10 Reasons to Start a Gold Business in Dubai

by Zaara 14, Aug 2019

10 Reasons to Start a Gold Business in Dubai

As stated by Ralph Waldo Emerson, “The desire of gold is not for gold. It is for the means of freedom and benefit”. The demand for gold has been continually working every year, making the UAE market a thriving one transforming it to be an international gold hub and attracting millions of foreign visitors to have a glance. 

If you are a budding entrepreneur or an experienced businessman who wants to start a gold business in Dubai, then you can go ahead. The gold industry is a booming business platform involving departments like Gold Mining, Source and Trading, Refining, Finance, and Investment options.

Now you must be wondering why gold? Well, this guide holds the complete answer to your query. 

Why Incorporate Gold Trading Companies in Dubai?

You need to obtain a SIRA license from the respective Government Authorities that will allow you to properly carry out the gold trading business in Dubai. The reasons for setting up the same are given below. 

1. Gold-Led Economy

Dubai is titled the City of Gold as one can find the purest gold bars ever manufactured in the Middle Eastern Region. Tourists visiting UAE are keen to buy gold in the form of biscuits, bars, jewelry, etc. 

The Gold industry in Dubai turns out to be thriving, wherein you name it, and Dubai has it. Dubai Gold Souk is the most significant player in the gold market, providing a home to more than 300 retailers and becoming a favorite tourist spot. 

2. One of the Precious Metals

Numerous precious metals available in the market, like a diamond, platinum, etc., are higher priced than gold. However, gold hasn’t lost its value, and high demand for the product always exists. 

The gold market players find it too competitive, which has given rise to millions of gold traders in Dubai. 

3. Tangible Asset

Another factor that makes it feasible for a business investor to invest in Dubai’s Gold business is that it is a tangible asset. While dealing with the gold traders for your business, you will get a clear check on the purity of the gold and can get several variations for the same. 

4. Mass Market

The demand for gold is not only experienced in the Middle Eastern Market but has a broad scope in other parts of the world. When it comes to the international market, many countries are seeking to import gold aggressively. 

5. Gives a Different Dimension to Investment Portfolio

Multiple investors have been investing in various industries, but investing in the gold industry uplifts the investment portfolio and builds a positive inclination toward business.  If you are an investor and are looking for possible options to invest in, you can go ahead with gold. 

6. Stands as a Liquid Asset

The flexibility of starting a gold business in Dubai is that it is a liquid asset and can be monetized at any point in the business cycle. This is an excellent option for business investors, as they can use this option in times of emergency. 

This is one of the factors that even provokes the worldwide population to buy gold and convert it into a liquid currency in terms of need. 

7. Complete Ownership

While establishing a gold business, you can opt for free zones, which provide complete ownership, unlike Mainland. Under the law of Dubai Free Zones, an individual possesses full ownership of the business he starts and is free from the burden of opting for a local sponsor. 

8. 100% Tax Exemption

When it comes to any business, tax payment turns out to be a big concern. Well, you don’t have to worry about the same if you deal with the gold business in Dubai. 

The region provides a complete exemption of tax to the business owners and investors who deal with gold businesses. 

9. 100% Repatriation of Capital and Profits

Moving a step forward, if you want to wind up your business at any point in time, you can take back the total capital invested and the profits earned. This protects an investor from the fear of leaving the entire investment and incurring losses regarding the established business during company liquidation. 

10. Easy Retail Centre Availability

You might next wonder where to get a physical space to start a business in Dubai. Well, Dubai provides a plethora of options to business owners and investors to come ahead and open a retail center in the Dubai Gold Souk market, located in the Deira district. 

The locations that you can target to start a gold business in Dubai are stated below:

  1. The Dubai Multi Commodities Centre (DMCC) serves as a dedicated free zone for the gold industry ranging from trading to refining and manufacturing of gold, holding a count of more than 13,000 companies on its premises.

  1. Dubai Gold and Diamond Park, another dedicated free zone that allows business investors to occupy office space for their gold business

  1. The third option turns out to be Dubai Mainland, where you can look forward to setting up a gold business. By establishing a company here, you can operate your business in any part of the country. 

The UAE has been taking all the necessary measures to grab more attention from business freaks and international investors interested in starting gold companies in Dubai. Proceeding alone on an unknown path might be troublesome at the initial stage. To avoid the same business, investors plan to go ahead with the guidance provided by business experts as they know the legal proceedings and business establishment process. 

Commitbiz Consultants, a premier business consultant in Dubai, serves to provide dedicated business incorporation services.  Since our inception, we have helped multiple business investors to start their businesses in UAE, Qatar, Bahrain, and Oman. Our experienced business experts take the required steps to understand your business needs and cater to the services accordingly. 

To have a word with our business experts, do contact us-we’d be glad to assist.

FAQs

Is the gold business profitable in Dubai?

Yes.

Whether any import duty required for gold investment in Dubai?

Yes.

How much does the UAE government charge for purchasing gold jewellery?

5% VAT.

What are the top locations for the gold trading business in Dubai?

The top locations for gold trading business in Dubai are:

  • DMCC Free Zone

  • Gold and Diamond Park

  • Dubai Mainland.

Which place is suitable for setting up your gold trading company in Dubai Mainland?

If you wish to set up your gold trading company in Dubai Mainland, the Gold Souk market is the best location.

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