Metals and Steel Trading Company Setup in Dubai (2026): Licence Codes, the 0% Commodity Route and Cost

A steel trading licence in Dubai is not a single licence. The Dubai Department of Economy and Tourism (DET) has no activity called "steel trading" or "metals trading", and it files metals across two separate activity groups, so a trader in plate, aluminium or copper can end up with a licence that misses the product it sells most [1]. The duty side is just as specific: coated aluminium sheet and coil from China has carried an anti-dumping duty of up to 20% of CIF value since 25 April 2025 [2].

The prize is specific too. Ministerial Decision No. 229 of 2025 makes the trading of Qualifying Commodities, which include metals with a Quoted Price, a route to the 0% free zone corporate tax rate, and then closes that route to a company earning 51% or more of its revenue from distribution, warehousing, logistics or inventory management [3]. Get the codes, the duties or the tax route wrong and the cost arrives as an amended licence, a margin lost at customs or a tax status lost for five periods.

Since 2013, BusinessDubai.ae has set up trading companies on the Dubai mainland and across the UAE's free zones. This guide covers the exact activity codes, an itemised cost table, DMCC against JAFZA and Hamriyah, the Qualifying Commodities route quoted from the Decision, which metals have a Quoted Price, the anti-dumping and import duties, trade finance, hedging and VAT. Gold and other precious metals have their own regime and their own guide.

Which licence and activity codes does a metals trader need in Dubai?

A metals trader in Dubai needs a commercial licence carrying the activities that match its products, because DET has no single steel or metals trading code. Ores, alloys and wire sit in DET's "Metals and its products trading" group, while Basic Steel Products Trading (4752058) and Non Ferrous Metal Products Trading (4752059) sit under "Building materials trading".

The split is the trap. A founder who opens the metals group and picks from it alone ends up with ores, alloys and wire, and misses the two codes whose DET descriptions cover steel ingots, rods and panels and aluminium, copper and zinc products [1]. The table maps the codes a non-precious metals trader actually chooses, with the equivalent numbers in JAFZA, Meydan Free Zone and other zones [1][4].

Codes belong to the authority that issues them. Quote the DET number on a mainland application and the zone's own number on a free zone one. Meydan's register lists Metal Ores Trading as 4662.99, while its activity page for metal ores wholesale shows 4662.01 [4], so use the number on the zone's current application form.

Why the building materials group catches metals traders

DET files 4752058 and 4752059 alongside rebar, cement and tiles rather than alongside ores and alloys [1]. For an aluminium or copper trader that matters most: 4752059 is the DET activity whose description names aluminium, copper and zinc products, and it is not in the metals group at all. A steel trader selling plate, beams or pipe has a second question, because DET's description of 4752062 speaks of alloys used to produce those items, while 4752058 covers semi-formed steel. Declare the real product list at initial approval and let DET confirm whether you need one code or both.

Two metal lines have their own guides. Rebar (4752003) is a regulated product under Cabinet Resolution No. 121 of 2023, and our building materials trading guide covers its codes, its conformity certificate and the stockholding tax position. Scrap (4669102) sits in DET's waste trading group with its own VAT rules, covered in our waste management and recycling guide. Bullion and jewellery are covered in our gold trading company guide.

Zones word the same activities differently

Free zones keep their own numbering, and some keep their own wording. JAFZA uses a 514 series, Meydan Free Zone uses four digits and a decimal, and DMCC uses DET-style seven-digit numbers [4]. SHAMS in Sharjah describes the trade as wholesale of ferrous and non-ferrous metal ores (4662.01), of metals in primary forms (4662.02) and of semi-finished metal products (4662.03), rather than using DET's "basic steel" and "non ferrous" names. Ajman Media City offers a single combined activity, Ferrous And Non Ferrous Metal Trading Import & Export (4662005) [4]. Comparing zones by activity name alone can make one look narrower or broader than it really is.

Common Mistake: Searching only DET's "Metals and its products trading" group because the business calls itself a metals trader. Aluminium, copper and zinc products (4752059) and basic steel products (4752058) are filed under "Building materials trading" [1], so a licence built from the metals group alone can miss the product you sell most. The fix is a licence amendment, which costs a fee and time before you can invoice. Search both groups product by product before you apply.

Pro Tip: List your products by form, not by metal: ore, ingot or cathode, coil and plate, sections and pipe, wire. Each form maps to a different code, and the form is what DET's descriptions describe. If a line could sit under two codes, license both. General trading is the broadest and most expensive trading tier, and our general trading company guide explains when that breadth earns its cost. A trader whose range sits inside the metals and building materials codes rarely needs it.

How much does it cost to set up a metals trading company in Dubai?

A Dubai free zone metals trading company costs AED 12,500 licence only, or AED 21,050 with one visa, at Meydan Free Zone or Dubai South on BusinessDubai.ae's 2026 package prices. IFZA's partner price is AED 21,400 with one visa. A Dubai mainland licence is AED 18,200 without a visa and about AED 26,355 with one.

In metals trading the licence is the smallest line. The table itemises the setup lines on a stated visa basis, then the lines that decide whether the business works: duty, collateral and renewal. Free zone packages are BusinessDubai.ae's 2026 prices [20], the mainland figures are from our mainland setup page, and the JAFZA line is the zone's own published floor [5].

Read the table from the bottom up. The licence lines differ by a few thousand dirhams once. The duty and collateral lines scale with every cargo, and they decide how much capital the business needs before its first sale.

The cheaper emirates appear here only as labelled non-Dubai alternatives. Our business setup in Sharjah page compares SHAMS, SPC Free Zone and Hamriyah, and our business setup in Ajman page shows what the Ajman Free Zone and ANC packages include.

Quick Math: A trading desk with the founder and one trader on visas costs AED 24,600 at IFZA and AED 27,600 at Meydan Free Zone on BusinessDubai.ae's 2026 prices [20], a gap of AED 3,000 that widens with each further visa. With one visa the two are AED 350 apart, which is noise. Choose between them on visa count and activity fit, and remember that neither is a VAT Designated Zone, so neither suits a trader that holds metal in the zone.

