UAE General Trading Company Guide 2026: DED License vs Free Zone Multi-Category Trading

Updated August 2026. The UAE is one of the world’s most dynamic trading economies, handling over $500 billion in annual trade volume. A UAE general trading license gives entrepreneurs and corporations the flexibility to import, export, and re-export multiple product categories under a single commercial license — eliminating the need to obtain separate activity licenses for each commodity type. Whether you are building an SME import business or a multinational re-export operation, understanding the UAE general trading framework in 2026 is essential. This guide covers DED mainland options, free zone alternatives, customs duties, product restrictions, and full cost breakdowns.

What Is a UAE General Trading License?

A general trading license is one of the most versatile commercial licenses available in the UAE. It allows the holder to trade a wide range of goods — consumer electronics, textiles, construction materials, food items, furniture, industrial equipment, auto parts, and more — under a single license. Unlike a specific trading license (which restricts you to one product category such as “electrical equipment trading” or “furniture trading”), the general trading license provides maximum flexibility without requiring you to amend your license every time you add a new product line.

The UAE’s three-pronged trade infrastructure — world-class seaports (Jebel Ali, Khalifa Port, Port Rashid), cargo-capable international airports (DXB, Al Maktoum/DWC), and an extensive GCC road network — makes it a globally competitive base for trading operations. Combined with the UAE’s strategic time zone overlapping business hours across Asia, Europe, and the Americas, the country has attracted over 40,000 registered trading companies of all sizes.

In the UAE, general trading licenses are issued by two types of authorities: mainland DED bodies (one per emirate) and free zone authorities (40+ across the UAE). Your choice of jurisdiction determines your market access, tax treatment, ownership structure, and operational costs.

DED General Trading License: Mainland Setup

The Department of Economic Development (DED) in each emirate issues commercial licenses for mainland businesses. A DED general trading license costs AED 12,000–25,000 per year depending on the emirate, office type, and ancillary government fees. Dubai DED is typically at the higher end of this range; Ajman DED and Umm Al Quwain are more affordable alternatives.

Key advantages of a DED mainland general trading license: sell directly to UAE consumers and businesses, operate physical retail or wholesale outlets anywhere in the UAE without restrictions, bid for UAE government and semi-government supply contracts, and sponsor employees based on office size (approximately 1 employment visa per 10 sqm of office space).

To establish a mainland LLC with general trading activity, you will typically need:

• Under Federal Law No. 32 of 2021 (amended Commercial Companies Law), 100% foreign ownership is now permitted for most commercial activities including general trading in most UAE emirates — a UAE national partner is no longer required for most traders
• A registered office address with a valid Ejari (lease registration) certificate in the relevant emirate; business centers from AED 12,000/year
• A Memorandum of Association (MoA) notarized by a UAE-licensed notary public
• Minimum recommended paid-up capital of AED 300,000 (not government-mandated but required by most UAE banks for corporate account opening)
• At least two shareholders and one manager named in the MoA
• Trade name reservation: AED 600–1,000

Timeline for mainland DED general trading license: 7–15 working days for standard applications. Priority processing is available in most emirates for an additional AED 1,000–3,000. The process involves initial approval, trade name reservation, MoA notarization, Ejari registration, and final license issuance.

Free Zone General Trading License Options

UAE free zones offer compelling advantages for companies focused on import, re-export, and international trade: 100% foreign ownership, 0% corporate and income tax on qualifying income, full repatriation of profits, customs-duty-free movement within the free zone, and streamlined customs procedures. There are 40+ free zones across the UAE; below are the primary options for general traders.

RAKEZ (Ras Al Khaimah Economic Zone)

RAKEZ is consistently one of the most cost-competitive free zones in the UAE. An entry-level RAKEZ general trading license costs AED 5,750/year, inclusive of a flexi-desk workspace and 3 employment visa allocations. RAKEZ also provides affordable warehousing (AED 45–65/sqft/year) and multiple visa packages. Ideal for SMEs, startups, and sole proprietors entering the UAE trading market.

