How to Start a Trading Business in UAE – Step-by-Step Guide
The UAE, especially Dubai, continues to be one of the world’s most attractive markets for starting a trading business. Whether you’re interested in general trading, gold trading, or import-export activities, the UAE offers a wealth of opportunities. With a favorable regulatory framework, access to global markets, and a robust infrastructure, the region is a prime destination for businesses looking to expand. At Elesely Group, we’ve helped entrepreneurs navigate the process, ensuring they have all the tools they need to succeed. In this guide, we’ll walk you through the step-by-step process of setting up a trading business in the UAE.
The UAE Trading Market at a Glance
Before diving into the specifics, let’s look at some compelling statistics from 2025:- The UAE’s non-oil foreign trade reached AED 3.2 trillion in 2025, marking a 10.3% increase year-on-year. This growth solidifies the UAE’s position as a key global trading hub.
- Dubai alone handles over 75% of the UAE’s total foreign trade, and the emirate’s Jebel Ali Port remains the largest port in the region, facilitating 14 million TEUs (Twenty-foot Equivalent Units) in container traffic.
- More than 550,000 businesses are registered across the UAE as of 2025, with a significant portion involved in trade-related activities.
- The gold trade in Dubai is valued at approximately AED 300 billion annually in 2025, maintaining the city’s title as the world’s leading hub for gold trading, with over 1,300 gold retailers operating in the emirate.
These numbers highlight just how vibrant the trading industry is in the UAE, making it an ideal location to start your own trading venture.
Step 1: Decide on Your Trading Niche
Choosing the right niche is the first crucial step in setting up a successful trading business. The UAE’s diverse economy provides numerous trading opportunities. You can opt for:
- General Trading: A broad category, ideal for businesses that deal in various products like electronics, furniture, clothing, etc.
- Gold Trading: Dubai is known for its vast gold trade. With the city’s position as the world’s largest exporter of gold, this sector alone offers huge potential.
- Food & Beverage Import-Export: As 90% of food in the UAE is imported, this sector presents significant growth opportunities.
- Real Estate: Given the booming market, setting up a real estate brokerage in Dubai can also be a lucrative option.
Consider the market size and your area of expertise when selecting your niche.
Step 2: Choose the Right Jurisdiction – Mainland vs. Free Zone
When setting up your business, you must decide whether to establish it on the mainland or in a free zone. Each option offers distinct advantages:
- Mainland Business: Enables you to operate directly within the UAE market. However, you will need a local sponsor, who will own 51% of the business. Mainland businesses are ideal for companies that plan to trade locally and internationally.
- Free Zone: Allows 100% foreign ownership, making it a popular choice for international businesses looking to trade globally. The Dubai Multi Commodities Centre (DMCC) and Jebel Ali Free Zone (JAFZA) are two major free zones for trading companies.
According to the Dubai Economic Department (DED), there are over 40 Free Zones in the UAE, each catering to different industries.
Step 3: Select Your Business Activity and License
Once you’ve chosen your niche and jurisdiction, the next step is to determine your business activity and apply for the appropriate trading license. The UAE offers various types of licenses for different trading activities:
- General Trading License: Ideal for businesses dealing in multiple goods.
- Specific Trading License: For businesses focusing on specific products like gold, food, or electronics.
- E-commerce License: If you plan to operate an online trading platform, this is the right choice.
In 2025, over 60,000 trading licenses were issued by Dubai’s Department of Economic Development (DED), emphasizing the growing demand for new businesses in the sector.
Step 4: Secure Your Business Location
Choosing the right location for your business is crucial. Depending on your jurisdiction, the options vary:
- Mainland: You’ll need to secure an office or warehouse space, with a rental contract required to complete the registration process. In 2025, real estate transaction volumes in Dubai exceeded AED 600 billion, providing ample opportunities for businesses.
- Free Zone: If you’re setting up in a Free Zone, the zone itself usually provides ready-to-use office space and warehouses. The DMCC Free Zone alone has facilitated over 1,200 companies involved in commodities trading, including gold.
Step 5: Open a Corporate Bank Account
A corporate bank account is essential for managing your business transactions, both locally and internationally. The UAE boasts a robust banking sector, with over 50 banks operating within the country. Opening a business account typically involves submitting the following documents:
- A copy of the trade license
- Passport copies of shareholders and managers
- Proof of business address
In 2025, the UAE ranked among the top 10 countries in the World Bank’s Doing Business Report due to its ease of opening business accounts and efficient banking processes.
Step 6: Register for Import/Export Code (For Trading Businesses)
If your trading activities involve importing or exporting goods, you’ll need to register with UAE Customs and obtain an import/export code. This registration is mandatory to legally bring products into the country or ship them abroad. Customs registration also ensures compliance with the UAE’s import-export regulations, which are designed to protect both consumers and businesses.
Step 7: Apply for VAT Registration (If Applicable)
In the UAE, VAT (Value Added Tax) was introduced in 2018 at a rate of 5%. As a trading business, you’ll need to register for VAT if your turnover exceeds AED 375,000 annually. VAT registration allows you to collect tax on behalf of the government and also claim back VAT on business expenses.
Step 8: Launch Your Trading Business
After obtaining all necessary licenses and approvals, you are officially ready to begin your trading operations. The UAE offers excellent infrastructure, including state-of-the-art logistics, free trade zones, and easy access to international markets. The Dubai International Airport, one of the busiest in the world, serves as a key hub for air cargo transport, further enhancing the logistics advantages.
Conclusion
Starting a trading business in the UAE can be an incredibly rewarding venture, thanks to the country’s dynamic market and favorable regulatory environment. Whether you’re interested in gold trading, food import-export, or general trading, the UAE offers vast opportunities for both local and international businesses. At Elesely Group, we provide expert guidance and support, helping you navigate every step of the process, from setting up your company to ensuring compliance with the law.
If you’re ready to take the leap, don’t hesitate to contact Elesely Group for a consultation. We are here to help you turn your trading business into a success story in one of the world’s most thriving markets.
