Lubricants Trading Company in Dubai (2026): The Licence, the SCE Petroleum Permit, MoIAT Engine Oil Certificates, Fines, Blending and Tax

Selling a single drum of engine oil in Dubai without a petroleum permit now carries a AED 25,000 fine, and buying that drum from a source the regulator has not approved costs AED 50,000 [1]. Both fines come from Executive Council Resolution No. 85 of 2025, which lists lubricating oils, greases, engine oils and base oils by name and applies inside Dubai's free zones as well as on the mainland [1].

The demand is real: the UAE had 4.56 million active registered vehicles in June 2025, up from 4.17 million a year earlier, according to Salik data reported by Khaleej Times [2]. Founders see that demand and assume a lubricants trading company is an ordinary trading licence with a warehouse attached. It is not. The licence is the first of three separate gates, and the other two are where new traders get stopped.

Since 2013, BusinessDubai.ae has set up trading companies on the Dubai mainland and across the UAE free zones. This guide covers the activity codes, the Dubai Supreme Council of Energy (SCE) permit with its fees and fines, MoIAT engine oil certificates, blending and repacking, storage, used oil, counterfeits, tax and a first-year budget. It is not legal or tax advice: confirm your position with SCE, MoIAT and a tax adviser before you trade.

What does a lubricants trading company in Dubai need before it can sell?

A Dubai lubricants trader needs activity 4730002 Lubricants & Grease Trading (or a free zone equivalent), an SCE permit under Resolution 85 of 2025 (import AED 10,000, distribution AED 2,000 a year), and a MoIAT certificate for each engine oil. Selling without the permit is a AED 25,000 fine, and the rules apply in free zones.

Three different bodies issue the three gates:

1. A trade licence with the right activity. On the Dubai mainland that is Dubai Department of Economy and Tourism (DET) activity 4730002 [3]. A free zone uses its own lubricants trading activity and code.
2. An SCE permit. Resolution 85 of 2025 is plain: "No Person may conduct the Activity in the Emirate unless he is licensed by the Licensing Authority and holds the relevant Permit." [1] Licence and permit are two documents.
3. A MoIAT Certificate of Conformity for engine oils. The Ministry of Industry and Advanced Technology (MoIAT) lists "Lubricants Oils" among its regulated products, and each certificate needs a test report from an accredited laboratory [4][5].

Around them sit customs registration for imports, a compliant warehouse and, if you collect used oil, Dubai Municipality's hazardous waste permits. Our Dubai Customs registration guide covers the importer code, and the oil and gas trading company guide covers fuels, crude and LPG.

Above all of it sits Federal Law No. 14 of 2017, whose Petroleum Derivatives include "base oils and lubricants of various kinds, such as motor oils, industrial oils and grease", in a territory that covers the free zones [6].

Which lubricant products need which licence, permit and certificate?

A lubricants trader in Dubai handles five product families: engine oils, gear and hydraulic oils, greases, marine lubricants and base oils. All five fall under the SCE permit regime of Resolution 85 of 2025, but MoIAT's regulated-products sheet lists only engine oils, so the certificate question differs by product family.

Resolution 85 defines Petroleum Derivatives to include "base oils, manufactured lubricating oils of all types, such as engine oils, jet fuel, industrial oils and greases" [1]. That brings every lubricant you are likely to stock inside the SCE regime. MoIAT's sheet is narrower: it names engine oils and stops [4].

The sheet lists engine oils; confirm with MoIAT whether your other products need a certificate, since the sheet dates from 2022 [4].

Common Mistake: Setting up on a general trading licence and assuming it covers engine oil. A general trading activity is a commercial permission to resell goods, not the SCE permit, and Resolution 85 fines selling, distributing or filling lubricants without a Permit at AED 25,000 per violation [1]. Founders who find out after the first container lands pay for the permit and, if an inspector arrives first, the fine as well.

Which activity code covers lubricants trading, blending and repacking?

On the Dubai mainland, lubricants trading is DET activity 4730002 Lubricants & Grease Trading, a commercial activity. Blending (1920015), manufacturing (1920008) and refilling into smaller packs (1920014) are industrial activities. Transport (4923020) and storage (5210003) are separate codes again, and the code must match what you physically do.

The descriptions below are quoted from the Dubai Department of Economy and Tourism business activity list, as recorded in a public copy of the register [3]. Authorities read the activity description, not your business plan.

Three things follow. Repacking bulk oil into your own bottles is refilling, which is industrial, not trading. A workshop licensed for Auto Oil Change can sell oil to the customer whose car it services, but "in non-commercial quantities" rules out wholesaling drums to other garages. And no base-oil trading activity appears in the register, so a base-oil trader should ask DET in writing which activity it will accept.

Free zones do not use DET codes. Each zone runs its own activity list, so a free zone code will look different from 4730002 even for the same activity.

Should a lubricants trader set up on the mainland or in a free zone?

