Dubai has always been known for its stunning skyline, luxury lifestyle and global business environment. But there is one industry where the city has an especially powerful presence: jewellery and precious metals. For decades, Dubai has been a hub for gold, diamonds, gemstones and jewellery trading. Today, it continues to attract traders, wholesalers, manufacturers and retailers from around the world.

If you are planning to start a jewellery trading firm in Dubai, this guide will walk you through every step in detail. Whether your goal is importing and exporting precious metals, selling fine jewellery, establishing a wholesale business or opening a boutique store, you will find everything you need to start confidently.

Why Dubai Is One of the Best Places in the World for Jewellery Trading

Dubai is not just another commercial city. It has built an entire ecosystem around the gold and jewellery trade.

Here is what makes Dubai an ideal location:

1. Zero tax on gold and jewellery trading

Dubai offers zero personal tax and comparatively lenient corporate taxation policies. There is no tax on the purchase or sale of raw gold, bullion or jewellery products within free zones.

2. Strong global reputation

When traders in Europe, Asia or Africa hear the term Dubai Gold, they instantly associate it with authenticity, purity and fair pricing. This makes it easier for new businesses to enter the market.

3. World famous gold souks and commercial districts

Dubai has designated trade clusters such as:

• Dubai Gold and Diamond Park
• Deira Gold Souk
• Dubai Multi Commodities Centre (DMCC)
• JAFZA
• Dubai South

These zones provide easy access to suppliers, distributors and international buyers.

4. Efficient logistics and connectivity

Dubai is one of the most well connected hubs in the world. Precious metals can be shipped in and out with minimal delays, strict security arrangements and advanced customs systems.

5. A multicultural customer base

Dubai’s population consists of over 200 nationalities. They all bring their own preferences, styles and jewellery traditions. This creates strong demand for a variety of jewellery products ranging from Middle Eastern gold to Indian bridal sets and European diamond jewellery.

6. Safety and regulation

Dubai has stringent rules to ensure authenticity and protect consumers. This builds trust and strengthens business credibility.

For entrepreneurs, this combination of opportunity, demand and global access is incredibly attractive.

Step 1: Define the Type of Jewellery Trading Business You Want to Start

The word jewellery trading is very broad. Before applying for a license, you must clearly define the segment of the industry you want to enter.

Here are the main categories.

1. Gold and precious metals trading

This includes buying, selling and distributing:

• Gold bars
• Bullion
• Coins
• Raw gold
• Scrap gold
• Precious metals like silver and platinum

This type of business is usually done in DMCC, JAFZA or Dubai South.

2. Diamond and gemstone trading

If you want to trade loose stones, you will need a license that covers diamonds and gemstones. Dubai has a dedicated diamond exchange within DMCC, which is one of the largest in the world.

3. Jewellery wholesale trading

This involves importing jewellery from manufacturers and selling it to retailers. You can operate locally or internationally.

4. Retail jewellery shop

This covers:

• Gold jewellery
• Diamond jewellery
• Bridal collections
• Fashion jewellery
• Custom-made designs

Retail shops often require a physical commercial space in Deira, Karama, malls or high footfall areas.

5. Online jewellery trading

Dubai allows e-commerce jewellery businesses with proper licensing and compliance. Many expats prefer this option because costs are lower.

6. Custom jewellery design and manufacturing

If you plan to produce your own designs, you may need an industrial license along with trading permissions.

Choosing the right category early helps you determine the correct license and business setup.

Step 2: Choose Free Zone or Mainland

Dubai offers two pathways for jewellery trading: setting up in a free zone or on the mainland. Each has its advantages.

Free Zone Setup

Ideal for:

• International traders
• Wholesale exporters
• Online jewellery businesses
• Diamond traders
• Bullion traders

Top free zones for jewellery trading:

• DMCC (Dubai Multi Commodities Centre)
• Dubai Gold and Diamond Park
• Jebel Ali Free Zone
• Dubai South Free Zone

Advantages:

• Full foreign ownership
• Zero import and export duties within the free zone
• World class security
• Advanced customs systems
• Easy company setup

Limitations:

• You cannot directly sell to customers on the mainland unless using a local distributor
• Retail shops cannot be opened in free zones

Mainland Setup

Ideal for:

• Jewellery retail shops
• Showrooms
• Companies selling to UAE consumers

Advantages:

• Freedom to sell anywhere in the UAE
• Ability to open shops
• Work with wholesalers, retailers and direct customers

Limitations:

• More regulatory checks
• Higher initial cost

Choosing between these depends on your business plan.

Step 3: Select the Right Business Activity and Trade License

This is one of the most important parts of setting up your jewellery trading company. Dubai has specific activities depending on what you plan to trade.

