Non-Manufactured Precious Metal Trading License in Dubai

Dubai has long been recognised as one of the world's foremost hubs for precious metal trade, handling billions of dollars in gold, silver, platinum, and related commodities every year. For entrepreneurs and established trading houses looking to enter this lucrative market, securing a Non-Manufactured Precious Metal Trading Licence at Dubai South Business Hub Free Zone offers a structured, compliant, and commercially advantageous pathway. Under Activity Code 4752.77, this Trading Licence (Category: Trading) grants holders the legal authority to buy, sell, and distribute raw, unrefined, or semi-processed precious metals within and beyond the UAE.

Why Dubai for Precious Metal Trading?

The UAE consistently ranks among the top three global gold trading centres, alongside London and Zurich. Dubai alone accounts for a significant share of global physical gold trade, supported by world-class logistics infrastructure, a zero-rate corporate tax environment on qualifying income, and a regulatory framework designed to attract international commodity traders.

Dubai South Free Zone sits adjacent to Al Maktoum International Airport, one of the largest cargo airports in the world by capacity. This proximity provides direct access to air freight corridors connecting Asia, Africa, Europe, and the Americas, making it an ideal base for re-export operations and cross-border precious metal distribution.

Key market advantages include:

• No personal income tax and competitive corporate tax rates for free zone entities

• 100 per cent foreign ownership permitted within the free zone

• Full repatriation of profits and capital

• Access to the UAE's extensive network of double taxation avoidance agreements

• Proximity to major gold souks, refineries, and vaulting facilities

What the Licence Covers

The Non-Manufactured Precious Metal Trading Licence (Activity Code 4752.77) authorises businesses to engage in the wholesale and retail trading of precious metals that have not yet undergone manufacturing or fabrication into jewellery or finished goods. This includes, but is not limited to:

• Raw gold in bar, grain, or dore form

• Unrefined silver and silver bullion

• Platinum group metals in raw or semi-processed states

• Palladium and rhodium in non-manufactured form

Licence holders may import, export, re-export, store, and trade these commodities, making the licence particularly well-suited to businesses operating across the full supply chain from mining and refining to distribution.

Who This Licence Suits

This licence is designed for a broad range of business profiles, including:

• International bullion traders seeking a Middle East base of operations

• Mining companies looking to sell raw output into global markets

• Commodity brokers and trading desks handling physical metal

• Refineries seeking a distribution arm in a tax-efficient jurisdiction

• Investors diversifying into physical commodity trading

Key Stats at a Glance

Infographic: Non-Manufactured Precious Metal Trading in Dubai South

• Activity Code: 4752.77

• Licence Type: Trading Licence

• Foreign Ownership: 100 per cent permitted

• Free Zone: Dubai South Business Hub

• UAE Gold Trade Value: Over USD 43 billion annually

• Typical Setup Timeline: 3 to 6 weeks

• Minimum Share Capital: Subject to free zone authority requirements

• Corporate Tax: 0 per cent on qualifying free zone income

Setup Steps and Costs

Establishing a Non-Manufactured Precious Metal Trading company at Dubai South Business Hub involves a clear sequence of steps:

1. Business name reservation: Submit proposed trade names to the Dubai South Free Zone Authority for approval.

2. Application submission: Complete the free zone licence application, including details of shareholders, directors, and intended activities.

3. Document preparation: Provide passport copies, proof of address, and relevant corporate documents for all shareholders and directors.

4. Licence fee payment: Pay the applicable trading licence fee to the Dubai South Free Zone Authority.

5. Office or facility selection: Choose from flexi-desk, serviced office, or dedicated warehouse options depending on operational requirements.

6. Visa applications: Apply for residency visas for shareholders and employees as required.

7. Bank account opening: Engage a UAE-based bank to open a corporate account, subject to standard due diligence procedures.

Licence fees and package costs vary depending on the office type selected and the number of visas required. Businesses should budget for licence fees, registration charges, and facility costs, as well as any applicable government fees for visa processing.