A lubricants trader that sells mostly to Dubai workshops, fleets and retailers usually fits the Dubai mainland, from AED 18,200 in year one without a visa or AED 26,900 with one. An importer that re-exports usually fits a Designated Zone such as JAFZA. Either way, Resolution 85's SCE permit applies in Dubai free zones too.

The choice decides who you sell to directly, how imported stock is treated for VAT, and whether 0% corporate tax is possible. Our mainland company setup page itemises the mainland route, and our free zone company setup page compares the zones, including renewal after year one [14].

Whether a zone licenses lubricants trading must be confirmed with the zone. Prices are BusinessDubai.ae's package prices as of November 2026 [14]. Packages are company formation only: they do not include the SCE permit, MoIAT certificates, a warehouse or civil defence approvals.

Where else in the UAE can you base a lubricants business?

The realistic alternatives are JAFZA for import and re-export, Hamriyah Free Zone or SAIF Zone in Sharjah for blending, and lower-cost zones in Sharjah and Ajman for a small desk. BusinessDubai.ae has no JAFZA, Hamriyah or SAIF Zone package, so those rows show no price.

JAFZA suits an importer that re-exports because it is a Designated Zone, which changes both the VAT treatment of goods and the corporate tax test for distribution; our JAFZA free zone guide and Designated Zone VAT guide cover both. For blending, see our Hamriyah Free Zone guide and SAIF Zone guide.

If you will never need a Dubai address, the cheaper emirates are real options. Our business setup in Sharjah page covers SPC Free Zone, and our business setup in Ajman page covers Ajman Free Zone, where BusinessDubai.ae's one-visa package is AED 13,931 [14]. But Resolution 85's definition of Dealing starts with "Bringing Petroleum Products into the Emirate", and it fines importing petroleum products from another emirate for dealing in Dubai without a Permit at AED 10,000 [1]. A Sharjah or Ajman trader delivering to Dubai customers should ask SCE about a Dubai permit first; the federal law applies in every emirate regardless [6].

What is the SCE permit under Resolution No. 85 of 2025?

The SCE permit is the Dubai Supreme Council of Energy's annual authorisation to deal in petroleum products, issued under Executive Council Resolution No. 85 of 2025 dated 18 November 2025. It covers lubricants, greases, engine oils and base oils, lasts one year, must be renewed at least 30 days before expiry, and applies in Dubai free zones.

Resolution 85 regulates "Dealing in Petroleum Products", defined as "Bringing Petroleum Products into the Emirate or manufacturing, storing, filling, transporting, marketing, distributing, offering for sale, selling, purchasing, or supplying them to others." [1] That covers almost everything a lubricants business does.

The core provisions for a lubricants trader:

• Scope. The resolution applies "including in Special Development Zones and in Free Zones, such as the Dubai International Financial Centre" (Article 2) [1]. Companies exempted from the federal law by Cabinet resolution are outside the permit rules (Article 2(b)).
• Licence plus permit. Article 6 requires both, and requires proof that products were obtained from a company approved by the SCE [1].
• Permit types. Article 7 lists separate permits for import, distribution, sale and purchase, manufacture, marketing, storage and transport between emirates [1]. You apply for the ones your model uses.
• Validity. One year, renewable, with the renewal application at least 30 days before expiry (Article 12). A permit can run longer to match the commercial licence if the annual fees are paid each year [1].
• Obligations. Article 13 requires registration in the Ministry of Energy and Infrastructure's Register of Establishments Dealing in Petroleum Products, keeping the books, records and invoices proving your sources for at least five years, meeting SCE storage and transport standards, and reporting incidents within 24 hours [1].
• Blending raw materials. Article 11(b) lets SCE authorise the import of off-specification products that are raw materials for manufacturing or blending [1].

What if you were already trading before Resolution 85?

Article 23 gives existing operators a grace period: they "must comply with the provisions hereof within a period not exceeding one (1) year from that effective date", and the Chairman may extend it once [1]. The effective date is the day of publication in the Official Gazette (Article 26), which the text does not state.

Pro Tip: If you were trading lubricants in Dubai before Resolution 85 took effect, your one-year window runs from its Official Gazette publication date, not from 18 November 2025 when it was signed. Ask SCE in writing which date it applies, whether an extension has been granted, and what it expects from your file now. A dated written answer protects you; an assumed deadline does not.

How much do SCE permits cost for a lubricants business?

SCE permit fees for lubricants are set in Schedule 1 of Resolution 85 of 2025: AED 10,000 a year to import, AED 2,000 per Activity to distribute, store, sell or transport, AED 500 to export or re-export, AED 4,000 for retail sale and AED 7,000 to manufacture lubricating oils, greases and engine oils. Base oils have their own lines.

The fees below come from section III of Schedule 1, "Dealing in Industrial Petroleum Derivatives (Including Lubricating Oils, Greases, Engine Oils, and Base Oils)", plus two lines from elsewhere in the schedule [1]. Each is for issuing or renewing a permit.