DMCC (Dubai Multi Commodities Centre)

DMCC is the world’s largest free trade zone by registered company count, with over 22,000 member companies. A DMCC general trading license costs approximately AED 15,000/year. DMCC is particularly strong for commodity trading — precious metals, diamonds, agricultural commodities, and energy products — offering access to trading platforms, accredited vaults, and the DMCC Gold and Diamond Park. DMCC’s JLT (Jumeirah Lake Towers) location provides a premium Dubai business address.

JAFZA (Jebel Ali Free Zone Authority)

JAFZA is the UAE’s premier logistics and trade free zone, adjacent to Jebel Ali Port — one of the world’s top 10 busiest container ports with annual capacity of 22 million TEUs. JAFZA is the gold standard for general traders requiring bonded warehouse facilities, large-scale re-export operations, and direct port access. General trading licenses at JAFZA typically start at AED 20,000+/year; the higher cost is offset by unmatched logistics infrastructure. Jebel Ali handles approximately 60% of all MENA re-exports, making it the region’s premier entrepôt hub.

Other Cost-Competitive Free Zones

SHAMS (Sharjah Media City) offers general trading from AED 5,750/year. SAIF Zone (Sharjah Airport International Free Zone) costs AED 7,500–12,000/year with proximity to Sharjah International Airport. Dubai South Free Zone near Al Maktoum Airport suits air-freight-heavy traders. Meydan Free Zone in Dubai is popular with e-commerce and digital traders seeking a central Dubai address.

Import/Export Rules and UAE Customs Duties

The UAE applies a standard 5% GCC Common Customs Tariff on most imported goods entering the UAE customs territory (mainland). Goods stored within free zones are not subject to this duty until they cross into the UAE mainland — making free zones ideal for re-export operations where goods are stored, consolidated, and forwarded without triggering UAE import duties.

Key customs duty rates applicable to general traders:

• Tobacco products: 100% duty
• Alcohol (for licensed distributors): 50% duty
• Carbonated beverages: 50% excise tax (applies on mainland)
• Energy drinks: 100% excise tax (applies on mainland)
• Most food, consumer goods, electronics: 5%
• GCC-origin goods with valid Certificate of Origin: 0%

VAT at 5% applies to most goods sold within the UAE. General trading businesses must register for VAT with the Federal Tax Authority (FTA) if annual taxable supplies exceed AED 375,000. VAT registration is processed through the EmaraTax portal. The UAE’s CEPA (Comprehensive Economic Partnership Agreement) program — with trading partners including India, Israel, Indonesia, Georgia, and others — can reduce or eliminate customs duties on eligible goods sourced from CEPA countries, a significant advantage for general traders building import-focused businesses.

Product Category Restrictions

While a general trading license covers most commodity categories, specific product types require additional regulatory approvals regardless of license type:

• Food and beverages: MOHAP product registration required for packaged food imports; Dubai or Abu Dhabi Municipality food import permit for perishables; halal certificate for meat and poultry
• Pharmaceuticals and medical devices: MOHAP pharmaceutical trader license; DHA or DoH approval for medical devices sold in UAE
• Weapons and security equipment: MOI (Ministry of Interior) import/export permits; strictly controlled and not available to general trading companies without specific additional licensing
• Chemicals and hazardous materials: ESMA compliance testing; EAD (Abu Dhabi) or Dubai Municipality approval for storage and handling
• Telecommunications equipment: TRA UAE type approval required before import or sale of any wireless or telecom device
• Gold, diamonds, precious metals: DMCC Gold and Diamond Park permit or equivalent authority registration and verification
• Animals and animal products: MOCCAE CITES permits; veterinary health certificates from country of origin

Re-export and UAE Entrepot Trade

One of the most compelling reasons to establish a UAE general trading company is the country’s world-class re-export infrastructure. Dubai generated re-exports of over AED 650 billion in 2024, with key destination markets including India, sub-Saharan Africa, Iran, Saudi Arabia, and CIS countries. The UAE’s re-export model — buy globally, store duty-free in a free zone, and forward to MENA, South Asia, or Africa — is a proven, high-margin business model for traders of all sizes.

Bonded warehousing in JAFZA allows general traders to store goods indefinitely without paying UAE import duty, triggering customs liability only when goods cross into the UAE mainland. This enables traders to consolidate large shipments (capturing volume pricing), forward goods to multiple destinations from a single inventory pool, and optimize cash flow by deferring duty payments. UAE total trade (imports plus exports plus re-exports) exceeds $500 billion annually, making the UAE the 15th largest trading economy globally despite its small geographic footprint.

