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Dubai is a top choice for international trade and tourism because of its strategic location that connects the East and West. The city has excellent infrastructure and a friendly business environment, making it an attractive hub for Indian entrepreneurs who want to start or grow their import and export businesses.
India and the UAE have a long history of strong cultural and economic ties. These connections have been strengthened by government initiatives like the Comprehensive Economic Partnership Agreement (CEPA), which makes it even more appealing for Indian businesspeople to trade through Dubai.
Dubai stands out as a vibrant marketplace for many reasons. Its variety of trade sectors creates many opportunities and draws people from different backgrounds. Beyond business, Dubai offers a lively lifestyle with luxurious amenities and attractions.
If you’re thinking about starting an import and export business in Dubai, it’s important to understand how to live and do business there. This includes learning about local regulations and adapting to the business culture. There is plenty of useful information to help Indians succeed in the import-export industry. With its mix of opportunity, tradition, and modern living, Dubai continues to attract those looking to succeed in the global market.
With a thriving economy, strategic location, favourable trade agreements, and a conducive business environment, Dubai offers Indian traders a lucrative platform to expand their global footprint.
Strategic Location
Dubai lies at the intersection of Asia, Europe as well and Africa, making it an important point in logistics. More than two billion consumers within a 4-hour flight radius can reach this dynamic location in trade between East and West. With ports like Jebel Ali, one of the largest ports in the world, and Al Maktoum International Airport, Dubai is further strengthened as a global trade gateway.
Global Trade Leadership
Dubai is a major contributor to the overall trade volume of the UAE. Its non-oil foreign trade is said to have surpassed AED 3.5 trillion (USD 952.93 billion) by 2024. As a re-export venue, even goods entering Dubai are sometimes shipped out to other Gulf, African, and European markets, thus creating entire ranges of opportunities for the Indian exporter.
India-UAE Economic Relations
India ranks second on the list of Dubai’s largest trade partners. The CEPA, which entered into force in 2022, has completely removed or reduced tariffs on almost eighty per cent of goods traded between India and the UAE. There is, therefore, a higher margin and price advantage overlap of Indian goods in the Dubai market.
Tax-Friendly Environment
• No taxes on personal income
• No export duties
• No corporate taxes for the first AED 375,000
• 9% on corporate income over that (effective 2023)
• 5% VAT on taxable goods/services. Companies in Free Zones enjoy a tax holiday of up to 15-50 years and may have 100% foreign ownership.
Given below are the high-potential, thriving sectors for import and export-
With a flourishing retail and fashion segment, the UAE, a place where bazaar culture flourished, provides a good platform for Indian exporters of ethnic attire, cotton and silk textiles, ready-made garments, and customized couture. The busy shopping lifestyle of Dubai, frequent expos and trade fairs, swift transport links, and affordable marketing options provide an excellent space for marketing Indian attire.
Demand always exists for Indian spices, pulses, rice, tea, and processed foods. Organic products and ready-to-eat meals are taken away by health-conscious consumers with superfood items like millet and amla. Exporters need to ensure Halal and Health certification as per requirements.
Dubai is what it is fondly called “City of Gold”. This emirate is a hotbed of gold and diamond trading. Indian exporters can send gold jewellery, precious gems, and art handicrafts to work in the Gold Souk, as well as to luxury malls all over Dubai.
India has a large number of auto parts manufacturers that provide low-priced yet highly durable parts. The demand for spare parts in Dubai for luxury cars, trucks, and two-wheelers is foreseeably going up. This would mean exports of filters, bearings, electrical systems, and lubricants could be stable, long-term opportunities.
Looking at the real estate boom that Dubai is witnessing, there is a constant demand for materials like tiles, granite, cement, hardware, sanitary ware, etc. Indian manufacturers, therefore, could supply all of these at very competitive rates to contractors and developers there.
In Dubai, cheap electronics are in demand, both consumer and industrial grade. Dubai imports mobile phones, batteries, LED products, chargers, and power tools, for most of which India is a source.
Indian home decor, wooden furniture, metal crafts, and handmade items are also taken well by the super-luxury segment of the property market in Dubai. Gifting, hospitality, and cultural festivals provide season-wise demand.
Dubai is witnessing an art boom. Exporting Indian art pieces, paintings, sculptures, and decorative crafts has now become a niche, high-value business opportunity. Cultural exhibitions and art fairs provide excellent platforms for marketing.
Ayurvedic and herbal products such as oils, creams, supplements, and other personal care products are gaining acceptance in Dubai. These products can find their way into health stores and spas in the UAE after proper certification and registration.
By focusing on the following high-potential sectors, Indian exporters can leverage Dubai’s strategic location and business-friendly environment to expand their reach in the global market.