The schedule gives no application fee, processing time or document list, and does not define "per Activity". Read with Article 7, the most natural meaning is one fee for each permit type you hold: Article 7 issues separate permits for distribution, storage, sale and purchase, and transport within the emirate, and that schedule line lists exactly those four functions at AED 2,000 "per Activity" [1]. On that reading the line costs AED 2,000 if you only distribute, and up to AED 8,000 if you also store, sell and run your own delivery vehicles. That is our reading, not an SCE ruling, so confirm the count with SCE before you budget.

Quick Math: An importer-wholesaler of finished lubricants that also re-exports needs import AED 10,000, re-export AED 500 and at least one AED 2,000 line, so AED 12,500 a year in SCE fees [1]. If SCE charges distribution, storage, sale and transport as four separate Activities, the 2,000 line becomes 8,000 and the total AED 18,500 a year.

What are the fines for trading lubricants without the right permits?

Resolution 85 of 2025 fines trading lubricants without an SCE permit at AED 25,000, buying them from unknown or unauthorised sources at AED 50,000, and selling without a filling seal or with counterfeit seals or labels at AED 25,000. A repeat within a year doubles the fine, capped at AED 1,000,000.

Section IV of Schedule 2 is headed "Violations Related to Lubricating Oils, Greases, Base Oils, and Engine Oils" [1]. The last four lines below come from section VI, "Other Violations", which covers all petroleum products.

Under Article 15, a repeat of the same violation within one year doubles the fine, and "A doubled fine must not exceed one million dirhams (AED 1,000,000.00)." [1] SCE may also revoke the permit, close the establishment "for no more than six (6) months", revoke the commercial licence, and order the "seizure, destruction, or re-export" of non-conforming products [1]. A closure usually costs more than the fine.

Quick Math: Buying a container of engine oil from a supplier you cannot document is a AED 50,000 fine under item 39 [1]. Do it again within a year and it doubles to AED 100,000, before any closure, seizure or licence revocation. Against that, an import permit costs AED 10,000 a year and supplier paperwork costs only discipline.

What does the federal law add?

The federal law is the criminal layer. Article 14 of Federal Law No. 14 of 2017 provides "Imprisonment for a period of no more than one year and a fine of no less than AED (100,000) and no more than AED (500,000) or one of these penalties" for trading petroleum products without a licence, selling non-conforming products, or possessing commercial quantities of unknown origin [6]. A repeat carries at least one year's imprisonment and a fine of AED 1,000,000 to 5,000,000 [6]. The English text is an unofficial translation hosted by the Port of Fujairah; the Arabic original governs.

How do you get a MoIAT Certificate of Conformity for engine oil?

A MoIAT Certificate of Conformity for engine oil needs a valid trade licence, a test report to UAE.S GSO 1785 from an accredited laboratory, proof of the right to distribute the brand, a warehouse map and an electronic declaration. MoIAT's published fees total AED 1,720, and its service time is one and a half working days.

MoIAT's service page "Issue Conformity Certificates for Regulated Products", updated 28 October 2026, sets out the process and fees [5]. The product requirements come from MoIAT's regulated-products sheet, which lists "Lubricants Oils" under the regulation on internal combustion engine lubricating oil products, Board Chairman Decision No. (3) of 2011 [4]. The sheet is a 2022 PDF, so check the current list when you apply.

MoIAT states the service time as "One and a half Working Days" [5]. That clock starts once the file is complete; sampling and testing come first, so book the laboratory well ahead of the first shipment.

Certificates are not permanent. TÜV Rheinland, a certification body that issues ECAS certificates, gives the validity as "ECAS Certificate of Conformity: 1 year" and notes that "Both manufacturers and traders may apply" [8]. MoIAT's sheet gives the test report one year too [4].

What does "Distributor ownership (for Traders only)" mean?

"Distributor ownership (for Traders only)" requires a trader to show it has the right to distribute the brand it is certifying [4]. That points to an authorisation or distribution agreement from the brand owner, but the sheet does not name the document. Confirm the document MoIAT accepts before you sign a distribution deal, and make sure the brand owner will issue it in your company's name.

Quick Math: MoIAT's published fee lines add up to 600 + 620 + 500 = AED 1,720 per certificate, before laboratory testing [5]. If each viscosity grade needs its own certificate, five grades cost AED 8,600 in MoIAT fees in year one, plus five test reports. Ask MoIAT whether it certifies a range on one application or per grade before you fix the portfolio.

Common Mistake: Believing lubricants need no product registration. Some guides say no product registration is needed; Resolution 85 and MoIAT's sheet say otherwise [1][4]. SCE fines dealing in lubricants that do not conform to its technical standards at AED 25,000, and the federal law treats selling non-conforming petroleum products as a crime [1][6]. Check every engine oil against the MoIAT list before it ships.

Brand distributor, private label or blender: which lubricants model fits you?

A brand distributor needs activity 4730002, SCE import and distribution permits and the brand's MoIAT certificates. A private-label business that refills bulk oil needs industrial activity 1920014. A blender needs 1920015 and the AED 7,000 SCE manufacture permit, and its finished engine oil still needs MoIAT certification. Capital rises sharply at each step.

