They say diamonds are a girl’s best friend and gold is the best gift. As the gold economy strengthens the world over, Dubai economy is also shining, thanks to the gold and diamond industry.
If you are a budding entrepreneur who is eying the jewelry industry or a well-settled businessman who is wishing to expand their business, then business setup in Dubai gold market is your chance.
Dubai company formation in strong Gold led economy
The gold industry in Dubai began thriving in the 1940s due to free trade policies which encouraged traders from all over the world to set base here. Today gold and diamond trading are one of the leading imports in Dubai. In the first quarter of 2019, gold dominated in imports in the non-oil category. Gold Imports worth Dh 24.4billion or roughly 15% of total non-oil trade.
Who hasn’t heard about the gold souk? Often a checklist item in travelers exploring the Dubai streets, the Dubai Gold Souk has been a famous and known destination of gold buyers. Gold Souk is a traditional gold market in the heart of the commercial district in Deira. It is home to around 300 retailers who exclusively trade in jewelry.
It has been said that at any given time up to 10 tons of gold is present in the gold souk! This clearly shows the potential of gold business setup in Dubai. The demand for gold comes from countries like India, Iran etc, and shoppers from all around the world flock to Dubai to buy that enchanting piece of jewelry.
If you are not a big fan of traditional gold market setup, then look no further than the Dubai Gold and diamond park. Home to around 90 retailers in a commercial complex located Sheikh Zayed Road on Umm Suqeim. It is fully air-conditioned multistoried with retail shops, offices and manufacturing blocks. Under recent expansion plans, it has been upgraded to 118 manufacturing blocks and commercial office space to no less than 350 offices.
Business setup in gold
- Gold and Diamond Manufacturing
- Offices spaces
- Retail Spaces
This business park is neighbor to multiple other business parks and these all come collectively under the Dubai Mainland: this is a special economic zone where foreign nationals can set up business and enjoy benefits on tax, ownership, and customs. Businessmen seeking extra something in terms of amenities, infrastructure and other features in office leasing have multiple options here.
Here’ why Dubai is the preferred option for gold business.
- 100% ownership: There are many types of companies that can be incorporated under Dubai laws. Contrary to Limited Liability Company (LLC) clause where your stake as a foreigner is limited, under Free zones, you get 100% ownership on your business. Under Dubai Free zones laws, a single individual can set up the business and rope in maximum benefits of the business.
- 100% repatriation of capital and profits: All the profits incurred from business activities can be pulled back in the business as capital without having to pay any taxes.
- Exemption on corporate tax
- Exemption on income tax
- 24/7 operational facilities Giving the business owners benefits of an ‘always open’ business
- Workforce: Expatriate workers can be easily hired with minimum paperwork and maximum government assistance.
- Easy access to all supporting business facilities: no matter what business function you choose, you would have supporting functions at your disposal at all times.
- Central air conditioning: no worrying about the Dubai heat, with centralized AC complexes
- Tastefully build work environment with exhaust, ventilation systems, and acid waste disposal system
- Secure at all times: Given the discreetness and security requirements of the gold business, business owners are provided with 24/7 security personnel. In addition hi-tech video surveillance, fire alarm system etc is installed in all units.
- Soon to be launched hallmarking by Dubai municipality for all gold manufactured and sold from Dubai gold and diamond park.
- Shuttle services in and around the complex.
- World-class retail center facilities for businessmen, to service gold buying shoppers.
Documents required for registration with gold and diamond park management
- Valid passport copies of the shareholders
- Updated resume of the manager of the business
- Proof of trade name
- Proof of initial approval
- Notarized memorandum of association and article of association
- Notarized and attested power of attorney for legal representation of any
- Lease agreement
- Minimum capital requirement: In the case of Dubai local company, the minimum authorized capital of AED 150,000 is required. You are also required to submit rent to gold park management and 15% of annual unit rent as refundable deposit. This is not inclusive of the maintenance fee. In addition to the above, you may also need to pay other licensing and permit fee to the government body depending upon the type of activity you will be undertaken in a gold business setup.
For the uninitiated, the process may seem tedious and they may need some hand-holding by professional business consultants in Dubai, Alghaf Golden.
The gold and diamond business setup is a lucrative business opportunity. Every year the Dubai government celebrates the Dubai shopping festival which is a shopper’s paradise for all things glittery! After the oil industry, the government is looking at other industries to drive foreign capital into the country. And the trends are pointing at the jewelry industry.
If you are interested in exploring this opportunity, contact us today and we will be glad to assist you on all professional fronts.