To start a gold and jewellery business in Dubai, you choose a business model (retail shop, wholesale or bullion trading, online store or manufacturing), get a licence with the matching precious metals or jewellery activity, either on the mainland through the Department of Economy and Tourism (DET) or in a free zone such as DMCC, and set up anti-money-laundering (AML) compliance before you trade. Gold and jewellery dealers are closely regulated in the UAE: businesses that deal in precious metals and stones must register on the goAML platform, check and report large cash transactions, sell hallmarked jewellery of legal purity and handle VAT rules that are specific to gold. Getting the structure and compliance right from day one is what separates businesses that open bank accounts and trade smoothly from those that struggle.
This guide covers the main business models, mainland versus free zone, licensing steps, AML duties, VAT on gold and jewellery, hallmarking, banking and typical costs. It is based on Federal Law No. 11 of 2015 on precious metals, the UAE AML framework and Federal Tax Authority (FTA) guidance, checked as of October 2026. Rules for this sector are updated regularly, so confirm the current requirements with the Ministry of Economy and the FTA before you trade.
Which Gold and Jewellery Business Model Fits You?
| Model | Where it is usually licensed | What to plan for |
|---|---|---|
| Retail jewellery shop | Mainland (DET), in a souk, mall or high street location | Shop lease, fit-out, security, stock financing and walk-in cash customers |
| Wholesale and bullion trading | DMCC or another free zone, or the mainland | Supplier due diligence, international payments and higher AML scrutiny |
| Online jewellery store | E-commerce licence on the mainland or in a free zone | Delivery, payment gateway approval and secure storage |
| Diamond and precious stone trading | Often DMCC, home of the Dubai Diamond Exchange | Certification, Kimberley Process rules for rough diamonds and valuation |
| Jewellery manufacturing | Industrial or manufacturing licence | Workshop premises, equipment, hallmarking and skilled staff |
The model drives everything else: the licence activity, premises, bank appetite and compliance load. For example, a retail shop selling to walk-in customers will handle more cash than an online store, so it needs stronger AML procedures. Our guide to trading vs professional licences explains the difference in licence types.
Mainland or Free Zone for a Gold and Jewellery Business?
- Mainland (DET): the usual choice for retail shops, because it allows you to sell directly to customers anywhere in Dubai. You need a physical shop with a registered lease.
- DMCC: the leading free zone for gold, diamonds and precious stones trading, with sector infrastructure such as the Dubai Diamond Exchange and established trade networks. Suited to wholesale, bullion and international trade rather than walk-in retail.
- Other free zones: some allow precious metals or jewellery trading activities, often at lower cost, but check that the activity is permitted and that banks will accept the licence for this sector.
Prices vary widely between zones. Our UAE Business Setup Cost Index lists published free zone package prices, and our guide to free zone vs mainland covers the wider trade-offs.
How to Set Up the Business, Step by Step
- Choose the model and jurisdiction based on your customers and how you will trade.
- Select the licence activities, for example trading in gold and precious metals, jewellery trading, precious stones trading or jewellery manufacturing.
- Reserve the trade name, following the UAE company name rules.
- Secure premises that meet the authority's requirements, including security for retail and storage.
- Obtain the licence and any additional approvals for your activity.
- Register on goAML and set up your AML programme before trading.
- Register for VAT if you will exceed the AED 375,000 threshold, which most jewellery businesses do quickly.
- Open a bank account with a bank that serves the precious metals sector.
- Arrange insurance for stock, premises and goods in transit.
Anti-Money-Laundering Rules for Gold and Jewellery Dealers
Dealers in precious metals and stones are treated as designated non-financial businesses under UAE AML law when they carry out cash transactions of AED 55,000 or more, whether in a single transaction or several linked ones. In practice, any gold or jewellery business that might receive large cash payments should assume the rules apply. The main duties are:
- Register on goAML, the Financial Intelligence Unit's reporting platform.
- Appoint a compliance officer and adopt written AML policies.
- Carry out customer due diligence on customers for cash transactions at or above the threshold, including identity documents.
- File Dealers in Precious Metals and Stones Reports (DPMSR) on goAML for qualifying cash transactions, within the deadline set by the Ministry of Economy, reported as two weeks.
- Report suspicious transactions regardless of the amount.
- Screen customers and suppliers against sanctions lists, and keep records for the required period.
The Ministry of Economy supervises mainland and most free zone dealers and carries out inspections. Reported fines for AML violations can be very large, up to AED 1 million per violation, so compliance is not optional. Traders and refiners in the gold supply chain also face responsible sourcing due diligence rules on where their gold comes from.
