Scrap Metal Trading Company Setup in Dubai

How to Start a Scrap Metal Trading Business in Dubai

When most people think of Dubai, they picture skyscrapers and luxury malls. But behind the scenes, industries like scrap metal trading are driving real growth. Every construction project, factory, and infrastructure development leaves behind metal waste—creating massive opportunities for recycling and resale.

Why Scrap Metal Trading is Big in Dubai

Scrap metal trading involves buying, processing, and selling unused metals like copper, aluminium, steel, and brass. These materials are always in demand for local reuse and global export. Plus, with the UAE government promoting green initiatives and sustainability, this business is both profitable and environmentally responsible.

Dubai’s strategic location, world-class ports, and logistics infrastructure make it easy to connect with global markets, making it an ideal hub for metal trading.

Types of Scrap Metals

• Ferrous Metals: Steel, cast iron – mainly used in construction.

• Non-Ferrous Metals: Copper, aluminium, brass – more valuable and in high demand.

• Industrial Scrap: Wires, pipes, machinery parts from factories and construction sites.

Licensing & Legal Requirements

Scrap trading is a regulated activity in Dubai. To start your business, you’ll need:

• Commercial License (Trading License)

  • Mainland: Issued by DED

  • Free Zone: Issued by respective authority

Additional Approvals:

• Dubai Municipality (waste management)

• Ministry of Climate Change & Environment (environmental compliance)

Documents Required

• Passport copies of owners

• Photos & visa copies

• Trade name reservation

• Initial approval certificate

• Lease agreement (Ejari for mainland)

• NOC from sponsor (if applicable)

Steps to Start Your Scrap Metal Trading Company

1. Choose Location: Mainland for local market access, Free Zone for 100% ownership & easy export.

2. Select Activities: Define if you will collect, trade, or recycle.

3. Reserve Trade Name & Get Approval

4. Prepare Documents: MoA, tenancy contract, etc.

5. Apply for License: With DED or Free Zone authority.

6. Get Environmental Approvals: For waste handling & storage.

7. Register with Customs: If importing/exporting.

8. Open Bank Account & Apply for Visas

Cost of Setup

• Mainland License: AED 18,000–30,000

• Free Zone Packages: AED 12,000–50,000

• Additional costs: Warehouse rent, visas (AED 3,000–7,000 each), and compliance fees.

Why Invest in Scrap Metal Trading in Dubai?

✔ High Demand – Construction & manufacturing growth
✔ Profitability – Low cost, high resale margins
✔ Tax Benefits – Zero personal income tax
✔ Sustainability Push – Strong government support

Ready to Start?
At All Emirates Setup (AE Setup), we handle everything—licenses, approvals, paperwork, and finding the right space—so you can focus on growing your business.
📞 Contact us today to start your scrap metal trading business in Dubai!