Special
Free
Start Your
Let's Talk
Free Consultation
The vibrant economy of Dubai is home to several businesses and scrap metal business is no longer an inception. The UAE is continuing to witness significant growth in the scrap metal industry and is considered among the top suppliers of ferrous scrap in the world, making the scrap metal industry gain significant traction. Attributed to increasing urbanisation and the consistent emergence of large infrastructure projects, the economy generates scrap metal byproducts. Subsequently, it presents a lucrative opportunity to explore business setup Dubai in the scrap metal industry.
According to recent stats, the UAE generates 6.5 million tonnes of industrial waste annually. Out of this, Dubai alone produces 200 tonnes of scrap metal every day. However, with a greater focus on sustainability and other pro-business policies, the UAE’s recycling rate is approx. 85%, higher than many nations in the world.
Understanding Scrap Metal Business in Dubai
Henceforth, when it comes to starting a business, Dubai is recognised as the most preferred destination due to its strategic location. It is a trade hub that offers scrap metal businesses access to a global market landscape. If you are planning to embark on your entrepreneurial journey, our comprehensive guide can help you understand the right steps and how to start a business in the scrap metal industry.
Key steps involved in starting a scrap metal business
Market Research:
Secure a Facility:
Obtain a License:
Starting a business in Dubai requires regulatory compliance. You will need to apply for a scrap metal trade license in Dubai. This will help you secure other permits to operate legally in the UAE.
Source Your Supply:
Implement a Recycling Process:
Benefits of starting a scrap metal business
Starting a business in Dubai, especially in the scrap metal industry offers a plethora of benefits:
Contribution to sustainability
When you are in the scrap metal business, you become an integral part of the nation’s sustainability agenda. In the UAE if you have a scrap metal Mainland business setup, it aligns with the UAE’s commitment to sustainability. By constantly reducing landfill waste and promoting recycling, you are contributing to sustainability on a large scale. It can play an important role in helping other companies achieve their Corporate Social Responsibility (CSR) goals by enabling them to minimize environmental impact.
Tax and economic benefits
The UAE has an extremely supportive business environment. It offers attractive tax incentives, especially where businesses can benefit from full ownership, zero income taxes, and tax exemptions. In addition, the absence of VAT further makes the business more profitable for scrap businesses, especially those carrying out operations globally. As compared to other countries, the operational costs of the scrap metal business are lower and the country’s efficient supply chain further makes it even more cost-effective.
Stable business
The UAE has a continued growing demand for recycling. Its robust business sectors such as construction, automotive and manufacturing generate significant metal and electronic waste. Hence, the government and authorities are increasingly adopting sustainable practices to curb waste production, creating a high demand for scrap metal new company registration in Dubai.
Conclusion
The scrap metal industry in the UAE presents a unique opportunity for entrepreneurs to capitalize on emerging business sector. As the country is continuing to poise for significant growth, it will prioritize its circular economy and sustainability goals. To leverage the strong growth potential, if you are looking for a scrap metal freezone or mainland business setup in Dubai, get in touch with A&A Associate, a leading business consultancy in the UAE.
Let our experts at A&A Associate guide you through every step. Call us at 050 483 6190 or email info@aaconsultancy.ae to get started today!
