Apply for a Pearls and Precious Stones Trading Licence in Dubai

Dubai sits at the crossroads of the global gems and jewellery trade, handling billions of dollars in precious stone transactions each year and offering one of the world's most business-friendly environments for entering this high-value market. This guide explains how to obtain a Pearls and Precious Stones Trading Licence (Activity Code 4773.12) at Dubai South Business Hub Free Zone, covering costs, compliance requirements, and the strategic advantages of trading from this location.

Dubai's Precious Stones Market: Why It Matters

The UAE ranks among the world's top re-export hubs for gems and jewellery, with annual trade valued in the tens of billions of dollars. Dubai's geographic position places it at the intersection of major supply and demand corridors, connecting suppliers in Asia, Africa, and Europe with buyers across the Gulf, the broader Middle East, and international markets.

Demand for certified natural pearls and ethically sourced gemstones continues to grow, driven by increasing consumer awareness and the rise of provenance-conscious luxury buyers. This trend is creating fresh trading opportunities for businesses that can demonstrate credible sourcing and certification standards.

Dubai South Free Zone positions traders within the Dubai South Economic Zone, in close proximity to Al Maktoum International Airport. This location supports efficient import and re-export logistics for high-value, time-sensitive shipments, making it a practical and commercially sound base for precious stone traders who operate across multiple markets.

Key Market Statistics at a Glance

• UAE is among the world's top re-export hubs for gems and jewellery

• Activity Code: 4773.12 | Licence Type: Trading Licence | Category: Trading

• 100% foreign ownership permitted at Dubai South Business Hub Free Zone

• 0% corporate tax on qualifying free zone income

• 0% import and export duties within the free zone

• UAE has over 130 double taxation treaty agreements

• Licence packages typically start from approximately AED 12,000

• AML compliance mandatory: goAML registration required for all precious stone traders

What the Pearls and Precious Stones Trading Licence Covers

Activity Code 4773.12 authorises the retail and wholesale trading of natural and cultured pearls, diamonds, rubies, sapphires, emeralds, and other precious and semi-precious stones. The licence is classified as a Trading Licence under the Trading category and is issued by Dubai South Business Hub Free Zone.

The licence permits the import, export, re-export, and local distribution of all covered commodities within the scope of the activity. Traders can source stones internationally, bring them into the free zone, and redistribute them to buyers in the UAE and overseas without incurring standard import duties within the zone.

It is important to note that this licence does not cover manufacturing, cutting, or polishing activities. Businesses wishing to add value through processing will need to apply for separate activity codes that authorise those specific operations.

Who This Licence Is Suited To

• International gem traders and wholesalers seeking a Gulf-based distribution hub

• Pearl dealers sourcing from the Gulf, Australia, or Asia for global resale

• Jewellery retailers looking to import certified loose stones in a duty-efficient structure

• Entrepreneurs and investors entering the luxury commodities sector with the benefit of 100% foreign ownership

Licensing Requirements and Compliance Obligations

Applicants must register with Dubai South Business Hub Free Zone and submit standard incorporation documents, including passport copies, a business plan, and the completed application form. The process is straightforward, but traders in this sector also carry significant regulatory obligations under UAE federal law.

Precious stone traders are subject to UAE Federal Decree-Law No. 20 of 2018 on anti-money laundering (AML) and counter-financing of terrorism (CFT). This legislation applies strictly to businesses dealing in high-value goods, including gems and jewellery. As a result, traders are classified as Designated Non-Financial Businesses and Professions (DNFBPs) and must register with the UAE Financial Intelligence Unit via the goAML platform.

Businesses must implement Know Your Customer (KYC) procedures for all clients and counterparties, and maintain full transaction records for a minimum of five years. Goods must also comply with UAE customs declaration requirements, and traders handling certain organic gem materials, such as coral, must be aware of applicable CITES (Convention on International Trade in Endangered Species) regulations.

Key Regulatory Bodies

• Dubai South Free Zone Authority: Responsible for licence issuance, renewal, and ongoing free zone compliance

• UAE Central Bank and Ministry of Economy: Oversee AML and CFT obligations for DNFBPs, including precious stone traders

• Dubai Customs: Manages all import, export, and re-export documentation and declarations

Setup Costs and Step-by-Step Application Process

Licence fees at Dubai South Business Hub Free Zone are competitive relative to mainland options. Packages typically start from approximately AED 12,000 to AED 20,000, depending on visa allocation and office configuration selected. Additional costs to budget for include the establishment card, e-channel registration, and medical and Emirates ID fees per visa. Notarisation of documents may also be required in certain circumstances.

There is no minimum share capital requirement for most free zone trading licences. However, a UAE corporate bank account will require evidence of genuine business activity. Crucially, 100% foreign ownership is permitted, with no requirement to engage a local sponsor or agent.

