Overseas business people looking to start a successful venture in Dubai can try out the jewelry sector. Home to a few of the world’s richest people and an international holiday spot, it is the safest and ideal location to setup a jewellery business in Dubai. It is because the government of Dubai has put in place specific rules and enforces strict checks on those who bring gold, and other precious stones or metals that are sold in the very popular gold market of the emirate.
If you are interested to launch a jewellery business in this emirate but want to know the process, then here we discuss how to set up a jewellery business in Dubai.
Dubai is popular as the very luxurious city in the country and for the best of reasons. This boasts of an unmatched market for jewellery. This Jewellery range from the cheapest to the most prized possessions that you can locate elsewhere across the globe. Dubai has vast collections of pearls available in rare colors and all sizes.
The gold market, in particular, is the most prosperous and flourishing market, considering its affordable costs that are lower than elsewhere, and the designs, and the purchasers of gold, and enthusiasts that you would get here is significant. As for other precious metals and stones, it sources its jewellery from all around the globe and jewellers globally invest here. All this is a no-tax area, and a business-friendly climate makes it a deep and fast-growing market.
The jewellery market contributed nearly 12 billion of revenue the previous year and is expected to develop even more in the coming years. Hence, investing in jewellery corporation in Dubai may not be a wrong idea for any business person from any corner of the globe.
The Steps to Setting up a Jewellery Business in Dubai
This is not simple for jewellery business setup in Dubai or to get profit from it. You have to make a scheme completely and ensure that you are registered. Comply with the following steps –
- First of all, you have to decide how you are going to be involved in the jewellery sector, through the right channels. There are 2 main alternatives for your – DED, and DMCC.
- The lawful process for obtaining a business license in this emirate needs you to have a business name. it is compulsory because it permits the government to see what type of business you are doing.
- If you are licensed to operate in any of the free zones, the location can help you in locating the premises for your venture. Make sure that you get the facilities such as electricity and water.
- In many cases, the DED needs you to appoint a manager prior to you can register. In a jewellery business, you would require a manager, according to the requirements of the Dubai Department of Economic Development. Lastly, starting a jewellery business in Dubai could be a very rewarding endeavor in the long run, and you will definitely be able to expand internationally in no time.
Advantages to Setup a Jewellery Business in Dubai
Quality of Metals – The precious jewels and metals quality is popular at the global level and is in great demand which means this would always thrive without any lack of clients.
Home to HNIs – Dubai is home to a few of the world’s wealthiest and most affluent people or HNIs, ensuring a great demand for precious jewellery.
Safe Place for Jewellery Business – The government has put in place rules and regulations to make sure that where and how other jewellery like gold and diamonds are brought into this emirate, which makes sure that only the very authentic jewellery is sold in the Dubai’s largest gold market.
Business Growth – Aspects that make the jewellery market thrive in this emirate, making it profitable in the long term because it allures global clients could be a sound method to extend your market at the global level.
Benefits of Free zone – There is full ownership in the free zone for jewellery business, so that you can receive the most out of the business.
Tax Benefits – There is no value-added taxation on the gold sale in this emirate, as well as maximum government support and sound rebates on income and corporate tax. You can draw all your benefits without any taxes.
Open 24/7 – This is a 24/7 operation with no time restrictions. You can work with an all-time open business at any time.
Security – The jewellery business in this emirate is given with great quality surveillance, high degree of protection with fire alarms installed in all units.
Frequently Asked Questions
What are the steps to start a jewelry business in Dubai?
Choose your business activity, select a business structure (LLC or free zone), obtain a trade license, and register with relevant authorities like the Dubai Economic Department (DED).
What type of license is required to operate a jewelry business in Dubai?
A commercial license is required for trading jewelry, which allows you to buy, sell, and manufacture jewelry.
Can I start a jewelry business in a free zone in Dubai?
Yes, Dubai has free zones like the Dubai Multi Commodities Centre (DMCC) that are ideal for jewelry businesses, offering benefits such as full foreign ownership and tax exemptions.
Do I need a local sponsor for my jewelry business in Dubai?
For mainland businesses, a local sponsor (UAE national) is typically required, but this is not necessary for businesses set up in certain free zones.
What are the costs involved in setting up a jewelry business in Dubai?
Costs vary depending on the location, business structure, and size of the operation, with estimates starting around AED 15,000 to AED 30,000.
What are the legal requirements to start a jewelry business in Dubai?
You must comply with local regulations, including obtaining approvals from the Dubai Economic Department, Dubai Municipality, and the Dubai Gold and Jewellery Group.
How can I sell jewelry in Dubai?
You can sell jewelry through physical stores, online platforms, or both, depending on your business model and target market.
Do I need special permits to sell gold or diamonds in Dubai?
Yes, you need specific permits to trade precious metals and gems, and you must adhere to regulations regarding purity standards.
What documents are required to start a jewelry business in Dubai?
Required documents include a passport copy, proof of residence, business plan, tenancy contract, and the necessary licenses for dealing with precious metals or stones.
Is a physical store necessary for a jewelry business in Dubai?
While a physical store is common for jewelry businesses, it is not mandatory. You can operate online or from a small office in a free zone.
Are there any customs duties or taxes on jewelry in Dubai?
Dubai is known for its tax-free environment, but a VAT of 5% applies to most goods, including jewelry.
What are the challenges in setting up a jewelry business in Dubai?
Challenges include competition, market fluctuations in gold and diamonds, obtaining quality inventory, and securing a location with high foot traffic.
