Setting up a commodity-trading firm in the UAE offers access to a thriving USD 600 billion non-oil trade corridor connecting Europe, Asia, and Africa. Founders enjoy 0 % personal income tax and a flat 9 % corporate levy only on profit above AED 375,000, so early earnings can flow back into working capital and hedging.
Free zones grant 100 % foreign ownership, the UAE dirham is tied to the US dollar at a fixed rate, helping keep currency stable and predictable — ideal for international trade and investment, and local banks provide deep liquidity—advantages few rival hubs can match.
The cost of setting up a company in the UAE can be reasonable, especially in free zones where packages are available for startups and small teams. These typically include trade licenses, shared workspaces, and residency visas. Mainland LLCs involve higher setup and office space costs, but in return, they offer full on-shore trading rights with UAE-based clients and government entities.
Whichever route you choose, the full setup cycle—name reservation, MOA, licence, visas, customs code, and first bank account—typically wraps up in just 7 – 21 working days, far faster than comparable procedures in Europe or North America.
Open a Business for Commodities Trading in the UAE
Dubai’s 8-hour flight radius reaches 65% of global GDP, letting traders close origin deals in the morning and land cargo in Dubai before Asian markets open, cutting transit risk, lowering freight premiums, and sharpening bid/offer spreads.
Whether you want to start a business in UAE focused on commodities or expand an existing desk, the path is clearly mapped. Stay within your activity code, and you can lease warehouses in any emirate, hedge exposures on global exchanges, open multi-currency accounts, and move capital freely. The combo delivers faster trade cycles, higher ROE, and a launch ecosystem tailor-made for start trading companies in Dubai with modest seed capital.
Dubai Trading Company Formation: Legal & Regulatory Framework
From a structural standpoint, you have two main pathways: incorporate on the mainland under the Dubai Department of Economy & Tourism (DED), or choose a free zone, most commons are DMCC, Dubai Airport Freezone (DAFZA) or Dubai Silicon Oasis (if you plan to intertwine physical trading with fintech). Mainland limited-liability companies (LLCs) require at least one manager and, since changes in 2021, can be wholly foreign-owned if the activity is non-strategic.
You file a Memorandum of Association (MOA), deposit the statutory share capital (typically AED 50,000, though many authorities waive the physical deposit requirement), lease an office that meets minimum size rules (often 100 sq ft), and secure initial approval from the Securities & Commodities Authority (SCA) if you plan derivatives activity.
Free-zone entities—in contrast—are governed by each zone’s own authority, meaning you bypass DED oversight and can fast-track licensing in as little as five working days. DMCC remains the benchmark for commodities because its activity codes cover upstream, mid-stream, and downstream services, including bullion refining, base-metals recycling, agri-bulk storage, and collateral management. DMCC also hosts the Dubai Gold & Commodities Exchange (DGCX), so registering there allows you to fulfil exchange-membership address requirements immediately.
A standard Free Zone Company (FZ-LLC) needs only one shareholder, one director, and AED 50,000 in share capital—again, often a paper declaration rather than a cash deposit. Renewals cost roughly 60 % of the first-year licence fee, and you are exempt from audited financial statements until your turnover surpasses AED 10 million or you handle third-party funds.
Start Trading Business in Dubai—Step-by-Step Company Setup
Step 1 — Name Reservation & Initial Approval
Choose three trade names that reference “commodities,” “trading,” or your niche, run a quick online search to avoid duplicates, and submit them through the DED or free-zone portal. Pay the reservation fee (AED 620 mainland, AED 200-1,000 free zone). Within 24 hours, you receive a digital certificate reserving the name for 180 days.
Step 2 — Draft Your MOA & Shareholder Agreement
For a physical-trade desk, describe the activity as “Trading in physical commodities such as base metals, precious metals, energy products, and agricultural softs, including import, export, and wholesale distribution.” Clarify profit-distribution ratios, board powers, and dispute-resolution method (UAE law or DIFC arbitration). If you plan to apply for an online futures trading licence UAE, add a brokerage clause covering agency clearing.
Step 3 — Financial Proof & Capital Allocation
Free zones rarely force you to park the entire share capital upfront, but mainland banks might when you open your account. Prepare bank reference letters or audited personal statements showing at least the statutory amount plus six months of operating expenses—around AED 500,000 if you intend to carry a sizeable inventory.
Step 4 — Office Lease & Ejari
Mainland LLCs must have a physical office; flexi-desks are no longer accepted for trading codes. Expect AED 18,000-25,000 per year for 100 sq ft in an industrial area like Al Quoz. DMCC and other zones allow flexi-desks starting at AED 3,000, although a dedicated office (AED 15,000+) is advisable when onboarding international banks.
