Raw materials trading in Dubai: licence

Raw materials are the foundation of Dubai’s trade: the timber, plastic, rubber and minerals that come in through the port and head out to the region’s factories. The official list dedicates a group of its own to this trade, with separate sheets per material — including a complete circular-economy line: waste plastic, recovered paper, used oils and biodegradable products.

The group is Raw & Basic Materials in the DMCC activity list, with eleven Trading licence activities that share the same conditions: AED 50,000 capital, any type of space and no territorial restriction. This guide orders them by families, points out the particular conditions written into two of them and closes with taxation and the steps.

The activity group: general map

The eleven 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

Industrial materials

Timber Trading (5143-28) covers the resale of timber before it is cut into boards, bars or blocks, for construction or industry. Plastic & Nylon Raw Materials Trading (5149-09) covers the high- and low-density chemicals used to manufacture plastic products, nylon and PVC — pellets, polyethylene, polypropylene, polystyrene and the like. Rubber Trading (5149-11) covers natural and synthetic rubber for manufacturing — tyres, belts, bags, footwear, synthetic sponge. Raw Materials Trading (5149-39), the generic sheet, covers minerals and organic materials exploitable only after treatment, extraction or transformation — pulp for paper, shells for handicrafts, extracts and herbs for perfumes, medicines and cosmetics, sands and rocks for extracting metals and salts — and expressly excludes anything processed, manufactured or semi-manufactured and whatever is already covered in the other sheets of the category. And Smelters & Furnaces Refractory Materials Trading (5190-05) covers the non-metallic materials resistant to high temperatures used to line furnaces, incinerators and reactors.

Chemicals and auxiliaries

Non Edible Oil Trading (5149-16) covers the resale of non-edible vegetable and animal oils for industrial use. Gum & Glue Trading (5149-18) covers gums and glues for direct use or for producing chemical compounds — adhesives and cosmetics.

Recycling and the circular economy

The group’s circular line has four sheets. Waste Plastic Trading (5149-21) covers the plastics discarded by households, industry and agriculture — bottles, detergent containers, tableware, bags — destined for recycling. Waste Paper Trading (5149-31) covers recovered paper as the raw material of recycled paper — offcuts and manufacturing waste, or paper discarded after its use in packaging and printing. Used Cooking Oils Trading (5149-46) covers the used cooking oils collected from restaurants to produce soap and biodiesel, and is the only sheet in the group with an added condition: the Undertaking to comply with Cabinet Resolution No. (118) of 2023 — controls of the waste-pricing policy for industrial use and export fees of industrial waste — in addition to the rest of the applicable local and federal regulations. And Biodegradable & Compostable Products Trading (5149-50) covers products made of resin, starch and natural substances designed to biodegrade within weeks — cutlery, plates, cups, trays, wrappers, film and bags.

Taxes on raw materials 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 typical case of a business that imports, consolidates and re-exports raw material. 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 bulk goods and lots with variable prices, 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 the used oils sheet, also the documentary support for the sectoral commitment.

Steps to set up the company

1. Activities and catalogue: choose from the group the sheets that cover the materials 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 used cooking oils, sign the Undertaking under Cabinet Resolution No. (118) of 2023 as part of the file.
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 Raw & Basic Materials group covers raw materials trading end to end: from the uncut log to the refractory material, with a complete recycling line in between. The conditions are uniform — a Trading licence, AED 50,000, no territorial restriction — and the particularities come in writing on two sheets: the generic one excludes anything processed, and the used oils one adds the commitment under Resolution 118/2023. 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 raw materials hubs.