Thinking of starting a scrap trading business in Dubai? The journey begins with setting up a company and getting your business license – and we’ll walk you through it step-by-step.
Scrap trading in Dubai is fuelled by government sustainability goals and strong industrial demand, creating real opportunities for entrepreneurs. The market is forecast to grow 4.5% year-on-year over the next five years.
In this guide, you’ll find out how to get your scrap trading license, what it costs, and the paperwork you’ll need. We’ll also look at market opportunities, environmental benefits, and FAQs – how Creative Zone simplifies every step.
How to start a scrap trading business in Dubai: step-by-step
So, how do you actually set up a scrap trading business in Dubai? The process is straightforward but involves several stages: deciding on your activities, choosing a legal structure and jurisdiction, reserving your trade name, getting initial approval and additional permits, securing your business location, applying for your business license, processing your visa and Emirates ID, and opening a corporate bank account.
Step 1: Outline your business activities
The first step is defining exactly what kind of scrap trading you’ll do. These activities determine the type of license you’ll need and the jurisdiction best suited to your needs. You’ll need to choose from the approved list of scrap-related activities. With Creative Zone as a partner, we’ll guide you through this step – and every one that follows – with the right advice, every time.
Step 2: Choose your company’s legal structure and jurisdiction
Next, pick a structure. The most popular options include limited liability companies (LLC), sole proprietorships, and free zone companies.
For a jurisdiction, you can select a mainland or free zone setup (if you didn’t opt for it as your legal structure). Each jurisdiction has its advantages – here you’ll need to carefully consider your business goals, target market, and more.
- Mainland setup: Trade directly in Dubai and across the UAE, compete for government contracts, and hold 100% of your shares – even as a foreigner (depending on your activities).
- Free zone setup: Enjoy full foreign ownership and unrestricted international trade, with limited direct market access to the local market (expandable through a local agent or distributor).
Step 3: Reserve your trade name
Your company name must be unique, relevant to your business activities, and free from religious and offensive terms. Submit it to the Dubai Department of Economic Development (DED) for mainland setups or your free zone authority. After it is approved, you’ll receive a trade name reservation certificate.
Step 4: Secure initial approval
Here, authorities review your business plan, chosen activities, trade name, and setup before issuing an initial approval certificate that allows you to continue the setup process.
Step 5: Secure your business location
Mainland setups require a physical office, registered under an Ejari tenancy contract. Some free zone setups allow a virtual office or flexi-desk package, though warehousing may be necessary if your scrap operations demand it.
Step 6: Obtain other approvals
Depending on your exact activities, you may also need:
- Dubai Municipality clearance
- Dubai Customs approval
- Membership with the Scrap Metal Association of Dubai
Step 7: Apply for your business license
Once the steps above are completed, submit your license application to the DED (for mainland setups) or your free zone authority. After review and payment, your scrap trading license will be issued.
Step 8: Apply for your visa
Now, you can apply for your residency visa and sponsor employees. This step includes a mandatory medical test and Emirates ID registration.
Step 9: Open a corporate bank account to begin trading
Finally, with your license and Emirates ID in hand, you can open a corporate bank account. At this point, you’re ready to start trading scrap in Dubai.
Scrap trading industry in Dubai: market overview
What does the scrap trading industry in Dubai look like today? It’s one of the fastest-growing recycling markets in the region, fuelled by both small operators and large corporates.
Government sustainability programmes and the push for a circular economy mean scrap trading is well supported. Policies encourage local processing, while Dubai’s role as a global logistics hub makes international import and export straightforward and cost-efficient.
The city generates thousands of tonnes of recyclable waste every day, and recycling rates continue to climb year after year. For entrepreneurs, that translates into strong demand, plenty of supply, and opportunities to tap into both domestic and international markets.
Types of scrap materials you can trade in Dubai
What kinds of scrap materials can you actually trade in Dubai? The market covers a wide range, but three categories dominate: metals, e-waste, and non-metallic scraps like paper, plastic, and rubber.
Metal scraps (iron, copper, aluminum)
Metal forms the backbone of Dubai’s scrap trading market. Iron and steel are in steady demand from the construction and manufacturing industries, while copper, brass, and aluminum are highly sought after in international markets.
