How to Start a Jewellery Business in Dubai

Are you aspiring to start a business in Dubai, captivated by the city’s glittering opportunities in the jewellery industry? Dubai, known as the “City of Gold,” is a global hub for luxury and trade, making it an ideal destination for launching a jewellery business. With its thriving economy, tax-free environment, and strategic location, the city offers immense potential for entrepreneurs. At Alhind Business Center, we specialize in business setup services in the UAE, particularly in Dubai, guiding you through every step to turn your jewellery business vision into reality. This blog will walk you through the essential steps, legal requirements, and insider tips to successfully establish your jewellery venture in this dynamic market.

Why Dubai is the Best Place to Start a Jewellery Business

Dubai’s reputation as a premier destination for jewellery businesses is unmatched, offering a unique blend of cultural heritage, economic advantages, and global connectivity. Here’s why Dubai stands out as the ultimate location for your jewellery venture:

• Dubai as the “City of Gold”: Dubai has earned its nickname as the “City of Gold” due to its vibrant gold and jewellery market, particularly in the iconic Gold Souk. The city is one of the world’s largest gold trading hubs, with a rich legacy of craftsmanship and a consumer base that values high-quality, innovative designs. This cultural affinity for jewellery, combined with a robust supply chain, makes Dubai an ideal place to establish your brand.
• Strategic Location and Global Trading Opportunities: Situated at the crossroads of Europe, Asia, and Africa, Dubai offers unparalleled access to international markets. Its world-class infrastructure, including the Dubai International Airport and Jebel Ali Port, facilitates seamless import and export of precious metals, gemstones, and finished jewellery. This strategic location positions your business to tap into global demand while benefiting from Dubai’s reputation as a trusted trading hub.
• Strong Tourism and Luxury Retail Market: Dubai’s thriving tourism industry, attracting millions of visitors annually, fuels a booming luxury retail sector. From high-end shopping malls like The Dubai Mall to bespoke boutiques, the city caters to a diverse, affluent customer base seeking unique and luxurious jewellery. This vibrant market provides ample opportunities to showcase your designs to both local and international buyers, boosting your brand’s visibility and sales.
• Free Zones and Mainland Business Advantages: Dubai offers flexible business setup options through its free zones and mainland jurisdictions. Free zones, such as the Dubai Multi Commodities Centre (DMCC) and Dubai Gold and Diamond Park, provide 100% foreign ownership, tax exemptions, and streamlined regulations tailored for jewellery businesses. Meanwhile, mainland setups allow you to trade directly with the local market, offering greater flexibility.

Types of Jewellery Businesses You Can Start in Dubai

Dubai’s jewellery market offers diverse opportunities for entrepreneurs to carve out a niche. Whether you’re a designer, trader, or manufacturer, the city’s infrastructure and consumer demand support various business models. Here are some of the most promising types of jewellery businesses you can start in Dubai:

Retail Jewellery Store

Opening a retail jewellery store in Dubai allows you to cater directly to the city’s affluent and diverse customer base. You can set up in iconic locations like the Gold Souk, luxury malls, or high-end shopping districts. Retail stores can focus on gold, diamonds, gemstones, or bespoke designs, capitalizing on Dubai’s reputation for luxury and quality craftsmanship. With Alhind BC’s support, you can choose between a mainland setup for local market access or a free zone for tax benefits and global trade.

Jewellery Design and Customization Studio

If you have a creative flair, launching a jewellery design and customization studio can set you apart in Dubai’s competitive market. This model focuses on offering personalized, made-to-order pieces for clients seeking unique designs. Operating from a free zone like the Dubai Gold and Diamond Park provides access to state-of-the-art facilities and a network of suppliers, while mainland setups allow you to target local clientele directly.

Wholesale Jewellery Trading

Dubai’s status as a global trading hub makes it ideal for a wholesale jewellery business. You can import and export gold, diamonds, and other precious materials, supplying retailers across the UAE and beyond. Setting up in a free zone like the Dubai Multi Commodities Centre (DMCC) offers streamlined logistics, customs exemptions, and access to a global network of buyers and suppliers.

