How to Start a Gold Trading Business in Dubai

Introduction: Why the World Trades Gold in Dubai

Dubai is not just a place where gold is sold; it is where the price of gold is defined for the region.

Nicknamed the “City of Gold,” Dubai handles approximately 20-40% of the world’s physical gold stocks annually. But for the modern investor, the opportunity in 2025 goes beyond just buying a shop in the Deira Gold Souk. With the UAE’s removal from the FATF “Grey List” and the expansion of the DMCC Tea & Gold Centre, the infrastructure here is unmatched globally.

Whether you want to trade bullion (investment grade), manufacture jewelry, or open a retail showroom, the path is lucrative—but strictly regulated.

At Arab Asset, we navigate the complex compliance landscape (AML, VAT, SIRA) so you can focus on the trade. Here is your blueprint.

The “Big 3” Benefits for Gold Traders

Most blogs list generic benefits. Here is what actually matters to your bottom line:

1. The VAT Reverse Charge Mechanism (RCM):

   For B2B traders, cash flow is king. In Dubai, registered dealers do not pay 5% VAT upfront when buying from other registered dealers. The liability shifts to the buyer, keeping your working capital free.

2. Customs Duty Exemptions:

   While general jewelry imports attract a 5% duty, investment-grade gold bullion (purity >99%) is often exempt from customs duties and VAT, making Dubai a tax-neutral hub for bullion trading.

3. Security & Asset Protection:

   Dubai is one of the safest cities on earth. Moving high-value assets between the airport, Transguard vaults, and your office is standard procedure here, supported by world-class security infrastructure.

6 Steps to Launching Your Gold Business

Starting a gold business is different from a general trading company. It requires security clearance.

Step 1: Define Your Activity (Bullion vs. Jewelry)

This is critical.

• “Non-Manufactured Precious Metal Trading”: For selling bars/ingots (Investment focus).

• “Jewelry Trading”: For selling finished necklaces, rings, etc. (Retail/Fashion focus).

• Note: Mixing these incorrectly can cause issues with your bank later.

Step 2: Choose Your Jurisdiction

• DMCC (Free Zone): The global standard. Best for wholesale, bullion trading, and accessing the Dubai Gold & Commodities Exchange (DGCX).

• Mainland (DED): Essential if you want a physical retail shop (like in the Gold Souk or a Mall) to sell directly to consumers.

Step 3: SIRA Approval (The “Hidden” Step)

Unlike other businesses, you cannot just rent any office. You need approval from SIRA (Security Industry Regulatory Agency).

• Your shop or office must meet strict security guidelines (CCTV, safes, alarm systems) before your license is finalized.

Step 4: Banking & Compliance (goAML)

Gold is a “High-Risk” sector for banks. To open an account, you must register on the government’s goAML portal.

• Arab Asset Tip: We prepare your AML policy documentation to ensure your bank account application doesn’t get rejected.

Step 5: Location Strategy

• Deira Gold Souk: High footfall, tourist-heavy, but rents are premium (approx. AED 100k+ for small shops).

• Gold & Diamond Park: More modern, air-conditioned, better parking—popular with expats.

• DMCC (JLT): Best for office-based trading where you don’t need a storefront.

Cost Breakdown: How Much Capital Do You Need?

Gold trading is capital intensive. Below is a realistic cost estimate for 2025.

Estimated License & Setup Costs (2025)

Jurisdiction	Package Type	Est. Cost (AED)	Best For…
DMCC Free Zone	License + Flexi Desk	~AED 35,000	Wholesale / Bullion Traders
Mainland (DED)	License + Local Fees	~AED 25,000*	Retail Shops / Showrooms
IFZA / Meydan	General Trading License	~AED 14,000	E-commerce Jewelry
Gold & Diamond Park	License + Workshop	~AED 45,000	Manufacturers

> Note: This excludes the cost of physical office rent, SIRA-approved safe installation, and stock capital. Mainland costs vary based on exact shop size.

Critical Operational Considerations

1. Sourcing & Authenticating

You must adhere to “Dubai Good Delivery” (DGD) standards if you are trading bullion. Sourcing from non-compliant refineries can lead to your business being blacklisted.

2. Anti-Money Laundering (AML) is Serious

The UAE takes financial crime zero-tolerance.

• Any cash transaction over AED 55,000 must be reported.

• You must appoint a Compliance Officer (can be the owner) to oversee transactions.

3. VAT on Jewelry vs. Bullion

• Investment Gold (>99%): 0% VAT.

• Jewelry: 5% VAT (Refundable for tourists at the airport via the Planet Tax Free system—a huge selling point for your customers!).

Marketing: How to Sell Gold in 2025

Old school traders rely on footfall. New school traders use:

• Digital Trust: Showcasing your SIRA and DED certificates on your website to prove authenticity.

• Influencer Marketing: Short-form video (Reels/TikTok) is dominating jewelry sales in the UAE.

• Exhibitions: A booth at the Watch & Jewellery Middle East Show (Sharjah) or VOD Dubai International Jewellery Show is the fastest way to meet B2B buyers.

Start Safely with Arab Asset

Gold trading is profitable, but it is one of the most scrutinized industries in the UAE. One mistake with SIRA requirements or AML reporting can shut you down.

Don’t risk it.

At Arab Asset, we specialize in high-compliance setups.

• We handle the SIRA paperwork.

• We guide you through the goAML registration.

• We connect you with banks that understand the gold business.

Ready to strike gold?

Contact Arab Asset today for a confidential consultation on setting up your trading desk or jewelry showroom.

FAQs regarding Gold Business

Is there Import Duty on Gold?

Generally, Gold Bullion (raw material) is exempt from customs duty. However, finished Gold Jewelry usually attracts a 5% Customs Duty upon import.

Can I carry gold into Dubai as a passenger to sell?

Travelers can bring gold, but if it is in commercial quantities, you must declare it at customs and have a valid Trade License to clear it. Trying to bring in “commercial” gold as “personal” luggage is illegal and will result in confiscation.

Do I need a local sponsor?

For most activities, no. You can have 100% foreign ownership of a gold trading company on both the Mainland and Free Zones.

What is the “goAML” portal?

It is the UAE government’s reporting platform. All dealers in precious metals (DPMS) must register here to report suspicious transactions. It is mandatory for opening a bank account.