Scrap & Metal Waste Trading License in Dubai
Global demand for recycled metals continues to climb as industries seek cost-effective raw materials and governments push for circular-economy targets. Dubai sits at the crossroads of this trend, handling millions of tonnes of scrap and metal waste each year through its world-class ports and logistics corridors. For entrepreneurs and established traders alike, securing a Scrap and Metal Waste Trading License in Dubai is one of the most strategically sound business decisions available in the region today.
This guide covers everything you need to know about the trading license under activity code 4669.75, available through Dubai South Business Hub Free Zone, including what it covers, who it suits, how to set it up, and why Dubai is the ideal base for this trade.
The UAE Scrap and Metal Market: Why It Matters Now
The UAE is one of the Middle East's largest importers and re-exporters of scrap metal. The country's construction boom, infrastructure expansion, and manufacturing growth generate a consistent domestic supply of ferrous and non-ferrous scrap, while its geographic position enables traders to source from Asia, Africa, and Europe and redistribute across the Gulf, Indian Subcontinent, and East Africa.
According to UN Comtrade data, the UAE consistently ranks among the top global re-exporters of scrap metal, with annual trade values exceeding several billion US dollars. The Emirates Steel and other local smelters also create sustained domestic demand, making this a dual-revenue market for licensed traders.
Key Stats at a Glance
Activity Code: 4669.75 - Scrap and Metal Waste Trading
License Type: Trading License
Category: Trading
Free Zone: Dubai South Business Hub
Foreign Ownership: 100% permitted
UAE scrap metal trade value: Multi-billion USD annually
Typical setup timeline: 3 to 7 working days
Visa eligibility: Available with license package
What the Scrap and Metal Waste Trading License Covers
The trading license under activity code 4669.75 authorises the holder to buy, sell, import, export, and re-export scrap metal and metal waste. This includes ferrous metals such as iron and steel scrap, as well as non-ferrous materials including copper, aluminium, brass, and stainless steel waste.
License holders can operate as intermediaries connecting global suppliers with end buyers, or they can manage physical stock through bonded warehousing and logistics facilities within the free zone. The license does not cover smelting or processing; those activities require separate industrial permits.
Who This License Is Suited For
This license is well suited for a broad range of business profiles, including:
International scrap metal brokers and commodity traders seeking a UAE base
Recycling companies looking to establish a regional procurement or distribution hub
Construction and demolition firms wishing to commercialise waste streams
Investors diversifying into commodities trading with strong re-export margins
Logistics operators adding value-added trading to their service portfolio
Setup Steps and Costs
Setting up a scrap and metal waste trading company at Dubai South Business Hub Free Zone is a straightforward process designed to minimise bureaucracy and maximise speed to market.
Step-by-Step Process
Choose your business activity: Confirm activity code 4669.75 and the trading license category with your registration adviser.
Select a company structure: Most applicants opt for a Free Zone Limited Liability Company (FZ-LLC), which supports 100% foreign ownership.
Reserve your trade name: Submit two to three preferred company names for approval.
Submit documentation: Provide passport copies, proof of address, and a completed application form.
Choose a workspace: Select from flexi-desk, shared office, or dedicated office options depending on your operational needs.
Pay fees and receive license: Upon payment, the license is typically issued within three to seven working days.
Indicative Costs
License and registration fees at Dubai South Business Hub Free Zone are competitive relative to other UAE free zones. Costs vary depending on the office package selected and the number of visa allocations required. As a general guide, entry-level packages including a trading license and flexi-desk start from approximately AED 12,000 to AED 20,000 per year. It is advisable to request a tailored quote to account for your specific visa and facility requirements.
Licensing and Compliance Requirements
Traders dealing in scrap and metal waste must comply with UAE federal regulations on waste management and commodity trading. Key compliance considerations include:
Registration with the relevant customs authority for import and export activities
Adherence to the UAE Federal Law on Waste Management where applicable
Compliance with Dubai Municipality environmental guidelines for handling and storage
Anti-money laundering obligations under the UAE Central Bank framework for commodity traders
Maintaining accurate trade documentation including bills of lading, certificates of origin, and material safety data sheets
Why Dubai South Business Hub Free Zone
Dubai South is strategically located adjacent to Al Maktoum International Airport and within close proximity to Jebel Ali Port, the largest port in the Middle East. This dual access to air and sea freight makes it an unrivalled location for commodity traders who need to move goods quickly across multiple markets.
The free zone offers 100% foreign ownership, zero corporate and personal income tax, full repatriation of profits, and a streamlined regulatory environment. These advantages, combined with Dubai's robust legal framework and world-class banking infrastructure, make it the preferred destination for scrap metal traders operating at a regional or global scale.
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