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Gold trading in Dubai starts with a trade licence carrying the right activity code, registration as a Dealer in Precious Metals and Stones with the Ministry of Economy and Tourism, and enrolment in the goAML platform. Investment-grade bullion is zero-rated for VAT while crafted jewellery carries 5%. Corporate tax is 0% up to AED 375,000 of taxable income and 9% above it. Licence routes, setup steps, tax rules and compliance duties are set out below with their official sources.
Table of Contents
Dubai's weight in the bullion market begins with geography but does not end there. Sitting between African production sites, South Asian jewellery demand and the European refining network, the emirate has become a junction that buys raw gold, processes it and re-exports it. The bonded corridor linking Jebel Ali Port to Dubai International Airport lets high-value consignments change hands within hours rather than days.
The second decisive factor is the regulatory architecture. Precious metals are regulated federally by the Ministry of Economy and Tourism, while DMCC operates as an ecosystem provider and accreditation body rather than the regulator. Understanding that split early keeps an application in front of the right authority.
| Indicator | Value | Source |
|---|---|---|
| UAE precious metals trade (2024) | ~AED 625bn (USD 170bn) | DMCC |
| Year-on-year growth | 27% | DMCC |
| Global rank in physical gold trade | 2nd, after Switzerland | DMCC |
| DMCC precious metals and stones members | 1,500+ companies | DMCC |
| Standard VAT rate | 5% (0% on investment bullion) | FTA |
For the cultural and pricing background behind the city's reputation, see why Dubai is called the City of Gold.
Buying and selling gold is not an unregulated activity in the UAE. A trade licence carrying the matching activity code is mandatory, and which authority issues it depends on where the company sits and what it sells.
Most companies targeting bullion, import-export and wholesale volume choose DMCC. The zone offers an integrated ecosystem: vault services, DMCC Tradeflow collateral registration and access to the DGCX derivatives market. Full foreign ownership is available and declared share capital typically sits around AED 50,000.
A specialist district built for manufacturing, jewellery design and workshop activity. It suits jewellers who want the retail window and the workshop at a single address.
Businesses selling directly into the local market, or opening a shop in the Deira Gold Souk or a shopping mall, licence through the Department of Economy and Tourism. Mainland companies can bid for government contracts and open branches without geographic restriction. For a side-by-side view, read the mainland versus free zone comparison.
| Criterion | DMCC | Gold & Diamond Park | Mainland (DET) |
|---|---|---|---|
| Primary use | Bullion, wholesale, import-export | Manufacturing and jewellery workshops | Retail and local sales |
| Direct sales to the local market | Distributor or branch needed | Limited | Direct |
| Vault and logistics | Integrated (vault, Tradeflow) | Workshop oriented | Third-party providers |
| Corporate tax | 0% on qualifying income if QFZP conditions are met | Subject to QFZP conditions | 9% above AED 375,000 |
| Typical profile | International trader | Manufacturer, designer | Jeweller, shop owner |
Whether a free zone company keeps its 0% rate is a technical question in its own right; the conditions are set out in the guide to Qualifying Free Zone Person status.
With a complete file, the sequence below typically runs from two to six weeks. The bank approval stage is what usually stretches the timeline.
Formation Sequence
Entrepreneurs who prefer to run every stage through one adviser can use our Dubai company formation service; those focused on the local market follow the separate mainland company formation route.
Where an activity needs additional municipal or ministerial clearance, running those permit applications in parallel with the licence avoids weeks of delay.
The standard VAT rate in the UAE is 5%. Under Article 36 of Cabinet Decision 52/2017, however, gold, silver and platinum are zero-rated when purity is 99% or higher and the metal is in a form tradeable on global bullion markets. Fail either condition and the relief does not apply: crafted jewellery and gift items carry 5%.