Real Talk: IFZA and Meydan Free Zone now require a shareholder applying for an investor visa to show capital of at least AED 75,000 in a bank account, in the UAE or in the home country [20]. For a metals trader that is small next to the collateral a first letter of credit can demand, but it is a line no package price shows, so have it in place before you apply.

For a quote that prices the licence, the visas and the zone that fits your stock, get an itemised setup quote→

Should a metals trading company be on the mainland or in a free zone?

A metals trader selling mainly to Dubai fabricators and contractors usually fits a mainland DET licence, which can invoice any UAE buyer directly. An importer holding stock for re-export fits a VAT Designated Zone such as JAFZA or Hamriyah. A back-to-back trader whose cargoes never enter the UAE market can sit in DMCC or another free zone.

The deciding questions are who pays you and where the metal sits. A Dubai free zone company selling to mainland buyers needs a mainland route, such as a branch, a dual licence or a permit under Dubai Executive Council Resolution No. 11 of 2025, or a mainland distributor who buys and resells. A mainland company has no such limit, but it has no route to the 0% free zone rate either.

Whether the company sits on the mainland or in a free zone changes who you can invoice, where stock can sit and how profit is taxed. Our free zone company setup page compares the zones on those points, and our mainland company setup page itemises the DET route, including the year-two renewal the headline price leaves out.

The comparison below uses BusinessDubai.ae's 2026 package prices and the Designated Zone list in Cabinet Decision No. 59 of 2017 [20][8].

The mainland is simpler for local sales, and a Designated Zone is stronger for importing, holding stock and re-exporting. A trader that does both can run a Designated Zone stockholding company with a mainland route on top. If your buyers sit in Abu Dhabi's industrial areas rather than Dubai's, our business setup in Abu Dhabi page compares that emirate's mainland and free zone options.

Which free zone suits a metals trader: DMCC, JAFZA or Hamriyah?

JAFZA and Hamriyah Free Zone suit a metals trader that holds physical stock, because both lease land and warehouses on a port and both are VAT Designated Zones. DMCC suits a trading desk that wants Dubai's commodities community and banking reputation, but DMCC is not a Designated Zone and is not built for a steel yard.

JAFZA sits beside Jebel Ali Port and is named on the Designated Zone annex [8]. It is also the delivery point in Fastmarkets' steel hot-rolled coil import price assessment, CFR Jebel Ali [9], so a JAFZA stockist buys at a location the market already prices. JAFZA states that licences start at AED 5,000, a floor for the licence line, and prices land and warehouses on application [5]. Our JAFZA free zone setup guide covers entity types and facilities.

Hamriyah Free Zone, in Sharjah, has its own port and industrial land and is also a Designated Zone [8]. Its activity list is not in the registers behind the code table above, so confirm its metals activities with the authority in writing before you apply. Our Hamriyah Free Zone setup guide sets out what the authority publishes on land and warehouses.

DMCC, in Jumeirah Lakes Towers, is Dubai's commodities free zone, its register carries Basic Non Ferrous Metal Products Trading under 4752059 [4], and our DMCC free zone setup guide prices it. It is not on the Designated Zone annex [8].

Designated Zone status is the column that matters for stock. Our Designated Zone VAT guide explains the goods movements, and our best free zones for trading guide compares the zones on it. If you plan to cut, slit or fabricate rather than resell, that moves toward processing, and our best free zones for manufacturing guide compares industrial plots.

Real Talk: DMCC's commodity infrastructure, the Almas Tower vault, Tradeflow and the Dubai Diamond Exchange, was built around precious metals and stones. Base-metals and steel traders do operate from DMCC, but what the premium buys a steel trader is the address, the commodities community and banking reputation, not a yard or a Designated Zone. If your model holds coil or plate, the metal will sit in JAFZA, Hamriyah or a third-party warehouse whichever zone licenses the company.

Can a metals trading company pay 0% corporate tax in a UAE free zone?

A free zone metals trader can reach 0% corporate tax as a Qualifying Free Zone Person through "Trading of Qualifying Commodities" under Article 2(1)(c) of Ministerial Decision No. 229 of 2025, if the metal has a Quoted Price and less than 51% of revenue comes from distribution, warehousing, logistics or inventory management. Otherwise ordinary rates apply.

Article 1 of the Decision defines the category this way [3]:

"Qualifying Commodities: Means the following commodities provided a Quoted Price for such commodities exists: 1. 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."

A second limb covers environmental commodities such as carbon credits. The same article defines a Quoted Price as 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."

A Related Commodity is one listed in the same chapter of the GCC tariff schedule, so a product without a quoted price of its own can rely on the price of a related product in its chapter. What the 2025 text does not contain is a "raw form" test. Ministerial Decision No. 229 of 2025, issued on 28 August 2025 and applying from 1 June 2023, repealed Ministerial Decision No. 265 of 2023, whose commodities test turned on raw form [3].

The 51% condition in Article 2(3)(c)

Article 2(3)(c) then defines the activity itself [3]:

"Trading of Qualifying Commodities means the physical trading of Qualifying Commodities, associated financial derivatives trading used to hedge against risks involved in such activities and associated structured commodity financing activity, provided that this activity is not conducted by a Qualifying Free Zone Person whose Revenue from distribution, warehousing, logistics or inventory management functions constitutes 51% (fifty one percent) or more of their Revenue for the relevant Tax Period."

In practice the condition sorts metals traders by what they do between buying and selling. A trader that buys a cargo from a smelter and sells it to a manufacturer, with title passing on the documents and no storage of its own, earns its revenue from trading. A stockholder that imports coil, holds it in a JAFZA warehouse, cuts it to length and delivers to fabricators performs warehousing, inventory management and distribution functions every day. The Decision does not say how one sales invoice is split between trading and those functions, or whether a stockist's whole margin counts as distribution revenue. How your sales revenue is characterised against the 51% line is an interpretation question to put to a tax adviser, in writing, before you rely on the route. Our building materials guide treats the route as at risk for rebar stockists for the same reason.

