Oil trading license in the UAE

What is an oil trading license?

An oil trading license grants your company in the UAE the legal right to conduct business involving the trade of oil and petroleum products within the UAE. However, if the product is used solely for internal purposes and not for commercial distribution, a license may not be required.

These exemptions are not automatic. The company must provide a detailed explanation of how the petroleum product is used, along with documentation proving that there are no commercial transactions involved.

Oil trading is a regulated trading activity: unlike a general trading license, which covers most everyday goods, petroleum products require dedicated activity codes on a commercial license plus the sector approvals described below.

What you can do with an oil trading license in the UAE

• Import and export of petroleum products
• Storage and transportation of fuel by all types of transport
• Wholesale and retail distribution of oil products within the UAE
• Contracting with local and international partners
• Establishment of infrastructure (offices, warehouses, logistics centers)
• Participation in exchange trading (including Dubai Mercantile Exchange)
• Oil-related transport and logistics operations
• Business activities in UAE free zones and GCC markets
• Hiring and sponsoring employees
• Processing and blending of petroleum products (with required permits)

Types of oil and petroleum products subject to licensing in the UAE and their regulatory authorities

Category	Petroleum products	Regulatory authority
Crude oil	Light crude oil, heavy crude oil	MOEI, ADNOC, sea port authorities
Refined products	Diesel fuel, gasoline, kerosene, naphtha, jet fuel	MOEI, Department of Energy Abu Dhabi, Dubai Petroleum Affairs
Hydrocarbon gases	Propane, butane, LPG	MOEI, Civil Defense, sea port and custom authorities
Lubricants and oils	Lubricating materials, base oils, motor oils, and industrial oils	MOEI, ESMA, DED
Asphalt, bitumen	Construction and road bitumen	MOEI, municipal departments, sea port authorities
Bunker fuel	Marine fuel, fuel oil	MOEI, port authorities
Petrochemicals	Methanol, ethylene, propylene, polyethylen	MOEI, ESMA, MOIAT

Who needs an oil trading license?

• Companies engaged in the trading of oil and petroleum products
• Logistics operators specializing in oil storage and transshipment
• Suppliers of bunker fuel for marine transportation
• Enterprises involved in the processing and blending of petroleum products
• Trading houses and distributors of oil products
• Free zone residents conducting commercial activities

Requirements for obtaining an oil trading license in the UAE

The UAE has established basic federal requirements for licensing oil trading that apply across all emirates. However, each jurisdiction (for example, Abu Dhabi, Dubai, or Fujairah) may add its own local conditions and approvals. It is important to consider both federal and local requirements.

General requirements for all Emirates:

1. Official company registration with the Department of Economic Development or a Free Zone authority.
2. Clear indication of the business activity in the company’s founding documents.
3. Submission of a business plan describing sources of raw materials, sales channels, and logistics schemes.
4. Proof of commercial relationships — preliminary agreements or Letters of Intent (LOIs).
5. Availability of warehouse facilities — either owned or leased premises.
6. Compliance with environmental and safety standards adopted to protect people, equipment, and the environment from hazards.
7. Approvals from regulatory authorities, including the UAE Ministry of Energy and Infrastructure, port authorities, and other relevant bodies.