Dubai is well known for many things – myriads of hotels, cosmopolitan lifestyle, mesmerizing beaches, top-notch infrastructure, and seamless connectivity. But if there is something that leaves all of this behind is the oil and gas trading business Dubai.
Oil and gas trading business Dubai is the most lucrative business sector in the UAE. Abu Dhabi is the biggest exporter after Saudi and Russia. Furthermore, countries like India, China, and the whole of Asia import crude oil from the UAE. Also, you can export oil and gas to the rest of the world from UAE. ADNOC is the Middle East’s largest national drilling company by rig fleet size and the region’s first provider of Integrated Drilling Services. It is a crucial link in the upstream value chain, enabling ADNOC to increase oil production to 5 million barrels per day by 2030.
This sector is critical to UAE’s economy, accounting for nearly 30% of the GDP. Furthermore, the oil and gas trading industry accounts for 13% of UAE’s total export value, making for a large part of the revenue. As a result, the UAE government is trying to develop unconventional oil and gas production to become self-sufficient in gas supplies by 2030.
This only hints at one thing. That is endless business opportunities. Thus, if you wish to start an oil trading business in Dubai and Abu Dhabi, Shuraa business setup will make it happen for you.
This blog will walk you through all you need to know about the oil trading business – process, costs, and rules.
Step-by-Step Process to Set Up an Oil Trading Business in Abu Dhabi and Dubai
You must submit a couple of documents to set up an oil trading business. Following are some basic requirements:
- Copies of Passports
- Passport-size photos
- Entry visa or Stamp page copy
You can contact the Shuraa business setup for a complete list of documents. They will assist you with the documentation and ensure it meets the requirements.
Oil trading business costs
The cost of setting up an oil and gas trading business Dubai and Abu Dhabi will rely on several factors like the company’s size, undertaking activities, visas, and registration fees. Fortunately, it is not on the higher end, and the economic department does not levy heavy activity fees. Thus, making it a profitable business. Also, the cost is the same as the cost for the commercial license in Dubai, approximately 30,000 AED.
The process to start an oil trading business in Dubai and Abu Dhabi is straightforward. Furthermore, the government has listed down clear rules and regulations for greater efficiency. However, there are special requirements since the oil and gas industry is highly regulated. But fret not. Experts at the Shuraa business setup can assist you in the process.
Following is a quick overview of the process:
1. Research the Market
To start an oil trading business, it is vital to understand how the market works. Oil futures are a widely used method of trading oil. They are agreements between traders to exchange a specific amount of oil at a specific price on a set date.
With an oil option, you may buy a specific amount of oil at a specific price before a set date. Furthermore, there is no hard and fast rule that you must trade if you do not choose to.
2. Choose the Method of Trading
You can trade in multiple ways – CFDs, buying futures or options, making an oil investment, and opening your company in Abu Dhabi or Dubai. Decide how you want to start trading.
3. Choose a Location
You have the option to set up your company on the mainland or on one of the many Free Zones. The two have their own set of pros and cons. So, weigh all your options and then decide on a location.
4. Chart Out Your Business Plan
Some jurisdictions or legal authorities in the UAE may demand you present your business plan. Following is a brief idea of what your business plan must include:
- Employee count
- Products you wish to trade
- Information about your business partners
Note.: Your business plan may need more specific details about different aspects of your business. Experts at the Shuraa business setup can assist you with charting out the same.
5. Choose Your Company Name
UAE has laid down strict rules for naming your company. Thus, whatever name you choose must comply with it. Following are some basic rules:
- No offensive language
- Avoid blasphemous language
- No mention of Allah or any other deity
- Avoid abbreviations if you are naming it after someone
You can contact Shuraa Business Setup for a complete list of regulations. They will also ensure that your company name abides by all the laws and is unique. Hence, available for registration.
6. Apply for Your License
You have two options here – a general trading license and a commercial license. For a mainland company formation, the application must be made directly to the DED or the Department of Economic Development. As for a freezone setup, the application is made to the relevant equivalent.
The oil and gas trading license is not an instant license. A trading license is the first approval for starting an oil trading company. As a result, you may have to seek pre-approval and additional approval.
For instance, initial approval from Rules Court and additional approval from the Supreme Petroleum Council (SPC). You may also have to register with different departments like the General Directorate of Residency and Foreign Affairs (GDRFA), the Ministry of Human Resources and Emiratisation (MOHRE), and the Critical Infrastructure and Coastal Protection Authority (CICPA).
7. Apply for Visas
You can apply for as many employment visas as you want. However, the final decision lies with the Labour department. Furthermore, you will also have to apply for a residential visa. You will also have to sponsor visas for your children, spouse, and dependents.
8. Open a Bank Account
Starting an oil trading business will need a corporate bank account. Although the process may be hard, opening a bank account is simple with the Shuraa Business setup.
Note.: An investor must have an office. It can be a real office or a shared space. For this, you may have to register with Ejari.
Start Your Oil Trading Business with Shuraa
Abu Dhabi is a preferred location for oil and gas industry-related companies. This is because the activities are concentrated in their region, followed by other places like Dubai. Although the process is simple, getting assistance will be a wise choice because of the strict regulation in this industry.
Shuraa business setup can simplify the process, smoothing out the details and requirements for you. Furthermore, we will assist you with the documentation and application process, ensuring no mistakes to ruin your dream to start an oil trading business in Dubai. All you have to do is get in touch with us.