The second door: distribution in or from a Designated Zone

Article 2(1)(l) makes "distribution of goods or materials in or from a Designated Zone" a Qualifying Activity where the goods enter the UAE through the zone and are supplied to "a customer who resells, processes or alters such goods or materials, or parts thereof for the purposes of sale or resale" [3]. It has no 51% condition, but it needs a Designated Zone base and a buyer who resells or processes. A fabricator who cuts and welds plate into products it sells reads closer to that wording than a contractor who builds rebar into a slab, but no published guidance settles either case. A JAFZA or Hamriyah stockist should model both doors rather than assume one.

What failing a condition costs

A Qualifying Free Zone Person must keep non-qualifying revenue within the de minimis limit, the lower of 5% of total revenue or AED 5,000,000 [3], and must also prepare audited financial statements. A company that fails any condition ceases to be a Qualifying Free Zone Person from the beginning of that tax period and for the following four tax periods [3]. It is then taxed as an ordinary taxable person, at 0% on the first AED 375,000 of taxable income and 9% above, from the start of that period. The limit runs the other way too: a company that remains a Qualifying Free Zone Person gets no AED 375,000 band on its non-qualifying income and cannot claim Small Business Relief [20].

The table sets the routes side by side. Small Business Relief runs to tax periods ending on or before 31 December 2029 under Ministerial Decision No. 73 of 2023 as amended by Ministerial Decision No. 131 of 2026 [10].

Quick Math: Take a free zone trader with AED 1,000,000 of taxable income that claims the commodities route and then fails the 51% condition. It pays ordinary rates from the start of that period: nothing on the first AED 375,000 and 9% on the remaining AED 625,000, which is AED 56,250 [20]. It is then barred from Qualifying Free Zone Person status for four more periods, so the following four years are taxed at ordinary rates whatever the business does.

Real Talk: For a coil, plate or sections stockist, plan on ordinary rates and treat 0% as upside that has to be proven. The commodities route fits most cleanly a back-to-back trader that prices off a benchmark and does not warehouse. A stockist that wants 0% should analyse its revenue by function every quarter and take written advice before filing, because a wrong claim costs the status for five tax periods.

Our Qualifying Free Zone Person guide covers every condition, and our Small Business Relief guide covers the 2029 extension. If you want your trading model tested against both routes before you choose a zone, model your tax position→

Which metals have a Quoted Price, and how do you evidence it?

Ministerial Decision No. 229 of 2025 names no metal, so a trader has to show that a Quoted Price exists. The evidence comes from the London Metal Exchange for aluminium, copper, zinc, nickel, lead and tin, from DGCX, which has listed steel rebar futures, and from agencies named in Ministerial Decision No. 230 of 2025, including Fastmarkets and CRU Group.

A Quoted Price can come from an exchange or from a named agency [3]. The Decision defines a Recognised Commodities Exchange Market as:

"Any commodities exchange market established in the State that is licensed and regulated by the relevant Competent Authority, or any commodities exchange market established and recognised outside the State that are licensed and regulated by the relevant foreign authority in the jurisdiction of establishment, or any commodities exchange market as specified in a decision issued by the Minister."

Exchanges: the LME and DGCX

The London Metal Exchange has been a Recognised Investment Exchange regulated by the UK Financial Conduct Authority since 22 November 2001 [11], which reads as a fit for the foreign limb of that definition. The UAE has not published a named list of qualifying foreign exchanges, so this is an inference from the wording, not a ruling that names the LME.

Inside the UAE, the Dubai Gold and Commodities Exchange (DGCX) has listed a Steel Rebar Futures contract [12]. DGCX's federal regulator is now the Capital Market Authority, formerly the Securities and Commodities Authority, following Federal Decree-Law No. 32 of 2025 from 1 January 2026. Check the contract's current specification and trading activity with DGCX before building evidence or a hedge around it.

Price reporting agencies: Fastmarkets and CRU Group

Ministerial Decision No. 230 of 2025 names 13 Recognised Price Reporting Agencies: S&P Global Commodity Insights (Platts and Fertecon), Argus Media, ICIS, OPIS, RIM Intelligence, CRU Group, Quantum Commodity Intelligence, Fastmarkets, General Index, ICE, MONTEL, Spark Commodities and Expana [13]. Fastmarkets and CRU Group are both established steel and base-metals price reporters. Fastmarkets publishes a steel hot-rolled coil import price assessment for CFR Jebel Ali, UAE, a UAE domestic shredded steel scrap index, a delivered-UAE heavy melting scrap index and aluminium price assessments that include LME cash-curve data [9]. That is a named agency pricing steel at a UAE delivery point.

The table sets out where the evidence sits for each product, and how firm it is.

The Related Commodity route matters for fabricated forms. Coil, plate, angles and sections sit in chapter 72 of the tariff, iron and steel, while tubes and pipes sit in chapter 73, articles of iron or steel. Coated aluminium sheet under tariff codes 76061210 to 76061230 sits in chapter 76, the same chapter as the unwrought aluminium the LME prices. On that reading a plate or coated sheet trader has a quoted product in its chapter, and a pipe trader needs one in chapter 73. Products packaged for retail sale are excluded whatever their chapter.

Gold is the useful contrast. Our gold trading guide treats gold's Quoted Price route as an open question, because the Decision 230 list carries no gold or bullion benchmark. Base metals and steel have a more direct paper trail through the LME and Fastmarkets' Jebel Ali assessments, but no ruling confirms that any particular metal qualifies. Confirm your product's Quoted Price with a tax adviser before you file on it.

Pro Tip: Build the evidence into every contract. Price each deal off a named benchmark, such as the LME cash price for aluminium or Fastmarkets' CFR Jebel Ali hot-rolled coil assessment (MB-STE-0125), and keep the benchmark name, date and value on file with the invoice [9]. If the Federal Tax Authority asks how a Quoted Price existed for a cargo, the answer is then a document rather than a reconstruction.

Why do FTA guides still describe the old "raw form" test?

The Federal Tax Authority's Corporate Tax Guide on Free Zone Persons (CTGFZP1), published in May 2024, and its July 2024 Basic Tax Information Bulletin both predate Ministerial Decision No. 229 of 2025. The guide still cites the repealed Ministerial Decision No. 265 of 2023 and its raw form test. For the current rule, rely on the 2025 Decision's text.