Step 5 — Licence Issuance
Submit the final document pack—passport copies, MOA, office lease, capital-deposit confirmation (if required), and SCA pre-approval where relevant. Pay the licence fee—AED 12,000-30,000 mainland or AED 9,000-25,000 free zone. Your commercial licence arrives as a PDF bearing a unique activity code, which you must display on all invoices.
Step 6 — Immigration Card, Establishment Card & Visas
Apply for the electronic establishment card (AED 700) and immigration card (AED 453). Once issued, you can self-sponsor investors’ visas and staff visas. Each visa costs AED 3,000-3,500 all-in and remains valid for two years (three in select free zones).
Step 7 — Customs Code & Import-Export Authorisation
Register with Dubai Customs online, pay the AED 1,000 registration fee, and receive an importer/exporter code in 48 hours. This code is indispensable for clearing shipments of copper cathodes, sugar containers, or fuel oil.
Step 8 — Corporate Bank Account
Compile your licence, shareholder passports, business plan, projected cash-flow statements, and supplier contracts. Schedule a relationship-manager meeting at commodity-friendly banks (Emirates NBD, Dubai Islamic Bank, Mashreq, RAKBANK). Expect compliance queries about requirements for trading in commodity exchanges and KYC on counterparties. Once approved, you can request multi-currency sub-accounts in AED, USD, EU,R and CNY.
Step 9 — Go-Live & First Trade
Book your first physical cargo, hedge the exposure on DGCX or CME, finalise Incoterms, and arrange insurance. Congratulations—you now start trading business Dubai style, fully licensed and banked.
Start Trading Companies in Dubai vs Other Emirates—Key Differences
While Dubai commands 80 % of the UAE’s commodity-trade flows, other emirates can add value in ways that reduce your overall risk-adjusted cost of doing business. Abu Dhabi Global Market (ADGM), for instance, is the only jurisdiction in the Middle East that operates English common law without local-court involvement, making it attractive for institutional investors who demand familiar legal frameworks. Licences cost more—around AED 25,000—but the ADGM Financial Services Regulatory Authority offers expedited approval for Category 3 commodity dealers if you can show robust risk controls.
Sharjah Publishing City Free Zone (SPCFZ) re-purposed its activity list in 2023 to include “Commodity Brokerage Services,” allowing single-shareholder setups at entry-level prices of AED 5,750. SPCFZ also grants dual licences that mirror your free-zone entity on the mainland, enabling you to tender for UAE government supply contracts without forming a separate company.
Meanwhile, RAK Ports and Fujairah specialise in the storage of crude oil and refined products, so if your desk focuses on energy cargoes, you can lease tank farms at significantly lower rates than Jebel Ali.
That said, you may still open a representative or branch office in Dubai to maintain a city-centre sales presence while booking physical deliveries in the northern emirates—a structure increasingly favoured by start commodity trading company UAE initiatives looking to control cost leakage.
Licensing Matrix & Requirements (Commodity Exchange & Online Futures)
When you trade spot or forward contracts for physical delivery, the standard Commercial Trading Licence suffices. If you intend to provide third-party execution or clearing on an exchange like DGCX, however, you need an additional Commodity Brokerage Licence issued by SCA.
The authority breaks this into Category 3 (dealing as agent) and Category 4 (dealing as principal on your own account). Minimum paid-up capital is AED 2 million for Category 3 and AED 5 million for Category 4, with annual regulatory fees of AED 100,000 and AED 150,000, respectively.
For digital desks that plan to offer margin trading through MetaTrader or CQG, an online futures trading licence UAE is mandatory. Beyond the capital hurdle, you must install a real-time surveillance system, provide segregated client accounts, and file quarterly risk-exposure reports.
Exchange membership brings its own checkpoints: clearers demand daily margin statements, KYC on beneficial owners, disaster-recovery servers within a 100-kilometre radius, and an annual penetration-testing report. While these barriers may appear daunting, they also deter under-capitalised entrants, keeping spreads healthy for serious players.
Cost, Funding & Timeline
Cost Components
- Trade-Name Reservation: AED 620 (mainland) / AED 200-1,000 (free zone)
- Licence Issuance: AED 12,000-30,000 (mainland) / AED 9,000-25,000 (free zone)
- Office Lease: AED 18,000+ (mainland) / AED 12,000+ (free zone)
- Visas: AED 3,000-3,500 each
- Customs Code: AED 1,000 initial + AED 250 renewal
Assuming you opt for a DMCC flexi-desk, two founder visas, and no external approvals, you can launch for AED 15,500. Budget another AED 35,000 for working capital to cover inspection deposits, shipping-line guarantees and initial margins.
