How to Establish a Wholesaling Business Specialising in Agricultural Products in the UAE

In the ever-evolving landscape of the UAE, the wholesale agricultural products market stands out as a vibrant sector ripe with opportunity. Once reliant on imports, the UAE has now transformed into a dynamic hub for agricultural trade, fueled by its ambition to achieve food security and sustainability. Recent trends show that the market has surged to AED 8 billion in 2023, with projections estimating a robust growth trajectory that could see it reach AED 11 billion by 2025. This transformation is driven by a growing appetite for fresh, organic produce, bolstered by a health-conscious populace eager to embrace nutritional diets.

So, what contributes to this escalating demand? The UAE’s strategic initiatives, such as the National Food Security Strategy 2051, aim to bolster local agriculture, reduce dependency on imports, and enhance food supply resilience. This focus not only attracts investors but also encourages innovation in agri-tech, creating a fertile ground for entrepreneurial ventures. With the potential for margins exceeding 20% for wholesalers, this industry promises a lucrative horizon for those willing to invest. The question isn’t whether to enter the agricultural wholesale market in the UAE, but rather how quickly one can adapt to its rapid pace and evolving consumer preferences to reap the rewards of this flourishing sector. 

To get started, here are the business activities that you can select under your license when establishing your wholesaling business specialising in agricultural products:

4620.01 – Wholesale of Grains and Seeds

This business activity involves the bulk procurement and distribution of various types of grains and seeds. It includes wholesalers who purchase large quantities of products such as cereals, pulses, oilseeds, and forage seeds directly from producers or suppliers, and then resell them to retailers, agricultural businesses, or food manufacturers. The process typically entails activities such as storage, transportation, and inventory management to ensure a steady supply of quality products. These wholesalers may also engage in value-added services like packaging, blending, or grading to meet specific market demands. The wholesale of grains and seeds plays a critical role in the supply chain, facilitating the flow of essential agricultural commodities to various sectors within the economy, including food production, livestock feeding, and biofuel manufacturing.

• Third-party Approval: Business activity 4620.01 requires third-party approval from the Sharjah Municipality or the Ministry of Climate Change and Environment, post-issuance of the license.
• Filing of Economic Substance Return: This business activity is exempt from this requirement.
• Anti-Money Laundering Compliance: This business activity is exempt from this requirement.

4620.02 – Wholesale of Oleaginous Fruits

This business activity directly relates to the bulk purchasing and resale of fruits that are primarily cultivated for oil extraction, such as olives, coconuts, and oil seeds like soybeans and sunflowers. In fact, it encompasses various functions, including sourcing oleaginous fruits from farmers or producers, processing them as needed, and distributing them to retailers, food manufacturers, and other commercial entities. The wholesale segment operates at a scale that enables significant volume transactions, typically requiring compliance with agricultural and food safety regulations, quality standards, and supply chain logistics. Additionally, wholesalers often engage in market analysis to identify trends in oil consumption and pricing, facilitating efficient inventory management and enhancing profitability.

• Third-party Approval: Business activity 4620.02 requires third-party approval from the Sharjah Municipality or the Ministry Of Climate Change and Environment, post-issuance of the license.
• Filing of Economic Substance Return: This business activity is exempt from this requirement.
• Anti-Money Laundering Compliance: This business activity is exempt from this requirement.

4620.03 – Wholesale of Flowers and Plants

Wholesale of flowers and plants refers to the activity of purchasing large quantities of flowers and plants directly from growers or producers and subsequently reselling them to retailers, florists, garden centres, and other businesses without altering their form. This business activity encompasses various operations, including sourcing, storage, and distribution, with a focus on maximising efficiency and minimising costs. Wholesale distributors in this sector typically handle a diverse range of floral products, including cut flowers, potted plants, and horticultural products, leveraging technical expertise in supply chain management to maintain optimal inventory levels and ensure product freshness. 

• Third-party Approval: No third-party approvals are required for this business activity
• Filing of Economic Substance Return: Business activity 4620.03 is exempt from this requirement.
• Anti-Money Laundering Compliance: Business activity 4620.03  is exempt from this requirement.

4620.05 – Wholesale of Hides and Skins

This refers to the business activity that involves the purchase and resale of raw animal hides and skins in bulk to manufacturers or retailers without altering their physical state. It primarily deals with unprocessed materials derived from various animals, such as cattle, sheep, and goats, which are integral to industries such as leather production and textile manufacturing. Wholesalers in this domain typically operate as intermediaries, sourcing hides and skins from tanners, slaughterhouses, or directly from livestock producers. They are responsible for logistics, including storage, handling, and distribution, ensuring the quality and traceability of the materials. The wholesale of hides and skins plays a crucial role in the supply chain, providing essential raw materials that are further processed into finished leather goods, garments, and upholstery.

• Third-party Approval: No third-party approvals are required for this business activity
• Filing of Economic Substance Return: Business activity 4620.05 is exempt from this requirement.
• Anti-Money Laundering Compliance: Business activity 4620.05  is exempt from this requirement.

