How to start an Oil trading business in Dubai?


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The UAE is ranked 7th on the top 10 lists of oil-producing countries. So there is nothing to worry about if you are about to start an oil trading business in Dubai. It can bring great profits rather than any other business. In this blog, you will read more on How to start an Oil trading business in Dubai? If you are searching for professional assistance on business setup in Dubai, you will get to know more about the benefits and practical factors of starting an oil trading business. 

Benefits of starting an Oil trading business

Most entrepreneurs already know the benefits, but if you are new to this, knowing about the benefits of oil trading can be beneficial for the growth of your business. Some of the advantages of the oil trading business are mentioned below:

  • You can earn higher profits compared to any other industry.
  • The main benefit is that it has low-income corporate and customs tax rates.
  • It can be easily traded overseas. 
  • You can also take on any activity that is commercial that also includes UAE oil reserves. 
  • The company setup process can be really quick and reliable
  • The government provides full support for the trading of oil. 
  • You can connect and build networks with important marketers of oil. 
  • Full repatriation of profits and capital.
  • The Dubai government does not restrict any currency. 
  • Seamless transportation facility with a calculated geographic location. 

How to start an Oil trading business in Dubai?

The process of commencing an oil trading business is kind of easier if you work with a Business Setup Consultant in Dubai which will make the setting up of your company an easy task. If you are on your first attempt at starting a business, it might be convenient to acquire help from professionals. Here are some steps that can aid in starting an oil trading business in Dubai. 

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Get a local sponsor for your oil trading business

The UAE regime won’t allow foreigners to access complete business control of the industries that are also necessary for the country. As the gas and oil sectors are most vital for the wealth of the country, hence they are concerned about it. So you have to find a local sponsor to share the ownership of the oil trading business. These sponsors can either be business entities in the UAE or Emiratis. You can attain all the decision-making responsibility, also you don’t have to share the profits just like the ownership. But pay an annual fee to the local sponsor. 

Select a suitable name for your company

You can’t just randomly name an oil trading company, there is some set of rules to be obeyed when naming the company. There should not be any religious or racial insults. No offensive language should be used. To halt any conflicts, do not try to imitate the name of any recognized companies even if they are not presented in the UAE. It is recommended to submit three names. Moreover, there are various online tools that can help you search and obtain names that are available or not used before. This is an easy step if you abide by the rules set by the government. 

Process of license application

This is a vital step in the process of commencing an oil trading company in Dubai. It has its own various steps, but you have to get a business trade license from the Department of Economic Development in Dubai. 

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You have to fill out an application form that provides the particulars by the Department of Economic Development in Dubai. It includes basic information about you and your business. You can jump to the next step if you get the initial approval.

Get additional approval 

You will have to obtain a few more approvals from various agencies and authoritative bodies based on the activities of your business. For instance, one of the vital approvals for the oil trading business in the UAE is given by the Supreme Petroleum Council (SPC). You can attain these approvals easily if you are working with an agency for setting up your business. 

Submit visa application

To work or start a business, or any other purpose in the UAE, you have to get a resident visa. The UAE government has announced a golden visa for residents in the long term. Many individuals, investors, and entrepreneurs are applying for this visa for additional benefits. You can also sponsor visas for your employees after you get the license for business trade. 

Open a bank account 

Opening a bank account in the cooperative bank is the last step for starting an oil trading company in Dubai. 

To reiterate, oil is considered an important aspect of many businesses. As oil is the main commodity of entrepreneurs on an international level, the demand for oil is always rising with volatile market rates. So starting an oil trading business won’t be a bad idea. 


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jemmy ford