Dubai has one of the biggest gold and diamond markets in the world. There is a high demand for luxury jewellery here. Both locals and emigrants love high-quality jewellery and are ready to invest in it. Dubai is also close to major jewellery markets in India and the Middle East.
Dubai hosts many international jewellery trade shows and exhibitions. These events allow businesses to show their products and meet other industry professionals. This helps build a brand and make connections in the global jewellery market.
Why Dubai is Great for Your Jewellery Business?
- People in Dubai have a deep appreciation for fine jewellery. The city has many high-end jewellery stores and boutiques. Many tourists come to Dubai for luxury shopping experiences, boosting the demand for exquisite jewellery.
- Dubai is known for innovation and creativity, supported by government initiatives. This makes it a great place for jewellery makers to try new designs and ideas.
- Dubai has a well-developed legal system and clear regulations, making it an attractive place for businesses. The city’s ease of doing business allows for a quick and straightforward setup process.
Steps to Start Your Jewellery Business in Dubai
The following are some of the basics to start your jewellery business in Dubai.
1. Decide on Your Jewellery Business Model
Before you begin, choose the specific type of jewellery business you wish to establish in Dubai. It could be retail, wholesale, manufacturing, or custom design. Each option has its own advantages and operational requirements. Additionally, decide whether you plan to operate in the Mainland, Free Zones, or Offshore locations. Each area has different benefits, such as tax exemptions, full business ownership, and specific trade laws. For example, the Gold and Diamond Park Free Zone is ideal for jewellery businesses due to its specialised infrastructure for the industry.
2. Register Your Jewellery Business
The next step is to register your business legally. You can either register in Mainland Dubai or choose a Free Zone. Free Zones like the DMCC (Dubai Multi Commodities Centre) or the Gold and Diamond Park offer 100 per cent foreign ownership without the need for a local sponsor, which is a key advantage.
- For businesses looking to operate within Dubai’s local market, registration with the Department of Economic Development (DED) is required.
- If you intend to operate internationally, registering in Free Zones will provide additional benefits like duty-free exports.
- During registration, you will also need to choose a unique business name that complies with UAE naming guidelines and ensures no provocative language is used.
3. Obtain a Business Licence
Once your business is registered, the next crucial step is to obtain the correct business licence. Depending on your chosen business model and location, you may apply for one of these:
- DED Licence: If you are selling directly to customers or operating within the UAE’s domestic market, a DED licence will be required.
- DMCC Licence: If your business operates from a Free Zone like the DMCC, this is the recommended licence for international jewellery trade. It also comes with membership in the Dubai Diamond Exchange (DDE), essential for conducting transactions with international jewellery suppliers.
4. Secure Additional Approvals
Some jewellery businesses may require further regulatory approvals, particularly if you plan to import or export jewellery and precious metals. Ensure your goods meet Dubai’s strict standards for quality, and apply for a customs code number from the UAE Federal Customs Authority. This code is necessary for clearing goods through customs, and additional inspections may be required for precious metals.
5. Finalise the Legal Requirements
After obtaining the necessary approvals and licences, finalise the registration by submitting the required documentation, such as proof of shareholder identity, passport copies, and a notarised Memorandum of Association. Once approved, you will receive your business licence, allowing you to officially operate in Dubai.
6. Choose a Location for Your Jewellery Business
Selecting the right location is crucial for your jewellery business. Popular areas for luxury jewellery businesses include the Gold Souk market, The Dubai Mall, and The Mall of the Emirates. You can also establish your store in the DMCC Free Zone or Gold and Diamond Park, both of which offer excellent infrastructure and access to international markets. These locations have high footfall, making them ideal for businesses targeting premium clients.
7. Hire Staff
Before you can launch your jewellery business, the DED requires you to hire a manager. This is a mandatory requirement for obtaining a trade licence. In addition, ensure you have skilled jewellery designers, sales professionals, and customer service staff who understand the high-end market.
8. Meet Dubai’s Jewellery Standards
Dubai’s strict standards for quality and authenticity must be met before you can sell jewellery. This includes compliance with the quality of precious metals and gemstones, as well as obtaining the necessary certifications for both retail and wholesale sales. These regulations ensure that customers are purchasing high-quality, certified jewellery.
9. Import and Export Regulations
If your business involves importing and exporting jewellery, you must comply with Dubai’s customs and inspection procedures. This includes adhering to international standards for sourcing conflict-free gold and meeting the UAE Good Delivery Standards. Import duties may apply to certain jewellery items, while others, such as gold bars, are exempt from such duties.
