Dubai is the hot spot of all business activities in the UAE. The UAE boosted the import and export market volume. The UAE is the world’s largest owner of crude oil and gas refineries. UAE ranks as 32nd biggest exporter on a global level. The UAE also imports on a massive scale; machinery and equipment are amongst the most imported goods in the United Arab Emirates. Food products are imported to the Emirates on a big scale. Because of its economic development plan, the UAE has successfully attracted the attention of entrepreneurs and investors to establish a presence in the Emirates.
Import in the UAE
Import involves the purchase of goods outside the borders of the UAE or some other foreign country or province of the Emirate. The United Arab Emirates has a global partnership with a total of 32 countries. The UAE is the 25th biggest importer in the world. Import and export business accounts for the largest increase in GDP in the UAE. A valid import license will allow the business owner to get any commodity inside UAE from other countries. Through Import license it is possible to get commodities from one of the free trade zones of Emirates; or into a free trade zone from a UAE mainland; by full filling the country legal necessities in terms of licensing and documents as well as permissions. This most key point about this license is that it will permit you to be an importer; it includes having a legal trade license issue from a UAE license authority and which is register with the Customs department.
The top imports of United Arab Emirates are:
- Broadcasting Equipment.
- Refined Petroleum.
- Textiles and metals.
- Cotton and fabrics.
- Plastic products.
- Gold and jewellery.
Destinations: United Arab Emirates imports mostly from China, India, United States, United Kingdom, and Germany.
Export in the UAE
According to recent research, UAE is the 29th largest exporter of the world and is quite famous for its trade in gold, diamond, cars, oil, and aluminum. Dubai export is the process of selling abroad the goods, products or services that are locally produced while sticking to the guidelines as stated by the government officials. The export license in Dubai is required if the owner of the business wants to trade goods and services produced locally in another country or between the free trade zones of the UAE. In order to work seamlessly, one must have an authorized license from the Ministry. It should also be noted that, if the goods are shipped to either of the UAE Free Trade Zones, they will not have to pay any customs duty. While the Free Trade Zone is an integral part of the UAE, it is not part of the UAE Customs Territory.
The following export product groups represent the percentage share of each export category in terms of overall exports from the UAE.
- Mineral fuels including oil (29.2% of total exports)
- Gems, precious metals (14.5%)
- Electrical machinery, equipment (8.6%)
- Machinery including computers (5.6%)
- Vehicles (4.1%)
- Aluminium (2%)
- Plastics, plastic articles (1.7%)
- Tobacco, manufactured substitutes (1.4%)
- Aircraft, spacecraft(1.3%)
- Perfumes, cosmetics (1.1%)
The UAE has highly positive net exports in the international trade of petroleum oils. In turn, these cashflows indicate UAE’s strong competitive advantages under the mineral fuels including oil product category.
Destinations: United Arab Emirates exports mostly to India, Japan, China, Saudi Arabia, Belgium, Kuwait, Bahrain and Oman.
Import and Export Business License
The formation of any business entity in the UAE needs a number of paperwork and permissions from the designated authorities. Import and export industry in the UAE is one of the fastest-growing markets. Increase in the number of companies and investors investing in this sector of the country. With its high connectivity, the UAE is the perfect place for all budding entrepreneurs.
In order to conform with any import and export company in the UAE, you must seek approval from customs registration. If you set up your company in any free zone of the UAE, you do not have to pay every customs duty because it does not come under the customs jurisdiction of the UAE. The most critical aspect of launching a company export and import business is to receive an import and export trade permit from the licensing authority of the UAE. Valid registration must be made with the customs registration. You cannot proceed with your import and export business in the UAE without valid consent.
Trade statistics of Dubai prove that the city has taken complete advantage of its key strategic location on the world map, connecting Far East and West economies. Its diversity allows opportunities for import and export business in Dubai and accommodates them via 120 shipping lines and 85 airlines to more than 130 destinations, with no exchange controls and no trade barriers.
If you are looking to set up a trading company in Dubai, you must have complete knowledge of import and export procedures in Dubai. Our representatives at Riz & Mona Consultancy can help you acquire a full understanding of international trade laws and the taxation system of Dubai as well as its policies for new business. We will also provide you complete business setup solution that will cater to your needs and help you establish your company in no time at all.