Dubai is one of the world’s top trading hubs, perfectly located between the East and the West. Its excellent infrastructure, business-friendly policies, and tax-free environment make it a favourite destination for traders from all over the globe.
With over $354 billion worth of non-oil foreign trade recorded in 2023, Dubai continues to attract investors, especially from the UK, looking to tap into its thriving import, export, and re-export markets. From gold and electronics to textiles and food products, Dubai serves as a bustling marketplace connecting suppliers and consumers worldwide.
The city’s diverse economy, efficient logistics, and streamlined regulations make setting up a trading business here easier than ever. If you’re too considering starting trading in Dubai from the UK, we’ll walk you through everything you need to know about trading in Dubai and how to get started.
Trading in Dubai, UAE
One of the biggest advantages of doing trade in Dubai is its geographical location, which serves as a natural link between the East and the West. With just an eight-hour flight from two-thirds of the world’s population, Dubai acts as a central hub for global trade. Its world-class infrastructure, including Jebel Ali Port (the largest man-made harbour in the world) and Dubai International Airport (one of the busiest airports for international passenger traffic), makes the import, export, and re-export of goods incredibly efficient.
Dubai’s diverse economy provides fertile ground for various trading industries. Some of the most popular sectors include:
- Gold & Jewlery: Dubai is famously known as the “City of Gold,” with its gold trade consistently contributing billions to the economy.
- Oil & Gas: Although the UAE’s economy is diversifying, oil and gas remain significant sectors, especially for export.
- Foodstuff Trading: With a growing population and a high volume of tourists, foodstuff trading is a booming industry.
- Textiles & Apparel: Dubai is a major player in textile trading, serving markets across Africa, Asia, and Europe.
- Electronics: Consumer electronics trading, including mobile phones, computers, and home appliances, continues to thrive.
Types of Trading Licenses in Dubai
To legally conduct trading activities in Dubai, businesses need to obtain the appropriate trading license. The type of license you need depends on your trading activity and business structure. Here are the most common trading licenses available:
1. Commercial Trading License
A commercial trading license is the most popular license type for trading activities in Dubai. It allows businesses to engage in:
- General Trading: Broad range of unrelated goods (e.g., electronics, clothing, food items) under one license.
- Specialized Trading: Specific trading activities, such as gold trading, textiles, electronics, and more.
The Department of Economic Development (DED) issues commercial trading licenses for businesses operating in the mainland, while Free Zone Authorities issue them for businesses operating within free zones.
2. Industrial License
An industrial license is required for businesses involved in manufacturing or industrial activities. It allows activities such as:
- Production and manufacturing of goods.
- Assembling, packaging, and processing of products.
- Importing raw materials and exporting finished products.
This license is essential for factories and manufacturing units looking to operate in Dubai’s industrial zones or mainland.
3. Professional License
A professional license is issued to individuals or companies providing professional services rather than trading goods. It covers:
- Consultancy services.
- Marketing services.
- Artisanship and craftsmanship.
It is suitable for professionals such as consultants, accountants, legal advisors, IT service providers, etc.
4. E-commerce License
With the growing demand for online trading, Dubai offers a dedicated e-commerce license for businesses that want to operate digital trading platforms or online stores.
5. Free Zone Trading License
If you want to enjoy 100% foreign ownership and tax benefits, setting up in a free zone is an excellent choice. Free zone trading licenses allow you to engage in:
- Import, export, and re-export of goods within the free zone and internationally.
- Wholesale and retail trading.
However, trading directly in the Dubai mainland requires the involvement of a local distributor or an agent.
Documents Required for Trading License in Dubai
Obtaining a trading license in Dubai involves preparing and submitting specific documents, including:
- Completed application form
- Passport copies
- UAE residency visa or visit visa copies for shareholders (if applicable)
- Emirates ID copy, if required
- Trade name reservation certificate
- Initial approval certificate
- Tenancy contract (Ejari)
- Approval from relevant authorities (if applicable)
How to Start Trading in Dubai, UAE?
Starting a trading in Dubai from UK is straightforward if you follow the proper steps. Here’s a breakdown of the process:
1. Decide Your Business Activity
The first step is to determine what type of trading activity you wish to conduct. Whether it’s import-export, re-export, local trading, or online trading, you need to specify your activities clearly.
