How to Start a Scrap Metal Business in UAE
The UAE is a major global hub for scrap metal trading and recycling — with strong demand from construction, manufacturing, and commodity trading sectors.
What You Need to Get Started
Commercial Trade License
DED commercial license with scrap metal trading, recycling, and waste material activities — with industrial trading activity classification.
Ministry of Climate Clearance
UAE Ministry of Climate Change and Environment approval — mandatory for all scrap metal, recycling, and waste trading businesses due to environmental regulations.
Customs Registration
UAE Customs code for international scrap metal trading — including Basel Convention compliance documentation for cross-border movement of certain scrap materials.
Industrial Storage Yard
Compliant industrial yard or warehouse in a designated industrial zone — meeting municipality standards for scrap storage, safety, and environmental containment.
Transport Compliance
Scrap transport vehicles require commercial transport permits and must comply with load securing standards. Hazardous scrap requires specialist vehicles and permits.
Environmental Insurance
Environmental liability insurance covering site contamination, spillage, and pollution claims — increasingly required by UAE industrial facility landlords.
How to Start Your Scrap Metal Business in 5 Steps
Define Trading Activity
Specify your scrap metal categories — ferrous, non-ferrous, copper, aluminium, steel, or e-waste. Activity type determines your license classification and environmental permit requirements.
Get Commercial License
Obtain a commercial license from DED covering scrap metal trading and recycling activities with the correct industrial trading classification codes.
Ministry of Climate Clearance
The Ministry of Climate Change and Environment requires clearance for scrap metal businesses due to environmental impact. Arab First manages the application and inspections.
UAE Customs Code
Register with UAE Federal Customs Authority for scrap metal import/export clearance — including commodity-specific customs codes and Basel Convention compliance for certain materials.
Yard Setup & Compliance
Establish a compliant storage yard or industrial facility. Arab First connects you with approved industrial land in Dubai Industrial City or Sharjah Industrial Areas.
Scrap Metal Business in UAE FAQs
Do I need special permits to trade scrap metal in Dubai?
Yes. In addition to a standard commercial trade license, scrap metal businesses require Ministry of Climate Change clearance and potentially Dubai Municipality industrial permits. Arab First manages all multi-authority approvals.
Can I export scrap metal from the UAE?
Yes. UAE is a major scrap metal exporting nation, particularly for steel and copper. Export requires customs clearance, commodity export documentation, and compliance with importing country regulations. Arab First's trade specialists manage export documentation.
Is e-waste trading covered by a scrap metal license?
E-waste (electronic waste) trading is a distinct category with additional compliance requirements under UAE waste management regulations. Arab First advises on the specific license activity codes and additional permits required for e-waste dealers.
Where can I operate a scrap metal yard in Dubai?
Scrap metal yards must be located in designated industrial zones — Dubai Industrial City, Al Quoz Industrial Area, or Jebel Ali Industrial Zone. Residential or commercial areas are not permitted for scrap yard operations.
What is the Basel Convention requirement for UAE scrap exporters?
The Basel Convention governs cross-border movement of hazardous waste and certain scrap materials. UAE is a signatory and requires Prior Informed Consent (PIC) documentation for regulated waste exports. Arab First's compliance team manages Basel documentation.
Ready to Launch Your Scrap Metal Business?
Arab First guides you through every step — license, visa, bank account, and compliance. Contact us today.