Dubai, the central hub of the global jewellery market, offers unmatched opportunities for entrepreneurs who are looking to establish their footprint in this thriving jewellery industry. Starting a jewellery business in Dubai consists of understanding its active market trends, getting the right licenses, and harnessing its status as a bridge to global markets.
With the right planning, you can leverage into this dynamic industry known for its significant demand, cultural richness, and growth opportunities. Explore how to set up jewellery business in Dubai, from obtaining licenses to tapping into the thriving jewellery market.
Why Choose Dubai for Your Jewellery Business?
The jewellery market in Dubai is a radiant industry, with annual sales of over AED 12 billion, which are expected to increase by 5.5% every year through 2025. At present, the premium luxury segment is responsible for 55% of the total sales, proving its strong appeal to elite customers. Interestingly, more than 85% of jewellery traders in the UAE are exclusive retailers situated in Dubai, Reinforcing the city’s renowned reputation for superior craftsmanship and excellence.
Dubai is a safe place for jewellery business setup due to its unparalleled market strength. The city’s zero VAT policy on gold results in exclusively lower jewellery rates in contrast to other countries, attracting millions of tourists every year. With 20% to 40% of the global gold reserves transiting through the UAE, Dubai stands out as a significant trading hub. Events such as the Dubai International Jewellery Week present outstanding opportunities for making connections and displaying talent, while the city’s Strict quality regulations and global market opportunities establish a solid foundation for jewellery entrepreneurs.
Advantages of Starting a Jewellery Business in Dubai
Starting a jewellery business in Dubai presents several significant benefits:
- Full Foreign Ownership: Under new rules and unlike before, foreign entrepreneurs can now have the complete right to retain full ownership, eliminating the need for a local partner.
- Strategic Location: Located at the crossroads of Europe, Asia, and Africa, Dubai also gives incomparable access to worldwide markets, assisting in smooth import and export activities.
- Tax Benefits: Businesses in Dubai’s free zone enjoy tax incentives, including reduced corporation and income taxes which improve profitability.
- Robust Infrastructure: Dubai’s state-of-the-art logistics and business opportunities facilitate unparalleled operations, from factory to consumer.
- Thriving Market: Dubai’s jewellery market is growing, with plenty of space for expansion due to its extensive consumer base and increased demand for luxury items.
- Quality of Metals & Precious Stones: Dubai offers premium metals and precious stones, including diamonds, making it a global hub for high-quality jewellery and luxury products.
Steps of Setting Up a Jewellery Business in Dubai
The process of starting a jewellery business is simple but requires proper planning. Here are the essential steps on how to set up jewellery business in Dubai:
Choose Business Activities
Initiate your business setup by selecting the targeted business operations related to your jewellery business in the UAE. To ensure compliance, double-check your selected type of business activities conform to the list provided by the Dubai Department of Economic Development (DED). Every business activity requires distinct licenses and approvals. These activities consist of:
- Jewellery Manufacturing
- Wholesale trading of jewellery
- Retail jewellery store
- Online jewellery business
Choose the Right Jurisdiction
You must choose whether to establish yourself in a free zone or on the mainland. Free zones give full foreign ownership and tax incentives, meanwhile, mainland licenses allow direct trading within Dubai. Your decision should align with your business goals and your defined market for jewellery.
Choose Your Business Structure
Select the appropriate business structure for your jewellery business:
- Limited Liability Company (LLC): Perfect for enterprises trying to set up a presence in Dubai Mainland.
- Free Zone Company (FZC): For enterprises searching to build themselves in a defined free zone while having 100% foreign ownership.
- Branch Office: For established companies who aim to expand their existence in Dubai.
Choose a Trade Name
Choosing a trading name is significant when establishing a jewellery business in Dubai. The name must showcase the core of your business while aligning with the naming guidelines of the DED. Business names must not include any offensive or blasphemous words, as well as allusions to Allah or Islam. To integrate your name into your company name, it is important to use your full name rather than just your surname or initials.
Register Your Jewellery Business
Register your business with the DED if you plan to choose the mainland or with the appropriate free zone authority. This step launches your jewellery business in Dubai, giving it the legal acknowledgement needed to work effortlessly.
Apply for a Jewellery Business License
Apply for your jewellery license in Dubai through the DED or the free zone authority. It’s very important to collect the needed documents, comprising a copy of your passport, a comprehensive business plan, and validation for your trade name. Once approved, you’ll be granted the trade license required to legally launch your jewellery business.
Apply for Visas
After getting your jewellery license in the UAE, you can begin to apply for visas for both you and your employees. The number of visas is decided by the size and requirements of your business.
Open a Corporate Bank Account
Opening a corporate bank account in Dubai is significant for efficiently running your financial transactions. This account will be essential for all business activities, comprising transactions linked to your jewellery venture in the jewellery sector of UAE.
Hire the Right Staff
With access to many experts in Dubai, you will recruit a manager that’s perfect for your company. Before you can register your business for your DED application, it’s crucial to recruit a manager. The DED’s regulations outline the procedure for hiring staff.
Partnering with Xpert Advisory can provide a comprehensive guide on how to set up jewellery business in Dubai, making the process smoother and efficient.
Documents required to Start a Jewellery Business in Dubai
The required documents to launch a jewellery business in the UAE are as follows:
- Business Plan
- Passport-size photographs
- Emirates ID
- A Valid passport
- No Objection Certificate (NOC)
- Trade Name Reservation Certificate
- Good Conduct Certificate (if applicable)
- Dubai Central Laboratory (DCL) for gold or jewellery quality certifications.
- Dubai Gold and Jewellery Group membership (optional but recommended for networking).
- Dubai Municipality for health and safety regulations.
- SIRA Approval
Cost of Jewellery Business Setup in Dubai
Establishing a jewellery business in Dubai Calls for diligent financial oversight. In order to get your business off the ground, you’ll need to set aside funds for various startup expenditures, which consist of equipment, precious metals, Gem stones, site leasing, energy costs, insurance, and certification expenses.
Other costs may comprise website development, marketing activities, product photography, packaging, and setting up an office. Additionally, the cost of getting a jewellery license in Dubai primarily ranges between AED 15,900* to AED 28,500*. However, the exact expense depends on multiple other factors such as the size of your business, opted activities, and company site.
Conclusion
Launching a jewellery business in Dubai is a vibrant opportunity that can give you significant results. Complying with legal complexities, selecting the perfect location, and establishing a distinct brand persona is critical. In a city that recognizes premium craftsmanship and rare exclusivity, your jewellery business must highlight quality, granting unmatched standards and memorable client interaction.
So, if you’re ready to stand out, Dubai’s vibrant skyline is looking forward to reflecting the brilliance of your business. Whether it’s through your exceptional collections or exquisite customer service, there’s no better alternative than the City of Gold to turn your jewellery adventure into a sparkling success.
FAQs
1. How to start a jewellery business in the thriving jewellery market of Dubai?
To setup a jewellery business in Dubai’s thriving jewellery market, obtain the required licenses, select a prime location, and meet regulatory standards. Dubai boasts a globally recognized jewellery sector, making it a top choice for entrepreneurs.
2. What is the cost of setting up a jewellery business in Dubai?
The cost to setup a jewellery business in Dubai varies by location, license type, and scale. However, the cost of getting a jewellery license in Dubai primarily ranges between AED 15,900* to AED 28,500*.
3. What are the benefits of starting a jewellery business in Dubai?
Dubai is home to a thriving jewellery market that boasts high potential returns globally. Its strategic location, favourable taxation policies, and world-class infrastructure make it an ideal hub for jewellery businesses to flourish.