Application Steps

• Step 1: Choose your business structure, either a Free Zone Establishment (sole shareholder) or a Free Zone Company (multiple shareholders), and reserve your trade name with Dubai South

• Step 2: Submit your application with passport copies, a no-objection certificate if currently employed in the UAE, and all completed forms to the Dubai South Free Zone Authority

• Step 3: Pay the applicable licence and registration fees and select your facility type, whether a flexi-desk, serviced office, or warehouse unit

• Step 4: Receive initial approval, sign your lease agreement, and obtain the issued trading licence

• Step 5: Open a UAE corporate bank account and complete your goAML registration to satisfy AML compliance obligations before commencing trading

Why Dubai South Is a Strategic Base for Precious Stones Trading

Dubai South's proximity to Al Maktoum International Airport is a defining advantage for precious stone traders. The airport is planned to become the world's largest cargo hub, and its current infrastructure already enables fast clearance of high-value shipments, reducing the time between purchase and resale.

Free zone status delivers meaningful financial benefits. Traders benefit from 0% corporate tax on qualifying income, 0% import and export duties on goods moving within the zone, and full repatriation of profits and capital. The UAE's extensive double taxation treaty network, covering more than 130 agreements, further reduces withholding tax friction for traders operating across multiple jurisdictions.

Dubai's established reputation as a trusted gems and jewellery centre, supported by institutions such as the Dubai Multi Commodities Centre and the Dubai Gold and Jewellery Group, strengthens buyer confidence in businesses operating from this location. Finally, Dubai South's scalable infrastructure allows traders to upgrade from a flexi-desk arrangement to a bonded warehouse facility as trading volumes and storage requirements grow.

Frequently Asked Questions

How much does a Pearls and Precious Stones Trading Licence cost at Dubai South?

Licence packages at Dubai South Business Hub Free Zone typically start from approximately AED 12,000 to AED 20,000. The final cost depends on the number of visas required and the type of facility selected. Additional fees apply for establishment cards, e-channel registration, and individual visa processing.

Can a foreign national own 100% of the business?

Yes. Dubai South Business Hub Free Zone permits 100% foreign ownership of all registered companies. There is no requirement to appoint a UAE national as a local sponsor or partner.

What approvals are required beyond the free zone licence?

In addition to the free zone trading licence, precious stone traders must register with the UAE Financial Intelligence Unit via the goAML platform, as they are classified as DNFBPs under UAE AML legislation. Compliance with Dubai Customs requirements for all import, export, and re-export shipments is also mandatory.

How long does the application process take?

In most cases, the initial approval and licence issuance can be completed within five to ten working days, provided all documentation is submitted correctly. Bank account opening timelines vary by institution and typically take two to four weeks.

What profit margins can precious stone traders expect?

Margins vary considerably depending on the type of stone, sourcing relationships, and whether trading is wholesale or retail. The free zone structure reduces overhead through tax efficiency and duty savings, which can meaningfully improve net margins compared to mainland operations.

Can goods be re-exported from Dubai South?

Yes. The licence explicitly permits re-export of precious stones and pearls. Dubai South's location adjacent to Al Maktoum International Airport makes it particularly well suited to re-export operations, with access to efficient cargo handling and customs clearance facilities.

Are there specific facility requirements for storing precious stones?

Traders operating at flexi-desk level can conduct trading activities without dedicated storage. However, businesses holding physical inventory will need to consider secure storage solutions, which may include upgrading to a private office or bonded warehouse unit within the free zone.

Does this licence cover semi-precious stones as well as precious stones?

Yes. Activity Code 4773.12 covers the trading of both precious stones, such as diamonds, rubies, sapphires, and emeralds, and semi-precious stones, as well as natural and cultured pearls. Manufacturing, cutting, and polishing activities are not included and require separate authorisation.

Conclusion

A Pearls and Precious Stones Trading Licence (Activity Code 4773.12) at Dubai South Business Hub Free Zone gives traders 100% foreign ownership, tax-efficient operations, and direct access to one of the world's most active gem and jewellery markets, backed by a clear regulatory framework that builds international buyer trust.

Contact our licensing specialists today to receive a tailored cost breakdown and begin your application for a Pearls and Precious Stones Trading Licence at Dubai South.

References and Further Reading

• Dubai South Free Zone Authority - Official Website

• UAE Financial Intelligence Unit (goAML) - Official Portal

• UAE Ministry of Economy - AML and DNFBP Regulations

• Dubai Customs - Import, Export and Re-export Requirements

• CITES - Convention on International Trade in Endangered Species

• Dubai Multi Commodities Centre (DMCC) - Gems and Precious Metals

• UAE Government Portal - Doing Business in the UAE