There is no doubt in the fact that Dubai is famous for its jewellery worldwide. Tourists from around the world visit Dubai to shop for gold and diamond jewellery. Given the higher tourist traffic, demand, and consumer sentiment, the UAE gems & jewellery market is expected to reach USD 10.71 billion by 2027, growing at a CAGR of 6.53%
After reading the figures, it’s only natural if you are thinking of starting a diamond business in Dubai. And why just diamonds? You can also consider starting a gold trading business in Dubai as the gold market is the richest, blooming market in the country. The prices here are affordable, lesser than anywhere else. Moreover, the designs and gold buyers that you find here are remarkable. As for other precious metals and stones, Dubai sources them worldwide.
If you plan to start diamond trading in Dubai or Gold trading in Dubai, this blog will walk you through all the essential information you must know to step into the jewellery market of the UAE.
What Are the Benefits of a Gold and Diamond Business in Dubai?
If you’re wondering what’s so special about starting a gold and diamond business in Dubai, then here’s what you need to know:
- Establish your gold business in the Dubai free zone and enjoy 100% ownership of your business. Moreover, you get to rope in maximum benefits.
- Quality of metals and precious stones in Dubai is famous globally. Hence, the demand is always high, and the business will flourish without any shortage of customers.
- Enjoy 100% repatriation of capital and profits without paying taxes.
- Benefit of exemption on corporate tax and income tax.
- 24/7 operational facilities let you have an advantage of an ‘always open’ business
- Easily hire expatriate workers with minimum paperwork and maximum government support.
- Get easy access to all supporting business functions and facilities at your disposal.
- You don’t have to worry about the Dubai heat. There are centralised AC complexes where you can easily set up your showroom.
- Facilities like exhausts, ventilation systems, and acid waste disposal systems.
- Taking note of the security requirements of the gold and diamond business in Dubai, you get 24/7 security personnel. Additionally, CCTV, fire alarm system, etc., are installed in all units.
- All the gold manufactured and sold from Dubai Gold and Diamond Park is hallmarked.
- Shuttle services in and around the complex.
- Ample tenant parking, building management system and flexible leasing options from 1-5 years with spaces ranging from 310 sq. ft. to 14000 sq. ft.
Where To Setup a Gold and Diamond Business in Dubai?
You can choose to set up a wholesale or retail gold trading business in Dubai, in a Freezone, Dubai Gold and Diamond Park or a Mainland Region.
The Dubai Multi Commodities Centre Freezone serves the whole gold value chain, from R&D and refining to trading finished jewellery and investing. Moreover, this free zone offers the Dubai Gold and Commodities Exchange (DGCX), a trade finance product, DMCC Trade flow, and the Dubai Good Delivery Standard.
Dubai Gold and Diamond Park
If you don’t want to set up your jewellery shop in a traditional gold market setup, you have an option to set up in Dubai Gold and Diamond Park. It is home to approximately 90 retailers in a commercial complex located on Sheikh Zayed Road. Moreover, it has been upgraded to 118 manufacturing blocks and 350 commercial office spaces under current expansion plans.
You also have an option to set up your gold trading business in Dubai Mainland. The Gold Souk market, a traditional market in the heart of the commercial district of Deira, is the best location in the mainland region for a jewellery business. It is home to over 300 retailers who exclusively trade in gold, diamonds and other precious metals and jewels.
Here, you can sell directly to the public. The best part? Often, it is a checklist item for tourists exploring the Dubai streets. Moreover, the Dubai Gold Souk has been a staple destination for gold buyers for years. Fun fact – you might be surprised to know that up to 10 tons of gold are present in the Gold Souk at any given time!
What Are the Required Documents To Start a Gold and Diamond Business in Dubai?
Here is a list of documents you must keep handy to start a jewellery business in Dubai:
- Passport copies of all business partners and owner
- Resume of the manager of the business
- Trade name registration and get all legal documents as a proof
- Obtain all necessary certifications and permissions for initial approval from the respective legal departments.
- Draft and sign a Memorandum of Association and an Article of Association.
- Tenancy contract and unique Ejari code.
- A capital of AED 1,50,000 to set up a business in a Dubai Free Zone. Also, you might have to pay rent for gold park management and a 15% annual unit rent (refundable).
What Is the Process To Start a Jewellery Business in Dubai?
To start a jewellery business in Dubai, a proper plan and company registration are essential. Once you set up your company, you can then make connections with international channels and form a supply chain to start profiting from your business. Here’s how you can set up a gold and diamond business in Dubai:
Step 1. Select Location and Register Trade Name
As mentioned earlier, you can register your company either in a DMCC free zone mainland region of Dubai Gold or Diamond Park. Once you decide on the location, submit the required documents and register your business name with the concerned legal departments. Make sure you comply with all the company name guidelines established by the Dubai government while deciding on your trade name.
Step 2. Get a Licence
If you want to set up in a free zone, you must apply to the concerned managing authority. However, if you plan to set up your business in a mainland region, you can apply for a licence through Shuraa consultant. You can draft your licence application on your own or with the help of company formation specialists. Here’s what you need to complete your licence application
- A complete and signed application form.
- Passport copies of the business owner and all the business partners.
- 2 coloured passport-size photographs.
Step 3. Hire Staff
To start gold trading in Dubai, you need a manager. Therefore, as per the DED guidelines, you need to hire a manager before completing your registration process.
Step 4. Fulfil All the Requirements To Sell Jewellery in Dubai
Lastly, you must fulfil the quality of the materials used in crafting the jewellery pieces.
You are allowed to import and export precious metals or ready-made jewellery pieces. However, it is compulsory to obtain a customs code number and get your jewels to pass the inspection procedures by the Gold Office.
What Is the Gold Trading Licence Cost in Dubai?
A gold trading licence cost in Dubai can be anywhere around AED 17,000 + service fee. Another option is to get an on-site coworking facility which might cost you anywhere near AED 20,000.
Connect With Shuraa
Now that you have all the information on starting a Diamond business in Dubai, you must wait no more. If you are new to the process, it is best to seek help from business setup experts. The business setup consultants at the Shuraa UK branch are well-versed in all the legal procedures to set up jewellery businesses in Dubai.
We can guide you at every step, gather necessary documents and take permission from the legal departments on your behalf. We will do it all without any hassle, from registration to acquiring your business licence. You need to give us a call, share your requirements, and we will take care of the rest.