Toll blending is the middle path: a brand owner contracts an already-licensed plant to make its product and sells the finished oil on a trading licence. Check that the plant holds its own permits, that the contract says who is the manufacturer for MoIAT purposes, and that your SCE permit covers how the goods reach you.

Hamriyah Free Zone in Sharjah hosts lubricant blenders and has an oil and gas sub-zone; our Hamriyah Free Zone guide sets out its approvals. A blender inside Dubai, free zone or not, needs the SCE manufacture permit [1].

Real Talk: Repacking someone else's oil into your own bottles is not a trading shortcut. The register describes refilling as "breaking bulk Lubricants and Grease in smaller lots consumer or commercial packs" and classifies it as industrial [3]. Selling packs without a filling seal, or with a counterfeit seal or label, is a AED 25,000 fine [1]. For your own brand without a plant, toll blending is usually the cleaner route.

What storage, transport and warehouse rules apply to lubricants?

Lubricants storage in Dubai must meet SCE-approved standards under Article 13 of Resolution 85 of 2025, and failing them is a AED 50,000 fine. Non-conforming cans, barrels, containers or vehicles cost AED 10,000, and moving products between emirates needs a AED 2,000 permit per transport contract. Civil defence approval is separate.

Article 13 requires compliance "with the technical standards and requirements applicable to Petroleum Products storage facilities, and to the storage, manufacture, and means of transport of Petroleum Products" [1]. The matching fines are item 75 (storage facilities and filling, AED 50,000) and item 42 (non-conforming cans, barrels, containers or vehicles, AED 10,000) [1].

• The warehouse is a regulated facility. Before signing a lease, confirm SCE will accept the site and that it holds the civil defence approval your products and quantities need. In JAFZA and other Trakhees-regulated areas, Trakhees sets its own storage guidelines. Ask the authority, not the landlord.
• Tank storage and transport are separate activities. Bulk tank storage is activity 5210003 and tanker transport is 4923020 [3]. Ask DET whether a trader holding its own packed stock also needs 5210003, especially before holding bulk.
• Moving goods across emirates needs a contract permit. SCE charges AED 2,000 per transport contract, and the permit follows the contract term, with a three-month minimum [1].

Pro Tip: Put the warehouse questions to SCE and civil defence in writing before you sign the lease, with the product list, pack sizes and the maximum quantity you will hold. Fine 75 is AED 50,000 [1], and a warehouse that cannot be approved still has to be paid for until the lease ends.

What happens to used oil, and who is allowed to collect it?

Used engine oil in Dubai is hazardous waste. Collectors need DET activity 3812001 Used Lubricants Collecting Services or 3812007 Hazardous Waste Collection & Transport, Dubai Municipality permits for each vehicle, and an SCE permit (AED 2,000) to collect used engine oil for manufacturing. A trader that does not collect oil needs none of these.

Dubai Municipality's Technical Guidelines on Used Lubricants Collecting Services (DM-WSPD-P04-008, version 1.0, 22 August 2024) cover companies licensed "for activity 3812001 - Used Lubricants Collecting Services", and the checklist names "Hazardous Waste Collection & Transport- CODE 3812007" as the alternative [7].

The guidelines cite "Cabinet Decision No. (33) of 2018 on the circulation of used oils" among their legal basis [7]. This guide does not analyse that federal decision, so take advice on it if used oil is part of your plan.

For a pure trader, the point is responsibility, not collection: "It is the responsibility of the waste generator to verify the credentials and compliance of the waste transporters as per the latest published bulletin." [7] A workshop that drains oil is the waste generator, and its used oil goes to a permitted collector. Our auto repair garage setup guide covers the workshop side, and our auto parts trading guide covers the parts and batteries that travel with lubricants.

How do you prove your lubricants are genuine and avoid counterfeit stock?

A Dubai lubricants trader proves its stock is genuine with supplier paperwork that SCE can trace. Resolution 85 of 2025 fines unknown or unauthorised sources at AED 50,000, counterfeit seals or labels at AED 25,000, and requires invoices proving sources to be kept for at least five years. MoIAT's brand-distribution document adds a second check.

Counterfeit engine oil is a live UAE problem. On 26 June 2024, Gulf News reported that Ajman Police had raided a warehouse holding counterfeit car oils labelled with the names of international companies, and arrested a man [9]. The case was in Ajman, but such stock moves wherever a buyer accepts it without paper.

In the SCE schedule, item 39 fines unknown or unauthorised sources at AED 50,000; item 43 fines packs without a filling seal or with counterfeit or forged seals or labels at AED 25,000; item 60 fines possessing commercial quantities from unknown sources with intent to sell at AED 25,000 [1]. Article 13 requires records proving sources to be kept for at least five years [1].

A supplier file that answers those rules holds:

• The supplier's trade licence and SCE permit, or the foreign manufacturer's details for an import.
• The brand owner's authorisation to distribute, which MoIAT's "Distributor ownership" line also asks for [4].
• Invoices, packing lists and the bill of lading or delivery note for every lot, matched to batch numbers.
• The MoIAT certificate and test report for each engine oil, with expiry dates.

