Scrap Business in Dubai– Profitable Setup & Licensing

The scrap business in Dubai is a profitable and growing industry… making scrap business setup and recycling business in Dubai highly attractive for investors seeking compliant scrap business licensing in Dubai.

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Cost of Starting a Scrap Business in Dubai

Government charges

Fees AED

Initial Approval

120

Trade Name (in English)

620

Tasheel Preapproval

395

Tasheel Memorandum of Associate

345

Trade License Fees

11960

Foreign Trade Fees

2000

Corporate PRO Services Fees

2500

Total Cost of Scrap Metal License

21395

Required Documents to Start a Scrap Business

Passport copies and photographs of shareholders/ managers

Emirates ID copies (if applicable)

Trade name reservation certificate

Completed license application form

Tenancy contract (Ejari registration certificate)

Note: For detailed guidance and assistance with the setup process, Quickplus Businesses Consultant can help you navigate the legalities and ensure a smooth start.

Steps to Start a Scrap Business

1. Conduct Market Research

Identify the demand for specific scrap types and understand the supply chain and pricing trends.

2. Create a Business Plan

Outline your business model, target market, operating costs, and financial projections.

3. Choose a Business Structure and Location

Decide between a Mainland or Free Zone setup. Mainland allows unrestricted trading within the UAE, while Free Zones offer 100% foreign ownership and tax incentives, ideal for export-oriented businesses. (You'll need an industrial space or warehouse that complies with zoning rules ).

4. Register Your Business and Obtain Licenses

Trade License: A commercial license permits buying and selling, while an industrial license is needed for processing or recycling the materials.
Environmental Clearances: An environmental clearance certificate and waste management permits from the Dubai Municipality are mandatory to ensure compliance with environmental and safety standards.
Import/Export License: Required if you plan to trade internationally.
Set Up Operations and Suppliers: Acquire necessary equipment (shredders, sorting bins, vehicles) and build a network of suppliers from construction companies and industrial facilities.
Hire Staff: Employ qualified staff for collection, sorting, and administration, ensuring they are trained in safety protocols.

Business Types and Opportunities

The primary types of scrap businesses in Dubai include:

1. Metal Scrap Trading

This metal scrap business focuses on sourcing, sorting, and selling ferrous and non-ferrous metals such as steel, iron, aluminum, and copper, primarily generated from construction projects and industrial operations.

2. Electronic Waste (E-waste) Recycling

This e-waste recycling business in Dubai plays a critical role in sustainable waste management by safely processing electronic components while recovering reusable metals and materials.

3. Plastic/ Paper/ Cardboard Recycling

This segment focuses on collecting and processing large volumes of commercial and packaging waste into reusable and recyclable materials. Plastic scrap recycling and paper recycling businesses in Dubai support the city’s sustainability goals.

4. Automotive Scrap

The automotive scrap business involves dismantling end-of-life vehicles, reselling usable auto parts, and recycling remaining metal and components in compliance with regulations.

Quickplus Tip: Dubai’s strategic location and advanced logistics infrastructure make it a important hub for international export to markets in Asia and Africa.

Get Free Consultation with Quickplus

Starting a scrap business in Dubai requires meeting strict scrap business legal requirements, securing environmental approvals, and following the correct approval process. To avoid delays or hidden costs, consult experienced scrap business consultants in Dubai – fill out the form to book a free consultation with Quickplus Business Consultants.

Frequently Asked Questions?

1. Is scrap business profitable in Dubai?

Yes, the scrap business in Dubai is considered highly profitable, driven by industrial expansion, massive scrap generation (especially metals), strong recycling demand from manufacturing, and supportive government policies for sustainability, creating significant opportunities for both local trade and exports.

2. Which scrap is most profitable?

The most profitable scrap metal is generally Copper, followed by Brass, Aluminum, and Lead, due to their high demand, conductivity, and use in various industries, with specialty metals like Platinum from catalytic converters yielding even more.

3. How to earn money from scrap?

To earn money from scrap, collect and sort valuable metals (copper, aluminum, brass, e-waste), focus on volume for steel, clean items to increase value, build relationships with tradesmen for consistent supply, and sell sorted, high-quality loads to local scrapyards, knowing their specific rules and current prices