How to Open a Waste Management Company in the UAE: Collection, Transportation, Recycling, and Sale of Recyclable Materials

The collection, transportation, processing, and sale of recyclable materials is a very attractive and highly profitable business in many countries. However, the UAE, unlike many other countries, offers significant advantages for entrepreneurs in this sector, namely the absence of monopolies and government controls on pricing. This means that if you want to engage in this type of activity, you can open a company and profit from the growing, trending environmental infrastructure market in one of the most developed and wealthiest countries in the world. However, as with any other business, there are a number of legal nuances, which we, the international team of experts at Antwort Law, will now explain to you.

According to Federal Law No. 12 of 2018 (Integrated Waste Management) and other local regulations, private businesses can engage in a full range of activities related to recyclable materials:

• waste collection (plastic, paper, metal, glass, cardboard, food waste, electronic waste, etc.);
• waste transportation between facilities;
• sorting and preparation for recycling;
• Recycling of recyclable materials;
• sale of recycled materials;
• waste trading – trading of secondary resources in the UAE and abroad.

Most importantly, all of the above models can be legally engaged in by an unlimited number of market players: there is no monopoly in the country, no exclusive rights holders, and entry is open even to foreign participants. Legally, the process of establishing such a company can be divided into two stages: obtaining a license, registering the company, and obtaining a permit for this activity.

Also, it should be noted that if you plan to operate not only in one emirate, but also in neighboring ones or throughout the country, the second stage will need to be completed in each individual municipality without exception. In the UAE, as a general rule, any waste-related activity requires permission from the municipality of the emirate in which you plan to operate. Therefore, you will need to start with at least one emirate, let's say Dubai.

Step One: Obtaining a License

The question immediately arises: where is it better to register a company: in a free zone or on the mainland? The answer depends on your business plan, based on calculations of which territory is most profitable for collecting, transporting, processing, and selling recyclable materials. For example, in free zones where these activities are available, you can carry out the entire cycle of operations, but only within that free zone, with the exception of selling recyclable materials—this is possible not only throughout the country but also worldwide. If you collect recyclable materials in Mainland Dubai, these operations are only permitted within that zone, and such a license is issued by the DET (Department of Economy and Tourism).

After receiving initial approval for your license from the DET, the second step begins.

Step Two: Obtaining an Environmental Permit

This permit is issued by the municipality of the area where you plan to operate. Accordingly, in Dubai, it's the Dubai Municipality, whose Environmental Department is responsible for this area. If you plan to operate in another emirate, you'll need permission from that specific municipality. This step isn't as straightforward as it seems, as different types of permits apply to each type of activity.

If you're collecting waste:

• Waste Collection Permit
• Vehicle registration
• Requirements for GPS tracking, driver training, and vehicle marking

If you're transporting waste:

• Waste Transport Permit
• Route approval
• Vehicle technical maps

If you plan to sort or recycle:

• Environmental Clearance
• Site Approval
• Site audit
• Verification of compliance with sanitary and environmental requirements

If you're selling/buying recyclable materials (waste trading):

• Waste Trading Approval
• Reporting on volumes and types of materials

After obtaining the necessary permits, you must return them to the DET to complete the company registration process.

At first glance, the entire process of registering a company for the collection, transportation, processing, and sale of recyclable materials in the UAE seems quite simple on paper. In reality, the process is more complex due to the process of selecting activity codes, collecting documents, and obtaining all the necessary additional permits from government agencies.

At Antwort Law, we help implement turnkey waste management projects of any complexity, including comprehensive work in several emirates simultaneously. We will select the optimal jurisdiction and the correct activity codes for you, prepare all the necessary documents for company registration, help you rent an office, and, most importantly, obtain a full package of permits for your business and provide subsequent legal and tax support.

Want to open a waste management company in the UAE? Contact us. We will conduct an initial consultation, analyze your business model, and show you how to go from idea to full-fledged operation obtaining a work permit - legally, quickly and without fines.

Diana Gulevskaya

Head of Office in UAE
Antwort Law