How to Get a Scrap Trading License in Dubai: Step-by-Step Guide
Dubai, a global trading hub, continues to attract entrepreneurs from across the globe with its robust infrastructure, world-class logistics, and business-friendly environment. Among the many profitable ventures in the emirate, scrap trading stands out as a growing industry fuelled by Dubai’s construction boom, rising manufacturing activities, and a strong commitment to sustainable practices.
Whether dealing with metal, plastic, electronics, or industrial waste, scrap trading presents an opportunity for savvy business owners to tap into a dynamic, revenue-generating market. However, to legally operate a scrap trading business in Dubai, acquiring a scrap trading license is a mandatory first step. Here, we’ll guide you through the complete process — from understanding the business landscape to acquiring your license hassle-free.
Why Scrap Trading is a Promising Business in Dubai
The United Arab Emirates, especially Dubai, is known for its ongoing infrastructural developments, large-scale manufacturing units, and emphasis on waste management and recycling. This combination has led to a steady supply and demand cycle for scrap materials, making it a lucrative domain for businesses.
Dubai’s strategic location also positions it as a logistics hotspot for importing and exporting recyclable and scrap materials to markets across Asia, Europe, and Africa. As such, having a scrap trading license in Dubai not only gives you access to a thriving local market but also to international trade opportunities.
Step-by-Step Guide to Get a Scrap Trading License in Dubai
Step 1: Define Your Business ActivityBefore initiating the licensing process, it’s necessary to define the type of scrap trading your business will engage in. This can include:
Ferrous and non-ferrous metal scrap
Plastic scrap
Paper and cardboard
Electronics and e-waste
Construction and demolition debris
Dubai’s Department of Economic Development (DED) will need you to specify your business activity as part of your trade license application. For scrap trading, your business activity will typically fall under “Waste and Scrap Trading” or similar industrial/commercial categories.
Step 2: Select the Right JurisdictionDubai provides two main types of jurisdictions where you can register your scrap trading business:
Mainland – Allows you to trade freely across the UAE and internationally.
Free Zones – Offer 100% foreign ownership, tax benefits, and proximity to ports and customs.
Some Free Zones, like Jebel Ali Free Zone (JAFZA) and Dubai Multi Commodities Centre (DMCC), are particularly suited for scrap trading businesses due to their strong logistics infrastructure and customs support.
Step 3: Reserve Your Trade NameNext, select and reserve a unique trade name for your company. This name should reflect the nature of your business and comply with DED or the respective Free Zone’s naming guidelines. Avoid using offensive or religious terms and ensure the name isn’t already taken.
Step 4: Apply for Initial ApprovalOnce your trade name is approved, apply for initial approval from the DED (for mainland) or the chosen Free Zone authority. This approval indicates that the UAE government has no objection to your business setup.
At this stage, you may also need to prepare a business plan, especially if you’re setting up in a Free Zone.
Step 5: Secure a Commercial Space or WarehouseA physical location is mandatory to acquire a scrap trading license in Dubai, especially since scrap materials require proper storage and handling. Based on your budget and business scale, lease a commercial space, industrial unit, or warehouse. For Free Zone setups, the Free Zone authority usually offers dedicated warehousing facilities.
The tenancy contract must be registered with Ejari for mainland licenses.
Step 6: Submit License Application & DocumentsSubmit the necessary documents to complete your license application:
Completed application form
Passport copies of all shareholders
UAE entry visa or residence permit copies
Emirates ID copy (if applicable)
Initial approval certificate
Trade name certificate
Tenancy contract (Ejari or Free Zone space agreement)
NOC from current sponsor (if applying from within UAE)
The authority will review your application and may conduct inspections of your proposed premises.
Step 7: Obtain Approvals from Other AuthoritiesDepending on your activity type and the materials involved, additional approvals may be required from:
Dubai Municipality – For environmental compliance
Dubai Customs – If you plan to import/export scrap
Ministry of Environment and Climate Change – For hazardous materials
Dubai Police or Civil Defense – For safety and regulatory checks
Make sure your facility adheres to all health, safety, and environmental standards to avoid any kind of delays.
Step 8: Receive Your Scrap Trading LicenseUpon successful verification and approval, you will receive your scrap trading license. You can now legally operate your business, open a corporate bank account, and apply for residence visas for you and your employees.
It’s important to note that licenses are renewable annually, and failure to renew on time can result in penalties or business suspension.
Key Benefits of a Scrap Trading License in Dubai
Access to UAE and global markets
100% foreign ownership (in Free Zones)
VAT registration eligibility
Ease of doing business and banking facilities
Strong regulatory framework and government support
High ROI due to demand from construction, manufacturing, and recycling sectors
By ensuring regulatory compliance and following best practices, scrap trading businesses in Dubai can thrive in both local and global markets.
ConclusionDubai’s booming economy, logistical advantages, and sustainable development goals make it an ideal location for establishing a scrap trading business. However, navigating the licensing process, especially for newcomers, can be complex without expert guidance. Selecting the right jurisdiction, obtaining approvals, and ensuring regulatory compliance are all crucial for a smooth setup.
Fortunately, with the right support from business setup consultants, you can eliminate guesswork, reduce costs, and begin operating your scrap trading business in record time. Whether you're a first-time entrepreneur or expanding your global operations, Dubai’s welcoming business environment offers the foundation for long-term success.
Ready to Start Your Scrap Trading Business in Dubai?
Let our team at Bizvise help you simplify the journey! Our expert business setup consultants specialize in helping entrepreneurs like you obtain a scrap trading license in Dubai with ease and efficiency. From documentation to approvals, we handle everything—so you can focus on growing your business.
Get in touch with us today to schedule your consultation and turn your business vision into reality!