Love for jewels has always been constant across the world. Be it for wearing or any gifting it to somebody. Ornaments are precious things a person can hold. Gold has the highest corrosion resistance of all the metals, and it is corroded only by a mixture of hydrochloric acid. These qualities make gold a very desired and useful metal.
Indian government increased the tax on gold and precious metals to 12.5 per cent. Experts in the UAE are forecasting an uptick in sales after the Indian government raised import duties on gold and precious metals to 12.5 per cent. While fears are the escalation from ten per cent could dampen retail demand and accelerate smuggling in the world's second-biggest bullion consumer, operator in the UAE are kneading their hands at the potential influx in Indian business.
Karim Merchant's View
Karim Merchant is the CEO, and MD of Pure Gold Jewelers mentioned that "India raising its import duty on gold to 12.5 per cent is good news for the UAE jewellery industry. Indians living here and Indian tourists are one of the largest customer bases for the jewellery industry in the UAE. With the import duty in India going up, pricing in the UAE market becomes more attractive to Indian buyers."
The present price per gram of twenty-two thousand in the UAE is AED one hundred fifty-nine (forty-three dollar) per gram of twenty-two thousand gold in Delhi.
Abdul Salam KP is the Group Executive Director of Malabar Group, and he mentioned that revised duty structure, customers will profit more than Rs four hundred per gram on gold purchases from GCC countries.
It is assumed to encourage bulk buyers, especially on the wedding-related purchase, to visit the UAE, Other GCC states, Malaysia and Singapore.
It is said that if a family of four visits and get back ornaments on a very reasonable permitted quantity, they can cover their trip cost-friendly. They also have the additional profit of much more comprehensive choice from international designs of jewellery.
Jewellery trade associations had asked India's government to lessen gold import duties. But whereas Finance Minister Nirmala Sitharaman ignored the calls and escalated the import duties.
The aim is focused on bringing down the fiscal deficit.
But Salam was scared this will give a negative impact on the country's economy.
He said that the additional import duty for gold would hurt the domestic gold and jewellery market and promote illegal gold business which is detrimental to the economy.
Historically jewellery sales account for seventy-five per cent of the total gold demand and sales and bullion sales accounting for the remaining twenty-five per cent sales in the Indian market.
Company Formation for Gold Business in Dubai
Dubai is a multinational player in the gold industry. To enter into the gold industry, an entrepreneur can go for any of the following regions
- Gold and Diamond Park free trade zone, this is mainly for physical trading
- Mainland of Dubai
- DMCC free zone
Types of Licenses
There are various kinds of licenses that can be obtained to establish a gold business in UAE.
- Trading License
- Manufacturing License
- Innovation License
- E-commerce License
- Service License
- Retail License
Dubai has been victorious in attracting foreign investors to invest in the gold and valuable metals industry. If you want to establish your business internationally, then you grab the opportunity for developing your dream business in the gold industry in the UAE. At this point, you'd need a guide to take you through the entire process of establishing your business. Commitbiz is a platform that can support and help you in establishing your business foundation. Our experts are well versed and will look after every requirement of yours. We not only look after the documentation but the whole process, for further details, contact us. We would be glad to assist you in setting your gold business in UAE.