4620.06 – Wholesale of Leather

Wholesale of leather refers to the activity of purchasing large quantities of leather and leather products from manufacturers or producers and reselling them to retailers, wholesalers, or other businesses rather than to end consumers. This activity encompasses various leather types, including raw leather, finished leather goods, and specialised leather items used in manufacturing, such as automotive upholstery or footwear. Wholesale distributors in this sector typically operate through a supply chain that includes sourcing materials, warehousing, and logistics management to ensure efficient distribution to their clientele. The focus is on bulk transactions and competitive pricing, as wholesale operators leverage economies of scale to provide lower prices while maintaining profit margins. 

• Third-party Approval: No third-party approvals are required for this business activity
• Filing of Economic Substance Return: Business activity 4620.06 is exempt from this requirement.
• Anti-Money Laundering Compliance: Business activity 4620.06  is exempt from this requirement.

4620.08 – Fodder Trading

This business activity refers to the wholesale and retail distribution of animal feed, including various types of fodder such as hay, silage, grains, and specially formulated feed products designed for livestock nutrition. This business activity encompasses the procurement, storage, and sale of these feed products, catering primarily to farmers and agricultural enterprises engaged in livestock production. Fodder trading plays a critical role in the agricultural supply chain, ensuring that livestock are provided with the necessary nutrients for growth, reproduction, and overall health. The operation often involves logistics management, quality control measures to guarantee feed safety and nutritional value, and compliance with regulatory standards governing animal feed. Additionally, fodder trading may also include the provision of consultation services related to animal nutrition and feed formulation to optimise livestock productivity.

• Third-party Approval: Business activity 4620.08 requires third-party approval from the Sharjah Municipality or the Ministry Of Climate Change and Environment, prior to the issuance of the license.
• Filing of Economic Substance Return: This business activity is exempt from this requirement.
• Anti-Money Laundering Compliance: This business activity is exempt from this requirement.

4620.09 – Fish & Meat Wastes Trading

Fish and meat wastes trading refers to the activity of buying and selling by-products derived from fish and meat processing. This includes the trading of offal, trimmings, skin, bones, and other waste materials that are not suitable for human consumption but may have various industrial applications. These by-products are often utilised in sectors such as animal feed production, pet food manufacturing, and fertiliser creation. The trading process involves sourcing these waste materials from slaughterhouses, fish processing plants, and other related businesses, ensuring compliance with health and safety regulations, and facilitating their transportation to end-users or processing facilities.

• Third-party Approval: Business activity 4620.09 requires third-party approval from the Sharjah Municipality or the Ministry Of Climate Change and Environment, post-issuance of the license.
• Filing of Economic Substance Return: This business activity is exempt from this requirement.
• Anti-Money Laundering Compliance: This business activity is exempt from this requirement.

4620.10 – Natural Herbs Trading

Natural herbs trading refers to the business activity of sourcing, purchasing, and selling raw or processed natural herbs, which are derived from plants and used for medicinal, culinary, or therapeutic purposes. This business activity involves engaging in wholesale and retail transactions of various herbaceous products, including dried herbs, essential oils, and herbal supplements. It typically encompasses the entire supply chain, from cultivation and harvesting to processing and distribution. Companies in this sector often adhere to strict regulatory standards concerning product quality and safety, ensuring compliance with food safety regulations and herbal product certifications. Natural herbs trading also requires knowledge of market demand, consumer preferences, and sourcing practices to optimise inventory and achieve competitive pricing within the herbal market.

• Third-party Approval: No third-party approvals are required for this business activity
• Filing of Economic Substance Return: Business activity 4620.10 is exempt from this requirement.
• Anti-Money Laundering Compliance: Business activity 4620.10  is exempt from this requirement.

4620.11 – Wholesale of Plants and Trees Saplings Trading

Wholesale of plants and trees saplings trading is a business activity that involves the wholesale distribution of live plants, specifically saplings and young trees, intended primarily for resale by commercial entities or for planting by businesses. This sector entails purchasing bulk quantities of plants and saplings from nurseries or growers and supplying them to retailers, landscapers, or agricultural firms. The process includes sourcing high-quality plant stock, ensuring adherence to agricultural regulations, managing the logistics of transportation and storage, and offering customer support related to plant care and cultivation techniques.

• Third-party Approval: No third-party approvals are required for this business activity
• Filing of Economic Substance Return: Business activity 4620.11 is exempt from this requirement.
• Anti-Money Laundering Compliance: Business activity 4620.11  is exempt from this requirement.

4620.12 – Wholesale Trade in Soil Stabilisers

This business activity involves the large-scale distribution of products aimed at improving soil characteristics and stability for both construction and agricultural purposes. This sector includes various chemical and mechanical stabilisers, such as polymers, lime, and cement, which enhance soil strength, minimise erosion, and improve moisture retention. Wholesalers in this industry acquire substantial quantities of soil stabilisers from manufacturers and distribute them to downstream markets, including construction firms, agricultural producers, and landscaping companies. The trade typically encompasses negotiating bulk purchase agreements, managing logistics for transportation, and ensuring adherence to environmental and safety regulations related to these products. Overall, the wholesale trade in soil stabilisers is essential to the supply chain, providing critical materials that support infrastructure development and effective land management practices.

