We all nicely know Dubai for its cosmopolitan lifestyle and a myriad of hotels with mesmerizing beaches and infrastructure. But what’s unnoticed is the oil and gas trading businesses in Dubai. When discussing the business sector of Dubai, the Oil trading business in Dubai is classified as the most lucrative business. This sector adds up to 30% of the GDP of the UAE’s economy.
A simple process is to be followed for establishing an oil trading business in Abu Dhabi and Dubai. The government has made a list of clear, strict rules and regulations to ensure greater efficiency. An oil and gas trading business has special requirements because it is highly regulated. Following is a brief overview of the process of opening an oil trading business in Dubai.
The first step requires you to research and understand the working of the market. Through this research, you would be able to collect information about the target market and customers.
There are several methods of oil trading from which you can choose: CFDs, buying futures or options, making an oil investment, and opening your company in Abu Dhabi or Dubai.
Find a local sponsor:
When operating an oil trading business in Dubai, You will be required to work with UAE Local market and government departments. To make the work easy, you need a local sponsor.
For Hiring a local person, you are required to give them a 51% stake in your organization.
Name your company:
The next step is to set a name for your company. The title should abide by specific rules and regulations like
- No offensive or blasphemous language
- The title should not be similar to that of any organization
- No abbreviations
You can set up your oil trading business in two available economic zones: Mainland and Freezones. Both regions have their pros and cons. You must examine all the details before choosing the zone for your venture.
Certain jurisdictions and legal authorities in the UAE demand you present your business plan. This imposes an obligation on you to prepare the plan wisely. You must incorporate the below-mentioned points in your business plan:
- Employee count
- The product you want to trade
- Information of business partners
The UAE government laid down specific rules and regulations for naming your company. You can choose any relevant name, but it must comply with the following basic laws:
- No offensive language
- Avoid blasphemous language
- No mention of Allah or any other deity
- Avoid abbreviations if you are naming it after someone
Apply for License:
Two types of licenses are available- a Professional right and a commercial license. If you are looking for a mainland company setup, you must apply directly to the DED or the Department of Economic Development. This is primarily an online process and takes a few hours.
Apply for a visa
You are allowed to make multiple employment visas. The Labour department makes the final decision. You can also sponsor visas for your children, spouse, and dependents and apply for a residential permit.
The Visa process consists of several steps, which include :
- Biometric scanning
- Medical checkup
- Chest x-ray
Open a Bank account:
To set up an oil trading business, you need to open an account in a corporate bank.
Why Clever Corp consultancy services?
Our services give you a customized solution focused on your particular business and market, and we design strategies that enable our clients to achieve continuous growth and scale sustainably. To discuss more in detail your business plan, reach us today to have a suitable solution for your business dreams. We at Clever corp hold vast experience and our expert advisors are round the clock at your service to understand your idea better and get them into reality. Contact us at +971586412031 or +97145804048 to discuss with our experts at [email protected].