Are you looking to open a chemical business in Dubai and the United Arab Emirates? As one of the fastest-growing economies in the world, Dubai attracts the best talent from around the world. With a focus on STEM careers, not only will you have access to the right employees, but you will find an excellent infrastructure and support for your chemical business.
This article will dive into the details to help you figure out how to succeed from the word go. We’ll look at the following areas:
- Chemical business in Dubai and the UAE – An overview
- How to start a chemical business in Dubai – Step by step
- Cost of starting a chemical business in Dubai
- Marketing strategies for chemical business in Dubai
- Business setup in Dubai with Trade License Zone
Chemical business in Dubai and the UAE – An overview
Dubai and the UAE have a highly-developed chemical industry. In fact, the UAE is the Middle East’s largest chemical manufacturer and boasts a total annual production capacity of over 30 million tons of petrochemicals and other chemicals. The chemical business in Dubai and the UAE has grown from the country’s oil and gas industry, and it now extends to medical, biological, manufacturing, and other chemicals. This industry has been expanding rapidly over the last five years and has been boosted by government initiatives to diversify the economy by increasing non-oil exports.
Opportunities for growth and expansion in the chemical industry in Dubai and the UAE are vast: the government extensively promotes investment in the sector. There are opportunities for new entrants to the market and for existing players to expand their operations. Key areas of growth include technology, sustainability, and innovation.
The chemical industry is bolstered by a pool of highly experienced and qualified staff, world-class laboratories and manufacturing infrastructure, and a favourable business environment.
How to start a chemical business in Dubai – Step by step
Every business in the UAE must have a valid trading license and approvals from the government and Dubai Municipality. The following steps will help you with your trading license, company formation, and setup, so you can begin trading as soon as possible.
Step #1: Partner with Trade License Zone
Your first step to opening a chemical trading business in Dubai is to partner with Trade License Zone. Our business formation specialists will help manage all aspects of the trade license application and company registration processes and communicate with all relevant government and municipal authorities on your behalf.
Step #2: Choose a business setup and business jurisdiction
The type of business setup and business jurisdiction you choose determines the business activities you can undertake in the UAE. There are two types of business jurisdictions to choose from: Free Zones or Mainland. These were created to streamline businesses, better regulate operations, simplify company setups, and provide support services and structures to boost trade in the UAE. It is essential to understand the differences between Free Zones and Mainland entities.
In a Free Zone structure, foreign entrepreneurs and investors own 100% of the company. There are over 40 Free Zones to choose from in Dubai, and each offers unique benefits, such as startup support, business incubators, and financial support.
If you’re uncertain whether to select a Mainland or a Free Zone business structure for your chemical trading company, contact our professional business advisors at Trade License Zone to help determine which is best for you.
Step #3: Naming your company
Trade License Zone can assist you in selecting and registering a name for your chemical business with the UAE’s Registry Office. To do this, you will need to submit three preferred names in order of priority, and the Registry Office will verify their availability, ultimately approving the most preferred option.
While using your name in the company’s title is acceptable, it must be used in full rather than just your initials or surname. It is important to note that the chosen name must comply with the UAE’s naming policies, which prohibit the inclusion of offensive or blasphemous language, as well as references to Allah or Islam.
Step #4: Selecting Business Activities
In the UAE, all businesses must possess a valid trade license, which determines the services and operations the company can offer. There are numerous trade licenses available, including those related to the burgeoning chemical industry. It is crucial to seek guidance from a trade license expert like Trade License Zone to help you choose the most appropriate license for your company.
Selecting business activities that align with the services you intend to provide in Dubai and the UAE is critical. With around 2,000 business activities, making an informed decision is essential. A company can only conduct the business activities specified in its trade license; otherwise, it may face severe penalties from the authorities in Dubai and the UAE.
To navigate this crucial step, contact Trade License Zone’s experienced staff for expert guidance.
Step 5: Office, Labs, and Warehouse Rental
As we’ve mentioned, Dubai offers world-class infrastructure, and you’ll be able to find the perfect space for your business needs within easy reach of seaports, airports, and road links. You must find suitable office and warehouse space to rent. Your tenancy contract must be attached to your trade license application form and business plans for your Initial Approval.
Step 5: Apply for Initial Approval
After applying for your company, you must apply for Initial Approval from the Dubai Department of Economic Development (DED) and the Dubai Municipality. This requires submitting your business plans, business activities, and intended trade license type. As a chemical business, you must also apply for permission from the local authorities to use specific chemicals. The DED will review your application and grant you Initial Approvals, enabling you to continue in the trade license application process.
Step #6: Apply for the trade license
Applying for your trade license is the last step of the company formation process. You must submit your trade license application and supporting documentation, including UAE and Dubai government and municipal approvals. Once your trade license has been granted, you must pay for the issuance of the trade license and open your corporate bank account. You are then eligible to trade legally in Dubai and the UAE as a chemical business.
Cost of starting a chemical business in Dubai
Starting a chemical business in Dubai costs between AED 15,000 and AED 25,000. This cost varies depending on several factors, such as government approvals, trade license application fees, office and warehouse rental, and more.
For an accurate quote, contact the specialist team at Trade License Zone. Our team will be able to provide you with information on costs, requirements, trade license types, and business setup processes to open your chemical business in Dubai.
Marketing strategies for chemical business in Dubai
We’ve identified two key marketing strategies for a chemical business in Dubai:
#1: Networking and Partnerships
The chemical industry relies heavily on building relationships and trust with suppliers, customers and distributors. Attending industry events, conferences, and trade shows can be a great way to network and establish partnerships with other businesses in the industry.
#2: Online Marketing
Creating websites and social media accounts helps you reach a wider audience and showcase your products and services to companies and customers in the UAE. You can also use online advertising platforms to target specific audiences and generate leads.
Business setup in Dubai with Trade License Zone
Business setup in the UAE is straightforward when you partner with Trade License Zone. Although the UAE government has streamlined the trade license application and company registration processes, they are still complicated. Our experts will save you time and money and eliminate the frustration of unnecessary delays or rejections.
The specialists at Trade License Zone can get you started with your chemical business in Dubai as soon as you provide us with some basic documentation and information. Our team will then take care of the rest for you: we’ll manage your business setup, communicate with all relevant government departments and authorities, visa amendments and applications, open corporate bank accounts, and report back to you when you’re ready to start trading. It really is that simple.