Real Talk: A price well below the authorised distributor's is a warning, not a bargain. If a supplier cannot show its licence, its permit and the brand owner's authorisation, walk away: item 39's AED 50,000 fine is for acquiring from an unknown source, so it lands on you, the buyer [1]. Keep the file for five years even after the relationship ends.

How are lubricants taxed in the UAE?

Lubricants in the UAE carry no excise tax, VAT at 5% on local sales and 0% on exports outside the GCC. Corporate tax is 0% to AED 375,000 of taxable profit and 9% above for a mainland trader. A free zone trader reaches 0% only on qualifying income, and branded retail packs are excluded from the commodity route.

Lubricants are not excise goods, and VAT works normally. Register once taxable supplies pass AED 375,000; our VAT registration and compliance guide covers registration and returns.

Can a free zone lubricants trader get 0% corporate tax?

A free zone lubricants trader reaches 0% only through a Qualifying Activity. Ministerial Decision No. 229 of 2025 defines Qualifying Commodities as commodities for which "a Quoted Price for such commodities exists", covering "Metals, minerals, industrial chemicals, energy and agriculture commodities and Associated By-products, excluding products packaged for retail sale and any other products specified in a decision issued by the Minister." [11] A Quoted Price is the "Price of the Qualifying Commodity or a Related Commodity specified by a Recognised Commodity Exchange Market or a recognised price reporting agency specified by a decision issued by the Minister." [11]

Branded packaged lubricants do not qualify: they are packaged for retail sale, and a branded engine oil has no quoted price of its own. Base oils might qualify only after an analysis of quoted prices and the tariff chapter, so treat it as possible and take advice.

The stronger route for an importer is distribution from a Designated Zone. Qualifying Activity (l) covers buying and selling goods "conducted in or from a Designated Zone", imported through it and supplied to "A customer who resells, processes or alters such goods or materials, or parts thereof for the purposes of sale or resale." [11] A JAFZA importer selling to distributors, retailers and blenders can fit that wording. A workshop that uses the oil in servicing is not clearly a reseller.

Blending is a separate door. MD 229 counts manufacturing, which "includes the production, improvement or assembly of products and materials from raw materials or components", and processing as Qualifying Activities [11]. A free zone blender can qualify, subject to the Qualifying Free Zone Person (QFZP) conditions, including adequate substance, audited accounts and the de minimis limit; our Qualifying Free Zone Person guide sets them out.

Common Mistake: Assuming every sale out of JAFZA is qualifying income. Sales to a workshop or fleet that consumes the oil may not meet the Designated Zone distribution test [11]. If those sales push non-qualifying revenue past the de minimis limit, the company stops being a QFZP, pays ordinary rates (0% to AED 375,000, 9% above) from the start of that period, and cannot be a QFZP for the following four periods.

How is a mainland lubricants trader taxed?

A mainland lubricants trader pays 0% on the first AED 375,000 of taxable profit and 9% above it. Small Business Relief lets a business with revenue at or under AED 3,000,000 elect to be treated as having no taxable income, for tax periods ending on or before 31 December 2029 [12]; our Small Business Relief guide explains the election.

Quick Math: A mainland lubricants wholesaler with AED 1,200,000 of taxable profit pays nothing on the first AED 375,000 and 9% on the remaining AED 825,000, which is AED 74,250 of corporate tax. The same profit in a free zone is only cheaper if the income is qualifying, which for workshop sales it may not be.

To model your own tax position across the mainland and a Designated Zone before you choose a base, model your position→

What does a lubricants trading company cost in its first year?

A Dubai mainland lubricants importer-wholesaler with one visa budgets about AED 26,900 for the company package, AED 12,500 for SCE permits and AED 1,720 per MoIAT certificate on the published fee lines. Laboratory tests, the warehouse, vehicles and staff come on top, and those are quotes, not fixed fees.

The table itemises year one for a mainland importer-wholesaler with one visa, using Resolution 85 and MoIAT fees [1][5] and BusinessDubai.ae's November 2026 package prices [14].

The SCE permits and MoIAT certificates renew every year, good year or not, so they belong in the price of every drum, not in a one-off setup budget.

Quick Math: Take a mainland importer-wholesaler with one visa and five engine oils: AED 26,900 for the package, AED 12,500 for SCE permits and AED 8,600 for five MoIAT certificates comes to AED 48,000 before laboratory tests, the warehouse, stock and staff [1][5][14]. If SCE counts four distribution Activities, it is AED 54,000. The same model on a Meydan Free Zone one-visa package at AED 21,850 comes to AED 42,950, or AED 48,950 with four Activities.

For an itemised quote that sets the mainland against the free zones for your product list, get a free setup quote→

In what order should you apply for the licence and permits?