On supplies of precious metals and stones between VAT-registered businesses, the buyer accounts for the tax instead of the supplier. Cabinet Decision 127/2024, effective 26 February 2025, repealed the 2018 Decision 25 and widened the scope. It now covers gold, silver, platinum and palladium alongside diamonds, pearls, rubies, sapphires and emeralds, plus jewellery made from them.
For the mechanism to apply, the buyer must be VAT-registered in the UAE and must declare in writing before the supply both its registration and its intention to resell the goods or use them in production. The supplier is required to verify that registration through a method approved by the Federal Tax Authority. The reverse charge does not apply to exports.
Corporate tax is 0% on the first AED 375,000 of taxable income and 9% above that. Free zone companies can keep the 0% rate on qualifying income as long as they meet the Qualifying Free Zone Person conditions; sales to mainland customers can put that status at risk.
| Transaction | VAT Treatment | Basis |
|---|---|---|
| Investment bullion at 99%+ purity | 0% (zero-rated) | Cabinet Decision 52/2017, Art. 36 |
| Crafted gold jewellery | 5% | Standard rate |
| Supply between VAT registrants | Reverse charge (buyer accounts) | Cabinet Decision 127/2024 |
| Export supply | 0% | VAT Law Art. 45(1) |
| Retail sale to a tourist | 5%, refundable on departure | Tourist Refund Scheme |
Tourists spending at least AED 250 can reclaim 85% of the VAT paid, less AED 4.80 per tax-free tag, provided the retailer is registered in the scheme. To set up filing and bookkeeping correctly, see our Dubai tax consultancy service.
Gold trading falls within the UAE's Designated Non-Financial Businesses and Professions category. Compliance duties therefore begin with the licence, and the Ministry of Economy and Tourism supervises them.
Dealers in Precious Metals and Stones must register on the Financial Intelligence Unit's goAML platform. Registration runs in two stages: credentials are issued through the ministry system first, then the goAML account is opened. An authorisation letter, passport and Emirates ID copies and the trade licence are required. Businesses that skip registration face administrative penalties.
The UAE framework sets AED 55,000 as the threshold above which AML measures become mandatory. Cash transactions over that amount, and cash or wire transactions with companies, trigger a DPMSR filing. The reporting duty is not risk-dependent: the report is filed even where customer due diligence comes back clean. Suspicious transaction reports carry no threshold at all and are filed as soon as suspicion arises.
Refiners and high-volume suppliers carry a further obligation under the responsible sourcing regulations: a written management system, supply chain risk identification, a mitigation plan for conflict-affected areas and an independent third-party audit. The audit report is submitted to the ministry within ninety days of the review being completed.
Banks classify gold trading as a higher-risk sector, which makes account opening the longest stage of the setup. Approval typically takes two to four weeks and can run longer depending on the file.
What improves the odds: a physical office and local phone line, at least one authorised signatory on a residence visa, a realistic turnover projection backed by supplier and customer lists, written KYC and supply chain policies, and documentary evidence of the source of funds. A stock tracking system that records bullion movements shortens the bank's question list considerably. Corporate and personal options are covered in our Dubai bank account opening service.
The total budget moves with the jurisdiction, office type, number of visas and opening stock. The items below give a first-year planning frame. Official fees vary by activity code, so the final figure should be confirmed against the current tariff of the issuing authority.
| Cost Item | Scope | Note |
|---|---|---|
| Trade name and initial approval | One-off | Name reservations expire after a set period |
| Trade licence (annual) | Roughly AED 20,000–50,000 at DMCC | Mainland fees are set by activity code |
| Office / flexi-desk | Annual | Physical stock requires a security-approved space |
| Share capital | Typically AED 50,000 at DMCC | Declared capital varies with the activity |
| Residence visa and Emirates ID | Per person | Health insurance is mandatory |
| Compliance and accounting setup | Annual | goAML registration, AML policy, bookkeeping |
| Opening stock and insurance | Variable | The largest item; includes vault and transit cover |
In bullion, the standard a product is made to directly affects who will buy it. The UAE introduced its own national standard in 2021 and built an assurance framework aligned with OECD guidance, overseen by the Emirates Gold Bullion Committee.
