The United Arab Emirates (UAE) is one of the most powerful global hubs for the oil and gas industry. With its abundant reserves, advanced infrastructure, and investor-friendly ecosystem, starting an oil trading business in Abu Dhabi and Dubai offers both lucrative returns and long-term growth potential. Whether you’re a local entrepreneur or a foreign investor, the UAE provides everything you need to enter the oil trade—legally, profitably, and strategically.
This guide explains step-by-step how to start an oil trading business in the UAE, covering both Abu Dhabi and Dubai, two of the region’s most influential commercial centers.
Why Start an Oil Trading Business in Abu Dhabi and Dubai?
The UAE holds the seventh-largest proven oil reserves in the world. With decades of petroleum exports and a robust economy fueled by energy, the region continues to be a central player in global oil trade.
Key Reasons to Start in the UAE
- Strategic Location: Positioned between Asia, Europe, and Africa—ideal for global shipping and logistics.
- World-Class Infrastructure: Advanced storage, port, and pipeline systems.
- Free Zones and Mainland Options: Flexible setup with 100% foreign ownership in many areas.
- Stable Political Climate: Pro-business environment with strong regulatory frameworks.
- Global Buyers and Markets: Access to buyers from China, India, Africa, and Europe.
Both Dubai and Abu Dhabi host major ports and global trade conferences, making them prime locations for setting up an oil trading company.
Understanding Oil Trading Business Activities in the UAE
An oil trading license typically allows you to buy, sell, import, export, and distribute oil and petroleum-based products, including:
- Crude oil
- Refined petroleum products
- Diesel and fuel oil
- Lubricants and greases
- Petrochemicals
- Bitumen and asphalt
- Gas and liquefied petroleum gas (LPG)
Trading can be done locally or internationally, depending on your license type and business structure.
Entities Involved in Oil Trading Licensing in Abu Dhabi and Dubai
When starting an oil trading business in the UAE, you’ll work with key regulatory bodies and licensing entities:
Department of Economic Development (DED – Dubai / ADDED – Abu Dhabi)
- Issues licenses for mainland companies.
- Required for local trading and office-based operations.
Free Zone Authorities
- Popular free zones include:
- Jebel Ali Free Zone Authority (JAFZA) – Dubai
- Fujairah Free Zone
- Abu Dhabi Ports – KEZAD Free Zone
- Offer 100% foreign ownership and customs exemptions.
Ministry of Energy and Infrastructure (MOEI)
- Approves licenses related to oil import, export, and environmental safety.
Emirates Authority for Standardization and Metrology (ESMA)
- Regulates quality standards for petroleum products and storage.
UAE Federal Customs Authority
- Required for clearance, export, and import permissions.
Each of these entities in the UAE plays a role in ensuring your business is legal, compliant, and trade-ready.
Business Structure Options for Oil Trading in UAE
Choosing the right legal structure is key for operational flexibility, ownership, and compliance.
Mainland Company (DED or ADDED License)
- Allows local and international trade.
- Requires office space in Dubai or Abu Dhabi.
- Requires UAE national sponsor or L.L.C. structure (unless in professional category or under full ownership law).
Free Zone Company
- 100% foreign ownership.
- Ideal for import-export and international trade.
- Restricted from direct trading in UAE mainland without a local distributor.
- Quick setup and fewer visa restrictions.
Offshore Company
- Best for global oil trading with no physical presence.
- Not eligible for local UAE operations or residence visas.
- Useful for tax structuring and banking.
Step-by-Step Guide to Start an Oil Trading Company in Abu Dhabi or Dubai
Starting an oil trading company in the UAE involves choosing the right location, selecting your business activity, securing approvals, and registering your license. With the right approach and clear steps, you can set up your company efficiently and start trading in one of the world’s top energy hubs.
Step 1 – Define Your Business Activity
Select a specific oil-related activity such as:
- Crude Oil Trading
- Lubricants Trading
- Diesel and Fuel Trading
- Bitumen and Asphalt Trade
- Storage and Logistics of Petroleum Products
This step determines the type of license and approvals you’ll need.
Step 2 – Choose Business Jurisdiction
Decide between:
- Mainland (DED or ADDED)
- Free Zone (JAFZA, KEZAD, etc.)
- Offshore (RAK ICC, JAFZA Offshore)
Each has its own rules for ownership, banking, and location.
Step 3 – Reserve Trade Name and Submit Application
Apply through:
- DED (Dubai) or ADDED (Abu Dhabi) for mainland
- Free zone authority portal for free zones
Include: - Trade name
- Shareholder passport copies
- Business activity details
Step 4 – Secure Regulatory Approvals
You may need clearance from:
- MOEI (Ministry of Energy and Infrastructure)
- ESMA
- Port Authority (for storage)
- Environmental Agencies (for waste or oil handling)
Step 5 – Choose Office or Warehouse Space
Depending on your jurisdiction:
- Mainland: Lease office through Ejari or Tawtheeq
- Free Zone: Use shared desks, offices, or full warehouses
- Offshore: No local office required
Step 6 – Finalize License and Open Corporate Bank Account
Once your license is approved:
- Get your trade license and company documents
- Open a UAE corporate bank account with banks like Emirates NBD, Mashreq, or FAB
- Apply for investor or employee visas if required
Documents Required to Start Oil Trading Business in UAE
To set up your oil trading company, you’ll need a few key documents. These include passport copies, a business plan, trade name approval, office lease agreement, and approvals from authorities like MOEI and ESMA. Having these ready will help speed up your license and registration process.