The order for a Dubai lubricants trader is the trade licence first, then the SCE permits, then MoIAT certificates, then customs registration and the first import. Resolution 85 of 2025 requires a licence before a permit, MoIAT requires a valid trade licence, and MoIAT test reports are valid for one year.

1. Confirm the activity and the zone for your exact products, in writing for base oils, and confirm the zone licenses lubricants trading.
2. Agree the warehouse in principle with SCE and civil defence before signing.
3. Issue the licence. The SCE permit and the MoIAT application both need it [1][5].
4. Apply for the SCE permits your model uses: import, distribution, re-export, retail or manufacture [1].
5. Commission sampling and lab tests for each engine oil, and get the brand owner's distribution document [4].
6. Apply for MoIAT certificates, one and a half working days once the file is complete [5].
7. Register with customs and book the first shipment only when permits and certificates are in hand.
8. Open the bank account. Banks ask petroleum traders for the permits and supplier file; our corporate bank account guide covers what they want.

The sources used here publish no SCE or DET processing times, so we give no day counts. Plan backwards from the shipment date and give the laboratory the longest lead time.

After launch come annual renewals: the licence, the SCE permits at least 30 days before expiry, MoIAT certificates and test reports, visas, VAT returns and the corporate tax return. Our post-setup services team runs that calendar so a lapsed permit does not become a AED 15,000 failure-to-renew fine [1].

Which lubricants business setup fits your plan?

The right lubricants setup depends on where the oil comes from and who buys it. A brand importer that re-exports fits JAFZA; a wholesaler to Dubai workshops fits the mainland; a repacker or blender needs an industrial licence, for example in Hamriyah or SAIF; a base-oil trader must confirm its activity with DET; a marine supplier needs VAT advice.

On the marine row: Article 35(1) of the VAT Executive Regulation, on goods supplied for qualifying ships, excludes fuel and other oil or gas products from that relief [13]. Article 33(2)(a) separately zero-rates goods supplied for use or consumption on a ship on an international voyage, and whether lubricants fall under that rule is not settled in the texts we read, so confirm the rate with a tax adviser before pricing. Our marine and shipping free zones guide covers the zone choice.

Real Client Stories

These are composite examples built from the situations lubricant trading founders most often face in Dubai. Names and details are illustrative, and the only figures used are published government fees and BusinessDubai.ae's package prices.

The distributor with the brand letter but no permit

Karim secured distribution rights for a European engine oil brand and set up a Dubai mainland company on the AED 26,900 one-visa package, with activity 4730002, then ordered his first container before applying to SCE. The import permit (AED 10,000) and distribution permit (AED 2,000) had to be issued before the stock could legally be sold, and each of his four engine oils needed a laboratory report and a MoIAT certificate at AED 1,720 on the published fee lines. The container waited while the paperwork caught up. Lesson: the licence is only the first of three gates, so apply for the SCE permits and MoIAT certificates before the first shipment leaves the port.

The private label that turned out to be industrial

Sara planned her own lubricant brand by buying bulk oil and filling one-litre and four-litre bottles under her label, and priced a Meydan Free Zone licence-only package at AED 12,500. The activity register showed that "breaking bulk Lubricants and Grease in smaller lots" is refilling, activity 1920014, an industrial activity that her trading licence and desk could not carry. Rather than build a filling line, she contracted a licensed blending plant to fill under her brand and kept a trading licence, once the zone confirmed it licensed lubricants. Lesson: repacking is manufacturing in the licensing sense, so decide early whether you will own the plant or contract it.

The workshop owner who wanted to wholesale

Rashid runs a Dubai mainland workshop licensed for Auto Oil Change, activity 4520010. Garages nearby started asking him for drums at his buying price, and he began supplying them. His activity allows selling lubricants only "in non-commercial quantities" alongside a service, and selling lubricants without an SCE permit carries a AED 25,000 fine. He added a separate trading activity, 4730002, and an SCE distribution permit at AED 2,000 a year before scaling the side business. Lesson: a workshop licence covers oil you put into a customer's car, not oil you sell to other businesses.

Start your lubricants trading company the right way

For a lubricants trader, the licence is the easy part. What decides whether you trade legally is whether the SCE permits match what you actually do, whether every engine oil holds a current MoIAT certificate, and whether your supplier file would survive an SCE inspection. Tax comes after that, and for most workshop-facing traders the honest answer is ordinary corporate tax rates, not 0%.

BusinessDubai.ae works with itemised pricing and no hidden fees, and says which costs sit outside the package. We will compare a mainland company setup with a free zone company setup on what differs for a lubricants business: who you can sell to directly, how imported stock is treated, and whether any income can reach 0%. After launch, our post-setup services team keeps the renewal calendar running.

To get a setup plan built around your products, your suppliers and your customers, talk to a setup expert→

Frequently Asked Questions

Do I need a special licence to trade lubricants in Dubai?

Yes. On the Dubai mainland the activity is 4730002 Lubricants & Grease Trading, and free zones use their own equivalent. As of 2026 you also need an SCE permit under Resolution 85 of 2025 and a MoIAT Certificate of Conformity for each engine oil.