VAT on Gold and Jewellery
| Supply | VAT treatment |
|---|---|
| Investment gold (99% purity or more, traded on global bullion markets) | Zero-rated |
| Jewellery sold to consumers | Standard-rated at 5%, including on making charges |
| Gold and certain precious goods sold between VAT-registered businesses for resale or manufacturing | Reverse charge: the buyer accounts for the VAT, subject to conditions |
| Jewellery bought by eligible tourists | VAT may be refundable through the tourist refund scheme |
The reverse charge rules have been updated since they were introduced in 2018, and they have strict conditions, such as written declarations from the buyer. Get the treatment of each type of sale right in your invoicing system from the start. Our guide to accounting and bookkeeping costs covers VAT support, and from 2027 your invoices will also need to meet the UAE e-invoicing rules.
Hallmarking and Purity Standards
Federal Law No. 11 of 2015 regulates trade in precious metals and stones, including hallmarking and legal fineness. Common legal standards for gold are 999 for 24 carat, 916 for 22 carat and 750 for 18 carat. In Dubai, the Dubai Central Laboratory, part of Dubai Municipality, tests and hallmarks gold, and retailers are expected to sell items carrying a recognised hallmark. Build hallmarking into your supply process so stock can be sold legally, and keep certificates for diamonds and coloured stones.
Banking for Gold and Jewellery Businesses
Banks treat precious metals as a higher-risk sector, so expect detailed questions about your suppliers, customers, source of funds and AML controls. Applications are much stronger when you can show your goAML registration, AML policy, compliance officer, supplier agreements and a clear explanation of how cash is handled. Some banks do not onboard the sector at all, so choose banks that already serve gold and jewellery businesses. Our guide to why corporate bank accounts get rejected explains how to prepare.
What It Costs to Start
Licence and setup fees are only a small part of the budget. Plan for:
- Licence and registration, which vary by authority and activity.
- Premises, from a free zone office to a retail unit in a souk or mall, plus fit-out and security.
- Stock, usually the largest cost, and the working capital to hold it.
- Insurance for stock, premises and transit.
- Compliance, including a compliance officer, AML software and screening tools.
- Visas and staff, including experienced sales and workshop staff.
Our first-year company cost breakdown shows typical licence, visa and office costs, and our cost calculator gives a quick estimate.
Common Mistakes When Starting
- Starting to trade before registering on goAML and setting up AML procedures.
- Choosing a low-cost licence that banks will not accept for this sector.
- Applying the wrong VAT treatment to investment gold, jewellery or B2B gold sales.
- Buying stock without supplier due diligence or proper documentation.
- Underestimating working capital for stock.
Key Takeaways
- Choose the business model first: retail, wholesale, online, stones or manufacturing.
- Retail usually needs a mainland licence and a shop; wholesale and bullion often suit DMCC.
- Dealers handling cash transactions of AED 55,000 or more must register on goAML, run customer checks and file DPMSR reports.
- Investment gold is zero-rated, consumer jewellery is 5% VAT, and some B2B gold sales use the reverse charge.
- Plan banking and compliance before you trade, because they decide how smoothly you can operate.
Start Your Gold and Jewellery Business With SMS Consulting
SMS Consulting, operating under ISO 9001:2015-certified processes across offices in Dubai, London, Delhi and Dhaka, sets up gold and jewellery businesses on the mainland and in free zones, including licensing, goAML registration, VAT and banking introductions. See our company formation services or talk to us.
Planning a Gold or Jewellery Business?
Tell us whether you plan to sell retail, trade wholesale or sell online. We'll recommend the licence, jurisdiction and compliance set-up.
Frequently Asked Questions
You need a trade licence with the right activity, such as trading in gold and precious metals or jewellery trading, from the DET for the mainland or from a free zone such as DMCC. Retail shops are usually licensed on the mainland.
DMCC is the leading free zone for gold, diamond and precious stone trading, and suits wholesale, bullion and international trade. Retail selling to walk-in customers usually needs a mainland licence.
Yes. Dealers in precious metals and stones that carry out cash transactions of AED 55,000 or more must register on goAML, appoint a compliance officer, carry out customer checks and file DPMSR reports for qualifying transactions.
Investment gold of 99% purity or more is zero-rated. Jewellery sold to consumers is standard-rated at 5%. Some sales of gold between VAT-registered businesses for resale or manufacturing use the reverse charge, subject to conditions.
Federal Law No. 11 of 2015 regulates hallmarking and legal fineness, and in Dubai the Dubai Central Laboratory tests and hallmarks gold. Retailers are expected to sell items with a recognised hallmark.
Banks treat precious metals as higher risk under AML rules. Showing your goAML registration, AML policy, compliance officer and supplier documents strengthens the application.