The UAE is a key regional player in metal scrap collection and export, leveraging its logistics infrastructure and proximity to high-demand Asian markets. 

Manufacturing, home products, automobiles, and international markets are some of the sources of scrap metal. The UAE frequently imports goods from South Asia, Africa, and the Asian continent, which are subsequently sold as scrap all over the world.

Additionally, metals are one of the most significant components of landfill garbage as governments and citizens become more ecologically sensitive. Scrap metal will, therefore, continue to be limited.

After all, certain factors, like the holding area, the quantity of scrap metal, and the safety precautions, should be considered to start this business. 

Additionally, in order to define your target market appropriately, you must identify buyers in order to understand their personalities fully.

Read further to learn more. 

Scope of Scrap Metal Business in Dubai, UAE

A company that buys and sells scrap metal for manufacturing, recycling, and other uses is known as a scrap metal business. 

“The UAE recycled metal market generated $1.7 million in 2023, projected to reach $2.3 million by 2030 at a 4.5% CAGR, driven by construction waste recycling and EAF adoption. (source)

These figures suggest that the scrap metal sector will remain one of the main drivers of the UAE economy overall.

Steps to Start a Scrap Metal Business in Dubai

• Research and Conduct Market Analysis

The first step in the scrap business setup in the UAE is determining your role in the industry. Is it possible to gather local scrap to sell overseas? Do you want to sell the scrap after importing it?

Do you have a plan in place for handling the scrap internally? Before beginning, we advise speaking with a business expert because these techniques inevitably call for a whole different kind of setup.

• Finding the Appropriate Business Space

A number of things influence the cost of building your company’s space. You should consider the yearly rent if you are renting a yard or a warehouse. It may also be necessary to have a forklift, shipping containers, metal sorting bins, specialized sorting equipment, solid waste management, or other goods.

Additionally, your team will probably be handling a lot of data from unidentified sources. Furthermore, it is best to invest in emergency preparations and security equipment in case something negative happens in your facility.

• Obtain the License

You would only be able to work with a few companies that handle this kind of waste if you applied for a free zone license. Don’t forget to comply with all applicable capital, preventive, and environmental standards.

Owning the company outright is the biggest benefit of obtaining a free zone license. To receive a local license, the Dubai Department of Economic Development mandates that a local sponsor own 51 percent of the business.

• Carry Out Your Business Activities

In Dubai, you can launch a scrap metal company as soon as you obtain the required license and have made all the necessary decisions about your company’s structure and location. If you plan ahead and have a knowledgeable advisor on your side, you may quickly establish your metal scrap business to capitalize on local and international advancements.

There are several export opportunities because South Asia is the top destination for UAE scrap and has a thriving economy. Recycling metals will not only benefit you, but it will also help to improve the world for future generations.

Scrap Metal Trading License Cost in Dubai

Advantages of Starting a Scrap Metal Business in Dubai

• Energy Conservation

The fact that aluminum items can save a significant amount of energy will astound you. 

“Recycling aluminum saves 94% energy vs. virgin production (US DOE 2024 Circular Economy Report). 

On the other hand, Steel recycling reduces energy use by 62% (World Steel Association 2024)

• Economic Benefits

Recycling metal generates six times as much employment as landfilling and 36 times as many jobs as sending the same amount of metal waste to an incinerator, according to the National Recycling Coalition. It follows that the scrap metal industry is rich in potential and profitable.

• Environmental Benefits

Metal recycling helps to preserve natural resources by lowering greenhouse gas emissions and consuming less energy than obtaining metal from virgin ore. Manufacturing new metal produces significantly more greenhouse gas emissions than manufacturing products from recycled materials.

The effects of these emissions on climate change and dangerous air pollution levels may cause respiratory health issues for you and other city individuals. 

Metal recycling has the potential to reduce greenhouse gas emissions by 300–500 million tons, according to the Institute of Scrap Recycling Industries (ISRI). 

How can JSB Incorporation help start the scrap metal business in Dubai?

One of the most lucrative industries is starting a scrap metal business in Dubai. However, dangers are always involved that could result in additional financial loss if improperly managed.

Thus, it is essential for a startup to get guidance from the top business setup consulting service provider who can help you reach your objectives without encountering any difficulties.

JSB Incorporation is the top business setup consultancy, helping thousands of startups by offering them practical guidance on all crucial areas.

Book your free consultation call today with the experts of JSB Incorporation to get started.