The guide's commodities discussion rests on the old definition, which tied the test to commodities traded on a recognised exchange in raw form. Its footnote 97 cites "Article 2(3)(c) of Ministerial Decision No. 265 of 2023", and its Example 54, a company trading 10,000 tonnes of aluminium ingots, is worked through on that test [14]. The Basic Tax Information Bulletin on Free Zone Persons, dated 22 July 2024, lists the Qualifying Activities in the old wording, without the industrial chemicals category the 2025 Decision added [15].

Both documents reflected the law in force when they were written. Ministerial Decisions No. 229 and No. 230 of 2025 were issued on 28 and 29 August 2025 [3][13], and the guidance has not yet been updated to match. Our Qualifying Free Zone Person guide notes the same timing for CTGFZP1 on the activity list.

Common Mistake: Taking the raw form reasoning in CTGFZP1's aluminium example as the current test. A trader of coated sheet, sections or pipe who reads it could conclude the route is closed because the product has been processed, or pay for advice built on a repealed decision. Ask any adviser which decision their view rests on. The answer should be Ministerial Decision No. 229 of 2025 [3].

What anti-dumping and import duties apply to steel and aluminium in the UAE?

Chinese coated aluminium alloy plates, sheets, strips and coils carry a UAE anti-dumping duty of 7.1% to 20% of CIF value from 25 April 2025 for five years, under Ministry of Economy Directive No. 2 of 2025. Steel rebar and wire rod are reported to carry a 10% import duty, extended to 12 October 2026.

The two measures differ in kind. The aluminium duty is an anti-dumping duty aimed at named Chinese exporters, with a rate for each company. The rebar and wire rod duty is reported as a general import duty raised for all origins. Both change the landed cost of a cargo, and both belong in the price before a purchase contract is signed.

The aluminium directive, issued on 14 April 2025, followed Ministerial Committee Decision No. 15 of 13 March 2025 and a GCC Permanent Committee recommendation, and sets a separate rate for each named exporter [2]:

The rebar duty needs a date check. Khaleej Times reported the extension to 12 October 2026 [6], and trade press agrees on the rate and the date, but none names the legal instrument, and BusinessDubai.ae could not locate the directive number. The reported extension ends less than two weeks after this guide's publication date, so confirm the current rate and the instrument with Dubai Customs before pricing any cargo that lands after 12 October 2026.

Global Trade Alert, a trade policy tracker, also records a GCC safeguard measure on flat-rolled products of iron or non-alloy steel, announced on 9 June 2016 and implemented on 15 May 2018, and shows it as in force, but its public record does not show the rate [16]. A coil or plate importer should ask its customs broker whether any safeguard duty applies to its tariff codes before quoting a buyer.

Quick Math: On an illustrative cargo of Chinese coated aluminium coil with a CIF value of AED 1,000,000, the anti-dumping duty is AED 71,000 if United Aluminum Co is the exporter and AED 200,000 if the exporter has no individual rate [2]. The AED 129,000 difference comes from the name on the documents, not the metal, and on a thin trading margin it can exceed the profit on the whole cargo.

Pro Tip: Put the exporter's name in the contract. The individual rates attach to the companies named in Directive No. 2 of 2025, and everyone else pays 20% [2]. If you buy through a Chinese trading house rather than a named producer, ask your customs broker in writing which company Dubai Customs will treat as the exporter before the cargo ships. Our Dubai Customs registration guide covers the client code you need first.

Do steel and aluminium products need a conformity certificate?

Reinforcement steel bars need an ECAS Certificate of Conformity or the Emirates Quality Mark under Cabinet Resolution No. 121 of 2023. For structural sections, coil, plate and non-ferrous products, BusinessDubai.ae did not locate a comparable dedicated technical regulation, so confirm your product with the Ministry of Industry and Advanced Technology (MoIAT) before importing.

Cabinet Resolution No. 121 of 2023 is narrow: it names steel bars for concrete reinforcement, and our building materials trading guide covers its certificate, its costs and the mill test certificate trap. Third-party compliance summaries describe steel generically as a regulated construction material without naming an instrument for other steel products. That is a gap in what is publicly findable, not proof that no rule applies. Before the first cargo of sections, plate or aluminium product, ask MoIAT in writing whether the Emirates Conformity Assessment Scheme covers your tariff codes, and keep the answer on file.

How do UAE banks finance a metals trader's letters of credit?

UAE banks generally require 100% cash collateral for import letters of credit and reserve preferential terms for traders with net worth above USD 500 million, according to Global Trade Review's 2025 Middle East and Africa report. A mid-size metals trader should therefore plan for cash-backed letters of credit, with trade finance funds filling part of the gap.

The same GTR report describes UAE banks growing their trade books quickly, with First Abu Dhabi Bank's trade loans at AED 63.26 billion by March 2025, up from AED 32.19 billion at the end of 2020 [7]. The appetite is real, but the best terms are reserved for the largest names. A new metals trader should assume its first letters of credit will be backed by its own cash, and size its working capital for that alongside duty and freight.

The 2025 Decision is relevant here in one respect. The structured commodity financing that Article 2(3)(c) treats as part of Qualifying Commodities trading "shall include prepayment, factoring, forfaiting, countertrade, warehouse receipt financing, export receivable financing, project finance, Islamic trade finance and streaming financing" [3]. Where a trader on the commodities route earns income from associated financing, such as prepaying a smelter against future deliveries, that income sits inside the qualifying activity, subject to the same conditions.

For the day-to-day account, WIO and Mashreq Neo open readily for free zone companies [20]. A letter of credit line is a separate credit decision, and a bank will ask a metals trader about its suppliers, its buyers, its shipping routes and where the metal is stored.

Real Talk: Budget the first cargo as if the bank will hold its full value in cash, because GTR reports that is the general UAE practice for all but the largest traders [7]. A founder with capital for the licence, the visa and one cargo's collateral is ready to trade. A founder with capital for the licence alone has a company, not yet a metals trading business.

How do metals traders in Dubai hedge price and freight risk?

Metals traders in Dubai hedge base metals on the London Metal Exchange and can look to DGCX, which has listed steel rebar futures, for steel. Hedging associated with physical trading is part of the Qualifying Commodities activity under Article 2(3)(c) of Ministerial Decision No. 229 of 2025, so a genuine hedge sits inside the 0% route rather than outside it.

