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 Licence 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 licence 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

• Licence Type: Trading Licence

• 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 licence package

What the Scrap and Metal Waste Trading Licence Covers

The trading licence 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.

Licence 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 licence does not cover smelting or processing; those activities require separate industrial permits.

Who This Licence Is Suited For

This licence 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 licence 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 licence: Upon payment, the licence is typically issued within three to seven working days.

Indicative Costs

Licence 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 licence 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.

Frequently Asked Questions

1. How much does a scrap and metal waste trading licence cost in Dubai?

Entry-level licence packages at Dubai South Business Hub Free Zone typically start from AED 12,000 to AED 20,000 per year. The final cost depends on the office type selected, the number of visa allocations, and any additional services required. A detailed quote from the free zone authority or a registered business setup adviser will give you the most accurate figure.

2. Can a foreign national own 100% of a scrap trading company in Dubai?

Yes. Companies established within Dubai South Business Hub Free Zone benefit from 100% foreign ownership. There is no requirement for a local sponsor or UAE national partner, which gives international investors full control over their business.

3. Are any special approvals required for scrap metal trading?

In addition to the standard trading licence, operators may need to register with UAE customs for import and export activities. Depending on the nature of materials traded, compliance with Dubai Municipality environmental guidelines and federal waste management regulations may also apply. Your business setup adviser can clarify which approvals are relevant to your specific trade activities.

4. How long does it take to set up the company and receive the licence?

The typical timeline from application submission to licence issuance is three to seven working days, provided all documentation is in order. This makes Dubai South one of the faster free zones for business registration in the UAE.

5. What profit margins can scrap metal traders expect?

Margins in scrap metal trading vary depending on material type, market conditions, and trade volumes. Traders acting as brokers typically earn between 1% and 5% per transaction, while those managing physical inventory may achieve higher margins by buying at distressed prices and selling into premium markets. Dubai's position as a re-export hub helps traders access both low-cost supply and high-value demand markets simultaneously.

6. Can licence holders re-export scrap metal to other countries?

Yes. The trading licence under activity code 4669.75 explicitly covers re-export activities. Dubai South's proximity to Jebel Ali Port and Al Maktoum International Airport makes it particularly efficient for re-exporting to markets across the GCC, South Asia, East Africa, and Southeast Asia.

7. Is a physical facility or warehouse required to obtain this licence?

A physical facility is not mandatory to obtain the trading licence itself. Many traders operate from a flexi-desk or shared office arrangement and manage inventory through third-party logistics providers or bonded warehouses. However, traders who wish to handle, sort, or store physical scrap on-site will need to lease an appropriate warehouse or yard facility within or near the free zone.

8. What types of metal and scrap are covered under this licence?

The licence covers a broad range of ferrous and non-ferrous scrap and metal waste, including iron, steel, copper, aluminium, brass, zinc, and stainless steel. Both post-consumer scrap and industrial off-cuts fall within the permitted scope of activity code 4669.75.

Conclusion

The scrap and metal waste trading sector offers significant commercial opportunity for businesses that position themselves in the right jurisdiction. Dubai South Business Hub Free Zone provides the infrastructure, regulatory framework, and geographic advantage needed to build a scalable and profitable trading operation. With 100% foreign ownership, competitive setup costs, a fast licensing process, and direct access to global shipping routes, there has never been a better time to establish a scrap and metal waste trading company in Dubai.

Whether you are an experienced commodity trader or a first-time investor exploring this market, taking the step to licence your activity under code 4669.75 gives you the legal foundation to trade with confidence across the region and beyond. Speak with a qualified business setup adviser today to begin your application and receive a personalised cost proposal.

References and Further Reading

• Dubai South Free Zone - Official Website

• Dubai Customs - Import and Export Regulations

• Dubai Municipality - Environmental Guidelines

• UAE Ministry of Climate Change and Environment - Waste Management Framework

• UN Comtrade Database - UAE Scrap Metal Trade Data

• Central Bank of the UAE - AML Compliance for Commodity Traders