Importing and exporting has been a business for centuries. It is an industry that serves the supply and demand for commodities and goods in several nations and jurisdictions. Licenses for import-export companies are therefore highly sought after. An import is a commodity that is brought into one country from another. 

Dubai is the perfect place for this kind of business because of its advantageous location, first-rate infrastructure, and welcoming atmosphere. The UAE’s economy has been significantly shaped by international trade. The UAE is a central hub for global trade because of its solid trading links with many nations worldwide and its support for free trade.

For this reason, launching an import and export company in Dubai is a common business idea. Simply get in touch with JSB Incorporation. We’ll walk you through the process of how to start an import-export business in Dubai.

Import and Export Business in Dubai: Recent Data and Statistics

Non-Oil Foreign Trade Growth: Compared to the same period in 2022, the UAE’s non-oil foreign trade increased by 14.4% to an all-time high of AED 1.239 trillion in the first half of 2023.

AED 205 billion was the total value of non-oil exports in the first half of 2023, an 11.9% increase over H1 2022.

Compared to H1 2022, re-exports increased by 9.9% to AED 341 billion, while imports increased by 17.5% to AED 693 billion.

Overall Trade Performance: The UAE’s total exports and imports in 2022 were estimated to be worth USD 515.6 billion and USD 420.5 billion, respectively. The United Arab Emirates is the world’s 25th-largest exporter.

Steps to Start an Import-Export Business in Dubai, UAE

There are a few options to consider based on your business setup, but obtaining an import-export license in Dubai is a simple process.

1. Choose Your Business Location

Businesses engaged in import/export in Dubai have two primary options:

• Dubai Mainland: The most conventional area for business is this one. A trade license will be granted to you, and your business will be registered with the Department of Economic Development (DED).
• Free Zone: Dubai provides several free zones, each with unique regulations and advantages. These zones may offer tax benefits and other incentives, and they frequently serve particular sectors.

2. Finalize Your Business Name

Choose a unique, appropriate name that complies with Dubai’s naming guidelines. Contact your preferred free zone authority or the Department of Economic Development (DED) to inquire about availability.

3. Register Your Business in Dubai

After deciding on a name and location, you must register your business with the DED. This includes deciding on a trade name, a business activity, and a final legal structure.

Although the registration procedure for free zones varies, it usually consists of the same processes as those on the mainland.

4. Obtain an Import-Export License

Submit an application for a trade license that permits import and export operations. Usually, the DED or the free zone authority of your choosing is involved. The products that you plan to import and export must be specified.

5. Register with Dubai Customs

You need to register with Dubai Customs after obtaining your trading license in order to receive an import/export code. You can import and export items by using this code to get them approved via customs.

6. Open a Business Bank Account

Create a corporate bank account to handle the money for your company. This is essential for transactions involving international suppliers and customers. 

7. Obtain Visas

Your business structure and nationality will determine if you require visas for your staff, partners, and yourself. Apply through the appropriate authorities after researching the requirements for a visa.

Documents Required for Starting Import-Export Business in Dubai

Depending on where you live, different documents may be needed to setup an import-export business in Dubai. However, most locations usually require the following general documents:

• Trade name options
• Business activity
• Passport copies of all the shareholders
• UAE residence visa copy of the partner(s)
• Copy of entry stamp or visa page if the partner is on a visit visa
• Passport copy and Emirates ID of local sponsor
• Import Export Code (IEC) application (may vary by country)

What is the Cost of an Import-Export Business in Dubai, UAE?

An import-export license in Dubai will cost around AED 25,500 and above; the other Emirates cost details are included below.

• Sharjah: In Sharjah, import-export licenses will start at about AED 23,000.
• Ajman: The approximate cost of an import-export license in Ajman is AED 24,000.
• Ras Al Khaimah: An import-export license will cost approximately AED 20,000 in Ras Al Khaimah.

Remember that these Dubai import-export license price amounts are estimates that may change based on your particular operational needs and business requirements. 

The cost of getting a Dubai import-export license varies depending on the jurisdiction from which the company is operating, as every authority has established its own costs.

Why is the import and export business a thriving sector in the UAE?

1. Strategic Location

The UAE is ideally situated to transport commodities globally because it is located at a crossroads of Asia, Africa, and Europe. This strategic position makes it simple for companies to reach a large buyer-and-seller network.

2. Business-Friendly Environment

By providing tax reductions, simplified rules, and free trade zones, the UAE government has made the country a friendly place for entrepreneurs. As a result, starting and running an import/export company is simpler and less expensive.

3. Open Economy

There aren’t many trade barriers in the United Arab Emirates’ economy. This makes it possible for companies to import and export an extensive range of products.

4. Government Support

The import and export industry is actively supported by the UAE government. They negotiate free trade agreements, make infrastructure investments, and help companies in other ways.

5. Top-notch Infrastructure

The UAE has made significant investments in top-notch infrastructure. Among these are renowned seaports and airports that can manage huge quantities of cargo, speeding up the import and export procedures.

Conclusion

In terms of profitability and possibilities for growth, starting an import-export business setup in Dubai can be fulfilling. Contact JSB Incorporation for further professional advice on your venture, obtaining an import-export business license, and understanding the import and export procedures in the United Arab Emirates.

Our knowledgeable business setup advisors will address all of your business related queries. Book a free consultation call right now to get started.