Why the UAE Is the Best Place to Start a Jewellery Business
Dubai is a global hub for gold and luxury jewellery, with over 1,200 licensed companies and yearly trade worth more than AED 270 billion. In 2023, the UAE jewellery market generated USD 4,463.9 million, and experts project it will reach USD 6,295.5 million by 2030, growing at a 5% compound annual growth rate (CAGR). Tourism, high income, and tax-free benefits drive this strong growth. Whether you plan to open a gold store or an artificial jewellery company in Dubai, the cityoffers Major potential. This guide will help you start your jewellery business the right way.
Jewellery Business in The UAE
Dubai is famously known as the City of Gold—a name earned due to its historical and economic ties to gold and gem trading. The jewellery company in Dubai covers a wide range of offerings, from luxury brands and personalized designs to wholesale gold markets and artificial jewellery shops. The city's strict quality standards, tax-free policies, and vibrant consumer base make it one of the most profitable places to run a jewellery business.
Why Dubai is the Best Place for Jewellery Business
Starting a jewellery business in Dubai offers many benefits and big opportunities.
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High Demand for Jewellery
Dubai has a constant demand for both gold and artificial jewellery. Whether you're opening a jewellery company in Dubai the market is always ready for new styles and designs.
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Global Recognition and Trust
Dubai is renowned for its authentic, high-purity gold and luxurious jewellery. This trusted reputation attracts both residents and tourists, helping your jewellery business grow quickly with loyal and global customers.
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Favorable Government Policies
The UAE government supports gold and jewellery traders by offering tax benefits and trade deals. These business-friendly policies make it easier to run a successful jewellery company in Dubai or expand your store network.
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Growth of Jewellery Stores
With more people shopping online, setting up a digital, artificial jewellery shop in Dubai is now easier than ever. E-commerce enables you to reach local and international customers, allowing for 24/7 sales growth.
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Growing Tourism Industry
Dubai attracts millions of tourists every year. Many visit wholesale jewelry stores to buy jewellery at great prices. This international footfall creates huge opportunities for every type of jewellery business.
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Low Tax on Gold Prices
Dubai offers low tax rates and affordable gold, making jewellery cheaper here than in many countries. Wholesale jewelry stores offer competitive prices, attracting bulk buyers and tourists.
Steps to Set Up a Jewellery Company in Dubai
Starting a jewellery company in Dubai is a great way to grow in a top luxury market.
Below are the simple steps to start your jewellery business in Dubai.
1. Decide the Type of Jewellery Business
Select whether you want to trade gold, silver, or diamonds or open an artificial jewellery shop in Dubai based on your budget, product knowledge, and ideal customer base.
2. Choose Location
Mainland lets you trade directly within the UAE, while Free Zones offer 100% foreign ownership, easy setup, and smoother import-export processes for your jewellery business in Dubai.
3. Reserve a Trade Name
Select a distinctive trade name and register it with the relevant authority. Ensure your chosen business activity—like “jewelry trading”—matches your services and complies with UAE regulations.
4. Tenancy Contract
Lease a physical retail shop or office, then register the tenancy agreement (Ejari) to fulfill a key requirement for finalizing your jewellery license application in Dubai.
5. Obtain Approvals
Some jewellery businesses—especially those trading in precious metals—require external approvals from authorities like Dubai Municipality, Dubai Police, or the Gold and Precious Stones Office before launching.
6. Open a corporate bank Account.
Set up a corporate bank account in the UAE to handle business transactions, manage supplier payments, and ensure smooth financial operations for your jewellery company in Dubai.
Dhanguard will assist you throughout the bank account setup process.
Documents Required for Jewellery Business in Dubai
Here's a basic list of documents you'll need:
- Passport copy of all shareholders
- Emirates ID (if applicable)
- Visa copy (if applicable)
- Trade name reservation certificate
- Initial approval from DED or Free Zone
- Tenancy contract (Ejari)
- Memorandum of Association (for Mainland)
- External approvals (for specific jewellery types)
Note: You may require additional documents depending on whether you're starting in the Mainland or Free Zone and the nature of your jewellery business.
Legal Guidelines for Jewellery Businesses in the Dubai
Starting a jewellery company in Dubai involves strict compliance with national and international laws. These regulations ensure transparency, ethical sourcing, consumer protection, and financial accountability. Below are the key legal and operational rules that anyone involved in gold trading or jewelry business in Dubai must follow:
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Jewellery Trading License: You must obtain a jewellery trading license from DED or Free Zone authorities to legally operate your gold business in Dubai.
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Regulatory Oversight by SCA: The Securities and Commodities Authority regulates gold trading practices to ensure transparency, fairness, and compliance with legal requirements in the UAE market.
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Compliance with Anti-Money Laundering (AML): Gold businesses must adhere to strict AML regulations, including customer verification, record-keeping, and reporting suspicious financial transactions, as mandated by UAE law.
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ESMA Standards: All gold businesses must meet ESMA (Emirates Authority for Standardization and Metrology) standards for weighing accuracy, product labeling, and quality control in gold and jewellery products.
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Import and Export Regulations: Traders must comply with UAE customs regulations, obtain a customs code, and adhere to ethical sourcing requirements under the UAE Good Delivery Standard.
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VAT and Tax Rules: Gold bars are tax-exempt, but jewelry pieces are subject to a 5% VAT unless they are re-exported under proper UAE tax procedures.
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Secure Storage and Record-Keeping: Proper storage facilities and detailed transaction records are mandatory to protect gold assets and comply with Dubai’s legal business requirements.
Our PRO team at Dhanguard will assist you in completing all legal requirements and formalities for the jewellery company in Dubai smoothly and efficiently.
Cost of Starting a Jewellery Business in Dubai
The total cost of starting a jewelry company in Dubai depends on several factors, such as your business location, the type of jewelry you sell, and the size of your operations. Here's what you'll typically need to budget for:
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Trade License: Fees for obtaining a business license based on your chosen jurisdiction.
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Shop Rent: The cost of leasing a retail store in a prime or budget-friendly location.
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Initial Approvals & Legal Fees: Expenses related to approvals, documentation, and legal setup.
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Jewellery Inventory: Initial investment in gold, diamond, silver, or artificial jewellery stock.
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Marketing & Branding: Spending on logo design, website, social media, and advertising.
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Staff Salaries & Equipment: Costs associated with hiring sales staff, inventory handlers, and purchasing store equipment.
Conclusion
Starting a jewellery company in Dubai is a creative and rewarding move for entrepreneurs seeking to enter a high-growth, high-demand market. With the city's strong reputation as a global gold hub, investor-friendly policies, and growing tourism industry, both luxury and artificial jewellery businesses can grow. From selecting the right business model and location to meeting legal requirements and obtaining the necessary licenses, every step is crucial for a convenient setup.
With expert support from business consultants like Dhanguard, you can complete the entire process efficiently—from documentation to trade license and bank account setup. Whether you're launching an online jewelry platform, Dubai provides the perfect environment for success and long-term growth in the jewelry industry.
DhanGuard: All-in-One Solution for Business Setup in Dubai, UAE
DhanGuard is your ultimate one-stop solution for all your business needs. Whether you’re planning to set up a new company or expand your existing business in the UAE, we’ve got you covered with our comprehensive range of services. From Business Setup in UAE and Company Formation in Dubai to managing your financial and legal compliance, we provide everything you need under one roof.
Our services include:
- Company Formation in UAE and Dubai
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Let DhanGuard make your journey of Business Setup in Dubai seamless and hassle-free!