• Third-party Approval: No third-party approvals are required for this business activity
• Filing of Economic Substance Return: Business activity 4620.12 is exempt from this requirement.
• Anti-Money Laundering Compliance: Business activity 4620.12  is exempt from this requirement.

4620.14 – Wholesale of Parks Equipments Trading

Wholesale of parks equipment trading refers to the business activity involving the wholesale distribution of equipment specifically designed for parks, recreational areas, and related outdoor spaces. This encompasses a range of products, including but not limited to playground apparatus, benches, picnic tables, sports facilities, landscaping tools, and maintenance machinery. Wholesalers in this sector purchase these goods in bulk from manufacturers and subsequently sell them to retailers, government agencies, and other organisations involved in the development and upkeep of public and private parks. 

• Third-party Approval: No third-party approvals are required for this business activity
• Filing of Economic Substance Return: Business activity 4620.14 is exempt from this requirement.
• Anti-Money Laundering Compliance: Business activity 4620.14  is exempt from this requirement.

4620.15 – Wholesale of Horse and Racing-camel Material and Outfit Trading

This business activity directly refers to purchasing, storing, and distributing products related to the equipment and materials used in horse and racing-camel activities. This includes a range of goods such as saddles, bridles, racing gear, stable supplies, and health-related products for horses and camels. Businesses engaged in this sector typically operate as intermediaries, sourcing these specialised items from manufacturers or importers and selling them in bulk to retailers, trainers, or racing organisations. The operation may also involve logistics management to ensure timely delivery, inventory control to manage stock levels effectively, and market analysis to identify trends in equestrian and racing markets. This activity is critical for supporting the infrastructure surrounding competitive horse and camel racing, enhancing the performance and well-being of these animals.

• Third-party Approval: No third-party approvals are required for this business activity
• Filing of Economic Substance Return: Business activity 4620.15 is exempt from this requirement.
• Anti-Money Laundering Compliance: Business activity 4620.15  is exempt from this requirement.

4620.16 – Wholesale of Artificial Dried Flowers and Plants Trading

Wholesale of artificial dried flowers and plants trading encompasses the business activity of acquiring artificial dried flowers and plants in large quantities from manufacturers or suppliers and reselling them to retailers, wholesalers, or other businesses without making any modifications to the products. This sector focuses on the distribution of durable botanical items created from synthetic materials to mimic the look of real flowers and plants for decorative purposes. Companies involved in this activity typically handle logistics related to inventory management, supply chain operations, and market demand assessments to ensure a consistent supply of products that meet consumer preferences. Additionally, they often cultivate relationships with suppliers to negotiate advantageous purchasing terms and capitalise on market trends to enhance their product offerings, thereby playing a vital role in the floral and decorative industries.

• Third-party Approval: No third-party approvals are required for this business activity
• Filing of Economic Substance Return: Business activity 4620.16 is exempt from this requirement.
• Anti-Money Laundering Compliance: Business activity 4620.16  is exempt from this requirement.

4620.17 – Wholesale of Palm Saplings and Seedlings Trading

This business activity directly involves the bulk distribution of young palm plants and seedlings, primarily for resale to various buyers such as nurseries, landscaping companies, and agricultural enterprises. It includes the procurement, storage, and sale of these horticultural products, which are vital for palm cultivation and landscaping projects. The wholesale nature of this trade means that transactions occur in large quantities, allowing for competitive pricing that enables retailers to add a markup for consumer sales. Additionally, this sector may focus on sourcing specific palm varieties, maintaining quality standards, and complying with regulations related to plant health and trade practices. The trading of palm saplings and seedlings not only supports the agricultural supply chain but also plays a role in ecosystem management and enhancing biodiversity through responsible planting initiatives.

• Third-party Approval: No third-party approvals are required for this business activity
• Filing of Economic Substance Return: Business activity 4620.17 is exempt from this requirement.
• Anti-Money Laundering Compliance: Business activity 4620.17  is exempt from this requirement.

4620.18 – Palm Branches Trading

Palm branches trading refers to the business activity involving the wholesale and retail distribution of palm branches, primarily derived from various species of palm trees, such as date palms and ornamental palms. This trading sector encompasses the sourcing, processing, and marketing of palm branches for diverse applications, including decorative uses in religious ceremonies, landscaping, and horticulture. The activity typically involves procuring palm branches from local growers or importers, ensuring quality control, and adhering to relevant agricultural regulations. Furthermore, palm branch trading may integrate supply chain management practices to efficiently deliver products to wholesalers, retailers, and end consumers, capitalising on the growing demand for sustainable and natural materials in both domestic and international markets.

• Third-party Approval: No third-party approvals are required for this business activity
• Filing of Economic Substance Return: Business activity 4620.18 is exempt from this requirement.
• Anti-Money Laundering Compliance: Business activity 4620.18  is exempt from this requirement.

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