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How to Start a Scrap Metal Business in Dubai, UAE?

start a scrap metal business in dubai
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Dubai, UAE is one of the continuously emerging economies attracting investors to establish their businesses in various sectors and industries. Due to the business-centric corporate policies, elite infrastructure, high potential for opportunities and enhanced economy, many people start operating their businesses in Dubai. For entrepreneurs who want to start a scrap metal business in Dubai is one of the recently evolving sectors which is attracting many employers in Dubai.

Do you also planning to start a scrap metal business in Dubai but don’t really know how to do so? Don’t panic. The guide provides you with important information on how to set up a scrap metal business in Dubai, what are the benefits of the business, what are future opportunities and more.

Scope of Scrap Metal Business in Dubai, UAE

A scrap metal business is a business that deals with buying and selling scrap metal for manufacturing, recycling, and many other purposes. The scrap metal market in UAE is forecasted to grow at a 5.4% CAGR over the forecasted period of 2021 to 2023? Such facts indicate that the scrap metal industry will continue to dominate the UAE economy as a whole.

Steps to Start a Scrap Metal Business in Dubai

You need to go through some essential steps to start your scrap metal business in Dubai, UAE. Below mentioned is the process that you need to follow for a smooth start-up process.

1. Research and Conduct Market Analysis

Research is what can make or break your business. effective research is always helpful in growing a business. Most significantly, before starting a business it is essential to do your research so that you can better analyze market opportunities, growth opportunities, competitors, identify business gaps and more. In addition to that, after conducting your research you will be able to choose the role for you as what you should do that can be more profitable.

2. Get a Location for Your Business

Your business can only be successful if you have a good location as it is one of the most important factors that can result in profit or loss ultimately. Depending on the type of scrap metal business, make sure to choose the best location from where you can easily operate your business. In addition to that, there is always two option available for investors in Dubai when it comes to operating a business including the mainland and the free zone. Both come with different benefits and opportunities for you. Therefore, make sure to choose the one that can best complement your business.

3. Apply for Scrap Metal Business License in Dubai

Obtaining a license is of utmost importance in Dubai, UAE. No one can conduct a business without a trading license in Dubai, UAE. A license is what makes your clients and dealers believe that you are a credible and authorized service provider or a company. You can get your license through the concerned authority the “Dubai Department of Economic Development”.

4. Successful Implementation of Your Business

Once you have obtained your license, you can now start your scrap metal business in Dubai, UAE. However, make sure that you have the right advisory partner with you who can help you in the most crucial initial times and guide you throughout.

Cost of Scrap Metal Trading License in Dubai

Dubai provides countless opportunities for people who want to set up their scrap metal businesses in the country. Any person is allowed to buy warehouses to trade recycled metals. In addition, a person can also concentrate on a certain type of metals and deal with recycling. Overall, scrap metal is a credible capital-investment business that anyone can establish to generate money. The early investment may range from a limited amount to hundreds of thousands of dollars. The cost of a scrap metal trading license in Dubai is between AED 21,395 to AED 26,000 but in a nutshell this commercial license cost varies depending on the products or metal you are dealing with.

Details of Scrap Metal Trading License Cost in Dubai

Government ChargesFees AED
Initial Approval120
Trade Name (in English)620
Tasheel Preapproval350
Tasheel Memorandum of Associate345
Trade License fees11960
Foreign Trade Fees2000
Corporate PRO Services Fees6000
Total Cost of Scrap Metal License21 395
Scrap Metal Trading License Cost in Dubai

Documents Required to Start a Scrap Metal Business in Dubai

Here are the documents that you may require for your scrap metal business in Dubai, UAE.

  • Passport copies
  • Tenancy contract
  • License Application
  • Governmental forms
  • Attested LLC agreement
  • Initial approval certificate
  • EJARI registration certificate
  • Name reservation certificate
  • External departments approval
  • Finance and Industry Ministry Certification
  • Economy and Commerce Ministry Certification
  • Dubai Chamber of Commerce and Industry Registration

Benefits of Starting a Scrap Metal Business in Dubai, UAE

The scrap metal business requires technical knowledge to make it highly profitable for one. Hence, anyone with the right technical knowledge, skills, and expertise can establish their scrap metal business and grow effectively. Among many, here are a few benefits of starting a scrap metal business in Dubai, UAE.

Energy Conservation

You would be amazed to know that you can save a lot of energy with aluminium products. US Environmental Protection Agency stated that you can save energy which can be utilized to power a 60W bulb for nearly 5 hours simply by a single recycled aluminium product. Think that how much energy you could save dealing with hundreds of aluminium products.

Economic Benefits

Starting a scrap metal business in Dubai offers various benefits including economic as well. According to a report revealed by the National Recycling Coalition recycling metal facilitates employment opportunities 6 times more than transporting it to a landfill and 36 times more than dumping the same volume of metal into an incinerator. In addition, the report also says that the recycling industry hires more than a million people and racks up nearly $236 billion annually. Such figures indicate that the scrap metal business is one of the most evolving sectors offering countless opportunities to employers.

Ease of Import and Export

Dubai, UAE is a major regional hub and is often called a “global economic hub”. Importing and exporting businesses – most significantly scrap metal business, in Dubai has been growing significantly as the country itself imports and exports different products. Stable trade and commercial relations of Dubai with other countries in the region and around the world support open trade without any barriers. Hence, you can also start a scrap metal trading business in Dubai easily and smoothly. Just have the right advisory partner like Avyanco with you to obtain a scrap metal business license in Dubai for an easy process.

How Avyanco Can Help Start Scrap Metal Business in Dubai?

Scrap metal is one of the most profitable businesses in Dubai. However, if not managed properly there are always risks associated that can lead to further financial loss. Thus, for a startup, it is essential to consult with the right business set-up consultancy service provider who can help you meet your objectives seamlessly.

Avyanco is the leading business setup advisory facilitating thousands of businesses in their startups providing them effective advice on each important aspect. Team Avyanco will not only help you obtain a business license but would remain with you from the very first stage to the successful implementation of your business. Get in touch with us for any of your queries anytime.


About the Author


Jashvantkumar Prajapati

(Founder and CEO of Avyanco Group of Companies; Business Setup Consultancy, Avyanco Tax and Accounting LLC, and Avyanco Auditing LLC.)

He keeps a varied portfolio with core expertise in investment management, corporate structuring, commercial law, business consultancy, lead management, business planning and market research. Aspire to help potential entrepreneurs and investors to come ahead and form their companies in highly emerging economies like UAE.