Does Resolution 85 of 2025 apply in Dubai free zones?

Yes. Article 2 applies it "including in Special Development Zones and in Free Zones, such as the Dubai International Financial Centre". A JAFZA, Meydan or IFZA company trading lubricants needs the SCE permit like a mainland company.

How much does an SCE permit cost to import lubricants?

The SCE import permit for industrial petroleum derivatives, which include lubricating oils, greases and engine oils, costs AED 10,000 a year. Distribution adds AED 2,000 per Activity and re-export AED 500, so an importer-wholesaler that re-exports pays AED 12,500 a year, or up to AED 18,500 if storage, sale and transport are each charged as a separate Activity.

What is the fine for selling lubricants without an SCE permit?

AED 25,000, under item 38 of Schedule 2 of Resolution 85 of 2025, for selling, buying, transporting, distributing or filling lubricants without a Permit. A repeat within a year doubles it, and SCE can close the establishment for up to six months.

What is the fine for buying lubricants from an unknown source?

AED 50,000 under item 39 of Resolution 85 of 2025, doubling to AED 100,000 for a repeat within a year. Federal law adds possible imprisonment for possessing commercial quantities of unknown origin.

Can I go to prison for illegal lubricant trading in the UAE?

Yes, in serious cases. Article 14 of Federal Law No. 14 of 2017 provides imprisonment of up to one year and a fine of AED 100,000 to 500,000, or either, for trading petroleum products without a licence or selling non-conforming products.

Do engine oils need MoIAT registration in the UAE?

Yes. MoIAT's regulated-products sheet lists "Lubricants Oils" under the regulation on internal combustion engine lubricating oils, Board Chairman Decision No. (3) of 2011. Each needs a Certificate of Conformity backed by a test report to UAE.S GSO 1785.

Do greases, gear oils and hydraulic oils need a MoIAT certificate?

MoIAT's sheet lists engine oils and does not list greases, gear, hydraulic, marine or base oils. The sheet dates from 2022, so confirm with MoIAT. All of them still need the SCE permit in Dubai.

How much does a MoIAT Certificate of Conformity cost?

MoIAT's published fees, as updated on 28 October 2026, are AED 600 to register products, AED 620 for technical review and AED 500 to issue, so AED 1,720 per certificate. Laboratory testing is extra, and a technical assessment, if carried out, costs AED 2,500 per working day per assessor.

How long does MoIAT certification take for engine oil?

MoIAT states one and a half working days, counted from a complete file. Sampling and laboratory testing to UAE.S GSO 1785 come first and usually take longer. The certificate lasts one year according to TÜV Rheinland, a certification body, and the test report is valid for one year.

Does a lubricants distributor need the brand owner's authorisation?

Yes, for MoIAT. Its sheet lists "Distributor ownership (for Traders only)", meaning proof of the right to distribute the brand. Confirm which document MoIAT accepts before you sign with the brand.

Can I repack or private-label engine oil on a trading licence?

No. Breaking bulk lubricants into smaller packs is activity 1920014 Lubricants & Grease Refilling, an industrial activity. A trader wanting a private label usually contracts a licensed plant to fill or blend under its brand.

What licence do I need to blend lubricants?

Activity 1920015 Grease & Lubricants Blending, an industrial activity, or the equivalent in an industrial free zone. In Dubai it also needs the SCE manufacture permit at AED 7,000 a year, and finished engine oils need MoIAT certificates.

Can I trade base oil with a lubricants trading licence?

Possibly, but confirm it. No base-oil trading activity appears in the DET register, so ask DET or your free zone in writing. Base oils have their own SCE lines: import AED 10,000, distribution AED 2,000 per Activity.

Can an auto workshop sell lubricants to other garages?

Not on its workshop licence alone. Auto Oil Change, activity 4520010, allows lubricant sales "in non-commercial quantities" alongside the service. Supplying other garages needs a trading activity such as 4730002 and an SCE distribution permit.

Who can collect used engine oil in Dubai?

Only permitted collectors with activity 3812001 Used Lubricants Collecting Services or 3812007 Hazardous Waste Collection & Transport, plus Dubai Municipality vehicle permits. Collecting used engine oil for manufacturing also needs an SCE permit at AED 2,000.

Does a lubricants trader have to take back used oil?

The sources reviewed for this guide place no take-back duty on a trader that does not collect oil. Dubai Municipality makes the waste generator, such as a workshop, responsible for using a permitted transporter. Take advice on Cabinet Decision No. 33 of 2018 if used oil is part of your model.

Do I need civil defence approval for a lubricants warehouse?

Expect to. Resolution 85 requires storage facilities to meet SCE standards, with a AED 50,000 fine for failures, and civil defence or Trakhees approvals sit alongside depending on location. Confirm approvals before signing the lease.

Is there excise tax on lubricants in the UAE?

No. Cabinet Decision No. 197 of 2025, effective 1 January 2026, lists tobacco, e-cigarette liquids and devices, energy drinks and sweetened drinks as excise goods. Lubricants are not among them.

