How to Get a Sand, Gravel and Stones Trading License 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 License (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)
License Type: Trading License
Free Zone: Dubai South Business Hub
Foreign Ownership: 100% permitted
License 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 License Covers
The Sand, Gravel and Stones Trading License is issued as a Trading License 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 license 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 license 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 license is specifically designed for commercial buying and selling of these materials rather than their production.
Who This License Is Suited To
This license 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 license category for both new market entrants and established operators expanding their footprint.
Setup Costs and Steps at Dubai South Business Hub Free Zone
License fee structures at Dubai South Business Hub are competitive relative to mainland DED licenses. 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
Choose your activity: Confirm business activity code 4752.45 and the Trading License category as your intended structure.
Reserve your trade name: Submit a trade name reservation and initial application to Dubai South Business Hub.
Provide shareholder documents: Supply passport copies, proof of address and a business plan if required by the free zone authority.
Pay fees and receive initial approval: Settle the applicable license and registration fees to obtain your initial approval certificate.
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.
Obtain residency visas: Apply for Emirates ID and residency visas for shareholders and employees where applicable.
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 license is straightforward but must be maintained consistently. Annual license 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 license 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.
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