Compliance and Regulatory Requirements

Trading in non-manufactured precious metals in the UAE is subject to a robust compliance framework. Licence holders must adhere to:

• UAE Central Bank anti-money laundering (AML) and counter-financing of terrorism (CFT) regulations

• Dubai Multi Commodities Centre (DMCC) Traceability Standards where applicable to sourcing

• Responsible sourcing policies aligned with the OECD Due Diligence Guidance for Responsible Supply Chains of Minerals

• Annual licence renewal with the Dubai South Free Zone Authority

• Maintenance of accurate trade records and financial statements

The UAE's inclusion in international frameworks for responsible mineral trade means that businesses must conduct thorough due diligence on the origin of metals they trade, particularly for gold sourced from conflict-affected or high-risk areas.

Frequently Asked Questions

1. What does it cost to obtain a Non-Manufactured Precious Metal Trading Licence at Dubai South?

Costs vary based on the office package selected and the number of visas required. Licence fees, registration charges, and facility costs are the primary components. It is advisable to request a detailed quotation from the Dubai South Free Zone Authority or a registered business setup consultant to obtain current pricing.

2. Can foreign nationals own 100 per cent of the company?

Yes. Dubai South Free Zone permits 100 per cent foreign ownership of companies licensed within the zone, with no requirement for a local UAE national partner or sponsor.

3. Are any additional government approvals required beyond the free zone licence?

Depending on the volume and nature of trade, businesses may need to register with UAE customs authorities and comply with AML reporting obligations to the UAE Financial Intelligence Unit. Certain sourcing activities may also require alignment with DMCC traceability standards.

4. How long does the licence setup process take?

The typical timeline from application submission to licence issuance is three to six weeks, subject to document completeness and authority processing times.

5. What profit margins can be expected in non-manufactured precious metal trading?

Margins in bullion and raw precious metal trading are typically thin, often ranging from fractions of a per cent to a few per cent depending on volume, market conditions, and the trader's position in the supply chain. High-volume operations tend to be more viable, and margins can be supplemented through hedging strategies and value-added services.

6. Can licence holders re-export precious metals to other countries?

Yes. One of the key advantages of operating from Dubai South Free Zone is the ability to import, store, and re-export precious metals to international markets, taking advantage of the UAE's strategic location and logistics infrastructure.

7. What facility requirements apply to precious metal traders?

Requirements depend on the scale of operations. Traders dealing in physical metal may require secure storage or vaulting arrangements in addition to standard office facilities. Dubai South offers a range of facility options, and businesses handling significant physical inventory should assess security and insurance requirements carefully.

8. Is the licence suitable for sole traders or only for corporations?

The licence is available to both individual entrepreneurs and corporate entities. Dubai South Free Zone accommodates a range of legal structures, including Free Zone Establishments (FZE) for single shareholders and Free Zone Companies (FZC) for multiple shareholders.

Conclusion

A Non-Manufactured Precious Metal Trading Licence at Dubai South Business Hub Free Zone represents a well-structured entry point into one of the world's most active commodity markets. With 100 per cent foreign ownership, a tax-efficient environment, world-class logistics connectivity, and a clear regulatory framework, Dubai South offers traders the infrastructure and credibility needed to compete at an international level. Whether you are an established bullion house or a new entrant to the precious metals market, this licence provides the legal foundation to operate with confidence in the UAE and beyond.

To begin your application or to obtain a tailored cost estimate, contact the Dubai South Free Zone Authority or speak with a licensed business setup adviser familiar with commodity trading licences in the UAE.

References and Further Reading

• Dubai South Free Zone Authority - Official Website

• UAE Central Bank - AML and CFT Regulations

• DMCC - Responsible Sourcing and Traceability Standards

• OECD Due Diligence Guidance for Responsible Supply Chains of Minerals

• UAE Government Portal - Setting Up a Business in a Free Zone