10. Start Full Business Operations
After completing all legal and administrative steps, you are ready to start your business operations. Whether you are designing custom jewellery, selling luxury pieces in a high-end boutique, or managing a wholesale distribution company, ensure your operational strategy is in place. This includes inventory management, marketing, and customer service. Suntech’s ERP, SUNFACET can help simplify your operations and manage everything from financials to customer relationships.
Important Things to Consider
Starting a jewellery business in Dubai involves understanding the legal requirements, potential costs, and best locations. You need to get a trade license, register with the Dubai Municipality, and follow local labor laws. Costs vary based on the type of company and location, ranging from AED 10,000 to AED 100,000.
Popular locations for jewellery businesses in Dubai include The Dubai Gold and Diamond Park, the DMCC Free Zone, and The Mall of the Emirates. These areas have high foot traffic and a good reputation, making them ideal for luxury jewellery brands.
While setting up a business in Dubai is relatively easy, there are challenges such as competition from established brands, managing costs, and navigating the regulatory environment. However, Dubai’s tax benefits, including no personal or corporate income tax and a 5% value-added tax (VAT) on most goods and services, make it an attractive place for entrepreneurs.
The online jewellery market is growing in Dubai. Platforms like Instagram and Facebook offer new opportunities to reach customers. Having an online presence can help you succeed in this growing market and meet the needs of modern consumers.
Suntech Business Solutions helps you carry out the legal and regulatory requirements for starting a jewellery business in Dubai. Our team can assist with getting the necessary permits, and licenses. We also help you find the best locations for your jewellery shop and provide data on the local market and customer preferences. We also offer ERP solutions named SUNFACET ERP, which can improve your operations and help your business grow.
Are you ready to start your jewellery business in Dubai? Contact us today to arrange a personalized demonstration and see how our ERP solutions can enhance your operations and help your business succeed. Connect with us now to take advantage of this opportunity to enhance your jewellery business in Dubai!
Contact Us:
Phone: +971 55 220 1715
Email: [email protected]
Locations: UAE | KSA | India | Hong Kong
Website: www.suntech-global.com
Frequently Asked Questions (FAQs)
1. What are the important steps to starting a jewellery business in Dubai?
The main steps include deciding on your business model, registering your business, obtaining the necessary licences, securing approvals, completing legal formalities, choosing a location, hiring staff, and meeting Dubai’s jewellery quality standards.
2. What licences do I need to start a jewellery business in Dubai?
You will need a DED licence for domestic operations or a DMCC licence if you wish to operate from a Free Zone like Dubai Multi Commodities Centre, which also provides benefits for international trade.
3. Is there a capital requirement to start a jewellery business in Dubai?
Yes, the required capital can range from AED 10,000 to AED 100,000, depending on the type and location of your business.
4. Do I need special permits to sell gold or diamonds in Dubai?
Yes, businesses dealing with precious metals must meet Dubai’s strict standards for quality and authenticity. Additional approvals may also be required, especially if you are involved in imports or exports.
5. What are the VAT implications for jewellery businesses in Dubai?
There is a 5% Value Added Tax (VAT) on most goods and services in Dubai, but there is no personal or corporate income tax, which makes it appealing for businesses.
6. Can I start a jewellery business in a Free Zone in Dubai?
Yes, you can establish your business in Free Zones like DMCC or the Gold and Diamond Park, which offer benefits such as 100% foreign ownership and duty-free exports.
7. How long does it take to set up a jewellery business in Dubai?
Dubai is known for its ease of doing business, so the process is usually straightforward and quick once all the requirements are fulfilled.
8. What are the compliance requirements for starting a jewellery business in Dubai?
You must comply with Dubai’s stringent quality standards for precious metals, ensure conflict-free sourcing, and adhere to the UAE Good Delivery Standards.
9. How do I open a corporate bank account for my jewellery business in Dubai?
To open a corporate bank account in Dubai, you will need to provide documents such as a trade licence, Memorandum of Association (MoA), passport copies, and proof of your office tenancy. Supporting documents like bank statements, utility bills, and a company profile may also be required. The process can be done online or in person and typically takes between 2 to 4 weeks. It is advisable to work with a relationship manager to simplify the process.
10. What marketing strategies should I consider when starting a jewellery business in Dubai?
Participating in trade shows and building a strong online presence through platforms like Instagram and Facebook are key strategies to attract customers and enhance your brand visibility.