DMCC also runs two accreditations. Market Deliverable Brand status requires at least one year of operating history, a responsible sourcing compliance report and audited financial statements. Dubai Good Delivery is considerably heavier: three consecutive years of operation, net current assets above USD 15 million, and refining volumes of at least 10 tonnes of gold or 30 tonnes of silver in each of the last three years.
On the retail side, the hallmark, the split between metal weight and making charges on the invoice, and Dubai Central Laboratory testing are what count. A gap between the declared karat and actual purity creates both regulatory exposure and reputational damage.
Dubai is one of the rare cities that blends traditional craftsmanship with a contemporary shopping experience. The most striking example of this harmony is the Gold Souk in Deira, one of the world’s most famous gold markets. With hundreds of jewelers lined up in this historic bazaar, its vibrant displays of intricate designs, gold bars, and investment-grade products attract millions of visitors annually. Competitive pricing, superior craftsmanship, and a lively atmosphere make it appealing not only for shopping but also for cultural exploration.
On the other hand, modern shopping destinations like the Gold & Diamond Park and Dubai Mall cater to a more upscale clientele. These luxury centers offer certified products in premium settings, featuring international brands and bespoke jewelry collections. Preferred by both tourists and affluent residents of Dubai, these venues stand out for their quality service and trustworthy offerings.
For professional investors and large-scale traders, the Dubai Gold and Commodities Exchange (DGCX) plays a crucial role. These high-tech platforms provide a secure and regulated environment, reinforcing Dubai’s leadership in the global gold market. Whether in traditional souks or modern malls, Dubai offers a comprehensive and diversified trading ecosystem for both gold buyers and sellers.
Requirements for Engaging in the Gold Trade in Dubai
Starting a gold trading business in Dubai requires a clear strategy and strict adherence to the legal framework. First, the business model must be defined—whether retail, wholesale, manufacturing, or digital sales. This decision will shape both the licensing process and operational structure.
The next step is choosing a business location. While Dubai Mainland is known for its historic markets and bustling trade zones, the DMCC Free Zone is popular for its tax advantages and streamlined setup processes. Alternatively, the Gold & Diamond Park caters to businesses looking to operate in more niche, specialized segments.
Obtaining the appropriate license is the most critical legal step. These may include general trading licenses, jewelry manufacturing permits, or sector-specific licenses issued by authorities such as DMCC. In addition, compliance with Anti-Money Laundering (AML) regulations, product certification, and proper transaction record-keeping are mandatory.
To ensure smooth financial operations, opening a corporate bank account tailored to the gold industry is essential. With the right preparation, full regulatory compliance, and a solid business plan, entrepreneurs can confidently establish a sustainable gold business in Dubai.
Choosing the Right Business Model for Gold Trade in Dubai
Before entering the gold market in Dubai, it's vital to accurately define your market positioning. The business model you choose will not only determine your field of operation but also influence your target audience, license type, and growth potential. Key business models include:
Retail Jewelry Business: Ideal for those looking to open a store in Dubai’s traditional souks or luxury malls. This model focuses on selling gold jewelry, decorative pieces, and investment gold directly to consumers.
Wholesale Gold Trading: Targeting institutional buyers and international clients, this model deals in raw gold, bullion, and coins. It relies on high-volume, low-margin transactions.
Manufacturing and Refining: Suitable for entrepreneurs looking to create their own brand or process raw gold into finished products. This includes jewelry production, coin minting, and refining—activities requiring technical expertise.
E-Commerce Sales: Selling gold products via digital platforms appeals especially to tech-savvy and younger consumers. Through online marketplaces, social media, and dedicated e-commerce websites, businesses can reach a broader audience.
