Scrap Metal Trading Licence Dubai 2026: Cost & Timeline
A scrap metal trading licence in Dubai costs AED 20,000–45,000 all-in during year one. You must secure Department of Environment and Tourism (DET) environmental approval, comply with Dubai Municipality (DM) yard zoning in industrial areas, and obtain an Ejari tenancy contract. The full process takes 4–8 weeks through DET and DM.
What Is a Scrap Metal Trading Licence in Dubai?
A scrap metal trading licence permits businesses to collect, sort, store and trade ferrous and non-ferrous scrap metals in the UAE. This Dubai business setup activity requires registration with the Dubai Department of Economic Development (DED), environmental clearance from DET, and municipal compliance with Dubai Municipality. Whether you operate a scrap yard, consolidation hub or export-focused trading desk, the licence category depends on your operational scope and facility type. Most traders also require a Trade Licence Activity Code under the commerce or industrial classification.
Unsure if scrap trading matches your business model? Contact DBS on WhatsApp +971 54 332 2846 for a free needs assessment.
First-Year Licence Cost: AED 20,000–45,000 Breakdown
The all-in first-year cost for a scrap metal trading licence in Dubai spans AED 20,000–45,000. This range includes:
| Cost Item | Approx. Range (AED) |
|---|---|
| DED Trade Licence (annual) | 1,500–3,000 |
| DET Environmental Approval & Inspection | 3,000–8,000 |
| Dubai Municipality Yard Licensing & Zoning | 2,000–5,000 |
| Chamber of Commerce & Industry Membership | 800–1,500 |
| MOHRE Labour Card & Safety Registration | 500–1,000 |
| Professional Consultancy & Document Clearing | 5,000–15,000 |
| Ejari Tenancy Contract & Registration | 300–2,000 |
| Year-One Total | AED 13,100–35,500 |
Costs vary based on yard location, facility size, waste-handling complexity and whether you engage Dubai business setup consultants to manage approvals. Standalone traders without a physical yard may qualify for lower administrative costs.
DET Environmental Approval & DM Yard Zoning Requirements
The Department of Environment and Tourism (DET) mandates an environmental assessment before any scrap yard operates. DET reviews your facility layout, waste segregation procedures, dust and noise controls, and soil/water contamination risks. You must submit an Environmental Impact Assessment (EIA) or Environmental Compliance Certificate (ECC) depending on your operation scale. Dubai Municipality then cross-checks zoning: scrap yards must occupy land designated for industrial or warehouse use, typically in Jebel Ali Industrial Area, Al Quoz, Mina Jebel Ali, or similar industrial zones. Residential and commercial zones are prohibited. Your yard must meet minimum setback distances from sensitive sites (schools, hospitals, residential compounds). Non-compliance results in licence rejection or revocation.
DET approval typically takes 2–4 weeks; DM zoning clearance adds 1–3 weeks more.
UAE Scrap Metal Export Restrictions & Duty Notes
The UAE enforces strict export controls on scrap metal. Iron and steel scrap may face temporary export bans or quotas set by the Ministry of Industry and Advanced Technology, depending on domestic demand and commodity price cycles. Aluminium, copper and other non-ferrous scrap face lower restrictions but require Export Permits from the Ministry of Trade and Industry or your relevant free-zone authority if you operate from Jebel Ali Free Zone (JAFZA) or Dubai Airport Free Zone (DAFZ). Scrap destined for GCC countries (Saudi Arabia, UAE nationals' exports, etc.) may qualify for preferential duty rates under GCC trade agreements, but non-GCC exports incur standard tariffs. Always verify current export status with the Federal Tax Authority (FTA) or your freight forwarder before committing to overseas sales. Violating export bans attracts penalties of AED 10,000–100,000 and licence suspension.
Industrial-Area Tenancy (Ejari) & Physical Yard Requirements
You must secure a physical facility in an industrial zone and register it as a commercial tenancy under the Dubai Land Department's Ejari system. The Ejari contract binds your lease agreement to your trade licence; without it, DED will not issue or renew your licence. Your landlord must consent to scrap operations and your lease must explicitly permit industrial waste handling. Typical industrial warehouse space costs AED 50–200 per square metre annually, depending on location and building condition. Minimum recommended yard size is 500–1,000 m² to accommodate segregation bays, equipment storage and loading areas. You must also register the tenancy with Dubai Municipality if your yard requires municipal environmental or safety inspections. Do not proceed with licence applications until your Ejari is registered and your lease is in place.
