This article covers things you should know before starting a gold trading business in Dubai.
According to the UAE Federal Customs Authority, the import of gold in the UAE was valued at AED 142 billion, while the value of exports amounted to AED 76 billion annually. Dubai has a significant share in the UAE’s gold trade. It has historically been a hub for gold traders from around the region and beyond. Current estimates indicate that approximately a quarter of all gold trade transactions occur through Dubai. It is no wonder why it is often referred to as the “City of Gold“.
While several jurisdictions provide the ability to trade gold, there are three that have the highest concentration of gold traders in Dubai.
Gold Trading License via the Dubai Department of Economic Development (DED)
It is often said that a trip to Dubai isn’t complete without a trip to the famous Gold Souk, one of the oldest and most fascinating gold markets in the world. If you plan to sell gold directly to consumers, then you should opt for a local license via the DED for a retail outlet in the Gold Souk in Deira.
The other opportunities that open with a local license include stalls in one of the fashionable shopping malls. You could even opt for kiosks in popular tourist areas. As with other commercial licenses, you will need a local partner that holds a 51 percent share in the business. Fear not, we can assist you with drafting an agreement that protects your interests while complying with the local ownership rules.
After finding a partner, your principal goal should be finding the ideal location that is commercially viable. Keep in mind that the DED has special security requirements for businesses that engage in retail gold trading. Its also advised discussing with insurance brokers to see what provision they stipulate to insure your business.
If you are interested solely in importing and exporting gold, the areas around Port Rashid are quite popular. Several logistics companies provide complete solutions in shipping your gold securely to any destination.
Gold & Diamond Park Free Zone
Gold & Diamond Park is located along Sheikh Zayed Road. It is the home of over 90 leading retailers of gold and jewelry, 118 purpose-built manufacturing blocks, and 350 offices. It provides all the conveniences of a shopping mall while offering 100 percent expat ownership.
While still located in the core of Dubai, Gold & Diamond Park falls under the jurisdiction of Jebel Ali Free Zone Authority (JAFZA). You will need to get a license from JAFZA who has worked to simplify the process to get a gold trading license. In summary, you get the coveted benefits of being within a free zone while located in a commercial district.
Gold Business via Dubai Multi Commodities Centre (DMCC) Free Zone
The DMCC is unique in Dubai. It serves the whole gold value chain, from R&D and refining to trading and investing. The DMCC offers the Dubai Gold and Commodities Exchange (DGCX), DMCC Tradeflow, a trade finance product; and the Dubai Good Delivery Standard, a standard for 1kg gold bars of .995 purity.
The jurisdiction has won the ‘Global Free Zone of the Year’ award from the Financial Times fDi magazine for five years. With an online portal that makes the company registry easy from anywhere in the world, it is understandable why many entrepreneurs consider it the best place to start their business.
The lease rates generally tend to be higher than areas under DED jurisdiction. However, commercial space is continuously expanding, and a good deal can be found. Proximity to JAFZA and Al Maktoum International Airport provides convenient venues for you to import and export your goods.
While the incorporation process is relatively straight forward, there can be additional steps required to get your approval for certain types of gold licenses. We recommend you leave this to seasoned professionals who can save you time and money.
In summary, regardless of the jurisdiction that you select for your gold trading business. Dubai is the place to be if you want to become a world-class gold trader. We offer you an opportunity for a free consultation to turn your dreams into reality.
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