When Dubai is mentioned, its gold and diamond collection is one of the first things that comes to mind because it is a trend in the emirate. Known as the “City of Gold”, the place offers a cheaper cost of gold than the countries of origin of most tourists. Since Dubai is a popular international vacation destination, the influx of wealthier clients can be significantly considered if you want to start a gold business.

In fact, gold is an investment in Dubai as it drives foreign capital into the country. Unbeknownst to many, it is the most profitable business as precious metals hold their value, and demand has been working continuously every year. While Dubai has historically been a hub for gold traders, it also continually contributes a significant part of the gold trading business in the United Arab Emirates. If you are an investor, you should definitely consider setting up a gold trading business in Dubai. If you’re not sure how to go about it, this article will help you dig deeper before starting your gold business. With more knowledge and understanding, you can start making profits from gold, even in different departments.

Where exactly in Dubai?

There are different authorities and jurisdictions that strongly support gold trading licenses in Dubai. Most of them can be found in the Mainland and Freezone. Although there are many, there are three jurisdictions that stand out in Dubai where the highest concentration of gold dealers can be found.

First on the list would be the Gold Trading License at the Department of Economic Development (DED) in Dubai, in which the heart of the UAE gold market is established. This authority is the way to incorporate a business in the most famous gold markets in the world, the Gold Souk in Deira. The mainland jurisdiction offers a local license through the DED if an investor chooses to form a retail store in this area. They may have the opportunity for investors to open a stall or even a kiosk in the most popular tourist areas of Dubai. Investors should note that before applying for another business license for the gold business through the DED, they must find a local partner who owns 51 percent of the company’s shares.

The second option for setting up a gold trading business in Dubai would be the Gold and Diamond Park located along Sheikh Zayed Road. If you are an expat who wants to own 100 percent of the business, this place is perfect for you as it is a free zone company setup. You can own 100% of your business tax-free and have a full payout of profits. Gold and Diamond Park is one of the world’s most famous gold and jewelry retailers with over 90 stores, 118 purpose-built manufacturing blocks and 350 offices. It is a convenient location in the center of Dubai city with easy access to all areas. You can incorporate a gold trading company in this area by obtaining a license from the Jebel Ali Freezone Authority (JAFZA).

The third option for your gold business in Dubai is through the Dubai Multi Commodities Center (DMCC), another free zone authority. DMCC is famous for its Dubai Gold and Commodities Exchange (DGCX), the DMCC trade flow, and the overall gold value chain.

What are the steps?

The next thing you need to know is how you will make your gold business in Dubai a reality. Different authorities and jurisdictions require other processes and requirements, so it is not easy to have one. Although the gold and jewelry business is popular in Dubai, the government has created specific regulations. It imposes rigorous controls on those who bring gold or other precious metals into the emirate in order to have a safe business environment. To guide you, we have listed some of the essential steps you need to take to form a gold trading company in Dubai.

Create a business name

Before you can get a license, part of your legal requirement is to have a business name. Having a business name is a way for the government to know what business you will be doing.

Get a business license

There is no way to start a business in Dubai without having a business license. As mentioned above, you can choose to start your gold business in Dubai with the three different authorities such as DED, JAFZA and DMCC. All require investors to have their business registered before conducting business. Unlike the JAFZA and DMCC, which are in the free zone, DED has a particular requirement of having a local sponsor who will own 51 percent of the shares before it can obtain a business license. Getting a license usually requires some of the main documents:

Completed application form

Copy of the passport of the proposed owner(s)

Two copies of color passport photos.

Choose your Commercial Premises

There are several places to choose from, especially if you choose to settle in the free zone area. They can offer you different offices or facilities that best suit your business requirements. This process can be done immediately after you have obtained your business license.

get your visa

Obtaining a visa can be achieved with the help of your service provider. Visas are required, especially if you have to hire an employee. As a UAE business license holder, you also have the power to sponsor others to obtain their visa. The number of visas you can apply for will depend on the size of your company or business, the type of business you choose, and your earnings.

Since Dubai has proven to be a healthy and sustainable environment for the gold and jewelery business for both local and international investors, it is safe to say that starting a gold company in Dubai is highly profitable and can generate growth for the business.

Given all the information above, you may think that starting a gold business in Dubai is not too complex. Doing so alone can lead to troublesome situations and unexpected expenses; That is why it is essential to seek professional help. At IBG Consulting we guide you based on knowing the legal procedures and business structuring in Dubai. We have a group of talented consultants who will help you start your gold business in Dubai or anywhere in the UAE. If you want to know more about how you can create a gold business in Dubai, please contact us or visit our website for a consultation.