Jewellery Manufacturing and Production

Establishing a jewellery manufacturing unit in Dubai allows you to produce high-quality pieces for local and international markets. Free zones like DMCC provide access to advanced infrastructure, including refining and production facilities, while offering 100% ownership and repatriation of profits. This model suits entrepreneurs looking to scale production while leveraging Dubai’s robust supply chain.

Online Jewellery Business

With Dubai’s growing e-commerce market, launching an online jewellery store is a cost-effective way to reach a global audience. You can sell through your own website or platforms like Amazon.ae, targeting both local and international customers. A mainland or free zone setup can support your e-commerce operations.

Legal Requirements and Business Setup Process

Navigating the legal landscape is crucial when starting a jewellery business in Dubai. The process involves selecting the right jurisdiction, obtaining appropriate licenses, and ensuring compliance with regulatory standards. Below is a step-by-step guide to the legal requirements and setup process, designed to help you establish your business smoothly.

Step 1: Choosing Business Jurisdiction – Mainland vs. Free Zone

The first decision is selecting between a mainland or free zone setup, each offering distinct advantages for your jewellery business.

• Mainland Setup: Regulated by the Department of Economic Development (DED), a mainland license allows you to trade freely across the UAE, including direct access to local markets like the Gold Souk. With recent reforms, 100% foreign ownership is permitted for most commercial activities, eliminating the need for a local sponsor in many cases. This option is ideal if you plan to focus on retail or local wholesale, providing greater market flexibility but potentially higher setup costs due to office leasing requirements.
• Free Zone Setup: Free zones like the Dubai Multi Commodities Centre (DMCC) or Dubai Gold and Diamond Park are tailored for jewellery businesses, offering 100% foreign ownership, tax exemptions on corporate and personal income, full profit repatriation, and no customs duties on imports/exports within the zone. However, trading directly in the local UAE market requires a distributor or agent.

Step 2: Trade License Categories for Jewellery Business

Once you’ve selected your jurisdiction, apply for the appropriate trade license. Jewellery businesses typically fall under commercial or industrial categories, with specific licenses for precious metals and stones.

• Commercial Trading License: Suitable for retail stores, wholesale trading, import/export of jewellery, gold, diamonds, and gemstones. This is the most common for buying, selling, and trading finished products.
• Industrial License: Required for manufacturing, refining, or production of jewellery. This allows you to set up workshops or factories, often in free zones with advanced facilities.
• Professional License: For design and customization services, focusing on consultancy or bespoke creation without large-scale trading.

Step 3: Required Approvals

Beyond the trade license, obtain specific approvals to operate legally in the jewellery sector.

• SIRA Approval: Mandatory from the Security Industry Regulatory Agency (SIRA) for all jewellery businesses. This ensures compliance with security standards, including CCTV, alarms, and safe storage for valuables.
• Dubai Municipality Approval: Required for health, safety, and environmental compliance, especially for retail or manufacturing setups. This includes inspections for premises suitability.
• Dubai Gold and Jewellery Group (DGJG) Membership: While not mandatory, joining this trade association provides benefits like market insights, networking, and credibility. It’s recommended to stay updated on industry standards.
• Other Approvals: For import/export, obtain a customs code from Dubai Customs. Compliance with the Emirates Authority for Standardisation and Metrology (ESMA) is needed for product quality standards. If dealing in gold, additional clearances from the Ministry of Economy may apply.

Step 4: Compliance with the UAE’s Anti-Money Laundering (AML) Regulations

As a dealer in precious metals and stones (DPMS), your jewellery business is classified as a Designated Non-Financial Business and Profession (DNFBP) under UAE Federal Decree-Law No. 20/2018 on AML and Combating the Financing of Terrorism.

• Key Requirements: Register on the goAML portal for reporting suspicious transactions. Implement an AML policy including Customer Due Diligence (CDD), Enhanced Due Diligence (EDD) for high-risk clients, risk assessments, employee training, and record-keeping for at least five years.
• Reporting Obligations: File Suspicious Transaction Reports (STRs) and High-Value Dealer Reports (HVDRs) for transactions over AED 55,000 in cash or equivalents.
• Penalties for Non-Compliance: Fines up to AED 1 million or license revocation.

