Top 7 Requirements to set up a Scrap Business in Dubai

Scrap Business Dubai UAE
How to start scrap business in Dubai UAE
  • Post author:
  • Post category:Company Setup
  • Reading time:7 mins read

Do you know the UAE is among the best supplier of scraps in the world? This makes Dubai a hot spot for scrap metal business investment globally. Therefore, a lot of expatriates are looking forward to investing in scrap metals in Dubai. However, before delving into the scrap business, there are some requirements you need to know as an investor prior to setting up your scrap business in UAE. We have seen a similar story of a person who has churned fortunes into scrap business and you can read about him Cost Of Business Setup In Dubai.  Quite a amazing story to read.

Generally, the requirements for starting a scrap business are relatively simple and easy. They include the following;

  • Sufficient funds to sustain the business
  • The type of scrap business to start
  • Location of the business
  • Business registration
  • Get a number of potential buyers
  • Being updated with scrap trending topics on the market
  • Have robust equipment

Typically, the scrap trading business provides the business owners with profits and at the same time, the business saves the environment from harmful items. As an investor, you can either set up a warehouse for your scarp trading business or decide to collect and sell them to other countries where they will be recycled.

That’s said; it is difficult to jump into the scrap business if you don’t hold certain requirements in mind. Every business requires an investor to think extra miles before starting a business or company as well. Meaning, the requirements are set to help you gauge yourself during the business journey to achieve success at the end of the tunnel.

Therefore, here are the top 7 requirements you must know to start a scrap business in Dubai.

Seven Requirements to Start a Scrap Business in Dubai

Whether you want to own a scrap warehouse or collect and sell your scrap abroad, you must keep the following in mind before starting your business.

Have sufficient funds to sustain the business

Primarily, capital plays a monumental role when starting any business. There are some businesses that don’t require huge amounts of capital to set up. Nonetheless, if you want a car company, you must have a reasonable amount of money to keep the ball snipping.

Thus, that is not the same with the scrap business in Dubai. Here you can shorten your budget and start your business with a low amount provided your business location is catered for. However, if in any case, you have to revamp your business site, this will cost you a lot.

You can boost your scrap business with other sources of income if things turn out to be expensive. So, ensure you have sufficient capital to maintain your scrap business even if it is a small scrap yard. Let most of your capital be used to purchase scraps.

The type of scrap business to start

Determining the type of scrap business to start is another critical requirement you should consider. There are so many types of scrap you can embrace as a scarp business owner. Meaning, there are tons of materials you can collect for recycling.

Therefore, you must decide which journey of scrap business you want to venture in. For instance, some of the items you can concentrate on are glass, metals, plastics, and paper among others. Depending on your scrap metal analysis, you can decide to select either of the above or venture into both.

Nonetheless, focusing on single items will help your business nourish and attract other similar brands to do business with you.

Location of the business

The size of your scrap metal business will largely influence the location of your business. A prime site is not recommended. Thus, if your aim is not to stockpile your items, then you may opt for a 30 square meter site for your business.

On the other hand, if your target is to store items so that you can sell them at a reasonable price, you can choose a 100 square meter site for your scrap business. Make sure you locate a good place for your business with zero impediments from your neighbors or community. Additionally, conduct thorough research to know the pros and cons of your preferred business location.

Business registration

The UAE authorities demand all businesses set up in Dubai get their name registered in the country, so that they may be allowed to conduct their business activities safely. Therefore, the Department of Trade and Industry is the body responsible for business name registration in UAE.

You can register your trade name as a sole proprietor, as an Exchange commission for a corporation or partnership. After this process, you’re allowed to go to the city hall/municipal to submit your business permit.

Similarly, you’re required to register your business with the Bureau of Internal Revenue and get your receipts printed. Later, the authorities demand everyone with a printed receipt go to Philhealth, PAG- IBIG, and SSS.

Get a number of potential buyers

Like any other venture, it is recommended to have potential buyers for your items. List all the potential buyers and identify those with better and supper deals. Out of 4 or 3, you might run into one buyer who is out for business.

Immediately you come across such buyers with good intent towards your business, create a good working relationship with them. Try to have at least two buyers so that in case one fails, you might have a wall to lean on.

Being updated with scrap trending topics on the market

Another essential requirement is to be updated with the scrap trading activities. Meaning, being up-to-date with the buying and selling of scrap can help you familiarize yourself with the rise and fall of the scrap market.

In addition, monitoring the scrap trading trend might help you avoid big losses when things turn sour. Similarly, you might identify the high peak season and utilize the opportunity to make more profits on your scrap business in Dubai.

Have robust equipment 

It is somehow impossible to carry scrap business without having robust equipment. Generally, scarp equipment might involve a delivery vehicle for your items, weighing scales, and other relevant equipment that might help your scrap business.


Some of the other popular scrap merchants in Dubai can be found Production City Dubai as well to get in touch and grow your network.


Setting up a scarp business in Dubai is easy and faster. However, for your scrap business to be proactive, you must adhere to certain requirements such as having enough funds to support your business, purchasing robust scrap equipment, and being updated with scrap trending topics on the market among others.

Take your scrap business to the next level by observing the above requirements. You can get in touch with Dubai Business Setup here and we will guide you through an easy seamless process within 1 week.

Helpful Resources

Benefits of Establishing a Scrap Metal Business in Dubai As an investor, it is prudent to understand the benefits of setting up a business before delving much into it. And so, read on this POST to find out some of the benefits of starting a scrap metal business in Dubai.

Scrap Business License-Which one is required in Dubai for Scrap Business? Having a scrap business license is mandatory. However, which scrap business license is required in Dubai for the scrap metal business. Check out the type of license you’ll be required to have when starting your scrap business in Dubai.