Trading Of Gold- An everlasting business in Dubai
Dubai also known as the City Of Gold is considered the most preferable market across the globe for people who either want to set up a business to trade or buy gold, diamond, platinum, and other precious metals and precious stones. The quality, size, and design of the gold jewellery displayed in the Dubai markets including the world-famous Gold Souk market attract every passer to look at and touch the displayed items. The rush of people in the gold markets never seems to decrease in Dubai. The gold business either in non-manufactured forms like ingots, bars, biscuits, bullion, and chips or manufactured in the form of necklaces, rings, bangles, etc appreciates every year in the Dubai market. The import and export of gold scale new heights every year.
The major contributor to the GDP of Dubai is the tourism sector and one of the main components of such a booming tourism sector is the gold trading business over here. From investing in gold and other precious metals to shopping for special occasions like festivals and marriages people from across the world visit Dubai to buy gold.
The ease of setting up a business by the authority on trade in Dubai with respect to the trading of gold and other precious metals has played a pivotal role in the success of the Gold Trading Business in Dubai.
The Department of Economy and Tourism has specified the business activities that allow the trading of gold and other precious metals and additional requirement of approval from the Security and Industry Regulatory Authority (SIRA) during the process.
The requirement of approval from SIRA adds security protection to the business as the gold and precious metals possess great monetary value and hence the SIRA assures that these businesses are well equipped to safeguard against any possible damages like theft, fire, or any other untoward incident.
Every Year around 200 to 300 business licenses are issued by the Department of Economy and Tourism for the Trading of Gold, Gem Stones, and other Precious Metals either in finished jewelry form or non-manufactured form.
The trading of gold in non-manufactured form or finished form falls under the commercial license category with Limited Liability Company (LLC) legal type and 100% ex-pat ownership possible, hence there is no scope for shareholding dilution.
How to get a License for Trading Gold and Other Precious Metals in Dubai?
- Trade Name Reservation and Initial Approval from DET: The initial step for obtaining a gold trading license is to book a trading name for your company and take the initial approval.
- Select an office/shop: Take a Shop/Office that meets the requirements for trading gold whether displayed or not displayed of SIRA for approval.
- NOC from SIRA: The next step is to obtain a NOC from the SIRA for the shop or the office by meeting the requirements like installation of CCTV, alarm system, fire exit, etc.
- Final Submission: Final Submission is to be made with DET along with NOC from SIRA and Ejari and a license is issued by DET.
- Submission of Documents with SIRA: The license issued by DET is to be submitted with SIRA, the SIRA will carry out the inspection and after inspection, the final permit will be issued.
We at Flying Colour Business Setup Services, a team of highly skilled professionals with experience of more than 18 years in the UAE market have helped numerous clients set up their businesses in trading gold and other Precious Metals in Dubai. if you are planning to start a similar business in Dubai, we would be happy to assist you.