Scrap metal trading licence, with every load recorded
A scrap metal trader in Dubai needs a municipality permit, approved trucks and monthly load records before trading starts.
- Usual route
- Mainland or free zone
- Extra approval
- Dubai Municipality
- Timeline
- Weeks
- AML
- Not a DNFBP activity
A scrap metal trading licence in Dubai comes from DET or a free zone, and either way Dubai Municipality issues a waste trading permit before you start. Every truck needs its own permit and tracking certificate. Each month you report what you bought, from whom and where it went. Sales to VAT-registered recyclers now run under the reverse charge.
- Covers
- Buying, grading and selling ferrous and non-ferrous scrap
- Not covered
- Waste collection, smelting, precious metal scrap and aircraft parts
- Premises
- A yard or covered store that keeps grades apart
- Timeline
- Weeks, led by the municipality permit and vehicle approvals
What a scrap trading licence covers
The activity covers buying metal scrap, grading it and selling it on to mills, foundries and recyclers, without changing what it is.
Covered
Not covered
- Covered by Waste management
- Covered by Gold and jewellery trading
- Covered by Metal processing
- Covered by Building materials trading
Tick what you plan to do. The result shows here.
We fix the wording before you apply. Send us your list on WhatsApp
Precious metal scrap makes the company a DNFBP under AML law, so we keep it off a base metal licence unless you mean it.
Where a scrap trader should be licensed
Dubai Municipality's permit follows the trade on either route. The yard and the buyers point to the licence.
| If most of your clients are | Likely route | Why |
|---|---|---|
| Mills and recyclers inside the UAE | Mainland (DET) | Buying from Dubai sites and selling locally fits a DET licence |
| Buyers abroad, scrap shipped by container | Free zone | A free zone yard near the port suits graded export loads |
| Local recyclers plus export buyers | Either route | The yard's location settles it, because the permit applies to both |
A free zone trader buying from mainland sites can add a DET branch licence or permit (Executive Council Resolution 11 of 2025). Mainland sales face the QFZP qualifying test.
Several free zones license this activity; we match the zone to your visas, office and banking. Compare free zones
Three questions. The closest row is marked in the table above.
Your likely route shows here.
Scrap metal trading permits in order
DET issues the licence. Dubai Municipality's waste department then issues the trading permit you need before the first load, and permits each truck that carries scrap.
Before the licence
- Trade name and initial approvalDET
The licence
- Scrap and metal waste licenceDET
Alongside the licence
- VAT registration and reverse chargeFederal Tax Authority (FTA)
After the licence
- Waste trading permitDubai Municipality
- Vehicle permits and trackingDubai Municipality
- Monthly trading recordsDubai Municipality
- Corporate bank accountThe bank
We set up the permit, truck permits and record format together.
Who sells you the scrap, and where does it go?
Two choices shape this file more than the metals do: where the scrap comes from and where it ends up.
Scrap export restrictions have been imposed and extended before, so we check the current position before you sign an export contract.
| Companies and contractors | Small collectors and individuals | |
|---|---|---|
| Mills and recyclers in the UAE | Reverse charge on sales Registered buyers account for the VAT, so their declarations must be on file before each supply. | Cash at the gate Every source goes in the monthly record, and the bank asks where each cash payment went. |
| Buyers abroad | Export paperwork first Exports sit outside the reverse charge, and federal export restrictions on scrap come and go. | The heaviest file Cash sourcing, export documents and the bank's closest review all land on one company. |
Answer both to highlight your square.
Why banks look hard at scrap
Bank viewSpecialist appetite; cash buying and export flows draw close review
Banks treat scrap as a higher-risk trade. Material is often bought for cash from small collectors, mixed grades are hard to value, and graded loads leave for buyers in several countries. Expect enhanced due diligence on sources, prices and destinations. We put the municipality permit, a sample of your monthly records, the main supplier contracts and the buyer list into the account file.
AMLNot a DNFBP activity; the bank's own customer checks still apply.
Where scrap trading files go wrong
Trading before the municipality permit
The licence lets the company exist. Buying, moving and selling scrap in Dubai waits for the waste trading permit, and an unpermitted truck caught with a load is a violation on day one.
Oil, gas cylinders and sealed drums
Loads must carry no dripping oil and no closed or pressurised containers, which can explode in a furnace. A mill that rejects a container sends it back at the trader's cost.
Missing declarations under the reverse charge
Since 14 January 2026 a registered buyer accounts for the VAT. Without its written declarations before supply, the seller charges 5% and the buyer cannot recover it.
Questions about a scrap metal trading licence
A question about your plan? Describe your scrap metal trading plan and an advisor replies on WhatsApp.
Ask on WhatsAppHow much does a scrap metal trading licence cost in Dubai?
What are the scrap metal trading licence requirements in Dubai?
Can a free zone company trade scrap metal in Dubai?
Does scrap metal trading need a Dubai Municipality permit?
Related pages
- UpdateVAT reverse charge on metal scrapThe UAE VAT reverse charge on metal scrap, explained from VATP047: who accounts for VAT, buyer checks, invoices and the VAT returns to file each period.
IndustryGeneral trading company setup in DubaiGeneral trading company setup in Dubai, scoped right: free zone for re-export, mainland for onshore sales, and the activity breadth you will use.
ActivityWaste management licence in DubaiEvery waste activity in Dubai needs a municipality permit, and each truck is authorised for the waste it carries.
Is your scrap business ready for the municipality permit? Plan the permit with the licence
Fifteen minutes with a senior advisor on your sources, your buyers and the trucks you will run. You leave with the activity, the route and the permits in order.
On the call
- The activity wording that fits your plan
- The route, and the approvals in order
- A written quote before any work starts
