A scrap metal trading licence in Dubai costs AED 20,000–45,000 all-in during year one, covering Department of Environment (DM) environmental section approval, Dubai Economy and Tourism (DET) registration, trade name, and Ejari industrial tenancy. You must occupy a designated industrial-area yard with waste-handling facilities. Processing typically takes 4–8 weeks once all documents are submitted to DET and DM together.
What Is a Scrap Metal Trading Licence in Dubai?
A scrap metal trading licence permits collection, sorting, storage and sale of ferrous and non-ferrous scrap metals within Dubai’s emirate. It is distinct from general trading—you need specific Dubai business setup approval tied to environmental and zoning rules. The Department of Environment (DM) must approve your yard location and waste-handling plan before Dubai Economy and Tourism (DET) issues your trade licence. Non-compliance with environmental standards or yard zoning can suspend or cancel your licence.
DET Registration & Trade Licence Requirements
Your first step is applying to DET (formerly DED) with a completed Form A, passport copy, visa copy, and proof of industrial-area Ejari tenancy. DET verifies your trade name (e.g. ‘ABC Scrap Metals LLC’), checks for duplicate registrations, and issues a preliminary approval letter within 3–5 working days. You must then submit this letter to DM’s environmental section for yard inspection and waste-management sign-off. DET will not issue your final trade licence until DM’s environmental approval is in hand. Cost: DET registration ranges AED 1,500–3,000 depending on business size category.
Pro tip: Secure your industrial yard before approaching DET—DM requires the exact location address for environmental assessment.
Environmental Approval & Yard Zoning (DM)
The Department of Environment’s environmental section enforces waste-handling standards under Law No. 24 of 1999 (Environmental Protection Law). Your yard must be zoned for industrial use (typically Zones 1–3 in areas like Al Qusais, Jebel Ali South, or Mussafah adjacent areas). DM staff will inspect to verify: groundwater protection measures, spill containment systems, segregation facilities for different metal types, weighing scales, and access gates restricting public entry. If your yard is within 500 metres of a school, hospital or residential zone, DM may refuse approval. Environmental audit cost: AED 2,500–5,000; approval timeline: 2–4 weeks post-inspection.
Ejari Tenancy & Yard Lease Documentation
You must present a registered Ejari tenancy contract (minimum 1 year, renewals allowed) for an industrial property in a designated free zone or mainland industrial area. The property size typically ranges 500–2,000 m², depending on your scrap volume and sorting capacity. Ejari registration (via Trakhees or the Real Estate Regulatory Agency for non-free zones) costs AED 200–500 and takes 2–3 days. Your lease must explicitly allow waste/metal recycling activities—standard retail leases will be rejected by both DM and DET. Typical industrial yard rent: AED 15,000–35,000 per year depending on location and size.
Verify your landlord approves scrap operations before signing; some developers restrict waste-handling tenants.
Export Restrictions & Duty Compliance (FTA)
The Federal Tax Authority (FTA) and Ministry of Energy & Infrastructure enforce export controls on scrap metals. Certain categories—particularly steel scrap destined for export—may incur customs duty or require pre-export permits from the Ministry of Industry and Advanced Technology. Non-ferrous metals (copper, aluminium, brass) face fewer restrictions but must be documented in your DET manifests. You cannot export radioactive, hazardous or restricted metal without separate ministry licensing. Always verify current schedules with FTA before committing to export contracts. Duty rates and restrictions may change quarterly; failure to comply results in shipment seizure and business suspension.
Timeline & First-Year Cost Breakdown
| Step | Body | Duration | Cost (AED) |
|---|---|---|---|
| Ejari registration | RERA/Trakhees | 2–3 days | 200–500 |
| DET trade licence (prelim.) | DET | 3–5 days | 1,500–3,000 |
| DM environmental audit & approval | DM | 2–4 weeks | 2,500–5,000 |
| DET final trade licence + card | DET | 1–2 days | 500–1,000 |
| MOHRE labour card (manager) | MOHRE | 1–2 weeks | 200–300 |
| Insurance & miscellaneous | Private/Gov | 1 week | 2,000–3,000 |
Total first-year all-in cost: AED 20,000–45,000 (excluding yard rent). Renewal and annual compliance cost: AED 5,000–10,000 annually.
Timeline: 4–8 weeks from Ejari registration to final DET licence, assuming no DM inspection re-visits.
Why Use Dubai Business Setup Consultants?
Dubai business setup consultants at DBS can coordinate DM inspections, negotiate industrial lease terms, and fast-track DET approvals. We’ve guided 80,000+ entrepreneurs since 2009 through scrap and recycling licences. We know which yards pass DM checks first-time and which Free Zone licences (Jebel Ali Free Zone, Dubai Airport Free Zone) suit export-focused operators. A scoping call identifies hidden delays—for example, incorrect Ejari zoning classifications cost 3–4 weeks if undetected.
Frequently asked questions
How much does a scrap metal trading licence cost in Dubai in 2026?
Total first-year cost is AED 20,000–45,000 all-in: DET trade licence (AED 1,500–3,000), DM environmental approval (AED 2,500–5,000), Ejari registration (AED 200–500), MOHRE labour card (AED 200–300), final DET card (AED 500–1,000), and insurance/misc. (AED 2,000–3,000). Renewal annually costs AED 5,000–10,000. Yard rent is separate.
Do I need environmental approval for a scrap yard?
Yes, mandatory. The Department of Environment (DM) must inspect your yard for groundwater protection, spill containment, metal segregation and access control under Law No. 24 of 1999. DET will not issue your final licence until DM approval is in hand. Environmental audit takes 2–4 weeks post-inspection and costs AED 2,500–5,000.
Are there export restrictions on scrap metal from the UAE?
Yes. The Federal Tax Authority (FTA) and Ministry of Energy & Infrastructure enforce controls. Steel scrap may incur customs duty; certain metals require pre-export permits. Radioactive or hazardous metals are prohibited without separate ministry licensing. Verify current FTA schedules before export contracts to avoid shipment seizure and business suspension.
Can I trade scrap without a physical yard?
No. DET and DM both require a registered industrial-area yard with documented waste-handling facilities. You must present Ejari tenancy proof to DET. Virtual or mobile trading without a fixed yard location is not permitted under current regulations. Yard size typically ranges 500–2,000 m².
How long does licensing take?
4–8 weeks total. Ejari registration: 2–3 days. DET preliminary licence: 3–5 days. DM environmental audit: 2–4 weeks. DET final licence: 1–2 days. MOHRE labour card: 1–2 weeks. Delays occur if DM requests yard modifications or Ejari zoning is incorrect.
Which industrial areas in Dubai are approved for scrap yards?
DM approves yards in designated industrial zones: Al Qusais, Jebel Ali South, and Mussafah adjacent areas primarily. Proximity to schools, hospitals or residential zones (within 500 m) results in DM refusal. Free Zones like Jebel Ali Free Zone offer alternative licensing with fewer environmental hurdles for export-focused operators.
What documents do I need to apply for a scrap metal licence?
Submit to DET: Form A, passport copy, visa copy, and registered Ejari tenancy contract. After DET preliminary approval, submit to DM: environmental assessment forms, yard layout with containment plans, and safety documentation. MOHRE requires passport and health certificate for the manager. All documents must be original or attested copies.
Get expert help in 20 minutes
Need clarity on your Dubai setup? Talk to DBS Documents Clearing LLC — 80,000+ entrepreneurs served since 2009. WhatsApp +971 54 332 2846 or email inquiry@dubaibusinessservices.com for a free 20-minute scoping call.
