Dubai has an important share in the UAE gold business trade. The history of Dubai tells us that it has been a gold hub for traders for ages. A quarter of the gold trading transactions in the world happen in Dubai. This is the reason that Dubai has been called the center of Gold. According to UAE authorities, the gold import was determined at Dh 142 billion. The export of gold accounted for Dh 76 billion yearly. Dubai is a hub of gold traders in the world and it has a special share in the UAE’s gold business.
There are different jurisdictions that have the capability to do gold trading in Dubai. To do gold trading, you should get a gold trading license from the authorities. Here in this article, we discuss how to start a gold business in Dubai and gold-free trade centers.
How to start a Gold business in Dubai?
If you have the right knowledge about gold and ways to trade you can get a gold trade license in Dubai. It is not difficult to start a gold business in Dubai if you have a piece of good knowledge about the process. The application process is simple and straightforward. It should be complete and should not have any misleading information or errors.
If you have difficulty in going through the legal documents and the official authority’s work, you can consult with the business establishment companies. These companies will provide you with detailed information and documentation that you have to submit to authorities.
Once all the documents are submitted the process of registration begins. During this stage, the application of the license will be processed. To suit your business requirements and to have transactions dealing you should have a corporate account. Arrange for having an account with the most appropriate bank that gives you the best benefits. You should get your work permit orders to initiate your trading business. Once you get all the legal permits you can establish your company and start your business.
To do gold business, there are many legal requirements and several jurisdictions provide the facility. In Dubai, there are three places where there is the highest number of gold traders. A trip to Dubai is incomplete if you do not visit the Gold souk, it is the largest, oldest, and most happening gold bazaar in the world.
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Dubai Department of Economic Development
You should get a local license for trading gold with the customers. The Department of Economic Development (DED) provides the license for starting a retail outlet business in Gold Souk, Deira. Once you get the local license you can open stalls in the shopping malls.
In the most popular tourist hot spots, you get the authority to open kiosks. With a commercial license, you should have a local partner who has a share of 51% of the share in the business entity. Submit your draft to the local authorities that will comply with the local area rules to get approval.
The department follows a very strict code of conduct with relation to security arrangements in your business plan. The security requirements should be in compliance with legal requirements. The retail gold business should have a security plan and it should include the protection and safety of the customers and the business unit.
To provide insurance to the business, it is advised to contact the insurance brokers. The insurance brokers will then facilitate the best provisions and provide a policy that will protect your business through insurance.
If your business objective is mainly to do import and export of the gold then the areas in and around Port Rashid are very much famous. There are many logistic companies that facilitate the shipment of gold safely to any destination.
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Gold and Diamond Park Free Zone
In Dubai, the free gold trade zones are located. The Gold and Diamond Park is one of them which is located in the Sheikh Zayed Road. There are over 90 leading retailers of gold and jewelry in this free zone. It has 118 manufacturing blocks and 350 offices. This area has the facilities for doing business and also offers 100 % Expat ownership. The Gold and Diamond Park is under the Jurisdiction of Jebel Ali Free Zone Authority. You will get many advantages of being in a free trade zone.
Dubai Multi Commodities Centre (DMCC) Free Zone
Dubai Multi Commodities Center was set up in the year 2002. The government of Dubai authority established DMCC. The aim of the DMCC is to develop and do business promotion of gold trade throughout the Emirates of Dubai.
It has a free trade zone which is known as Jumeirah Lakes Towers (JLT) Free Zone. It provides facilities and incentives for the member business entities. The business incentives such as 0% corporate tax, greater choice of commercial and office real estate space within the zonal area, and support related to trade and logistics infrastructure.
The DMCC authorities focus on providing facilities to increase the gold business. It takes up a number of initiatives to support the growth of Dubai’s gold business. The initiatives are for the development of gold refineries, supporting gold trade business, and setting up standards for gold refinery,
DMCC serves as a gold value chain where it offers Dubai Gold and Commodities Exchange. It is a trade finance product and it has won the global free zone for five years. DMCC has an online portal where company registration can be done easily from across the globe. This is the main reason the business owners always consider Dubai as the best place to initiate gold business.
The lease rates are higher since the demand from business entrepreneurs has rapidly increased. The international airport also provides a convenient facility for doing business. The imports and exports have largely increased for the traders over the years with this advantage.
Take away
The business incorporation is simple and straightforward. You have to follow the protocols and judicial steps to get the approvals for a gold trading license. There are many professional firms that can assist you to do the incorporation. They can save your money and also your time. If you want to become a ‘world-class’ gold trader then Dubai is the best place for you.
About the author
Vinay Kumar Goguru is a finance professional with more than 8 years of diverse experience as a researcher, instructor and Industry work experience with both public and private entities. Prior to MyMoneySouq, he spent 6 years in Berkadia, It's a commercial mortgage banking company. He has a "Doctoral Degree in Commerce" and two master's degrees with a specialization in Finance, one as Master of Commerce and other as Master of Business Administration. He has written several articles on personal finance, published by different International journals. He loves traveling, reading and writing is his passion. He has a dream of writing a book on his favorite finance topics.