Each model comes with its own licensing requirements, operating costs, and legal obligations. Therefore, entrepreneurs must thoroughly analyze their target market, capital structure, and technical infrastructure to select the most appropriate business model.
Dubai’s geography and infrastructure make it one of the most important crossroads of the global gold trade. Sitting at the centre of Europe, Asia and Africa gives the emirate logistics and commercial advantages few other hubs can match.
Gold businesses based in Dubai have a rare set of opportunities to expand internationally.
Figures reflect official sources at the date of publication. Fees and regulations change, so confirm the current tariff with the relevant authority before applying.
What decides success in gold trading is usually not the spread but the accuracy of the structure. A bullion-led business positioned in a free zone, and a jeweller aiming at retail operating on a mainland licence, will face very different tax burdens and very different routes to the customer.
The same applies to compliance. When goAML registration, reverse charge declarations and a supply chain policy are put in place before trading starts, the risk of penalties and account closures later drops sharply. Weighing the activity code, jurisdiction, tax status and bank file as one plan avoids expensive corrections down the line.
The total budget depends on the jurisdiction, office type and number of visas. At DMCC the annual licence sits roughly in the AED 20,000–50,000 range and declared share capital is typically AED 50,000. Mainland fees are set by activity code, so no single figure applies; confirm the current tariff with the issuing authority. Rent, compliance setup, insurance and opening stock are budgeted separately.
There are three main routes: the DMCC Free Zone for international bullion and wholesale trade, Gold & Diamond Park for manufacturing and jewellery workshops, and the Department of Economy and Tourism for selling directly into the local market. The licence type follows from whether the business is retail, manufacturing, refining or wholesale.
Yes. Full foreign ownership is standard in the free zones, and it is also available for many commercial activities on the mainland. Because exceptions exist for certain activity codes, check the ownership status of your specific code before applying.
Investment-grade gold of 99% purity or higher, in a form tradeable on global bullion markets, is zero-rated. Crafted jewellery and gift items carry 5%. Tourists spending at least AED 250 can reclaim 85% of the VAT paid, less AED 4.80 per tag, when leaving the country.
Under Cabinet Decision 127/2024, effective 26 February 2025, the buyer accounts for VAT on supplies of precious metals and stones between registered businesses. The buyer must declare in writing before the supply that it is VAT-registered and intends to resell the goods or use them in production, and the supplier must verify that registration. It does not apply to exports.
Gold trading falls under the UAE's Designated Non-Financial Businesses and Professions rules. Businesses must maintain a written AML policy, run customer due diligence, keep transaction records and file a DPMSR for transactions above the AED 55,000 threshold. Suspicious transaction reports are filed regardless of value.
It is mandatory. Dealers in precious metals and stones must register on the Financial Intelligence Unit's goAML platform before trading. Registration runs in two stages: credentials are issued through the ministry system, then the goAML account is opened. An authorisation letter, passport and Emirates ID copies and the trade licence are required.
With a complete file the licence stage usually closes within a few working days. Visa processing, compliance registrations and bank approval extend the timeline, so end-to-end setup typically takes two to six weeks. Bank approval is the least predictable stage.
At DMCC, declared share capital is typically around AED 50,000, though this varies with the activity code and company structure. On the mainland, minimum capital requirements are set by activity. Whether the capital must actually be blocked is confirmed during the application.
Yes, provided the appropriate e-commerce activity code is added to the licence. Physical delivery, storage, insurance and customer due diligence obligations still apply in full. Cross-border sales need customs declarations and export documentation, while domestic sales require the correct VAT treatment.
It can, but the sale may affect Qualifying Free Zone Person status. Where mainland sales are not treated as qualifying income, the company can lose its 0% corporate tax rate. For that reason mainland sales are usually routed through a separate branch or a distributor.
Three factors mainly explain it: zero-rated VAT on investment bullion, intense competition among a large number of sellers, and low making charges. The city's refining and logistics infrastructure also keeps intermediation costs down.
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