Examples:

• Gold and precious metals trading
• Jewellery trading
• Diamond and gemstone trading
• Bullion trading
• Online jewellery trading
• Jewellery retail sale
• Precious metals brokerage

Your license will determine:

• What you can legally trade
• Your ability to open a retail shop
• Whether you can import or export
• Your banking approval chances

If you are unsure, always get professional support, because choosing the wrong activity can delay approvals or cause banking issues.

Step 4: Complete the Company Registration Process

The general process for setting up a jewellery trading firm in Dubai includes the following:

1. Choose a trade name

Must follow UAE naming guidelines.

2. Submit passport and visa copies of owners

If you are on a visit visa or tourist visa, no problem. You can still open a company.

3. Get initial approval

Issued by the free zone or mainland authority.

4. Submit KYC and compliance documents

Especially important in the jewellery industry because of strict anti-money laundering laws.

5. Sign incorporation documents

Some free zones allow remote signing.

6. Receive your trade license

Once issued, you can legally start operations.

Step 5: Comply With Dubai’s Jewellery Regulations

Jewellery trading is considered a sensitive and high value business. Dubai’s government imposes strict regulations for safety and transparency.

Key requirements include:

1. Economic Substance Regulations

Businesses must demonstrate physical and operational presence in the UAE if applicable.

2. AML and KYC rules

Jewellery firms are considered high risk. You must keep:

• Customer identity records
• Source of funds
• Transaction history
• Supplier verification

3. VAT compliance

Jewellery firms must register for VAT once they cross the threshold.

4. Product authenticity rules

Gold purity must match UAE standards.

5. Invoicing and recordkeeping

Every transaction must be documented accurately.

Following these regulations builds trust and credibility.

Step 6: Open a Corporate Bank Account

Banking is often the most challenging part of setting up a jewellery trading firm because the industry is considered high risk.

To increase your chances, prepare:

• A strong business profile
• A clear business plan
• Proof of experience in trading or jewellery
• Supplier and buyer information
• Initial funds

Banks in Dubai perform detailed background checks for jewellery businesses. Working with an experienced consultant helps reduce delays.

Step 7: Secure a Shop or Office Space

If you are opening a retail shop, you must choose a commercial space in an approved area.

Popular locations:

• Gold Souk Deira
• Gold and Diamond Park
• Bur Dubai
• Karama
• Malls
• JLT (for wholesale and trading offices)

Consider:

• Foot traffic
• Rent cost
• Proximity to jewellery markets
• Storage and security requirements

If you are only doing wholesale or import-export, a free zone office may be enough.

Step 8: Find Trusted Suppliers and Build Your Network

Suppliers can be from:

• India
• Italy
• Turkey
• Thailand
• Hong Kong
• South Africa
• Local UAE manufacturers

For jewellery traders, relationships are everything. Trust, quality and consistency will determine your long term success.

Step 9: Hire Staff With Mandatory Qualifications

Retail jewellery shops often hire:

• sales executives
• gemologists
• jewellery designers
• polishers
• accounts staff

Some positions require professional certifications such as:

• GIA Certified Gemologist
• Precious Metals Assayer
• Gold Appraisal Training

Staff must follow customer service and ethical conduct standards.

Step 10: Promote and Market Your Jewellery Brand

Dubai’s jewellery market is competitive, so marketing is essential.

Strategies include:

• social media marketing
• influencer partnerships
• Google ads
• participation in jewellery exhibitions
• loyalty programs
• exclusive collections for expats

Branding and storytelling matter as much as the product itself.

Step 11: Understand Costs of Starting a Jewellery Trading Firm in Dubai

Costs vary depending on the setup.

Typical expenses include:

• Trade license fees
• Visa fees
• Office or shop rent
• Bank account setup
• Inventory procurement
• Insurance
• Marketing
• Staff salaries

A small wholesale jewellery trading firm can start from around AED 25,000 to AED 40,000 in a free zone. A retail showroom can cost anywhere from AED 150,000 to AED 300,000 or more depending on location.

Step 12: Ongoing Compliance After Launch

Once your business is operating, you must maintain compliance.

This includes:

• license renewal
• VAT filing
• AML audits
• product testing
• bookkeeping
• staff visa renewals
• inventory audits

Non compliance can result in heavy penalties.

Final Thoughts: Is Dubai a Good Place to Start a Jewellery Trading Business?

The answer is yes. Dubai is one of the safest, most profitable and most globally recognised centres for jewellery trading. Entrepreneurs who enter this industry with the right plan, strong suppliers and proper licensing can build a powerful business with long term growth.

Dubai offers:

• a supportive business ecosystem
• strong international demand
• low taxation
• unmatched connectivity
• world class infrastructure

If you plan and execute your entry well, the opportunities are endless.

Whether you intend to trade gold, diamonds, gemstones or finished jewellery, Dubai provides the platform you need to create a successful and sustainable business.