Once the goods arrive in Dubai, customs clearance is facilitated by a licensed customs broker or clearing agent. This entity handles all aspects of declarations, documentation, and fee payment. Make sure import duties and VAT (5%) are duly paid to avoid any delays.
For all exports to Dubai from India, you need:
Also, get your documents legalized through:
The following goods are restricted/prohibited in Dubai:
Prohibited Goods:
Restricted Goods (need permits):
Starting an import-export business in Dubai involves several key steps to ensure compliance with local regulations and to establish a solid operational foundation.
Decide on your product category and conduct market research. Determine whether your products fall under the permitted import and export categories in the UAE and their demand in the country.
You can register your company:
Popular Free Zones include:
Submit the following:
Once approved, your license will be issued, allowing legal trading.
Register with Dubai Customs to obtain an Importer/Exporter Code. This code is issued to an importer or exporter by Dubai Customs on receipt of an application submitted by a Dubai-based entity. This registration is, in fact, important for all shipping transactions and clearing customs.
Most banks require a trade license, an office lease, a visa copy, and a business plan. However, choose banks that are well-versed in international transactions and trade financing.
The city’s strategic location, favourable tax policies, and robust infrastructure provide numerous advantages for setting up and growing enterprises.
Low-Cost Set-up
Company registration generally costs around AED 12,000. In Free Zones, administrative support for faster approvals and licensing would be available.
100% Foreign Ownership
You may keep full ownership in Free Zones and even Mainland Dubai for most activities post-2021 reforms.
Free Repatriation of Profits
There are no limits on transferring your earnings back to India or anywhere else.
Speedy Dispute Resolution
Dubai International Arbitration Centre (DIAC) offers a speedy and enforceable resolution of any conflict. Its awards are recognized in more than 170 countries, with India as one.
Access to Strong Infrastructure and Support
Indian banks and shipping agents, legal consultants, and community business groups can all support you in your growth in Dubai.
So far, in 2022:
About 70% of imports are re-exported from Dubai. So, your goods will not be limited to consumers in the UAE but will also include Africa, Europe, and other Gulf countries.
Expanding your export business to Dubai offers significant opportunities. To navigate this dynamic market successfully, consider the following practical tips:
Dubai is a vibrant and growing city. It offers more than just its impressive skyline. It has become a key location for Indian entrepreneurs looking to enter global markets. The city has many advantages, such as favourable tax policies that support business growth, advanced logistics that make operations easier, and strong trade relationships that promote collaboration.
Indian exporters, from spice traders to garment makers, auto parts suppliers, and electronics developers, are drawn to the opportunities in Dubai. The city welcomes various specialities and provides an excellent environment for import-export businesses. Here, companies can succeed in international trade by planning carefully, following legal rules, and keeping up with market trends.
Entrepreneurs can start small and gradually grow their operations. With creativity and hard work, anyone can turn their project in Dubai into a successful venture on the global stage.
Start Your Import-Export Business in Dubai
Dubai offers matchless opportunities for an import-export business, as it houses a global trading hierarchy itself. Simple procedures in the licensing and opening to international markets-with the added benefit of zero import/export taxes in free zones-makes it both a strategic and profitable location to set up shop. Under one license, the trader offers multiple goods thanks to a General Trading License, smart for any entrepreneur.
Enterslice entirely assists you from beginning to end to establish your import export business in Dubai. Our professional services are as follows:
As India is Dubai’s largest trading partner, its position as an Indian export power is nearly unmatched. Enterslice also gives amendment advice to Indian businesses to clear questions regarding laws and certifications, as well as customs in the UAE, hassle-free. For set up, check out our cost calculator or browse through our tailored packages.
Connect with Enterslice now to set up your import-export venture in Dubai with all your confidence.
Dubai is an ideal destination for Indian entrepreneurs due to its unparalleled infrastructure, low tax rates, and robust logistics. Trade runs fast and efficiently with ports and airports that rank among the busiest in the world. The huge Indian population and cordial diplomatic ties with India provide a ready market for Indian goods. Dubai's geographical position allows businesses to reach over 2 billion consumers in a matter of hours across the Middle East, Africa, and Europe.
The import-export business in Dubai can be started from India in a few steps, starting with choosing a business activity and jurisdiction, whether on the mainland or in a free zone. The next step would be to register the company with the Department of Economic Development (DED) or the relevant free zone authority, obtain a trade license, register with Dubai Customs to obtain an Importer/Exporter Code and open a business bank account. Additionally, apply for the relevant visas and ensure compliance with UAE regulations, including customs and documentation requirements.