Cost of Starting a Jewellery Business in Dubai

The cost of launching a jewellery business in Dubai varies depending on the business model, jurisdiction, and scale. For a basic setup, including trade license, registration, and mandatory approvals like SIRA and Dubai Municipality, you can expect an approximate starting cost of AED 20,000 to AED 50,000. Partnering with Alhind Business Center ensures cost-effective solutions, as we streamline the process and help you avoid unnecessary expenses while meeting all legal requirements.

Banking and Financial Requirements

Managing finances is a critical part of running a successful jewellery business in Dubai. The first step is opening a corporate bank account, which is mandatory for all companies. A dedicated business account not only ensures smooth financial transactions but also builds trust with suppliers, customers, and regulators. However, many entrepreneurs face challenges due to strict banking compliance requirements. Partnering with a reliable consultancy like Alhind Business Center helps you choose the right bank and prepare all the necessary documents, making the account opening process seamless.

Another key aspect is insurance coverage for high-value inventory such as gold, diamonds, and precious stones. Since jewellery businesses deal with luxury assets, comprehensive insurance policies safeguard your business against theft, loss, or damage, ensuring long-term sustainability and peace of mind.

Finally, understanding VAT and taxation rules in the UAE is essential. Jewellery businesses are required to comply with VAT regulations, including accurate invoicing, timely filing, and proper record-keeping. Non-compliance can result in heavy penalties. At Alhind Business Center, we provide expert VAT registration, filing, and compliance services, ensuring your jewellery business remains legally protected and financially efficient.

Documents Required to Start a Jewellery Business

To ensure a smooth setup process for your jewellery business in Dubai, you’ll need to prepare specific documents for registration and licensing. The exact requirements may vary slightly depending on whether you choose a mainland or free zone setup, but the following are essential for most jewellery businesses. 

• Passport Copies & Visa Details: Provide clear copies of the passports of all business owners and shareholders, along with their valid UAE visa details (if applicable). For non-residents, a UAE entry stamp or residence visa may be required during the application process.
• Trade Name Reservation Certificate: A certificate confirming your approved business name, obtained from the Department of Economic Development (DED) for mainland setups or the respective free zone authority (e.g., DMCC). The trade name must comply with UAE naming guidelines, avoiding sensitive or restricted terms.
• Memorandum of Association (MOA): For mainland setups or companies with multiple shareholders, an MOA is required to outline the business structure, ownership details, and operational scope. This must be notarized and drafted in accordance with DED regulations. Free zones may have simpler alternatives, such as a business application form.
• Proof of Address & Tenancy Contract (Ejari): For mainland businesses, you need a registered tenancy contract (Ejari) for your office or retail space, along with proof of address. Free zones often provide flexi-desk or virtual office options, which may not require a separate tenancy contract but still need address verification.
• No Objection Certificate (NOC): If applicable, an NOC may be required from your current UAE sponsor (for residents employed in the UAE) or other authorities, particularly for mainland setups. Free zones typically do not require an NOC unless specified for certain activities.

Additional documents, such as a business plan, proof of initial capital (for free zones), or specific approvals (e.g., SIRA or Dubai Municipality), may be required depending on your business activity and jurisdiction. We ensure all documents are accurately prepared and submitted, minimizing delays and ensuring compliance with UAE regulations.

Key Challenges and How to Overcome Them

One of the biggest hurdles is meeting strict regulatory requirements, including gold purity certifications and compliance with anti-money laundering (AML) regulations. Security is another major concern, as dealing with high-value products like gold and diamonds requires strong safety measures and proper insurance coverage to protect your business.

In addition to regulations and security, the jewellery market in Dubai is highly competitive, with both established international brands and traditional local businesses. New entrants need to find ways to stand out, whether through unique designs, superior customer service, or niche offerings. Digital marketing also plays a vital role in building customer trust, especially for online jewellery businesses, making brand credibility and transparency more important than ever.

Your Path to Success in the City of Gold

Starting a jewellery business in Dubai is more than just entering a booming market. It’s stepping into a world of global opportunities, prestige, and growth. With the city’s unmatched reputation as the “City of Gold,” entrepreneurs can turn their vision into a thriving business by aligning with the right setup, compliance, and market strategies.

While the journey may involve regulatory approvals, financial planning, and fierce competition, the rewards are equally dazzling. By taking the right guidance and building a brand that inspires trust, you can position yourself among the leading names in Dubai’s luxury jewellery landscape.

Frequently Asked Questions (FAQs)