Funding Avenues
- Letters of Credit and SBLCs issued by local banks at 1.5 %-2.5 % per 90 days for metals and agri-softs.
- Borrowing-Base Facilities calculated against warehouse receipts or cargo-in-transit (advance rates reach 80 % for grade-A copper).
- Islamic Finance (Murabaha) structures popular for Sharia-compliant investors, typically priced at LIBOR/EIBOR + 2.5 %.
- Private Equity & Venture Debt from DIFC-based funds willing to back technology-enabled commodity platforms.
Timeline Snapshot
| Milestone | Free Zone (DMCC) | Mainland (Dubai LLC) |
| Name reservation | 24 h | 24 h |
| Initial approval | 2-3 days | 3-5 days |
| Licence issuance | 3-5 days | 7-14 days |
| Visa processing | 5-7 days | 7-10 days |
| Bank account | 10-20 days | 15-30 days |
| Total | ~15 days | ~30 days |
Compliance, Governance & Risk Management
A thriving commodity-trading desk lives or dies by its control environment. Anti-Money-Laundering (AML) rules in the UAE align with FATF recommendations and require customer due-diligence, beneficial-ownership logs, and transaction-monitoring systems for any trade over AED 55,000. Non-compliance can attract fines up to AED 1 million.
Know-Your-Customer (KYC) extends beyond buyers and sellers to include shipping agents, storage providers, and insurance brokers. Periodic KYC refreshes (at least annually for high-risk clients) are mandatory.
On the risk-management front, your written policy should define maximum single-counterparty exposure, stop-loss levels, and hedging frequency. Physical storage risk must be covered by “All-Risk” warehouse insurance, while seaborne cargoes need Institute Cargo Clauses (A) policies naming the bank as loss payee.
Given the increasing focus on ESG, traders are encouraged to track Scope 3 emissions of their supply chain and use International Sustainability Standards Board (ISSB) templates for disclosure. Although not compulsory today, early adoption can position your company as a preferred supplier to EU-based importers once the Carbon Border Adjustment Mechanism (CBAM) matures.
Commodity-Trading Company Startup Checklist
- Business Plan detailing niche, suppliers, and risk strategy
- Three Trade Names free of restricted words
- Shareholder Passports & Visas scanned in colour
- Memorandum of Association signed before notary or registrar
- Office Lease Contract and Ejari certificate (mainland) or lease agreement (free zone)
- Initial Approval Letter from DED or free-zone authority
- Trade Licence bearing the correct activity code
- Immigration & Establishment Cards activated
- Customs Import-Export Code
- Corporate Bank Account with multi-currency facility
- Trade-Finance Lines approved (LC, SBLC, factoring)
- Insurance Policies (cargo, professional indemnity, stock)
- IT Infrastructure (OMS, risk dashboard, cybersecurity)
- AML/KYC Policy Manual & appointed Compliance Officer
- Auditor Appointment Letter filed
Ticking every box above positions you to seize opportunities the minute a supplier calls with an attractively priced cargo.
Frequently Asked Questions
You do not need prior residency. Incorporate the company first, obtain the licence, and then use the entity to sponsor your investor visa. Meanwhile, you may operate remotely through a local service agent or branch manager.
Physical-trading licences seldom specify hard numbers, but free zones suggest AED 50,000 share capital as best practice. Brokerages handling client money must meet the SCA thresholds of AED 2 million (agency) or AED 5 million (principal).
No. SCA mandates that trade servers and historical data reside inside the UAE or in approved redundancy centres within GCC countries to ensure jurisdictional control.
Export permits are liberal, but strategic items (e.g., crude oil, uranium) need additional clearances. Agri shipments may require phytosanitary certificates, while scrap metals need an environmental-clearance letter.
Profits up to AED 375,000 remain exempt; earnings above that threshold face a 9 % flat rate, still one of the lowest globally. Free-zone entities can retain 0 % on qualifying income, provided they transact with non-mainland clients and meet substance rules
Ready to set up your commodity-trading company in Dubai?
From capitalizing on price differences between global crude benchmarks, to connecting Africa’s mineral supply with Asia’s demand, or offering sophisticated trading instruments to regional investors, the UAE offers a strategic base for diverse commodity trading opportunities.
The UAE hands you everything a trader needs: clear regulations, world-class logistics, and banks that truly understand commodity finance. Skip the paperwork struggle and let a Dubai-based business setup specialist handle licensing, compliance, visas, and banking in one streamlined package. Nexus Partners completes the setup so you can start closing profitable trades from day one.