2. Choose Your Business Structure
Select the legal structure of your business. Some of the common structures include:
- Sole Proprietorship: Owned and managed by a single individual. Suitable for professional and consultancy services.
- Limited Liability Company (LLC): The most common structure for trading companies, allowing shared ownership between UAE nationals and foreign investors.
- Branch Office: An extension of an existing foreign company wishing to establish a presence in Dubai.
- Free Zone Establishment (FZE): A single-owner entity established in a free zone.
- Free Zone Company (FZC): A multi-owner company set up within a free zone.
3. Choose Your Trading Location (Mainland or Free Zone)
- Mainland: Suitable for businesses targeting the UAE local market. Requires a license from the Department of Economic Development (DED).
- Free Zone: Offers 100% foreign ownership and tax benefits but restricts direct trading within the mainland without a local distributor.
4. Register Your Trade Name
Select a unique business name and get it approved by the relevant authority (DED for mainland businesses or the respective Free Zone Authority). Avoid names that are offensive, religious, or resemble other well-known brands.
5. Prepare and Submit Documents
Submit all the required documents for the trading license application.
6. Rent Office Space and Obtain Ejari (For Mainland)
Rent a physical office space as per DED requirements. Register the tenancy contract with Ejari.
7. Pay Fees and Obtain Your Dubai Trading License
Once all documents are verified, pay the required license fees to the authority. You will receive your trading license upon approval, allowing you to legally conduct trading activities. Keep your license valid by renewing it annually. The cost of the license varies depending on the business activity, structure, and location.
8. Apply for Visas (If needed)
After obtaining the license, you can apply for visas for yourself, your employees, and dependents if required.
9. Open a Corporate Bank Account
Set up a business bank account to carry out trading transactions smoothly.
What is the Cost of Trading License in Dubai
The cost of obtaining a trading license in Dubai typically starts from AED 12,900 and can go up, depending on various factors such as the business structure, location, and nature of activities. Free zone licenses offer 100% foreign ownership, but the cost varies across different free zones based on their regulations and facilities. To get an accurate cost assessment tailored to your business needs, it’s advisable to consult with a business setup advisor at Shuraa.
Benefits of Trading in Dubai
Trading in Dubai offers many benefits, making it one of the most attractive destinations for entrepreneurs and investors worldwide. Here are some of the key advantages:
1. Business-Friendly Policies
The UAE government offers attractive incentives for traders, such as zero personal tax and limited corporate taxes, 100% foreign ownership in free zones, and simplified licensing procedures. These business-friendly policies make trading in Dubai highly profitable and efficient.
2. Diverse Trading Opportunities
Dubai’s economy is highly diversified, offering opportunities across various sectors, including Gold & Jewlery, Oil & Gas, Foodstuff, Textiles, Electronics, and more. The city’s thriving re-export market also allows businesses to import goods, enhance them, and export them to different markets.
3. Strong Bilateral Relations Between UAE & UK
The UAE and the UK share a strong economic relationship, with the UAE being the UK’s largest trading partner in the Middle East. The two countries are continuously enhancing trade and investment ties, providing UK investors with easier market access and business collaboration opportunities.
4. Ease of Business Setup
Dubai offers a fast-track business setup process, where you can obtain a trade license within a few days. Free zones provide even more streamlined processes with attractive packages for new businesses.
5. Attractive Residency Options
Dubai offers investor-friendly visa options like the Golden Visa for long-term residency, making it easier for UK investors to live and operate their businesses in Dubai.
6. Currency Stability and Strong Banking System
The UAE Dirham (AED) is pegged to the US Dollar, ensuring currency stability, which is advantageous for UK investors seeking predictable financial returns. Dubai’s banking sector also offers world-class financial services, making it easier to manage international transactions.
How Shuraa Business Setup Can Assist?
Dubai is the perfect place for anyone looking to start a trading business. With its excellent location, business-friendly rules, great infrastructure, and tax benefits, it offers everything you need to grow and succeed. But getting started can feel complicated, especially if you’re new to the process.
That’s where Shuraa UK can help. We make the whole process easy by offering complete services from getting your trading license to business registration, visa processing, and even banking assistance. With our years of experience and knowledge of the UAE’s business landscape, we’ll guide you through every step to ensure a smooth and successful start to your trading business.
Ready to kickstart your trading business in Dubai? Reach out to Shuraa Business Setup today and let us help you make the most of the amazing trading opportunities Dubai has to offer.
