How To Start A Jewellery Business In Dubai
Dubai is well-known for its opulent jewelry stores and for exporting jewelry to many other nations. About 12 billion dirhams were made in revenue from the jewelry industry in Dubai last year, and this amount is probably going to rise even more in the years to come. For this reason, foreign investors who want to launch a profitable company in Dubai should give the jewelry sector serious thought. Now is the ideal moment for overseas investors who want to open a jewelry store in Dubai! Everything you require to launch a jewelry company in Dubai is provided here.
Why Start a Jewellery Business in Dubai?
If you want to establish a business of jewelry anywhere in the globe, then the place to be is Dubai! Below are some of the reasons why;
- Heavy Influx of Customers: Dubai has about all seasons of international tourists’ attraction; hence there is always a lot of customer traffic in the country.
- Cheaper Price: Some people visit Dubai to mainly shop for jewelry because it is cheaper here than is it in their home countries. Regarding the prices, because taxes have been kept to a minimum in Dubai, and no value-added tax has been placed on the sale of gold, the price of jewels decreases hence making more sales.
- High Quality of Metals: It is well known that the precious metals sold in Dubai are of high quality and the demand always remains high. This is why a jewelry company in Dubai will never lack clients in the market to supply to.
- Asian Customers: The groups of Asian people love wearing gold and are willing to put their money where their mouths are by buying very expensive gold ornaments. Thus, Asia will never run out of customers to provide for their demand for the items they want to buy.
- Home to HNIs: Some of the high-end CAL afraids have many high net-worth individuals hence high demands for precious jewellery especially in Dubai.
- Safe Place for Jewellery Business: Sit back and relax, because opening an orthodox business such as a jewellery business in Dubai is one of the safest decisions any investor can ever make. This is because the local government has set particular rules and standards and conducts strict measures for the individuals who come with gold and other hard metals for sale at Dubai Souk – the prominent gold trading center in the emirate.
- Business Growth: It will be highly advantageous if somebody attempts to start up a jewelry firm in Dubai because that will increase and go global in a short period.
What is the Demand for Jewellery in Dubai?
The jewelry market in Dubai is a fairly active segment, with an estimated turnover of $0. 41 billion in 2024. Currently, it is significant and still increasing with year expected growth rate of 1 percent. 78% from 2024 to 2028, for H1n1 and other diseases the prediction value was at 78% from 2024 to 2028. The current survey indicates that the sales per head of the UAE population for jewelry are approximated to be at $ 42 only. 59 in 2024.
It is estimated that 57% of this market will be attributed to the luxury jewelry sector that covers products such as premium quality gold and diamond jewelry. This is because people in the UAE continue to enjoy high-class status and can afford items of high standards.
Jewellery may be described as the collection of goods like ornaments, rings, necklaces, earrings, bracelets, and brooches among other similar products with the general perception that they are personal belongings.
Target Demographics for Jewellery Business in Dubai
In the category of jewelry, the following is a breakdown of the target demography in Dubai. Still, there is a higher probability of building the brand image targeting the luxury segment and people who like using gold and diamond jewelry. This preference suggests the region’s affluence and the class associated with owning high-end jewelry.
The market addresses the customers with needs that stem from the necessity to possess the jewels not only for their value but also as the status symbols reflecting the value of the brands and masters behind the pieces.
How To Start a Jewellery Business in Dubai?
If you want to begin your business related to jewelry, then you should first plan and then register your business company legally in Dubai. As soon as you register your company, begin to identify overseas channels, and determine your supply chain, then you will begin to reap your reward from the business. The following a some of the basics to lay the foundation of your jewelry designing business in Dubai.
- Registering Your Jewellery Company:
Towards this, it is conceivable to register the company either in Mainland Dubai or in any of the Free Zones of Dubai.
If you decide to open a company in a free zone, then the Gold and Diamond Park Free Zone will be appropriate for you due to the name. However, when opening a jewelry business in this free zone, a local partner or sponsor was not necessary.
- Getting a Licence:
You have to decide which channel option you are going to use to incorporate their company into the jewelry industry: the DMCC or the Dubai Department of Economic Development the principal center for foreign investors.
- So the DMCC licence is designed for those investing in a free zone to start their operations from there. From the above, we can deduce that the advantages of a Free zone setup are that you do not need a local sponsor, and finally, you can enjoy full business ownership. Membership of the DDE is mandatory for any investor that is registered with the DMCC.
- You can launch a shop in the Gold Souk market obtain a licence from DED, and sell manufacturers’ products directly to customers, or develop international trade near Port Rashid.
Hiring Staff:
Before officially getting into the jewelry business in Dubai, one is going to need a manager. The DED stipulates that you must employ a manager before you have finalized the registration of your business.
- Meeting Conditions for Jewellery Sales
- The caliber of the materials utilized: In Dubai, you can sell gold and other precious metals both retail and wholesale. You must meet the specifications for the caliber of the materials used to make jewelry pieces whether you choose to open a booth in Dubai’s malls or the Gold Souk market.
- Inspection Procedures for EXIM: Precious metals and ready-made jewelry can be imported or exported by Dubai jewelry enterprises. But first, they need to acquire their gems to pass the Gold Office’s inspection requirements and receive a customs code number.
Legal Regulations Concerning Establishments that Deal in Jewellery Business in Dubai
Selecting the Business Form
The choice of the right legal system is one of the most important strategic decisions for prospective businessmen who plan to invest in jewelry in Dubai. New liberalization in the UAE business laws has allowed foreign investors to fully own their business in the free zones; these are zones in the country that focus on specific industries.
Even the Gold and Diamond Park Free Zone is provided for the use of jewelry enterprises. This has benefits such as support services and sophisticated logistics sans the requirement of a domestic partner.
Licensing Requirements
To function legally it is required to have the right licence. Both the DED and the DMCC are the major licensing authorities for jewel business. For people intending to deal with customers within the domestic markets or business people who intend to export their goods to foreign markets, a D-DED license is suitable.
On the other hand, a DMCC license is more appropriate for businesses within free zones and comes with membership in the DDE. The admission process is rather strict and includes the policy of UAE naming among other factors, as well as the prohibition of using any elements that might be considered obscene or provocative about religious beliefs. Other required documents consist of proof of directors’ identity and shareholders, passport copies, trade name reservations notarized memorandum, and articles of association.
As the rules discovered, an appointed manager is necessary for the DED application to proceed with the registration.
Regulations Governing Import and Export
Jewellery companies that deal with precious metals must comprehend and abide by Dubai’s import and export laws. A customs code number is required and is provided following extensive examinations by the UAE Gold Office. While import duties do not apply to gold bars, other jewelry goods can be subject to VAT.
Additionally, traders need to adhere to a set of guidelines for gold obtained from conflict areas as well as the UAE Good Delivery Standard. The Federal Customs Authority is in charge of overseeing customs laws, and for enterprises to import goods, they must have the appropriate trade license from the relevant emirate’s DED.
Why BizDaddy?
Establishing a jewellery business in Dubai necessitates significant financial outlays that must be made in compliance with government regulations. If you’re eager to launch a jewellery Business in Dubai and require additional information, BizDaddy‘s company formation advisers may assist. We offer the greatest advice on launching your own company in the UAE and seeing it through to success in the ensuing years.
Are you prepared to launch a jewelry company in Dubai? Give us a call right now!
