Dubai is one of the prime locations for import export business due to its stable market, world-class infrastructure, and ideally situated ports. The total value of international trade was AED 3.5 trillion in 2023, which does not include oil trade. These figures show the importance and demand for international trade in the UAE.
UAE has firm trade relations with different countries worldwide, and the government also facilitates and introduces new policies for import and export. Starting an import and export company in Dubai can be fruitful if entrepreneurs carefully choose a Free Zone, business activity, and suitable location.
Getting a trade license for your import export business in Dubai is also necessary. If you are starting an import-export company in Dubai, carefully read the details in this guide.
Why is Dubai Ideal for Import Export Business?
Dubai is a perfect location for entrepreneurs looking to start and expand their import-export business due to its low corporate tax and free trade agreements. Now, we will discuss in detail why Dubai is the best location for import export and the best import-export business in Dubai.
Strategic Position of Dubai
Dubai’s strategic position greatly benefits import-export businesses as it is a gateway between East and West. Due to this strategic position, Dubai helps entrepreneurs do international trade with different countries and expand their business globally.
State of the Art Infrastructure
The contemporary infrastructure, seaports, and airports promote import and export within the UAE. The government is also making import and export procedure in Dubai straightforward by providing efficient supply chains. These supply chains create an effective working network, making international trade easy for businesses.
Favorable Business Environment
The government of UAE provides tax-free policies and a favorable business environment that attracts investors from all over the world. The policies of the UAE welcomes
Free Market
The government of the UAE has placed very few restrictions on trade, which is a huge benefit for the import/export procedure in Dubai. Due to this, traders can import and export a wide range of goods in the UAE.
Outlook on Dubai’s Trade
Dubai’s international trade market is a hub for global trade, and traders engage in many trade activities. Dubai is a trading partner of almost 32 countries globally and an active member of the World Trade Organization.
Types of Import and Export in UAE
There are many trading activities in the UAE market. We have discussed a few of them.
| UAE Exports | UAE Imports |
| Crude Petroleum with USD 105 | Gold with USD 57.1 |
| Refined Petroleum with USD 57.9 | Broadcasting Equipment with USD 20.3 |
| Gold with USD 32.8 | Refined Petroleum with USD 19.5 |
| Petroleum Gas with USD 6.6 | Diamonds with USD 17.5 |
| Broadcasting Equipment with USD 17.7 | Cars with 12.9 |
Trading Partners of UAE
The top five trading partners of the United Arab Emirates are;
- China
- India
- KSA
- USA
- UK
Free Trade Agreements
The UAE has signed free trade agreements with GCC and other countries globally to strengthen its spot as a trade hub and a significant investment place. With the help of (FTA) the UAE is increasing its exports, improving competitiveness in the international market and helping reduce trade barriers.
The UAE has signed these agreements with several countries, including Singapore, New Zealand, Korea, Japan, the European Union, Pakistan, Australia, Turkey, and many more.
Free Trade Zones
Free trade zones (FTZ) are economic zones which provide tax relaxations and import tax advantages to foreign investors. There are 28 free trade zones running in Dubai, which include the following,
- Dubai AIrport Free Zone (DAFZ)
- International Free Zone Authority (IFZA)
- Jebel Ali Free Zone (JAFZA)
Tax Policies
The UAE’s tax framework extends huge benefits for import/export companies. The UAE’s tax policies are as follows.
- There is 0% corporate tax on income over AED 375,000 and only 9% tax on income above this.
- Companies with more than AED 375,000 annual revenue have to pay a 5% VAT tax.
- In UAE, the customs duty tax is only 5% of the cost of goods and Freight Insurance (CIF). The import tax on some toxic products, like tobacco, is 100%, and on alcohol, it is 50%.
- In the UAE, free zone businesses have the advantage of tax free policies. There is no corporate tax for new companies for 15-20 years, VAT relaxations and no tax on import/export.
Steps for Starting Import Export Business Dubai
Certain steps are involved in starting an import and export business in Dubai, including getting a license, company registration, and Dubai import and export license fees. We have given further details on the import and export procedure in Dubai.
Registering Your Company
The first step in setting up an import-export business is registering your company. This process involves stating your business activities and the type of import-export company you want to set up. Selecting the right business activities is crucial for getting a trade license in Dubai.
Selecting a Legal Structure
Select a legal structure for your business, such as a Limited Liability Company or another structure for your import-export business in Dubai. After that, finalize a unique and appropriate name for your company and get it approved by the Department of Economic Development (DED) or the free zone authority (if you have set up your company in a free zone).
Getting Trade License
The next step is getting a trade license for your import export business in Dubai, which requires the following documents.
- Trade license of your company
- Owner’s Passport Photocopy
- Memorandum of Association (MoA) of the business
- Photocopy of entry visa or residence visa
- The lease agreement of the workspace
- Letter of import export code (IEC)
- Fee payment slip
Submitting Application
The process of application mainly involves three steps,
- Submission of application to the DED along with company name and selected business activities.
- With the help of an online portal, get your entry permit for UAE
- Initiate your status change and undergo a medical examination for an Emirates ID card.
Navigating Customs and Compliance
Operating an import/export company in Dubai demands grasping legal needs and customs laws. The company must show all imported goods to the country’s customs in order to get clearance and calculate the customs duties.
After obtaining your license, it is advisable to open a local business bank account to facilitate financial transactions related to import-export activities.
Selecting an Office
The import-export procedure in Dubai includes selecting an appropriate workspace for your business. For easy goods transfer, select a commercial area or office near ports or airports.
Opening a Bank Account
Opening a commercial Bank Account is necessary to track your financial transactions with local and international clients.
Applying for Visa
While applying for a visa, consider the company structure and business activities. There are three common types of visas in the UAE, residence visa, free zone visa, and investor visa.
Hiring an expert business consultant is appropriate for complying with regulations in order to select the best import-export business in Dubai and Dubai import-export license fees.
Cost of Import Export License in Dubai
Getting a trade license is crucial for legally running your import export business in Dubai. With a license, you can trade your goods globally, export manufactured goods in Dubai, and import goods from other countries.
Dubai import export license fees can range between AED 12,500 to AED 23,60. The cost of an import-export license in Dubai depends on the number of visas you’re applying for. This visa can be obtained from the Department of Economic Development (DED) in mainland UAE or the free zones of Dubai.
Best Import Export Business Dubai
Here, we have shared the top five import and export businesses in Dubai.
Top 5 Import Businesses in Dubai
Here, we have discussed the best import export business in Dubai for you to choose from.
- Gold
- Broadcasting equipment
- Refined petroleum
- Diamonds
- Cars
Top 5 Export Businesses in Dubai
Here is the list of top 5 export businesses in Dubai
- Crude petroleum
- Refined petroleum
- Gold
- Petroleum gas
- Diamonds
Contact expert business consultants who will manage all your business-related problems to simplify the import-export procedure in Dubai and the submission of documents.
Wrap up!
To sum up, starting an import export business in Dubai is a strategic step. This business is stable and rewarding due to its strategic location, business-friendly environment, and tax relations provided by the government.
If you are still trying to figure out where to start your import-export venture in Dubai, consult our expert team at Al-Riyady for all your business-related problems. Let us handle all your queries for a smooth business setup in the UAE. Our services include Auditing Services, Accounting Services, Business Liquidation, Tax Consultancy, BusinessPlans and Feasibility Studies, and much more.
