How to Start a Metal Scrap Business in Dubai, UAE? [2023] Detail Guide

Start a Metal Scrap Business in Dubai

Dubai is becoming the center of the industrial revolution in the world. Different industries in Dubai are growing at a very fast pace. The metal scrap industry is no exception. Currently, Dubai is one of the top ten metal scrap suppliers in the world. Additionally, Dubai holds almost 1.5m tons of metal scrap every year. So, the metal industry in Dubai has immense potential for growth in case of both import and export.

Getting into the metal scrap business seems like an exceptionally good idea, but the process of setting up a metal scrap business in Dubai comes with some complexities. However, we are here to help. We will explain the process of setting up a metal scrap business in Dubai and how we can help you do that.

Steps to Start a Metal Scrap Business in Dubai, UAE

If this is your first time starting a business in the UAE, then do not be disheartened. Company Setup experts are here to help you out. Here are the steps to setting up a Metal Scrap Business in Dubai.

1. Conduct Market Research to Start a Metal Scrap Business in Dubai

The first step in setting up a metal scrap business in Dubai would be to conduct thorough market research. Now, this step is especially important as it will heavily influence the key decisions of setting up a metal scrap business. After completing the market research and analyzing the data, you will be able to evaluate the scope of your business, your competitor, growth potential, expansion opportunities, and many other aspects of the industry.

Additionally, you will be able to predict the revenue your business will generate and calculate a predicted profit margin by further analyzing the data.

2. Select a Company Name

The importance of the naming of your business does not need any further explanation. You will mostly determine this process. But you have to keep in mind that the name is unique, easy to remember, and follows the rules and regulations of the respected authority of Dubai. For example, Alphabets and numbers are allowed, but your business name cannot contain icons or special characters.

3. Select a Business Location

Considering the nature of the business, your investment in location for your business would be comparatively higher. There are two options available for you for the location of your business in Dubai. You can either choose to operate in the mainland or the free zone. Then you should buy or lease a suitable commercial space like a yard and warehouse in the location of your choice to store the scraps and equipment, depending on the size of your business. You will also need to consider the cost of buying or leasing. Considering the benefits and opportunities of each location, you should choose wisely.

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4. Acquire a Metal Scrap Business License in Dubai

It is required by law to get a business license in Dubai before you can start your business activities. You will have to fulfill different requirements based on the location of your business. If you decide to set up your business within the free zone, your business activities will be limited to a selected few companies who are dealing with metal scrap.

You will also need to abide by the local rules and regulations concerning society, the environment, and capital requirements. However, starting your business in the free zone is ideal for entrepreneurs as it is the fastest way of setting up your business and starting your business activities. Additionally, it will allow you to keep 100% ownership of the company.

You can also choose to obtain a local license from the Dubai Department of Economic Development (DED). Now whichever licensing option you choose, you will need to understand that there will be a variety of rules and regulations you will have to follow, and the requirements you will need to fulfill will depend on the type of metal scraps you choose to deal with

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5. Start Your Business Activities

After acquiring the business license from the Dubai Department of Economic Development (DED), You can start your business activities. You must consider a few things, like hiring qualified personnel, efficient management of your resources, and a clear view of the vision while operating your business. The success of your metal scrap business will depend on your expertly crafted strategy and business management. With meticulous effort, you can easily succeed in the metal scrap industry.

Cost of Setting up a Metal Scrap Business in Dubai

Starting a scrap metal shop offers various avenues for entrepreneurs. You can specialize in selling scrap metals from a warehouse to scrap metal companies. Alternatively, you can focus on collecting and recycling specific types of scrap metals. Keep in mind that metal prices fluctuate based on supply and demand, often projected a year or more in advance.

This business typically requires a significant initial investment, ranging from a few thousand to hundreds of thousands of dollars. It demands a strong technical knowledge, but it has the potential to be highly profitable. Whether you choose to recycle copper, gold, lead, nickel, silver, or tin, the key to success lies in your understanding of the industry.

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Benefits of Setting up a Metal Scrap Business in Dubai

Being in the metal scrap business means recycling scrap metal and being the scrap metal supplier in the market. Import and export will be easier for a metal scrap business in Dubai as Dubai is a global economic hub with stable economic relations with other countries in the region. Moreover, the business will help with the conservation of energy and natural resources and will have a positive impact on the environment.

According to the United States Environmental Protection Agency (USEPA), we can power a 60watts bulb for more than five hours by recycling a single aluminum product. And you will be dealing with millions of aluminum products, so thinks about the positive impact your business will have on the environment. If we consider the economic aspect, Metal scrap businesses will solve the employment problem for millions of people.

How to start a scrap metal business in UAE?

Starting a scrap metal business in the UAE involves several key steps:

  1. Market Research:
    • Begin with thorough market research to understand your role in the scrap metal industry.
    • Determine whether you’ll collect and sell local scrap, import scrap, or process it within the UAE.
  2. Select the Right Location:
    • Choose a suitable location for your business operations.
    • Consider factors like rental costs for a warehouse or yard, necessary equipment, security measures, and waste management solutions.
  3. Get the Required License:
    • Obtain the necessary business license to operate legally.
    • Decide between a free zone license or a local license, considering ownership and regulatory requirements.
  4. Commence Business Activities:
    • Once you have the license and setup in place, start your scrap metal operations.
    • Focus on tasks such as collecting, sorting, and processing scrap metals, like copper or aluminum.
    • Explore opportunities for exporting processed scrap to markets with high demand.

Starting a scrap metal business in the UAE can be a profitable venture, but it’s essential to conduct thorough market research, comply with legal requirements, and establish a sound business plan to ensure success in this industry.

How can we help you?

If you want to set up a metal scrap business in Dubai, but you do not know where to get started, then you are in the right place. This is because Company Setup Consultants have started numerous businesses in Dubai for entrepreneurs from all over the world. Contact us today and hit the ground running.

If You have any doubts or any assistance on How to start a metal scrap business in UAE? To Speak with our Experienced Business Consultants for further information and assistance, call us at +971-582-595-164. Send a WhatsApp Message for Chat Query on +971 582595164 or email us at

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