E-waste and used electronics
E-waste is the fastest-growing scrap category globally, and Dubai is no exception. Laptops, mobile phones, office equipment, appliances, and industrial electronics contain recoverable materials like copper, silver, and rare earth minerals. Responsible e-waste recycling is both profitable and environmentally critical.
Paper, plastic, and rubber materials
Non-metallic scrap, such as paper, plastic, and rubber, makes up another major segment. Demand for recycled packaging and repurposed materials continues to rise across industries.
Cost of starting a scrap trading business in Dubai
How much does it cost to start a scrap trading business in Dubai? The cost depends on your setup, business license fees, warehouse rental, and various operational costs. A license costs between AED 10,000 and AED 30,000.
- License and setup costs: AED 10,000 and AED 30,000, depending on the legal structure, jurisdiction, and chosen activities.
- Warehouse rental costs: Mainland setups must lease a physical warehouse – and these figures vary by size, location, and facilities. Free zones usually offer more flexible packages with office or warehousing spaces.
- Operational costs: Think of marketing, staffing, advertising, insurance, maintenance, license renewals, and additional permits.
Documents required to launch your scrap business
What paperwork do you need to get started? To launch a scrap trading business in Dubai, you’ll need standard setup documents for your business license application, plus a few extra approvals depending on your activities.
- Passport copies and photos of all shareholders
- Visa and Emirates ID copies (if applicable)
- Trade name reservation certificate
- Initial approval certificate
- Tenancy agreement
- Dubai Municipality approval
- Dubai Customs clearance
- Scrap Metal Association of Dubai membership
Opportunities and benefits of scrap trading in Dubai
Why is starting a scrap trading business in Dubai so attractive? The industry combines profitability with sustainability, offering clear advantages for entrepreneurs, including government support, access to international markets, and a steady supply of scrap materials.
1. Government support for recycling
Initiatives like Dubai Clean Energy 2050 and the UAE Circular Economy Policy directly support recycling businesses.
2. Access to global export markets
Dubai’s advanced logistics network provides scrap traders easy access to high-demand markets in Africa and Asia, making exports seamless and profitable.
3. Consistent supply of scrap materials
The UAE generates large volumes of industrial, construction, automotive, and electronic waste daily, ensuring a steady flow of raw materials.
Environmental impact of scrap trading in the UAE
What roles does scrap trading play in the UAE’s environmental goals? Quite a big one. Scrap trading reduces landfill waste, conserves natural resources, and supports the UAE’s recycling objectives. By recycling metals, plastics, and paper, scrap trades cut carbon emissions and lower the environmental footprint of industries.
Scrap businesses also power Dubai’s shift to a circular economy, where materials are reused and reintroduced into production cycles for long-term sustainability.
Frequently asked questions
Is scrap trading profitable in Dubai?
Yes. Scrap trading is highly profitable in Dubai thanks to strong demand, supportive government policies, and an excellent global logistics hub.
What types of licenses are required for scrap trading?
A scrap trading license issued by the Dubai Department of Economic Development (DED) for mainland companies or a free zone authority is required. Additional approvals may apply.
Can I export scrap from Dubai to other countries?
Yes. Scrap is exported to markets such as India, Pakistan, and Africa, subject to Dubai Customs clearance.
What are the top free zones for setting up a scrap trading business?
Popular free zones include Jebel Ali Free Zone (JAFZA), Dubai Industrial City (DIC), Sharjah Airport International Free Zone (SAIF Zone), and Ras Al Khaimah Economic Zone (RAKEZ).
Why work with Creative Zone
Why should you work with Creative Zone to start a scrap trading business in Dubai? Because we make the entire process simple, fast, and tailored to your needs. From company registration to licensing and long-term support, Creative Zone is your partner in building a successful business.
We offer end-to-end support, expert guidance on jurisdictions and licensing, government approvals, and compliance requirements. We assist you in opening a corporate bank account, securing office or warehousing space, and connecting you with our network of trusted service providers to help your scrap trading business scale smartly.
Ready to start? Contact Creative Zone today!
