Author: Hanoof Al Naama
Published: July 23, 2024
The UAE offers a unique opportunity for starting a fuel and petroleum product wholesale business because of its strategic location as a global energy center. It is a great place to do business because of its sophisticated infrastructure, abundant oil reserves, and friendly business climate. Further, the nation's dedication to economic diversification and energy sector investment fosters an environment that is favorable for corporate growth. In order to launch a successful and lucrative company, entrepreneurs in this industry can take advantage of the UAE's extensive logistical network, accessibility to global markets, and advantageous regulatory environment.
For those looking to start a wholesale business for fuel and petroleum products in the UAE, securing a business license from SPC Free Zone (SPCFZ) is an excellent strategic move. SPCFZ provides the necessary flexibility and convenience to help entrepreneurs achieve their goals and expand their operations.
The following sections detail the specific business activities available under fuel and petroleum wholesale licenses in SPC Free Zone.
This activity entails the wholesale distribution of an array of fuels and associated products. This includes the sale of solid fuels like charcoal and coal, liquid fuels such as diesel and gasoline, and gaseous fuels including liquefied petroleum gases. Specialists engaged in this industry play a crucial role in supplying vital energy sources to various sectors, ensuring a reliable fuel supply for heating, transportation, and industrial purposes.
Regulatory Requirements:
| Requirement | Details |
|---|---|
| Third-party Approval | After receiving the license, approval from Supreme Petroleum Council is required |
| Filing of Economic Substance Returns | This requirement does not apply to business activities under 4661.00 |
| Anti-Money Laundering Compliance | This requirement does not apply to business activities under 4661.00 |
This activity includes:
Solid Fuels Distribution: Distribution of solid fuels used for heating and industrial purposes includes charcoal, coal, coke, fuel wood, and naphtha. These products play a vital role in providing heating and energy generation for residential and industrial purposes.
Liquid Fuels: Businesses in this field provide a range of liquid fuels that are essential for transportation, heating, and industrial processes. These fuels play a crucial role in the operation of vehicles, the heating of buildings, and the functioning of industrial machinery.
Gaseous Fuels: Distribution of gaseous fuels for residential cooking, heating, and as fuel for vehicles, including Liquefied Petroleum Gases (LPG), Butane, and Propane Gas. These gases are widely utilized in both residential and industrial settings as a more environmentally friendly option compared to other fossil fuels.
Lubricating Products: Specialists in the wholesale distribution of high-quality lubricating oils and greases, as well as refined petroleum products provide extensive range of products designed to meet the lubrication needs of a wide variety of machinery and engines. Businesses provide products that are designed to optimize machine performance, minimizing friction, wear, and tear while maximizing efficiency and lifespan.
Regulatory Requirements:
| Requirement | Details |
|---|---|
| Third-party Approval | After receiving the license, approval from Supreme Petroleum Council is required |
| Filing of Economic Substance Returns | This requirement does not apply to business activities under 4661.01 |
| Anti-Money Laundering Compliance | This requirement does not apply to business activities under 4661.01 |
This activity entails offering full-service fuel supply solutions to a range of industries, such as manufacturing, construction, and transportation. Businesses that are involved in this industry assure the prompt delivery and handling of gasoline supplies, preserving business continuity for their customers. These services, which are tailored to the unique requirements of various industries, include fuel monitoring, logistics management, and effective distribution networks.
Regulatory Requirements:
| Requirement | Details |
|---|---|
| Third-party Approval | There is no third-party approval required for this business activity |
| Filing of Economic Substance Returns | This requirement does not apply to this business activity |
| Anti-Money Laundering Compliance | This requirement does not apply to this business activity |
The trading of compressed natural gas, an alternative fuel utilized in automobiles and industrial applications, is the main focus of this industry. Experts engaged in this industry oversee the distribution, storage, and sourcing of compressed natural gas (CNG) and encourage the use of this cleaner, more efficient energy source than conventional fuels. Establishing filling stations, guaranteeing the effectiveness of the supply chain, and encouraging the use of CNG as a practical energy substitute are all included in CNG trade.
