The UAE is known for its oil and gas, and both are exported worldwide; thus, strengthening the economy of the country. In addition, the country has several opportunities and growth potential in this area. That is why many individuals are starting in this lucrative world. Likewise, you can obtain a gold trading license in Dubai and start your own business.
In this article, we will make sure you understand everything about gold trading and its benefits to investors. In the same vein, you will learn all the requirements and what are the best jurisdictions for gold business in the UAE. On the other hand, you will understand why starting a gold trading business in the UAE is a great idea. Let’s observe:
- Starting a Gold Trading Business in Dubai
- What are the best locations for gold trading in the UAE?
- Why should you start gold trading in Dubai?
- What documents do you need to start a gold business in Dubai?
- How to process a Gold Trading License in Dubai and the UAE?
- Why is investing in gold a good idea?
- How can Connect Free Zone assist you to obtain a gold trading license in Dubai?
1. Starting a Gold Trading Business in Dubai
Dubai’s metal market offers several options for gold trading for starting entrepreneurs and investors willing to expand their horizons. In addition, the gold trading business in the country has been growing in the last decades and it attracts traders from around the world.
In 2022, the trading practice of precious metals like diamonds and gold is one of the most thriving imports in Dubai. On the other hand, it has a trading contribution of up to 22% of all UAE’s non-oil exports; likewise, the gold trading in the UAE, as well as other precious jewelry and metals, is an important area of the economy of the country.
If you are thinking about getting a gold trading license in Dubai and starting to trade; there are some things you should consider and know for the right setup.
2. What are the best locations for gold trading in the UAE?
Before you start a gold trading business in the UAE; you should understand the dynamics of the location from which you want to establish it. Here are some of your options:
2.1. DMCC Free Zone
The Dubai Multi Commodities Centre Free zone is one of the best locations for gold trading in the UAE. In the same vein, it was created in 2002 and today is one of the most important free zones in Dubai. On the other hand, the DMCC free zone is a commerce and trade hub for refining and R&D to investing and trading.
Thus, trading diamonds, gold, stones, and precious metals is a leading business in the area.
2.2. Gold and Diamond Park
This zone has approximately 90 retailers, Dubai Gold and diamond park is a commercial area located in Sheikh Zayed Road in Dubai. In the same vein, this multistoried and fully air-conditioned complex has several offices, manufacturing units, and retail shops.
Further, the Gold and Diamond Park has been improved to 350 commercial offices and 120 manufacturing units with the current expansion objectives.
2.3. Dubai Mainland
If you want to obtain a gold trading license in the UAE and set up your trading company in Mainland Dubai; the Gold Souk market is probably the best location. That is to say, in this area, you directly sell your products. In addition, this famous market is known as the destination of gold buyers and is usually on the tourists’ checklist.
Likewise, it is a traditional gold market in the center of the commercial district of Deira. Similarly, more than 300 retailers trade their jewelry here.
3. Why should you start gold trading in Dubai?
There are several factors that make Dubai the perfect option for starting a gold trade business in the UAE:
- You can withdraw all your profits from the gold trading activity as capital without having to pay any taxes.
- Receive the benefits of the ‘always open’ facilities.
- You obtain full ownership of your business and receive all the benefits of your gold trading business in the free zones.
- Since it does not need much paperwork, it is really easy to hire ex-pat workers with maximum government assistance.
- You are exempt from income tax and corporate tax.
- Obtain easy access to all supporting business and functions entities almost 24/7.
- With all the centralized AC facilities, you will never have to worry about the hot weather conditions in the city.
- Get shuttle services around and within the complex.
- Acquire an exciting and fantastic work environment with acid waste disposal systems as well as ventilation systems.
- All the gold sold and manufactured from the Dubai Gold and Diamond Park has an authentication mark.
- All owners of jewelry and gold trading businesses in the city are provided with experienced security personnel as well as hi-tech video surveillance. In addition, all the facilities have fire alarm systems.
- You obtain the best retail centers in order to provide the best quality of service to your clients.
4. What documents do you need to start a Gold Business in Dubai?
If you want to obtain a gold trading license in Dubai and start your business; here is the list of documents you need:
- Firstly, you must submit valid passport copies of all the involved individuals.
- Secondly, you must the resume of your business manager.
- After that, register your legal trade name and obtain the legal document to show as proof.
- Acquire all the documents, permissions, and certifications for the initial approval from the government entities in charge.
