22 August, 2023
The revenue from the Gold & Jewelry business in Dubai was observed at around 12 billion dirhams last year and the pace of growth in this industry in Dubai is increasing very fast. So, starting a gold jewellery business setup in Dubai can be a great choice to earn and grow more as an entrepreneur.
If we talk about the global market then we find that investors are very cautious while making investments in different commodities and financial instruments because of the risks involved in it. Investors internationally prefer safe investments with high returns. The Gold & Jewelry business is found to be the best choice because of fewer amounts of uncertainties and more opportunities to earn globally because gold is the most trusted commodity across the world.
Dubai has an edge to attract international investors because of its strategic location which connects the eastern & western continents. It’s been established as a traditional trading market in the Middle East for spices, precious stones, traditional goods, textiles, etc. At present, It has become a leading hub for gold, silver, and diamond jewelry trading.
Dubai is said ‘The City of Gold because it is growing as an international market of Gold & Jewellery very rapidly. People come from all over the world to buy gold and trade in gold because they trust the gold they buy in the city. The quality and purity of gold here are tested and maintained under strict rules, regulations, restrictions, and supervision. If any vendor is found guilty of selling low-grade gold and not following guidelines then he can be penalized up to 2 crores with 2 years of imprisonment.
Gold is much cheaper here as compared with any other place in the entire world & the reason behind it is that Dubai imports raw gold from South Africa and makes jewelry here and marks its stamp on the jewelry created here. Dubai achieved 1200-tone gold in trade last year.
India & China are the major buyers of gold jewelry from Dubai. As Indians are in a good ratio residing in Dubai, they are the major buyers of gold jewelry because of the traditions of wearing gold jewellery on special occasions and weddings. After India, there are China, Pakistan, Britain, Saudi Arabia Oman & Canada are the major buyers of gold from Dubai.
According to a survey, Dubai achieved 29% of the gold trade worldwide in 2021.The gold sector here is so developed and huge that 4086 companies are working in this sector at present. Dubai sold gold worth more than 5 lakh 52 thousand cr last year. Gold is cheap here because only 5% vat is applicable on gold and tourists can claim a VAT refund also.
Dubai Gold Souk is a traditional & vast market here which is the largest gold and jewelry market in the world. It has more than one thousand shops. People can find all the latest designs from all over the world. There are more than three hundred retailers here who are dealing with a huge range of jewelry starting from a very economic range to the most expensive and luxury range of jewelry which cannot be found in any other place but only in Dubai Gold Souk.
Here are the reasons to start jewellery business in Dubai.
In the ‘City of Gold, To start jewellery business in Dubai would not require a second thought.
Before setting up the jewellery business in Dubai then there has to be clarity regarding the nature of the business. Whether you want to go to retail, wholesale, or import & export, this has to be chosen wisely before investing in it.
The process of starting a jewelry business in Dubai comprises many requirements which we will discuss in the next steps-
Along with the registration of the company name, choose the location of the
company to start up is also a must. The registration of the company can be done under Free Zone or mainland regions.
If you choose the free zone for company registration in Dubai, then there is a free zone called Gold & Diamond Park (DGDP) which is the ocean of all precious metals, gems & jewelry. Entrepreneurs starting up in this free zone get multiple benefits and opportunities to earn and grow their businesses. It is the biggest free zone in UAE specifically for the gold, precious stones, and jewelry sector. Setting up a business here is hassle-free and beneficial due to tax benefits, 100% ownership, excellent connectivity, and astonishing infrastructure. This free zone is an extension of the “Jebel Ali Free Zone”, which issues trade licenses to investors in Dubai Gold and Diamond Park.
If you choose Dubai mainland for company registration then Gold Souk is the
famous location for jewelry trading in mainland regions. Tourists and investors
from across the world flock here to shop or trade in gold. Company registration includes brand name registration and submission of documents required for company setup like passport, residence proof, NOC certificate, rent agreement copy, etc.
After the completion of the registration process, the second step is to get a license from authorities for gold & jewelry trading. Below are things that need to be followed while applying for a license.
First of all, choose the location where you want to go for a business start up- Free Zone or Mainland. If you choose a free zone to get the maximum profit of your business revenue then chose a free zone that is specifically for the jewelry businesses because every free zone is dedicated to a specific industry.
After choosing the correct location applies for the license for that specific region. This will help you to get the benefits of the policies which are specifically for the upliftment of that particular industry in a specific
There are two business channels for a jewellery business in Dubai. First is DED (Dept of Economic Development) & DMCC (Dubai Multi Commodities Centre). D-DED License allows investors to invest in Gold Souk Market. DMCC License allows investors to open a jewelry business in a free zone.
After selecting the location & business structure the next step is to submit the required documents along with the application form to DMCC or D-DED. These documents contain address proof of shareholders and directors, Passport copies, Approval of business name, MOA (Memorandum of Association) & AOA (Articles of Association).
After getting a license the last step is to apply for a visa. The trade license zone helps to get a residency visa to live & work in Dubai. After getting your visa you can sponsor your staff and dependents to get their visas.
Hence, there is no other destination that is as profitable as Dubai in the Gold & Jewellery industry. The UAE Government supports and benefits the Industry by providing the entrepreneurs all the ease and flexibility to start and run the business smoothly. Here in Dubai, there is no fear of fraud or ill practices because of the great and strict legal system.
We as prudent & proficient Business Setup Consultants, let your aspirations become bona fide. We have been serving in this domain for more than 10 years and have picked up a good deal of expertise along the way. We have achieved more than 15k Business start-ups with clients from 164 countries.
If you are a visionary entrepreneur and have ambitions to achieve much more by starting a business in Dubai, then you just have to contact RadiantBiz and forget all the worries and hassles. We will provide all the guidance, and advice and will not only show you the path but also will make you reach the destination without any delay or complications.