The best import and export businesses in the UAE reflect the country's economic strengths and market demands. Gold and jewellery, good petroleum, electronics machinery, and automobiles will be the major sectors. Other goods like textiles, spices, and foodstuffs do have key import and export potential in the UAE.
The cost of establishing an import-export business in Dubai v upon the varies upon selected jurisdiction and business activities. In mainland Dubai, the charges for a commercial license commence from AED 14,905, while free zone licenses are cheaper, the rate varying between AED 4,888 and AED 33,000, depending on the zone and services included. Additional costs cover company registration, operating office space, customs registration, visa processing, and bank account set up, approximately totaling AED 20,000 to AED 50,000.
CEPA is a trade agreement signed between India and the UAE in 2022. It abolishes or reduces tariffs on around 80% of goods traded between the two countries, thereby providing Indian exporters with a significant price advantage, greater profit margins, and more competitiveness within the UAE market. The agreement also eases customs procedures, ensures that investment flows both ways and makes service trade smoother, thus forming an important entry tool for Indian companies into the Dubai market.
The most profitable export item in Dubai is gold jewellery, valued at 17.9% of total exports from the UAE. Advanced manufacturing and strategic location make the city a centre for trade in gold jewellery on a global scale. Other noticeable exports include non-crude petroleum oils, pearls and gems, and crude oil.
Products from India that are highly demanded in Dubai include textiles, spices, ready-to-eat foods, tea, jewellery, auto parts, electronics, and construction materials. Additionally, Ayurvedic products, organic foods, handicrafts, and home decor items have growing niche markets. Dubai’s large expatriate population, luxury retail sector, and role as a re-export hub make it a lucrative place for Indian exporters to serve not just the UAE but also nearby regions such as Africa and Europe.
The foremost three exports from the UAE are:● Crude petroleum oil: Valued at $162 billion and constituting 28% of the total exports.● Non-crude petroleum oils: Goods exported worth $83 billion, which is 14.6% of exports.● Gold: including forms unwrought or semi-manufactured, worth $52 billion, which accounts for 9.26% of exports.These are the dominating export sectors of the UAE economy, fueled by natural resources and improvements in processing industries.
Dubai's most significant imports include gold, broadcasting equipment, cars, refined petroleum, and diamonds. These imports cater to the city's luxury market, technological needs, and industrial requirements. The demand for these products is driven by Dubai's status as a global business centre, attracting international companies and consumers seeking high-quality goods.
To operate import-export, you have to acquire the Trade License provided by either the Department of Economic Development (DED) or a Free Zone authority. In most conditions where multiple products are involved, a General Trading License is suggested; however, applying with Dubai Customs and getting an Importer/Exporter Code are requisites. There are some specific import or export approvals/certificates needed for restricted goods like food, electronics, cosmetics, etc. This license guarantees legal compliance with the smooth processing of goods at the ports and airports of Dubai.
Entrepreneurs can apply for:● UAE Investor Visa, the validity of which is for three years, typically requiring an investment of not less than AED 70,000.● A free Zone Visa is for Permanent businesses operating in Free Zones.● Partner Visa is for companies with multi-shareholding. These visas allow you to stay and work legally in the UAE.
If your company is registered in a Free Zone, you cannot sell directly to the local UAE market. However, you can work with a local distributor or agent who has a Mainland license. This allows your products to enter retail stores or reach end consumers in the UAE. Free Zone businesses are mainly geared toward international trade, but using a distributor offers a compliant way to access Dubai’s large and growing domestic market.
Setting up a business in Dubai is quite quick and efficient. Generally, the time ranges from 5 to a maximum of 15 working days, depending on the type of business activity, the documents produced, and the location (Mainland or Free Zone). Free Zones rarely take as much time because of the simplified procedures inherent to them. Incomplete paperwork or additional approvals needed would lead to unavoidable delays. It will always be helpful to hire a business consultant to hasten the process and avert administrative errors.
For registration with Dubai Customs, it is required to provide the trade license, passport copies, company establishment card, and a valid email address. Registration for customs is initiated by an online application on the Dubai Customs portal. The Importer/Exporter Code then issued is required for the processing of all imports and exports. Upon registration, you can file customs declaration submissions, apply for permits, and liaise with shipping agents. Registration ensures that your goods will flow freely through the ports and airports of Dubai.
Dubai has a 5% Value Added Tax (VAT) on most goods and services. VAT is applied to imports, but exports are zero-rated, meaning you don’t charge VAT on goods leaving the UAE. Importers must register for VAT if their annual turnover exceeds AED 375,000. VAT-registered businesses can reclaim the input VAT they pay. Accurate bookkeeping and filing are essential to remain compliant. Understanding VAT regulations is key to managing costs and pricing effectively.
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