Is VAT charged on lubricants in the UAE?

Yes. Local sales are standard-rated at 5%, and exports outside the GCC are zero-rated with proper evidence. Register once taxable supplies pass AED 375,000.

Is VAT charged on lubricants supplied to ships?

It depends. Article 35(1) of the VAT Executive Regulation excludes fuel and other oil or gas products from the spares and consumables relief for qualifying ships. Article 33(2)(a) separately zero-rates goods supplied for use or consumption on a ship on an international voyage, so get tax advice on your exact supplies before choosing 0% or 5%.

Can a free zone lubricants trader pay 0% corporate tax?

Only on qualifying income. Branded packaged lubricants are excluded as products packaged for retail sale. A Designated Zone importer can qualify on sales to customers who resell or process the oil, and a free zone blender through manufacturing, subject to the QFZP conditions.

Is base oil a Qualifying Commodity for corporate tax?

Possibly, but it is not settled. Ministerial Decision No. 229 of 2025 requires a Quoted Price for the commodity or a related commodity in the same tariff chapter, so take tax advice on your grade.

Does Small Business Relief apply to a lubricants trader?

Yes, for a mainland or other non-QFZP trader with revenue at or under AED 3,000,000, for tax periods ending on or before 31 December 2029. It must be elected, and a Qualifying Free Zone Person cannot use it.

How much does it cost to start a lubricants trading company in Dubai?

A mainland importer-wholesaler with one visa budgets about AED 26,900 for the BusinessDubai.ae package, AED 12,500 a year for SCE permits and AED 1,720 per MoIAT certificate. Lab tests, warehouse, stock and staff are extra.

Can a Sharjah or Ajman company sell lubricants into Dubai?

Yes, but check the Dubai permit first. Resolution 85 covers bringing petroleum products into Dubai and fines importing them from another emirate for dealing in Dubai without a Permit at AED 10,000. Ask SCE before the first delivery.

References

[1] Dubai Supreme Legislation Committee. Executive Council Resolution No. 85 of 2025 Regulating Dealing in Petroleum Products in the Emirate of Dubai, issued 18 November 2025: definitions, scope in free zones, Articles 6, 7, 11, 12, 13, 15, 23 and 26, Schedule 1 fees and Schedule 2 fines. dlp.dubai.gov.ae

[2] Khaleej Times, 24 August 2025. Active registered vehicles in the UAE, 4.56 million in June 2025 against 4.17 million a year earlier, reporting Salik data. khaleejtimes.com

[3] Dubai Department of Economy and Tourism. Business activity list as recorded in a public copy of the register: activities 4730002, 1920015, 1920008, 1920014, 4923020, 5210003 and 4520010, with descriptions and licence types. visaindubai.ae

[4] Ministry of Industry and Advanced Technology. List of technical requirements for regulated products (CAD Regulated Sheet, PDF dated 2022): "Lubricants Oils" requirements under Board Chairman Decision No. (3) of 2011. moiat.gov.ae

[5] Ministry of Industry and Advanced Technology. Issue Conformity Certificates for Regulated Products: process, fees and service time, page updated 28 October 2026. moiat.gov.ae

[6] Federal Law No. 14 of 2017 on Trading in Petroleum Products, English translation hosted by the Port of Fujairah (unofficial): definitions, scope including free zones, and penalties in Articles 14 and 15. fujairahport.ae

[7] Dubai Municipality. Technical Guidelines on Used Lubricants Collecting Services, DM-WSPD-P04-008, version 1.0, 22 August 2024: collector activities, permits, storage and legal basis. dmpmedia.dm.gov.ae

[8] TÜV Rheinland. UAE MoIAT ECAS certification: certificate validity and who may apply. tuv.com

[9] Gulf News, 26 June 2024. Arrest in a raid on a counterfeit car oil warehouse in Ajman. gulfnews.com

[10] UAE Cabinet. Cabinet Decision No. 197 of 2025 on Excise Goods, Excise Tax Rates and the Methods of Calculating the Excise Price, effective 1 January 2026: list of excise goods. mof.gov.ae

[11] Ministry of Finance. Ministerial Decision No. 229 of 2025 Regarding Qualifying Activities and Excluded Activities: Qualifying Commodities, Quoted Price, manufacturing, processing and Designated Zone distribution. mof.gov.ae

[12] Zawya. UAE Ministry of Finance extends Small Business Relief for corporate tax to tax periods ending on or before 31 December 2029 (Ministerial Decision No. 131 of 2026). zawya.com

[13] Federal Tax Authority. Executive Regulation of Federal Decree-Law No. 8 of 2017 on Value Added Tax, version published 18 September 2025: Articles 33(2)(a) and 35 on goods supplied for ships and qualifying means of transport. tax.gov.ae

[14] BusinessDubai.ae. Internal data: Dubai mainland and free zone company formation package prices as of November 2026, and setup work on trading companies since 2013. businessdubai.ae