The UAE jewellery market is expected to reach 12 billion dirhams by 2020. Dubai leads the UAE jewellery market as tourists find it cheaper than their home countries because of low taxes and a superb range of exquisite jewellery. On the wholesale front, Dubai exports its jewellery to 200 countries across the globe.
As the saying goes, not all that glitters is gold; jewellery is an industry that takes a considerable amount of planning and works to make it a success. A jewellery business comes with certain industry-specific regulations, substantial competition, and cash flow issues to consider. It’s also not always a profitable business unless you manage to secure a line in some of the large retail outlets and jewellery houses. If you are dealing internationally, having the right channels alongside a trustworthy supply chain are essential.
Setting Up in the Right Jurisdiction
The Dubai Multi Commodities Centre (DMCC) is the top choice for free zone incorporation. DMCC also provides its members with membership to the Dubai Diamond Exchange (DDE) and has a purpose-built facility known as the “Jewellery & Gemplex annexe” in the Jumeirah Lakes Towers (JLT) area. DMCC has state-of-the-art facilities and offers products and services that directly support organisations in the jewellery sector to foster growth and facilitate trade.
Dubai is well known for its history of pearl diving and pear trade, with archaeologists finding evidence of this tradition dating back more than 7000 years ago. The DMCC Pearl Exchange has become firmly established as an authoritative international body for promoting trade in pearls from around the world. Operating as an independent platform, it offers you all the convenience of trading pearls from a globally centralised location.
If you decide to get a local license via the Dubai Department of Economic Development instead, the Gold Souk market is a prime location if you are selling directly to consumers. If you are looking to trade internationally, then the zone around Port Rashid is a popular option.
DMCC Licensing Process
If you opt to select DMCC for incorporation, the process is very straight forward. You will apply online via their dedicated company incorporation portal. The system is designed so that you upload all the documents electronically and are provided updates on an ongoing basis. You will visit the free zone to sign the company incorporation documentation. (Read this article, for more detailed instructions)
With the DMCC, you have the option to take advantage of a flexi-desk, serviced offices or hire any of the commercial properties available in the Jumeirah Lakes Towers (JLT) area. It all depends on what type of budget you are working with to secure your business premises.
Once you have incorporated, then you can take advantage of platforms such as Dubai Diamond Exchange (DDE), a unique platform that offers access to a trusted framework for all aspects of the diamond trade. DDE is the region’s first trading exchange for diamonds and colored precious stones.
DED Licensing Process
The Business Registration and Licensing (BRL) division in the Department of Economic Development (DED), reports that as of 2019, around 4000 companies operate in the jewellery and gold sector in Dubai with a local license. The most popular areas, which accounted for 46.5% of the total number of companies, are Al Dhagaya followed by Al Ras, Ayal Nasir, Burj Khalifa, Warqa Al Bateen, Al Muraqqabat, Port Said, and Al Rigga.
If your goal is to cater to the large tourist market, then getting a local license that permits you to set up shop in the Gold Souk or any of the commercial centres is the best option. Keep in mind though, as, with all local limited liability company licenses, you will need an Emirati national to have a 51% stake in the business. (Read this article, for more details on setting up a local limited liability company)
The process of getting a DED jewellery license can be cumbersome if you are not familiar with dealing with government entities. We advise you to speak to a seasoned consultant who can take care of the paperwork and regulatory aspects, while you focus on growing your business.
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