Ejari registration takes 1–2 business days; ensure your landlord is an active DLD-registered owner.
Timeline: 4–8 Weeks from Application to Licence Issuance
The full scrap metal trading licence process typically spans 4–8 weeks. Initial submissions to DED take 3–5 working days for completeness checks. DET environmental approval requires 2–4 weeks if your EIA is submitted first; running DM zoning checks in parallel can save time. MOHRE labour registration and Chamber membership add 1–2 weeks. Final DED licence issuance occurs 2–3 working days after all approvals are uploaded. Delays occur if DET requests additional soil or waste-handling documentation, or if DM identifies zoning conflicts. Engaging professional consultants (such as Dubai Business Services) reduces back-and-forth and typically accelerates the timeline by 1–2 weeks because we pre-screen documents and manage authority correspondence.
Can You Trade Scrap Without a Physical Yard?
Technically, no. UAE regulations require scrap metal traders to hold a licensed facility where waste is physically handled, segregated and stored. Pure brokerage or trading-desk models without a yard face licensing challenges because authorities cannot inspect operations or verify waste-handling compliance. However, some traders operate as wholesalers by partnering with licensed yard operators under subcontracting agreements, in which case they hold a narrower B2B trading licence. This alternative still requires registration with DED and compliance with FTA export rules, but avoids full environmental approval. Discuss your specific business model with DBS on WhatsApp +971 54 332 2846 to confirm the right licence type for your needs.
Frequently asked questions
How much does a scrap metal trading licence cost in Dubai in 2026?
First-year all-in costs range from AED 20,000–45,000, including DED trade licence (AED 1,500–3,000), DET environmental approval (AED 3,000–8,000), DM yard zoning (AED 2,000–5,000), Chamber membership, MOHRE registration, and consultancy. Subsequent years typically cost AED 2,500–8,000 for licence renewals and inspections, excluding yard tenancy.
Do I need environmental approval for a scrap yard?
Yes. The Department of Environment and Tourism (DET) mandates an Environmental Impact Assessment (EIA) or Environmental Compliance Certificate (ECC) before operations begin. DET inspects dust control, segregation procedures, contamination risks and safety measures. Approval takes 2–4 weeks. Non-compliance results in licence rejection or revocation.
Are there export restrictions on scrap metal from the UAE?
Yes. Iron and steel scrap face temporary export bans or quotas set by the Ministry of Industry and Advanced Technology. Non-ferrous metals (aluminium, copper) have lower restrictions but require Export Permits from the Ministry of Trade and Industry. GCC exports may qualify for preferential tariffs. Non-GCC exports incur standard Federal Tax Authority duties. Always verify current status before committing to overseas sales.
Can I trade scrap without a physical yard?
No, not fully. Authorities require a licensed facility for inspection and compliance verification. Pure brokerage models struggle to obtain a standard scrap licence. Alternatives include wholesaling under a subcontracting agreement with a licensed yard operator, which requires DED B2B registration but avoids full environmental approval. Confirm your exact model with DBS consultants.
How long does licensing take?
4–8 weeks total. DET environmental approval takes 2–4 weeks; DM zoning checks add 1–3 weeks. MOHRE and Chamber registration add 1–2 weeks. Final DED licence issuance takes 2–3 working days. Running approvals in parallel and using consultants can accelerate the timeline by 1–2 weeks.
What zoning rules apply to scrap yards in Dubai?
Scrap yards must occupy industrial or warehouse-zoned land, typically in Jebel Ali Industrial Area, Al Quoz, or Mina Jebel Ali. Dubai Municipality prohibits yards in residential or commercial zones and enforces minimum setback distances from schools, hospitals and residential compounds. Non-compliance results in licence rejection.
Is an Ejari tenancy contract mandatory?
Yes. You must register a commercial lease under the Dubai Land Department's Ejari system. DED will not issue or renew your licence without an active Ejari. Your landlord must consent to scrap operations and your lease must explicitly permit industrial waste handling. Ejari registration takes 1–2 business days.
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