For Individuals:
- Passport copies of all shareholders
- Passport-sized photographs
- UAE entry stamp or visa copy
- NOC from current sponsor (if applicable)
For Companies:
- Certificate of incorporation
- Memorandum of Association
- Board resolution
- Power of attorney
Additional documents:
- Lease agreement or office address
- Activity approval from MOEI
- Customs registration certificate (if importing/exporting)
Cost to Start Oil Trading Business in Dubai and Abu Dhabi
| Setup Component | Estimated Cost (AED) |
| Trade License | 10,000 – 25,000 |
| Office Lease | 15,000 – 50,000+ |
| Approvals & Permits | 5,000 – 15,000 |
| Bank Account Setup | Varies (initial deposit may be required) |
| Investor Visa | 3,000 – 4,000 per visa |
| Consultant Fees (optional) | 5,000 – 10,000 |
Note: Prices vary based on activity, location, and number of visas or services required.
Tax and Compliance Requirements
- Corporate Tax: From June 2023, 9% UAE corporate tax applies only if profits exceed AED 375,000.
- VAT: 5% VAT is mandatory if revenue exceeds AED 375,000 annually.
- ESR (Economic Substance Regulation): May apply if you’re conducting high-risk business activities like oil trade.
- AML (Anti-Money Laundering): Oil trading is a sensitive sector; proper KYC and compliance is mandatory.
Best Free Zones for Oil Trading in UAE
Choosing the right free zone can make your oil trading business more efficient and profitable. The UAE offers several strategic zones with easy access to ports, global markets, and logistics support. Top choices include JAFZA, KEZAD, and Fujairah Free Zone, all offering 100% foreign ownership.
Jebel Ali Free Zone (JAFZA) – Dubai
- Largest trade zone in the region
- Near Jebel Ali Port
- Excellent for storage, export, and re-export
Khalifa Economic Zones Abu Dhabi (KEZAD)
- Ideal for industrial oil storage and trade
- Access to Khalifa Port
- 100% foreign ownership and visa packages
Fujairah Free Zone
- Located near Fujairah Port, crucial for oil tanker operations
- Well-connected to Asia and Africa
Challenges and How to Overcome Them
Starting an oil trading business in the UAE can involve regulatory approvals, banking hurdles, and logistics planning. These challenges are manageable with expert guidance, proper documentation, and choosing the right business structure. Working with a trusted business consultant can streamline the process and help you avoid costly delays.
Regulatory Complexity
Oil trade requires multiple approvals and is tightly regulated.
Solution: Work with a licensed business setup consultant familiar with oil and gas licensing.
Banking Hurdles
Oil trade companies face strict due diligence from banks.
Solution: Maintain transparent documentation and a well-prepared business plan.
Storage and Transportation
Need for logistics partners and warehousing.
Solution: Use JAFZA or KEZAD facilities that offer built-in oil storage zones and 3PL support.
Conclusion
Starting an oil trading business in Abu Dhabi or Dubai is a high-potential venture backed by one of the most sophisticated energy markets in the world. From regulatory clarity to global trade access, the UAE offers everything you need to build a profitable and legally compliant business.
Whether you choose the mainland route for local trade or set up in a free zone for international operations, the opportunity is immense—if approached with the right structure, licenses, and strategy.
Ready to begin? Connect with licensed UAE business setup consultants today to fast-track your oil trading company registration and start operating in the region’s most valuable sector.
FAQs
How can I start an oil trading business in Dubai or Abu Dhabi?
To start an oil trading business in the UAE, choose a jurisdiction (mainland or free zone), register your trade name, obtain approvals from entities like MOEI and DED/ADDED, secure office space, and apply for your oil trading license. You can trade crude oil, refined petroleum, and lubricants.
Do I need special approvals for oil trading in the UAE?
Yes. You must get approvals from the Ministry of Energy and Infrastructure (MOEI) and possibly ESMA, port authorities, and customs departments depending on your activity. These ensure you comply with safety, environmental, and import-export regulations.
Can a foreign investor fully own an oil trading company in Dubai or Abu Dhabi?
Yes. In free zones like JAFZA or KEZAD, you can have 100% foreign ownership. On the mainland, 100% ownership is also allowed in certain sectors under updated UAE laws. Otherwise, a UAE national partner may be required.
How much does it cost to get an oil trading license in the UAE?
The cost of an oil trading license in the UAE ranges from AED 10,000 to AED 25,000, excluding office rent, visa fees, and government approvals. Costs may vary based on the business activity and jurisdiction (mainland or free zone).
What documents are required to start an oil trading company in the UAE?
Key documents include:
-
- Passport copies of shareholders
- Business plan
- Office lease agreement
- MOEI approval
- Customs registration (for import/export)
- Trade name reservation and initial approval from DED/ADDED
Is oil trading in the UAE subject to corporate tax?
Yes. As of June 2023, UAE corporate tax applies at 9% if your annual profits exceed AED 375,000. Oil companies also need to comply with ESR and AML regulations.
Which free zones are best for oil trading in the UAE?
Top free zones for oil and petroleum trading include:
- Jebel Ali Free Zone (JAFZA) – Dubai
- Khalifa Economic Zones Abu Dhabi (KEZAD)
- Fujairah Free Zone
These offer proximity to major ports, warehousing, and 100% ownership.
