Metals trading in Dubai: licence and activities

Metals are the other half of Dubai’s bulk trade: the ores that arrive to extract iron, aluminium or zinc, the semi-formed steel heading out to the region’s construction sites and the scrap consolidated here for Asia’s recyclers. The official list dedicates a sector of its own to this trade, with separate sheets per material and per product — from the ore to the metal container.

The sector is Metals & Minerals in the DMCC activity list, with eight Trading licence activities that share the same economic profile: AED 50,000 capital and any type of space. This guide orders them by families, points out the group’s two particular conditions — the territorial restriction on scrap and the responsible-sourcing commitment on non-ferrous metals — and closes with taxation and the steps. The neighbouring group of non-metallic raw materials has its own guide: raw materials trading.

The activity group: general map

The eight sheets share the same economic profile — a Trading licence and AED 50,000 of capital — and the choice is not exclusive: the usual approach is to combine on the same licence the activities that cover the business’s real catalogue.

The activities by families

From the ore to the alloy

Metal Ores Trading (5142-01) covers the resale of basic industrial ores for extracting the different metals — hematite, bauxite, zinc ore and the like —, the most upstream link of the group. Steel and Basic Steel Products Trading (5142-02) covers semi-formed steel — blocks, panels, rods and ingots — for its different uses. Metal Alloys Trading (5142-20) covers the alloys destined to produce steel sheets, structural beams, columns, angles and welded and seamless pipes. And Basic Non Ferrous Metal Products Trading (5142-03) covers the blocks, panels, rods and ingots of the other metals — aluminium, copper or zinc —, with the particular condition detailed further below.

Metal products: containers and wire

Metal Drums & Barrels Trading (5142-10) covers the metal drums and barrels for storing and transporting water, petroleum derivatives, chemicals and other liquids. Metal Cans & Containers Trading (5142-11) covers the metal cans and containers for the distribution or storage of goods. And Metal Wires Trading (5142-14) covers metal wires for their different uses — in construction or as an industrial input.

Scrap: only outside the UAE

Scrap & Metal Waste Trading Abroad (5149-32) is the group’s circular sheet and the only one with a territorial restriction: it operates only outside the UAE. It covers the resale of metal waste and scrap for recycling — including collection from different sources, sorting and the dismantling of reusable parts, such as those from scrapped vehicles — always with no real transformation process. And it carries an express prohibition: companies under this activity cannot trade in military waste such as weapons and explosives.

The group’s particular conditions

Two sheets carry written conditions. The scrap one (5149-32) limits the operation to abroad: consolidating, sorting and re-exporting from the free zone to recycling markets, without buying or selling inside the country. And the non-ferrous metals one (5142-03) adds a DMCC-specific commitment: adherence to its Practical Guidance on responsible sourcing of minerals, the supply-chain due-diligence framework with which the free zone brings international standards into the licence file — it is signed as an Undertaking, and it pays to have the material-origin procedure documented from the start.

Taxes on metals trading

The framework is that of a trading company in the Emirates. On VAT, local sales are taxed at 5% and exports can qualify for the 0% rate under the conditions of the regulations — the natural case of the scrap sheet, which only operates abroad, and the usual one in re-exported ores and steel. VAT registration is mandatory once you exceed AED 375,000 of annual taxable turnover. On profits, Corporate Tax at 9% above AED 375,000. For an operation of lots with prices tied to international markets, the accounting that values the inventory and classifies the 5%/0% of each transaction from the first invoice is the basis of the tax close — and on non-ferrous metals, also the documentary support for the responsible-sourcing commitment.

Steps to set up the company

1. Activities and catalogue: choose from the group the sheets that cover the metals and products you really trade, and combine them on the same licence.
2. Structure and capital: a company with share capital of AED 50,000 and a Trading-type licence.
3. Sectoral conditions: if you deal in non-ferrous metals, sign the Undertaking of the responsible-sourcing Practical Guidance; if you deal in scrap, design the operation for abroad only.
4. Incorporation and space — from flexi desk to warehouse, depending on the operation.
5. Visas for the founder and the sales team.
6. VAT and accounting from the start, with the 5%/0% classification of each transaction defined before the first invoice.

Conclusion

The Metals & Minerals sector covers the metal trade end to end: from the ore for extracting the material to the finished container, with the scrap line closing the circle from abroad. The conditions are uniform — a Trading licence, AED 50,000, any type of space — and the particularities come in writing on two sheets: scrap operates only outside the UAE and without touching military material, and non-ferrous metals sign DMCC’s responsible-sourcing commitment. With the catalogue properly translated into activities and inventory accounting running from day one, the structure is ready to operate in one of the region’s main metals trading hubs.