Regulatory Requirements:
| Requirement | Details |
|---|---|
| Third-party Approval | There is no third-party approval required for this business activity |
| Filing of Economic Substance Returns | This requirement does not apply to this business activity |
| Anti-Money Laundering Compliance | This requirement does not apply to this business activity |
This activity pertains to businesses set up with trading expertise in specialty chemicals used in oilfield operations. These substances are essential for oil and gas well drilling, production, and upkeep. This category of products includes chemicals for stimulation, completion fluids, and drilling fluids. Businesses in this industry provide necessary chemicals that improve the effectiveness and security of procedures for extracting oil, guaranteeing the best possible performance from oilfield activities.
Regulatory Requirements:
| Requirement | Details |
|---|---|
| Third-party Approval | There is no third-party approval required for this business activity |
| Filing of Economic Substance Returns | This requirement does not apply to this business activity |
| Anti-Money Laundering Compliance | This requirement does not apply to this business activity |
Trading of petrochemicals made from natural gas and petroleum is included in this activity. These substances find application in the production of numerous goods, such as medicines, polymers, and fertilizers. Setting up a businesses in this industry are key to the provision of raw materials for a wide range of industrial applications, which in turn drives the worldwide market's production of necessities.
Regulatory Requirements:
| Requirement | Details |
|---|---|
| Third-party Approval | There is no third-party approval required for this business activity |
| Filing of Economic Substance Returns | This requirement does not apply to this business activity |
| Anti-Money Laundering Compliance | This requirement does not apply to this business activity |
This activity entails the provision of greases and lubricants in bulk to different industries. In order to ensure smooth and effective operation, these goods are crucial for lowering friction and wear in machinery and equipment. Companies engaged in this industry provide a broad variety of greases and lubricants to meet the demands of the manufacturing, industrial, and automotive sectors.
Regulatory Requirements:
| Requirement | Details |
|---|---|
| Third-party Approval | There is no third-party approval required for this business activity |
| Filing of Economic Substance Returns | This requirement does not apply to this business activity |
| Anti-Money Laundering Compliance | This requirement does not apply to this business activity |
Wholesale trading of drilling rigs and other equipment is a part of this sector. Drilling rigs, as well as the spare parts and accessories needed for oil extraction and processing, are among the products offered. Companies in this sector serve the exploration and production activities of the oil and gas industry by providing vital infrastructure and tools required for successful drilling operations.
Regulatory Requirements:
| Requirement | Details |
|---|---|
| Third-party Approval | There is no third-party approval required for this business activity |
| Filing of Economic Substance Returns | This requirement does not apply to this business activity |
| Anti-Money Laundering Compliance | This requirement does not apply to this business activity |
Offering a variety of services for both onshore and offshore oil and gas sectors is part of this business activity. Exploration, drilling, production, and upkeep of oil and gas installations are some of these services provided. Companies engaged in this industry provide technical support and specialized knowledge to ensure safe and effective operations in both onshore and offshore settings. Environmental management, logistical support, and equipment maintenance are further possible services usually offered.
Regulatory Requirements:
| Requirement | Details |
|---|---|
| Third-party Approval | There is no third-party approval required for this business activity |
| Filing of Economic Substance Returns | This requirement does not apply to this business activity |
| Anti-Money Laundering Compliance | This requirement does not apply to this business activity |
| Activity Code | Activity Name | Supreme Petroleum Council Approval Required |
|---|---|---|
| 4661.00 | Wholesale of Solid, Liquid, and Gaseous Fuels and Related Products | Yes |
| 4661.01 | Wholesale of Fuels, Greases, Lubricants, and Oils | Yes |
| 4661.02 | Fuel Supply Services | No |
| 4661.03 | Compressed Natural Gas (CNG) Trading | No |
| 4661.04 | Oilfield Chemicals Trading | No |
| 4661.05 | Petrochemicals Trading | No |
| 4661.06 | Lubricants & Grease Trading | No |
| 4661.07 | Oil Drilling Rigs & Equipment Trading | No |
| 4661.08 | Onshore and Offshore Oil and Gas Fields Services | No |
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