Spring 2026 showed why hedging matters. Fastmarkets reported on 7 April 2026 that a five-week disruption to shipping through the Strait of Hormuz lifted India-to-UAE container freight from about USD 300 to USD 3,500, and pushed Saudi rebar from SAR 2,140 to 2,210 a tonne in late February to SAR 2,300 to 2,460 by early April [17]. The same report put GCC crude steel output at 21.64 million tonnes in 2025, up 9.5%. A stockist carrying unhedged inventory through a move like that is running a price bet alongside its trading business.

The tax text supports hedging. Article 2(3)(c) includes "associated financial derivatives trading used to hedge against risks involved in such activities" within the qualifying activity [3], so hedges tied to physical trades belong to the route rather than threatening it. Speculative positions that are not tied to physical trades are a different question, and one to take advice on before they sit in a free zone company. A trading licence does not make the company an exchange member; hedges are placed through a broker that is one.

How is VAT charged on metals, and does the reverse charge apply?

Metals are standard-rated for UAE VAT at 5%, with registration mandatory above AED 375,000 of taxable supplies. The domestic reverse charge in Cabinet Decision No. 153 of 2025 covers metal scrap only, so new steel, aluminium and copper stay under the ordinary rules. Goods held in a Designated Zone such as JAFZA or Hamriyah can sit outside VAT's scope.

The standard position is simple [18]. Local sales of steel, aluminium or copper carry 5% VAT, input VAT on purchases is recoverable, and voluntary registration is available from AED 187,500 of taxable supplies. A trader selling to fabricators on credit accounts for VAT when the goods are supplied or invoiced, whether or not the buyer has paid.

The reverse charge is narrower than many traders assume. Cabinet Decision No. 153 of 2025, in force since 14 January 2026, moves the VAT on metal scrap to a VAT-registered buyer that intends to resell or process it, and carves out zero-rated exports [19]. New metal is outside it. Offcuts from a cutting line sold to a registered recycler are likely to fall inside it, so check each scrap sale against our waste management and recycling guide.

Designated Zone status changes the treatment of stock. Goods held inside a Designated Zone such as JAFZA or Hamriyah are treated as outside the scope of UAE VAT until they are released to the mainland or consumed, subject to the zone's controls, while a free zone that is not on the list, such as DMCC, Meydan Free Zone or IFZA, is treated like any other part of the UAE for VAT on goods [8]. If you want duty suspended on stock without a Designated Zone company, our bonded warehouse guide explains when customs-bonded storage is the cheaper answer.

Common Mistake: Issuing a domestic invoice for new steel or aluminium with no VAT because of "the metals reverse charge". Cabinet Decision No. 153 of 2025 reaches metal scrap only [19]. A trader that applies it to new metal under-declares 5% on every such invoice and carries the liability, plus penalties, when the Federal Tax Authority reviews the return.

What are the steps to set up a metals trading company in Dubai?

Setting up a metals trading company in Dubai runs in eight steps: map products to activity codes, choose the base, reserve the trade name and get initial approval, secure premises, issue the licence, register with Dubai Customs, register for corporate tax and VAT, then open the bank account and arrange letter of credit lines.

1. Map products to codes. Search both DET groups by product form and confirm the set with DET or your free zone.
2. Choose the base. Dubai mainland for local sales, JAFZA or Hamriyah for stock and re-export, a desk zone for back-to-back trading.
3. Trade name and initial approval. Reserve the name and obtain DET's initial approval, or the zone's equivalent.
4. Premises. A warehouse or yard lease in a Designated Zone or an industrial area, or a desk for a back-to-back model.
5. Licence issue. The licence is issued against the approved activities and premises.
6. Dubai Customs client code. Register before the first cargo, and check anti-dumping exposure by exporter and tariff code.
7. Tax registrations. Register for corporate tax on time, because late registration carries an AED 10,000 penalty [20], and for VAT once taxable supplies pass AED 375,000 or earlier by choice.
8. Banking and price evidence. Open the operating account, start the letter of credit conversation, and set up the benchmark file for every contract.

Steps 6 to 8 run on other parties' timelines, so start the bank conversation and the customs registration as soon as the licence is issued rather than when the first cargo is on the water.

Year two brings the licence renewal, visa renewals, VAT returns, the corporate tax return and, for a company claiming Qualifying Free Zone Person status, the audit and the revenue-by-function analysis the 51% condition needs. Our post-setup services team runs that calendar so a filing does not land in the week a cargo arrives.

Which setup fits your metals trading business?

The right setup for a metals trading business depends on the product and whether you hold stock. An aluminium importer and a coil or plate stockist fit JAFZA or Hamriyah, a back-to-back copper trader fits DMCC or another Dubai free zone, and a small trader selling to Dubai fabricators fits the mainland. The table maps five common models.

If your business straddles two rows, the stock and the buyers decide which one wins. Check which setup fits your trade→

Real Client Stories

These are composite examples built from the situations metals traders most often face. Names and details are illustrative, and the only figures used are published rules and duties and BusinessDubai.ae's package prices.

The aluminium importer who priced the wrong exporter (JAFZA)

A founder licensed a JAFZA company, inside a VAT Designated Zone beside Jebel Ali Port, to import coated aluminium coil from China and sell it to regional fabricators. The supplier's price was competitive, and the landed-cost model carried ordinary duty only. The supplier was not one of the three companies with an individual rate under Ministry of Economy Directive No. 2 of 2025, so the cargo fell into the 20% of CIF bracket for all other exporters rather than the 7.1% to 8% the founder had assumed. Most of the first cargo's margin went on duty. Lesson: check the exporter's name against the directive before you sign.

The copper trader and the out-of-date guide (DMCC)

Farid licensed a DMCC company to buy copper cathode from smelters and sell it to manufacturers on back-to-back contracts, pricing every deal off the London Metal Exchange and hedging there. An adviser working from the FTA's Free Zone Persons guide told him the cathode had to be traded in raw form to qualify for 0%. That test came from Ministerial Decision No. 265 of 2023, which Ministerial Decision No. 229 of 2025 repealed; the current definition asks whether a Quoted Price exists. Farid took written advice on the current text and kept an LME reference on every contract. Lesson: check which decision a guidance document cites before relying on it.