- You need to draft and obtain the MOA (Memorandum of association) properly signed. In addition, obtain the article of association.
- Contact a legal partner for legal representation of any lease agreement. For instance, in Connect Free Zone we can assist you in this area.
In the same vein, if you want to start gold trading in any of Dubai’s free zone; you need a capital of at least AED 150,000 if it is necessary. In addition, you would also need to pay rent to the gold park management and deposit 15% of the yearly unit; however, this does not include the maintenance fee and it is refundable.
On the other hand, you may have to pay the permit and license fees to the government body entity. Certainly, it depends on your type of business activity.
5. How to process a Gold Trading License in Dubai and the UAE?
You can obtain a gold trade license if you follow the next steps for a hassle-free process:
5.1. Decide your company name
Deciding on a catchy and rememberable for your business is one of the most important steps when starting a gold trade business in the UAE. Further, you must avoid using any complicated or offensive words or language in your business name. And you cannot use an already existing name. However, if you name the company after a person, you must use the full name of that person.
In addition, you must also check for the availability of the name after you try to register. However, in Connect Free Zone we take care of this step.
5.2. Apply for your license
The application for the license is the second most important step to obtain the license in Dubai. In the same vein, if you are obtaining a gold trade license in the Dubai Mainland, you may submit your application to the DED (Department of Economic Development). On the other hand, if you are establishing in the Dubai Free Zone, you must submit your application to the government body in charge of the free zone.
And whether you are drafting your application by yourself or with the help of a specialist like us; you only must provide some basic documents and a few details, including:
- Passport copies of the shareholders and owner
- A duly completed application form
- 2 passport-size photos
5.3. Apply for your Visa
After that, you must apply for a Visa. That is to say, you need one Visa for you and for all your employees. In the same vein, once you have obtained your business license for your gold business; you have the right to sponsor other individuals. However, the maximum number of applicable visas totally depends on the size of your business and your activities.
6. Why is investing in gold a good idea?
- It always retains its value: Unlike paper currencies, common coins, or other assets; gold is known for maintaining its value. Similarly, the special properties of gold are highly esteemed. That is to say, this metal is known for the fact that you can melt it and its resistance to corrosion.
- There are different ways to hold gold: It is generally a good idea to have some physical gold in the form of bars or coins. Likewise, there are other important options for individuals looking to invest in gold. For instance, one way to profit from it is to obtain a gold business license in Dubai and start your new business.
On the other hand, there is also the possibility of investing in gold mining shares; allowing you to obtain the benefits of gold price without storing it physically. Certainly, during the bull market, mining shares outpace the price of gold.
- Higher demand: emerging markets like China and India have increased massively their demand for gold. In the same vein, gold usually has had a more important place in the culture of these types of countries. Certainly, the gold demand in China has been steady and stable among those who see gold bars as a good type of savings.
On the other hand, in India, it is valuable during wedding seasons and thus, increases the global demand for gold.
- Safeguard against inflation: gold has a reputation of being the safe option against inflation that eats the value of paper assets. In addition, it does not matter what happens to it, gold will retain its value while theoretically paper assets can go to zero.
7. How can Connect Free Zone assist you to obtain a gold trading license in Dubai?
In Connect Free Zone, we understand that starting a gold trade business by yourself can be a complex task. That is to say, we are here to help you find the most suitable location for your business. With us, you obtain the best discounts, pricing, and packages in the most popular free zones in Dubai.
Working side-by-side with us you can take advantage of our more than 20 years of experience working with all types of business in Dubai and the UAE. Thus, this has helped us obtain experience to assist you and achieve your business objectives. In addition, we can sponsor your organization so you can easily establish it in Mainland Dubai.
In addition, we ensure you establish your business in the greatest possible location. Further, we will make sure you take advantage of all the benefits the different jurisdictions have for you. Similarly, we compare locations, rules, regulations, and locations regarding your business’ PRO services and goals.
Would you like Connect Free zone to help you obtain a gold trading license in Dubai? If you want us to start assisting you in this process, or if you have additional questions about the gold trading business in the UAE; you can always send us an email via contact@connectfz.com. Or if you rather speak on the phone, call us at +971 4331 6688; whenever you want.
Or if you want to submit your resume or CV; please enter to thetalentpoint.com. On the other hand, we do not store resumes and CVs sent to us.
Kate WilliamsSkills in Communication, Interpersonal Skills, Time Management, Teamwork, and Customer Experience. She is an enthusiastic self-starter with a passion for building relationships with people.