Cost Comparison: DED Mainland vs Free Zone General Trading

Cost Item	DED Mainland LLC	RAKEZ Free Zone	DMCC Free Zone	JAFZA Free Zone
Annual License Fee	AED 12,000–25,000	AED 5,750	AED 15,000	AED 20,000+
Foreign Ownership	100% (most activities)	100%	100%	100%
UAE Domestic Sales	Yes, direct	Via local distributor	Via local distributor	Via local distributor
Import Customs Duty	5% on most goods	0% in free zone	0% in free zone	0% in free zone
Corporate Tax	9% on profit above AED 375K	0% qualifying income	0% qualifying income	0% qualifying income
Office/Desk	AED 30,000–100,000+/yr	Included (flexi-desk)	AED 15,000–30,000	AED 20,000–50,000
Government Contract Access	Yes	Limited	Limited	Limited
Estimated Year 1 Total	AED 100,000–300,000+	AED 25,000–50,000	AED 50,000–100,000	AED 100,000–250,000

Step-by-Step: Setting Up a UAE General Trading Company

1. Choose jurisdiction: DED mainland for UAE domestic sales; free zone for re-export and international trade
2. Reserve trade name: Through DED portal or free zone authority — AED 600–1,000
3. Initial approval: Submit MoA/Articles, shareholder passport copies, and activity selection — 3–7 days
4. Office/warehouse lease: Ejari registration (mainland); tenancy contract (free zone)
5. License issuance: Pay annual license fee and receive trade license document
6. Open corporate bank account: Emirates NBD, Mashreq, ADCB, or digital-first banks like Wio Bank; AED 300,000 minimum capital recommended
7. VAT registration: Federal Tax Authority EmaraTax portal if taxable supplies exceed AED 375,000/year
8. UAE Customs client code registration: Required for all import/export operations
9. Hire staff and apply for employment visas

Frequently Asked Questions

Can a foreigner own 100% of a UAE general trading company?

Yes. Under UAE Federal Law No. 32 of 2021 (amended Commercial Companies Law), most commercial activities including general trading allow 100% foreign ownership on the mainland. All UAE free zones have always permitted 100% foreign ownership. As of 2026, you do not need a UAE national partner or local sponsor for a general trading company in most emirates, though some activities in Abu Dhabi may still have specific requirements — always verify with the relevant DED office.

What is the minimum capital requirement for a UAE general trading LLC?

There is no government-mandated minimum capital for most UAE mainland LLCs as of 2026. However, UAE banks typically require a minimum paid-up capital of AED 150,000–300,000 to open a corporate bank account. For practical operations — office lease, staff salaries, initial inventory, customs bond, and working capital — budget a minimum of AED 300,000–500,000 in total startup funds.

Can a UAE free zone general trading company sell to the UAE mainland market?

A free zone company cannot sell directly to UAE mainland customers without routing through a licensed mainland distributor or paying UAE customs duty (5%) on goods entering the mainland. If you plan to serve both the UAE domestic market and international re-export markets, a mainland DED license offers more direct access. Many businesses establish both a mainland entity and a free zone entity to optimize for each sales channel.

What products are excluded from a UAE general trading license?

No products are categorically excluded from a general trading license, but several categories require additional regulatory approvals: pharmaceuticals (MOHAP), medical devices (DHA/DoH), food imports (Municipality + MOHAP), weapons (MOI), telecom equipment (TRA), and precious metals (DMCC or equivalent authority). These additional approvals add cost (AED 2,000–50,000+ per category) and processing time (2–8 weeks) but do not prevent general traders from dealing in these categories once approvals are obtained.

How long does it take to get a UAE general trading license?

Free zone general trading licenses can be issued in 3–7 working days for standard applications with complete documentation. DED mainland licenses typically take 7–15 working days. Companies requiring additional sector approvals (food import, pharmaceuticals) should add 2–4 weeks for regulatory clearances. Express processing is available at most free zones and DED offices for an additional fee of AED 1,000–5,000, reducing processing time by 30–50%.