Introduction: Scrap Trading Business in Dubai
Dubai has become one of the most profitable destinations for entrepreneurs looking to invest in recycling and trading industries. With rapid urban development, rising construction projects, and a strong demand for sustainable solutions, many investors are exploring how to start a scrap trading business in Dubai. The emirate provides excellent opportunities for companies that wish to recycle, trade, and export materials like metal, plastic, and paper. To start a scrap trading business in Dubai, you will need to obtain the right trade license and ensure compliance with environmental and safety regulations. Depending on your business model, you can choose between a scrap trading business license in Dubai under a mainland setup or a free zone company, both of which come with unique benefits. The cost of a scrap trading business license in Dubai varies based on location, approvals, and the scale of operations.
One of the biggest advantages of this sector is that you not only earn profits but also contribute to Dubai’s vision of sustainability. By obtaining a scrap metal business license in Dubai, you gain access to local and international markets, recycling networks, and export opportunities. Working with the best business setup consultant in Dubai ensures a smooth process for your company formation and growth.
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Why Choose Dubai to Set Up a Scrap Trading Business?
1. Strategic Location and Global Trade Access
Dubai is recognized as a global hub for imports and exports, making it one of the best places to set up a scrap trading business in Dubai. Its world-class ports, airports, and logistics facilities provide easy access to international markets, allowing businesses to export scrap materials like metal, paper, and plastic to countries across Asia, Africa, and Europe.
2. High Demand in Construction and Manufacturing
The city’s booming real estate and infrastructure projects create continuous demand for raw materials. By obtaining a scrap trading business license in Dubai, investors can supply recycled materials to local industries at competitive rates, ensuring steady business opportunities and growth.
3. Government Support and Sustainability Vision
The UAE government actively promotes recycling and waste management as part of its sustainability initiatives. This makes it easier to start a scrap metal business in Dubai with strong regulatory support. The benefits of getting a scrap business license in Dubai also include tax advantages, 100% foreign ownership in free zones, and simplified trade procedures.
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4. Profitable and Eco-Friendly Business Model
When you start a scrap business in Dubai, you not only tap into a profitable sector but also contribute to environmental conservation. Recycling metals, plastics, and other scrap materials reduces landfill waste and promotes Dubai’s green economy vision.
5. Flexible Business Setup Options
Entrepreneurs can choose between a mainland license or a free zone license when they set up a scrap trading business in Dubai. Mainland companies can trade directly within the UAE market, while free zone businesses enjoy 100% foreign ownership, tax exemptions, and simplified customs procedures. This flexibility makes Dubai one of the most attractive destinations to start a scrap business in Dubai.
6. Competitive License Costs
The cost of a scrap trading business license in Dubai is affordable compared to other global trade hubs. Investors can begin operations with a relatively low setup cost while enjoying access to premium infrastructure, modern recycling facilities, and global markets. With the right planning, even small-scale investors can obtain a scrap metal business license in Dubai and grow steadily.
7. Access to Skilled Workforce and Business Consultants
Dubai offers easy access to skilled labor, technical experts, and professional advisors. By working with the best business setup consultant in Dubai, entrepreneurs can navigate licensing, legal approvals, and compliance requirements smoothly. This ensures a hassle-free process when applying for a license for scrap trading business in Dubai and allows business owners to focus on scaling their operations.