The fabricators' supplier who searched one group (Dubai mainland)

Leena planned to sell aluminium bar and copper rod to fabrication workshops in Dubai, so a mainland licence on BusinessDubai.ae's AED 18,200 no-visa package made sense. She searched DET's "Metals and its products trading" group, chose Metal Alloys Trading (4752062) and assumed it covered her range. The products she actually sold sat under Non Ferrous Metal Products Trading (4752059), in the "Building materials trading" group, so the licence needed amending before her first invoice. With revenue well under AED 3,000,000, Small Business Relief suited her better than any free zone claim. Lesson: map each product to a code across both groups before applying.

Start your metals trading company the right way

For a metals trader the licence is the quick part. Three decisions made before the first cargo decide whether the business works: the activity codes that match your real products across both DET groups, a base that matches where your metal sits and who buys it, and a tax position built on the text of Ministerial Decision No. 229 of 2025 rather than on a hopeful reading of it. Add the duty on each cargo and the cash the bank will hold against each letter of credit, and you have the real cost of entry.

BusinessDubai.ae has completed 700+ company registrations across the UAE, with itemised pricing and no hidden fees. We will price a free zone company setup against a mainland company setup on the points that differ for a metals trader: where the stock can sit, who you can invoice and whether a 0% claim would survive a review. After launch, our post-setup services team handles the renewals, visas and filings that follow. Talk to a setup expert→

Frequently Asked Questions

What licence do I need to trade steel in Dubai?

You need a commercial trading licence carrying the DET activities that match your steel products, because Dubai has no single steel trading code. Plate, beams and pipe point to Metal Alloys Trading (4752062) or Basic Steel Products Trading (4752058), rebar to 4752003 and wire to 4752064. Confirm the final set with DET or your free zone at initial approval.

Is there one activity code for all metals trading in Dubai?

No. DET splits metals across two groups: "Metals and its products trading" holds Metal Ores Trading (4662001), Metal Alloys Trading (4752062) and Metal Wires Trading (4752064), while "Building materials trading" holds Basic Steel Products Trading (4752058) and Non Ferrous Metal Products Trading (4752059). A multi-metal trader usually needs codes from both groups.

What activity code do I need for aluminium trading in Dubai?

The DET activity for aluminium products is usually Non Ferrous Metal Products Trading, code 4752059, whose description names aluminium, copper and zinc. It sits in DET's "Building materials trading" group, not the metals group. JAFZA's equivalent is 514203 and Meydan Free Zone's is 4752.76.

Which activity code covers copper cathode trading?

The closest DET wording for copper cathode is Non Ferrous Metal Products Trading (4752059), whose description covers blocks, rods and ingots of non-ferrous metals including copper. Metal Ores Trading (4662001) covers ore, not refined metal. Confirm with DET or your free zone that 4752059 covers cathode for your application.

Does a Metal Ores Trading licence let me trade refined metal?

No. DET's description of Metal Ores Trading (4662001) covers industrial basic ores for extracting metals, such as hematite, bauxite and zinc ore. Refined metal, alloys and semi-finished products need their own codes, such as 4752059 for non-ferrous products or 4752062 for metal alloys, added to the same licence.

What is the difference between Basic Steel Products Trading and Reinforcement Steel Bars Trading?

Basic Steel Products Trading (4752058) covers semi-formed steel blocks, partitions, panels, rods or ingots, while Reinforcement Steel Bars Trading (4752003) covers bars used to reinforce concrete. Both sit in DET's "Building materials trading" group. Rebar is also a regulated product under Cabinet Resolution No. 121 of 2023 and needs an ECAS certificate.

Can I trade scrap metal on the same licence as new steel?

Only if the licence also carries a scrap activity. Scrap & Metal Waste Trading (4669102) sits in DET's waste trading group, separate from the metals and building materials codes, and scrap has its own VAT reverse charge under Cabinet Decision No. 153 of 2025. Add the scrap code if you plan to sell offcuts or scrap regularly.

Do I need a general trading licence to trade several metals?

Usually not. A trader whose range sits inside the metals and building materials codes can hold a specialised commercial licence carrying several of them, provided the issuing authority accepts the combination. General trading is the broadest and most expensive trading tier and earns its cost only if you also trade unrelated goods.

How much does a steel trading licence cost in Dubai?

On BusinessDubai.ae's 2026 prices, a Dubai free zone package costs AED 12,500 licence only or AED 21,050 with one visa at Meydan Free Zone or Dubai South, and IFZA's partner price is AED 21,400 with one visa. A Dubai mainland licence is AED 18,200 without a visa and about AED 26,355 with one. Warehouse, duty and collateral come on top.

Can a foreigner own 100% of a metals trading company in Dubai?

Yes. Commercial trading activities, including metals trading, can be 100% foreign-owned on the Dubai mainland since the 2021 reform of the Commercial Companies Law, and free zone companies have always allowed full foreign ownership. No Emirati partner is needed for a metals trading company.

Is DMCC or JAFZA better for metal trading?

JAFZA is better for a trader holding physical stock, because it sits on Jebel Ali Port, leases land and warehouses and is a VAT Designated Zone. DMCC is better for a back-to-back trading desk that wants Dubai's commodities community and banking reputation. DMCC is not a Designated Zone and offers no yard.

Is DMCC a VAT Designated Zone?

No. DMCC is not on the annex to Cabinet Decision No. 59 of 2017, so goods held there follow the ordinary UAE VAT rules. JAFZA, Hamriyah Free Zone and Ajman Free Zone are Designated Zones, which is why they suit traders holding physical metal inside the zone.

Can a free zone metals company sell directly to Dubai fabricators?

Not without a mainland route. A Dubai free zone company can add a mainland branch, a dual licence or a permit under Dubai Executive Council Resolution No. 11 of 2025, or sell through a mainland distributor. A company that sells mostly to local fabricators is usually simpler on a Dubai mainland licence.

Can a metals trading company get 0% corporate tax in a UAE free zone?

