Wholesale of construction materials, hardware, plumbing and heating equipment and supplies

Under MD 229 of 2025, the distribution of construction materials is a Qualifying Activity only if performed in or from a Designated Zone. Forensic focus is on the 'Beneficial Recipient' test and ensuring the activity does not constitute 'Exempted Income' under the de minimis rule if sold to mainland consumers. Auditors will verify Bill of Lading and Gate Pass records against sales invoices to ensure the goods were not diverted directly to mainland without DZ processing.

Audit Red Flag

Revenue leakage via 'Flash Title Transfer' where goods are sold to UAE mainland customers without the entity maintaining physical possession or oversight within the Designated Zone boundaries.

Which UAE zones permit this activity?

Scout checks the current permission status for this activity across every UAE zone against your specific structure.