Scrap Trade and Scrap metals are in limited supply, yet global demand continues to rise. With scrap materials sourced from around the world, Dubai’s strategic location has made it a key player in the scrap trade industry. As industries and nations shift toward eco-friendly solutions, scrap metal businesses are critical in feeding the scrap recycling market worldwide. The United Arab Emirates, especially Dubai, is emerging as a leader in this fast-growing sector.

If you’re considering launching your own business, starting a scrap trade operation in Dubai offers a lucrative opportunity to meet rising demand.

Here’s what we’ll cover in this guide:

• Overview of the scrap trade business in Dubai and the UAE
• Types of scrap materials available in Dubai
• How to start a scrap-trade business in Dubai – Step by step
• Cost of starting a scrap-trade business in Dubai
• Opportunities for scrap-trade businesses in Dubai
• Setting up a business in Dubai with Dubai Business Service

Overview of the Scrap Trade Business in Dubai and the UAE

Dubai’s scrap trade market presents immense potential for entrepreneurs. For years, the scrap recycling industry grew by about 0.9% annually, but since 2019, it has surged by 5.4% per year. Dubai and the UAE have seen a massive increase in the demand for scrap materials, driven by key sectors like construction, automotive, and shipbuilding.

The scrap trade industry in Dubai includes small operators and large corporations. Importing and exporting scrap metal is the most common activity. Ferrous and recycled metals fuel rapid market growth, further boosting Dubai’s scrap recycling sector.

Though the COVID-19 pandemic impacted global scrap demand, Dubai’s scrap trade industry has rebounded strongly. Prices for metals like copper and tin have increased, yet the market remains robust with long-term growth prospects.

The scrap-trade industry in Dubai is projected to reach new heights in 2023 and beyond as global demand for scrap metal continues to rise steadily for the next decade.

Types of Scrap Materials in Dubai

Dubai’s scrap-trade industry deals with a wide variety of materials, including:

• Metal scrap – copper, aluminum, and steel
• Plastic scrap – PET, HDPE, and LDPE
• Electronic scrap – computers, mobile phones, and other devices

How to Start a Scrap Trade Business in Dubai – Step by Step

Starting a scrap-trade business in Dubai can be complex if you’re unfamiliar with UAE regulations. Here’s a step-by-step process to help:

Step 1: Partner with Dubai Business Service

Setting up a scrap trade business in Dubai can be overwhelming. Dubai Business Service simplifies the process, assisting with approvals, trade regulations, and license applications.

Step 2: Choose a Company Name

Select a business name for your scrap trade operation. It must comply with UAE naming rules, such as avoiding offensive language or references to religion. Dubai Business Service can help with the registration process.

Step 3: Select Business Activities and Jurisdiction

Every UAE business requires a trade license. Choose a license aligned with your scrap trade activities. Dubai Business Service assists in navigating the 2,000+ activities and selecting either Free Zone or Mainland company setup.

Step 4: Meet License Requirements

To apply for a scrap metal trading license, you must meet the following:

• Join Dubai’s Scrap Metal Deal Association
• Have business registration and tax compliance certificates
• Submit ID documents for company directors and shareholders

Step 5: Submit Scrap Metal Business License Application

Dubai Business Service can ensure a smooth license application process by submitting it to the Dubai Department of Economic Development (DED) or the chosen Free Zone.

Step 6: Obtain Your Trade License

Once approved, you can apply for a UAE residency visa and begin scrap trading. Depending on your license type, you may also sponsor visas for family or staff.

Cost of Starting a Scrap Trade Business in Dubai

The cost of launching a scrap trade business in Dubai ranges from AED 10,000 to AED 30,000. This depends on factors like business activities, location, and company structure. Contact Dubai Business Service for a free consultation and cost breakdown.

Opportunities for Scrap Trade Businesses in Dubai

Dubai’s scrap-trade sector is vital to global recycling efforts. Scrap businesses offer energy savings, environmental benefits, and economic growth. Exporting Dubai’s scrap materials contributes to the global circular economy, turning waste into valuable resources for new products.

Entrepreneurs in the scrap trade can also diversify their operations, from managing solid waste and construction materials to handling e-waste. International markets are willing to pay premium prices for these services.

Business Setup in Dubai with Dubai Business Service

With Dubai Business Service, setting up a scrap trade business in Dubai is straightforward. Our team handles everything, from applying for scrap metal trading licenses and dealing with local sponsors to managing government approvals.

Simply provide us with the necessary documentation, and we’ll cover the rest. From business setup to scrap trading operations, we’ll help you easily launch your scrap trade business.