Potentially, as a Qualifying Free Zone Person trading Qualifying Commodities under Ministerial Decision No. 229 of 2025. The metal must have a Quoted Price, and the route closes if 51% or more of revenue comes from distribution, warehousing, logistics or inventory management. Take written advice before relying on it.

What are Qualifying Commodities under UAE corporate tax law?

Qualifying Commodities are metals, minerals, industrial chemicals, energy and agriculture commodities and their associated by-products for which a Quoted Price exists, excluding products packaged for retail sale, plus environmental commodities such as carbon credits. The definition is in Article 1 of Ministerial Decision No. 229 of 2025.

Does the Qualifying Commodities definition still require metal to be in raw form?

No. Ministerial Decision No. 229 of 2025 repealed Ministerial Decision No. 265 of 2023 and its raw form test. The current definition asks whether a Quoted Price exists for the commodity or a Related Commodity in the same tariff chapter, and excludes products packaged for retail sale.

What does the 51% condition mean for a metals stockist?

The Qualifying Commodities route does not apply to a Qualifying Free Zone Person whose revenue from distribution, warehousing, logistics or inventory management functions is 51% or more of its revenue for the tax period. A stockist that stores, cuts and delivers may be caught, and how its sales revenue is characterised is an interpretation question for a tax adviser.

Do steel and aluminium have a Quoted Price for UAE corporate tax?

The evidence is good but no ruling confirms it. Aluminium is priced on the London Metal Exchange and by Fastmarkets, a recognised agency, and Fastmarkets publishes a hot-rolled coil import price for CFR Jebel Ali. Confirm your specific product with a tax adviser before filing on the 0% basis.

Is the London Metal Exchange a Recognised Commodities Exchange Market for UAE tax?

Plausibly, but the UAE has not named it. Ministerial Decision No. 229 of 2025 covers foreign exchanges licensed and regulated by the authority where they are established, and the LME has been a UK FCA-regulated Recognised Investment Exchange since 2001. No UAE list of qualifying foreign exchanges has been published.

Which price reporting agencies does the UAE recognise for commodities?

Ministerial Decision No. 230 of 2025 names 13: S&P Global Commodity Insights (Platts and Fertecon), Argus Media, ICIS, OPIS, RIM Intelligence, CRU Group, Quantum Commodity Intelligence, Fastmarkets, General Index, ICE, MONTEL, Spark Commodities and Expana. Fastmarkets and CRU Group are both established steel and base-metals price reporters.

What happens if my free zone metals company fails a Qualifying Free Zone Person condition?

It stops being a Qualifying Free Zone Person from the start of that tax period and for the following four periods. It is then taxed at ordinary rates from the start of that period, 0% on the first AED 375,000 of taxable income and 9% above. On AED 1,000,000 of taxable income that is AED 56,250.

Is Small Business Relief available to a metals trading company?

Yes, if revenue is at or under AED 3,000,000, for tax periods ending on or before 31 December 2029 under Ministerial Decision No. 73 of 2023 as amended by Ministerial Decision No. 131 of 2026. It is not available to a Qualifying Free Zone Person, and most metals traders pass the revenue threshold quickly.

Why does the FTA's Free Zone Persons guide still mention the raw form test?

Because it predates the current law. The FTA's guide CTGFZP1 was published in May 2024, and its commodities section cites the repealed Ministerial Decision No. 265 of 2023. Ministerial Decision No. 229 of 2025, issued in August 2025, replaced that text, so rely on the 2025 Decision.

Is there an anti-dumping duty on aluminium imports to the UAE?

Yes, on specific Chinese products. Painted or coated aluminium alloy plates, sheets, strips and coils from China, 0.2 to 8 mm thick, carry anti-dumping duties of 7.1% to 20% of CIF value from 25 April 2025 for five years, under Ministry of Economy Directive No. 2 of 2025. Exporters without an individual rate pay 20%.

What is the customs duty on imported steel rebar and wire rod in the UAE?

Steel rebar and wire rod are reported to carry a 10% import duty, raised from 5% in January 2019 and extended to 12 October 2026, according to Khaleej Times and trade press. The underlying legal instrument was not located, so confirm the current rate with Dubai Customs before pricing a cargo.

What is the VAT rate on steel and metal products in the UAE?

Steel and other metal products are standard-rated at 5% VAT in the UAE, with input VAT on purchases recoverable. Registration is mandatory once taxable supplies pass AED 375,000 a year and voluntary from AED 187,500. Goods held inside a Designated Zone such as JAFZA can sit outside VAT's scope until released.

Does the scrap metal VAT reverse charge apply to new steel?

No. Cabinet Decision No. 153 of 2025, in force since 14 January 2026, applies the reverse charge to metal scrap supplied to a VAT-registered buyer for resale or processing. New steel, aluminium and copper stay under the ordinary rules, with the seller charging 5% VAT.

Do I need a Dubai Customs client code to import metals?

Yes. A company must register with Dubai Customs and hold a client code before it can clear cargo in its own name, whether it is on the mainland or in a free zone. Register as soon as the licence is issued, because the code is needed before the first vessel arrives.

Do UAE banks require cash collateral for letters of credit on metals imports?

Generally yes, according to Global Trade Review, which reported in 2025 that UAE banks generally require 100% cash collateral for import letters of credit and reserve preferential terms for traders with net worth above USD 500 million. Trade finance funds fill part of the gap for mid-size traders.

Can I hedge steel prices on DGCX?

DGCX, the Dubai Gold and Commodities Exchange, has listed a Steel Rebar Futures contract and is regulated by the Capital Market Authority, formerly the Securities and Commodities Authority. Check the contract's current specification and liquidity with DGCX first. Hedges associated with physical trading form part of the Qualifying Commodities activity under Ministerial Decision No. 229 of 2025.

Do structural steel and aluminium products need a conformity certificate in the UAE?

Rebar does, under Cabinet Resolution No. 121 of 2023. BusinessDubai.ae did not locate a comparable dedicated MoIAT technical regulation for structural sections, coil, plate or aluminium products, which is not proof that none applies. Ask the Ministry of Industry and Advanced Technology in writing whether ECAS covers your tariff codes.

