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How Can I Start a Gold Business in Dubai?

How Can I Start a Gold Business in Dubai?

When it comes to Dubai, gold and diamond collections are one of the first things that come to mind as it is a trend in the Emirate. Referred to as the “City of Gold”, the place offers most tourists a cheaper gold cost than their home country. Since Dubai is a popular international holiday destination, the influx of the wealthiest clients can be considered substantial if you want to start a gold business.

How Can I Start a Gold Business in Dubai?
How Can I Start a Gold Business in Dubai?

Unknown to many, it is the most profitable business as precious metals hold their value and demand is constantly running year after year. While Dubai has historically been a hub for gold traders, they consistently contribute a significant share to the gold trading business in the UAE. If you are an investor, you should definitely consider starting a gold trading business in Dubai.

How Can I Start a Gold Business in Dubai?

If you’re not sure how, this article will help you do some in-depth research before starting your gold business. With more knowledge and understanding, you can start profiting from gold even in different departments.

Where exactly in Dubai?

There are different authorities and jurisdictions in Dubai that highly support gold trading licenses. Most of these can be found in the Mainland and Freezone. Despite being numerous, Dubai has three prominent jurisdictions with the highest gold traders.

First on the list is the Gold Trading License from Dubai’s Department of Economic Development (DED), where the heart of the UAE’s gold market is established. This authorization is how you involve a business in the world’s most famous gold markets, the Gold Souk in Deira. If an investor chooses to set up a retail outlet in this area, the mainland jurisdiction offers a local license through the DED.

How Can I Start a Gold Business in Dubai?

They may have the opportunity to open a counter or even a kiosk in Dubai’s most popular tourist areas for investors. Investors should note that before applying for another commercial license to trade gold through the DED, they must find a local partner who will own 51 percent of the shares in the company.

How Can I Start a Gold Business in Dubai?

The second option to set up a gold trading business in Dubai would be the Gold and Diamond Park located on Sheikh Zayed Road. If you are an expatriate who wants to own 100 percent of the business, this is the place for you as this is a free zone company setup. You can own 100% of your company tax-free and have a total profit relocation. Gold and Diamond Park is one of the most famous gold and jewelery retailers with over 90 stores, 118 purpose-built manufacturing blocks and 350 offices.

It is a convenient spot in Downtown Dubai with easy access to all areas. You can set up a gold company in this field by obtaining a license from the Jebel Ali Freezone Authority (JAFZA).

How Can I Start a Gold Business in Dubai?

The third option for your gold business in Dubai is through another Free Zone Authority, the Dubai Multi Commodities Center (DMCC). DMCC is famous for Dubai Gold and Commodities Exchange (DGCX), DMCC Trade flow and overall gold value chain.

What are the steps?

The next thing you need to know is how to run your gold business in Dubai. Different authorities and jurisdictions require other processes and requirements, so having one is not easy. Although the gold and jewelery business is popular in Dubai, the government has established special regulations.

How Can I Start a Gold Business in Dubai?
How Can I Start a Gold Business in Dubai?

In order to maintain a safe business environment, the emirate imposes strict controls on those who bring gold or other precious metals. To guide you, we have listed some basic steps you need to take to set up a gold company in Dubai.

Come up with a Trade Name

Before obtaining a license, part of the legal requirement is to have a trade name. Having a trade name is a way for the government to know about the business activity you will be conducting.

How Can I Start a Gold Business in Dubai?

Get a Business License

There is no way to start a business in Dubai without a business license. As mentioned above, you can choose to start your gold business in Dubai with three different authorities such as DED, JAFZA and DMCC. All of them require investors to register their business before carrying out their business activities.

Unlike JAFZA and DMCC, which are located in the free zone, DED requires a specific requirement to have a local sponsor who will own 51 percent of the shares in order to obtain an operating license. Generally, some primary documents are required to obtain a license:
Completed Application form
Passport copy of the proposed owner(s)
Two copies of color passport photos

How Can I Start a Gold Business in Dubai?

Choose your workplace

There are several facilities to choose from, especially if you prefer to install in a free zone area. They can offer you different offices or facilities that best suit your business needs. This can be done immediately after securing your business license.

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