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Why Choose Dubai for Scrap Trading in 2025? – Key Statistics
| Factor | Dubai 2025 Statistics | Why It Matters for Scrap Trading Business |
|---|---|---|
| Construction Growth | AED 490 Billion worth of ongoing projects | High demand for recycled metal, steel, and raw materials supports a scrap trading business license in Dubai |
| Recycling Industry Growth | Projected to grow by 6.5% annually | Investors who start a scrap metal business in Dubai benefit from an expanding eco-friendly market |
| Trade & Logistics | Handles over 15 million TEU containers annually at Jebel Ali Port | Strategic location makes Dubai ideal to set up a scrap trading business in Dubai for global exports |
| Government Sustainability Goals | UAE aims to recycle 75% of waste by 2030 | Strong regulatory support increases the benefits of getting a scrap business license in Dubai |
| Ease of Doing Business | Ranked among the Top 20 globally (World Bank Index) | Simplifies approvals and reduces the cost of a scrap trading business license in Dubai |
| Foreign Ownership Rules | 100% ownership allowed in free zones | Attracts global investors to start a scrap business in Dubai without local sponsor requirements |
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Steps to Start a Scrap Trading Business in Dubai and Get a License
1. Conduct Market Research
Before you start a scrap trading business in Dubai, it’s essential to study the market. Identify which scrap materials—such as metal, paper, plastic, or e-waste—have the highest demand. Market research will help you decide whether to focus on local recycling, exports, or both, ensuring your business has long-term profitability.
2. Choose the Right Business Jurisdiction
Entrepreneurs can either set up in the Dubai mainland or a free zone. Mainland businesses allow you to trade directly in the UAE, while free zones offer 100% ownership, tax benefits, and easy international trade. Deciding your jurisdiction is crucial before applying for a scrap trading business license in Dubai.
Mainland vs Freezone Company Setup in UAE: Cost Comparison
3. Select a Trade Name and Activity
Register a unique business name with the Department of Economic Development (DED) or the relevant free zone authority. Ensure your chosen activity, such as “Scrap & Metal Waste Trading”, is included in your license application. This is a mandatory step to start a scrap business in Dubai legally.
4. Apply for Scrap Trading License
Submit your application for a license for scrap trading business in Dubai. Depending on your setup, you may need approvals from Dubai Municipality, Environment Department, or Civil Defense. A scrap metal business license in Dubai ensures you are compliant with local laws and environmental standards.
5. Secure Office/Warehouse Space
To set up a scrap trading business in Dubai, you must have a physical address. This could be a warehouse for storing scrap materials or an office for operations. Many free zones provide cost-effective warehouses to support recycling and trading activities.
6. Get Environmental & Safety Approvals
Scrap businesses deal with waste materials, so you must comply with environmental and safety regulations. Securing approvals for waste management and recycling practices adds credibility and helps you enjoy the benefits of getting a scrap business license in Dubai.
7. Complete Registration and Pay Fees
The final step is to register your company and pay the required fees. The cost of a scrap trading business license in Dubai depends on your business location (mainland or free zone), number of visas, and additional approvals. Once fees are paid, your license will be issued.
8. Partner with a Business Setup Consultant
Working with the best business setup consultant in Dubai ensures that the licensing process is smooth, fast, and hassle-free. Consultants handle documentation, approvals, and registration, allowing you to focus on starting a successful scrap trading in Dubai.
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Required Documents to Start a Scrap Trading Business in Dubai
When planning to start a scrap trading business in Dubai, preparing the right paperwork is crucial for smooth approval. Below is the list of commonly required documents:
1. Passport Copies
Valid passport copies of all shareholders and business partners are mandatory to apply for a scrap trading business license in Dubai.
2. Visa Copy / Entry Permit
If you are a resident or investor in Dubai, you must submit a valid visa page or entry permit copy while applying for a license for scrap trading business in Dubai.
3. Emirates ID Copy (if applicable)
For UAE residents or partners, a valid Emirates ID copy is required to set up a scrap trading business in Dubai.
4. Trade Name Reservation Certificate
Proof of your approved business name from the Department of Economic Development (DED) or relevant free zone authority. This is a vital step before you can start a scrap business in Dubai.
5. Initial Approval Certificate
This certificate confirms that the authorities have no objection to you proceeding with the scrap metal business license in Dubai application.
6. Memorandum of Association (MOA)
If you are setting up on the mainland, you must draft and notarize the MOA with details of ownership and business activities for your scrap trading business license in Dubai.
7. Lease Agreement / Ejari (Mainland) or Flexi-Desk Contract (Free Zone)
Proof of a physical office or warehouse space is required to set up a scrap trading business in Dubai. Free zones often provide cost-effective packages with flexi-desk options.
