infrastructure projects tends to support stable pricing.

Can I use this licence for re-export operations?

Yes. The Trading Licence under activity code 4752.45 explicitly covers import, export and re-export activities. Dubai South's location adjacent to Jebel Ali Port and Al Maktoum International Airport makes it particularly well-suited to re-export operations targeting GCC markets, South Asia, East Africa and beyond.

Do I need a warehouse or physical facility to hold this licence?

A physical facility is not necessarily required to obtain the licence itself. Traders can operate from a flexi-desk or serviced office within the free zone. However, businesses intending to physically stockpile or handle bulk aggregates within the free zone will need to lease an appropriate warehouse or yard facility compliant with free zone regulations.

Is UAE corporate tax applicable to free zone trading companies?

Under the UAE Corporate Tax Law effective June 2023, qualifying free zone businesses may benefit from a 0% corporate tax rate on qualifying income. Income up to AED 375,000 is taxed at 0% for all businesses. It is advisable to consult a registered tax adviser to confirm your eligibility for qualifying free zone person status based on your specific activities and structure.

Conclusion

Obtaining a Sand, Gravel and Stones Trading Licence (activity code 4752.45) at Dubai South Business Hub Free Zone offers commodity traders a cost-effective, fully foreign-owned base to serve one of the world's most active construction markets, with streamlined setup, strong logistics infrastructure and clear compliance requirements. Contact a registered business setup adviser at Dubai South Business Hub to receive a tailored cost breakdown and begin your licence application today.

References and Further Reading

• Dubai South Official Website

• UAE Ministry of Finance: Corporate Tax

• Federal Tax Authority: Value Added Tax

• Dubai Customs: Import and Export Regulations

• Dubai Municipality: Construction Materials Standards

• UAE Government Portal: Setting Up in a Free Zone