Can a metals trader in JAFZA use the Designated Zone distribution route?

Possibly. Article 2(1)(l) of Ministerial Decision No. 229 of 2025 covers distribution in or from a Designated Zone of goods imported through it to customers who resell, process or alter them for sale. It has no 51% condition, but sales to end users and contractors are uncertain, so take advice first.

References

[1] Dubai Department of Economy and Tourism (DET). Business activity list: the "Metals and its products trading" group (4662001 Metal Ores Trading, 4752062 Metal Alloys Trading, 4752064 Metal Wires Trading), the "Building materials trading" group (4752058 Basic Steel Products Trading, 4752059 Non Ferrous Metal Products Trading, 4752003 Reinforcement Steel Bars Trading) and 4669102 Scrap & Metal Waste Trading, with official names and descriptions, as compiled in BusinessDubai.ae's normalized copy of the DET list, July 2026. app.invest.dubai.ae

[2] UAE Ministry of Economy. Directive No. 2 of 2025, issued 14 April 2025: definitive anti-dumping duties of 7.1% to 20% of CIF value on painted or coated aluminium alloy plates, sheets, strips and coils from China (GCC tariff codes 76061210, 76061220, 76061230), in force from 25 April 2025 for five years, based on Ministerial Committee Decision No. 15 of 13 March 2025, with the exporter-by-exporter rates and the reference to Ministerial Circular No. 4 of 2021. moet.gov.ae

[3] UAE Ministry of Finance. Ministerial Decision No. 229 of 2025 Regarding Qualifying Activities and Excluded Activities, issued 28 August 2025: Article 1 definitions of Qualifying Commodities, Quoted Price and Recognised Commodities Exchange Market; Article 2(1)(c) and 2(3)(c) with the 51% condition and the structured commodity financing list; Article 2(1)(l); Article 3 de minimis; Article 5(2) loss of status; and the repeal of Ministerial Decision No. 265 of 2023. mof.gov.ae

[4] Free zone activity registers for JAFZA, Meydan Free Zone, DMCC, SPC Free Zone, ANC Free Zone, SHAMS, Ajman Media City and DWTC, as normalized in BusinessDubai.ae's activity registers, 2026, with Meydan Free Zone's metal ores wholesale activity page. meydanfz.ae

[5] Jebel Ali Free Zone (JAFZA). Business licence in Dubai with Jafza: licences start at AED 5,000, with facilities priced separately. jafza.ae

[6] Khaleej Times. UAE customs duty on steel rebar, rebar in coil and wire rod at 10%, raised from 5% in January 2019 and reported as extended to 12 October 2026. The underlying legal instrument is not named in the report. khaleejtimes.com

[7] Global Trade Review (GTR). UAE trade finance market heats up, MEA 2025 supplement: UAE banks' 100% cash collateral practice on import letters of credit, preferential terms for traders with net worth above USD 500 million, the role of trade finance funds, and First Abu Dhabi Bank's trade loan volumes. gtreview.com

[8] Federal Tax Authority. Cabinet Decision No. 59 of 2017 on Designated Zones, as amended: the annex naming JAFZA, Hamriyah Free Zone and Ajman Free Zone, and the VAT treatment of goods inside a Designated Zone. tax.gov.ae

[9] Fastmarkets. Steel hot-rolled coil import price assessment, CFR Jebel Ali, UAE (MB-STE-0125), methodology consultation; launch of the UAE shredded steel scrap index; aluminium price assessments including LME cash-curve data. fastmarkets.com

[10] UAE Ministry of Finance. Ministerial Decision No. 73 of 2023 on Small Business Relief, as amended by Ministerial Decision No. 131 of 2026 issued 29 July 2026: the AED 3,000,000 revenue threshold and tax periods ending on or before 31 December 2029. mof.gov.ae

[11] UK Financial Conduct Authority. Financial Services Register entry for The London Metal Exchange: Recognised Investment Exchange, recognised 22 November 2001. register.fca.org.uk

[12] Dubai Gold and Commodities Exchange (DGCX). Steel Rebar Futures in the exchange's contract list, as reported in coverage of DGCX products; the exchange's own page could not be retrieved, so confirm the current specification directly. dgcx.ae

[13] UAE Ministry of Finance. Ministerial Decision No. 230 of 2025 on Recognised Price Reporting Agencies, issued 29 August 2025: the 13 named agencies. mof.gov.ae

[14] Federal Tax Authority. Corporate Tax Guide on Free Zone Persons (CTGFZP1), May 2024: section 10.5 on trading of qualifying commodities, footnote 97 citing Article 2(3)(c) of Ministerial Decision No. 265 of 2023, and Example 54 on an aluminium ingot trader. tax.gov.ae

[15] Federal Tax Authority. Basic Tax Information Bulletin, Free Zone Persons, 22 July 2024: the Qualifying Activities list in its pre-2025 wording. tax.gov.ae

[16] Global Trade Alert. GCC safeguard measure on flat-rolled products of iron or non-alloy steel: announced 9 June 2016, implemented 15 May 2018, shown as in force; the rate is not visible in the public record. globaltradealert.org

[17] Fastmarkets. GCC steel supply crunch deepens despite ceasefire talks, 7 April 2026: GCC crude steel production in 2025, Saudi rebar prices and India-to-UAE container freight during the Strait of Hormuz disruption. fastmarkets.com

[18] Federal Tax Authority. VAT under Federal Decree-Law No. 8 of 2017: the 5% standard rate and the AED 375,000 mandatory and AED 187,500 voluntary registration thresholds. tax.gov.ae

[19] UAE Ministry of Finance. Cabinet Decision No. 153 of 2025 on the application of the reverse charge mechanism on metal scrap, in force from 14 January 2026. mof.gov.ae

[20] BusinessDubai.ae. Internal pricing data: 2026 free zone package prices by visa count for Meydan Free Zone, IFZA (partner price), Dubai South, SHAMS, Ajman Free Zone and ANC Free Zone, owner-confirmed 24 September 2026, with the investor visa capital rule at IFZA and Meydan, the free zone renewal rule of thumb, bank notes and the corporate tax figures that accompany those prices. businessdubai.ae