8. Approvals from Relevant Authorities
Depending on your activities, you may need approvals from:
- Dubai Municipality (waste management and recycling)
- Environmental Protection Department
- Civil Defense (for safety compliance)
These ensure you gain the benefits of getting a scrap business license in Dubai while staying compliant with environmental laws.
Cost of Setting Up a Scrap Trading Business in Dubai
Starting a scrap trading business in Dubai requires understanding the licensing fees and additional costs involved. Below is a breakdown of the cost of a scrap trading business license in Dubai with estimated expenses.
Calculate your business setup cost.
Cost of Scrap Trading Business License in Dubai
| Particulars | Amount (AED) |
|---|---|
| Initial Approval | AED 245 |
| Name Reservation | AED 620 |
| LSA Agreement (Memorandum of Association) | AED 540 |
| DED Payment Voucher (with Arabic Trade Name) | Up to AED 11,000* |
| Infibiz Consultancy Fee | AED 2,500 |
| Total Estimated Cost | AED 14,905 |
Note: The DED Payment Voucher covers costs up to AED 11,000. Additional charges may apply if the specified limit is exceeded.
Additional Costs for Commercial License in Dubai
When setting up a scrap trading business license in Dubai, investors should also budget for additional costs depending on their setup requirements.
| Additional Costs | Estimated Range (AED) |
|---|---|
| Agent Fees (for foreign investors) | 5,000 – 15,000 annually |
| Market Fees (for commercial license) | ~2.5% of annual rent |
| Office or Warehouse Rent | 45,000 – 85,000 annually |
| Visa Costs (per visa) | 3,500 – 7,000 |
| Medical & Emirates ID (per person) | 1,500 – 2,000 |
| Bank Account Opening Deposit (depends on bank) | 10,000 – 50,000 (refundable) |
| Insurance (if required) | 1,000 – 3,000 annually |
Commercial License Cost in Dubai – Key Takeaway
The cost of a scrap trading business license in Dubai can start from AED 14,905, but the final amount depends on your office space, visa requirements, and additional approvals. Entrepreneurs planning to start a scrap business in Dubai should budget between AED 65,000 to AED 100,000 for a complete setup, including license fees, rent, and operational expenses.
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Conclusion
Starting a scrap trading business in Dubai is one of the most profitable and eco-friendly opportunities available to investors today. With Dubai’s rapid infrastructure growth, advanced logistics, and strong focus on sustainability, entrepreneurs have an excellent chance to establish a long-term business in the recycling sector. By obtaining a scrap trading business license in Dubai, you can trade locally and internationally, benefiting from Dubai’s global market access.
The process to start a scrap trading business in Dubai involves market research, choosing between mainland or free zone, securing approvals, and completing licensing requirements. While the cost of a scrap trading business license in Dubai is affordable compared to many international markets, the benefits are immense—ranging from government support and sustainability goals to profitability and global demand.
Whether you wish to start a scrap metal business in Dubai or expand into other recyclable materials, the emirate offers unmatched opportunities for success. With the right planning, guidance, and compliance, you can build a profitable venture while contributing to a greener future.
How Infibiz Can Help
Infibiz is your trusted partner when it comes to starting a successful scrap trading business in Dubai. From securing your scrap metal business license in Dubai to guiding you through every stage of setup, our experts ensure a smooth and stress-free process. We handle documentation, trade name reservation, approvals from Dubai Municipality, and environmental clearances—so you can focus on growing your business.
Our consultants also provide accurate guidance on the cost of a scrap trading business license in Dubai, warehouse and office rental options, visa processing, and banking solutions. By working with the best business setup consultant in Dubai, you not only save time and money but also avoid costly mistakes during registration.
Book Free Consultation with Infibiz’s Experts.
With Infibiz, you get end-to-end support to set up a scrap trading business in Dubai and tap into the emirate’s booming recycling and trading industry.
