Precious Metals Wholesale Trading License in Dubai
Dubai has long been regarded as one of the world's foremost trading hubs for gold and precious metals, handling a significant share of global physical gold flows each year. For entrepreneurs and established traders alike, securing a Precious Metals Wholesale Trading License in Dubai represents a gateway to one of the most lucrative commodity markets on the planet. With activity code 4662.04 under the Trading License category, this license enables businesses to operate within a structured, internationally recognised regulatory framework, particularly through the Dubai South Business Hub Free Zone.
Dubai's Precious Metals Market: Why It Matters
The UAE is consistently ranked among the top global centres for gold trade. Dubai alone accounts for a substantial portion of worldwide gold re-exports, with the emirate's strategic location bridging markets in Asia, Africa, Europe, and the Americas. The Dubai Multi Commodities Centre (Dubai’s commodities ecosystem) estimates that the UAE trades hundreds of tonnes of gold annually, reinforcing the city's status as a vital node in the global precious metals supply chain.
Beyond gold, the market encompasses silver, platinum, palladium, and other precious metals, all of which are in growing demand from jewellery manufacturers, industrial users, investment funds, and central banks. Dubai's zero personal income tax environment, world-class logistics infrastructure, and transparent legal system make it an exceptionally attractive base for wholesale precious metals trading.
What the License Covers
A Precious Metals Wholesale Trading License under activity code 4662.04 permits the holder to engage in the wholesale buying and selling of gold, silver, platinum, and related precious metals. Specific activities covered include:
Wholesale trading of gold bars, coins, and bullion
Trading of silver, platinum, and palladium in bulk quantities
Import and export of precious metals for commercial purposes
Re-export of precious metals to international markets
Supply of precious metals to manufacturers, refiners, and institutional buyers
It is important to note that this license covers wholesale trade rather than retail jewellery sales, which requires a separate activity classification.
Who Is This License Best Suited For?
This license is ideal for a wide range of business profiles, including:
International gold traders seeking a UAE base for regional operations
Bullion dealers and commodity brokers expanding into the Middle East
Mining companies looking to establish a trading arm in Dubai
Refineries and smelters requiring a wholesale distribution entity
Investment firms dealing in physical precious metals
Re-export traders leveraging Dubai's logistics connectivity
Key Infographic: Precious Metals Wholesale Trading at a Glance
Key Facts at a Glance
Activity Code: 4662.04
License Type: Trading License
Free Zone: Dubai South Business Hub
Ownership: 100% foreign ownership permitted
Typical Setup Timeline: 2 to 4 weeks
Minimum Share Capital: Subject to authority requirements (varies by structure)
Corporate Tax: 0% on qualifying free zone income
UAE Gold Trade Volume: Among the top 3 globally for physical gold flows
Setup Costs and Steps
Setting up a precious metals wholesale trading company at Dubai South Business Hub Free Zone involves several clear steps:
Choose your business structure: Options typically include a Free Zone Establishment (FZE) for a single shareholder or a Free Zone Company (FZC) for multiple shareholders.
Submit your application: Provide passport copies, a business plan, and relevant background documentation to the free zone authority.
Obtain initial approval: The authority reviews the application and issues initial approval, usually within a few working days.
Secure office or facility space: A registered address within the free zone is mandatory. Options range from flexi-desk arrangements to warehousing facilities suited to physical metals storage.
Pay license and registration fees: Costs vary depending on the chosen package, office type, and number of visa allocations required. Prospective applicants should request a current fee schedule directly from the authority.
Receive your trade license: Once all documents are verified and fees are settled, the trading license is issued.
Licensing and Compliance Requirements
Precious metals trading is subject to heightened regulatory scrutiny globally, and Dubai is no exception. License holders must adhere to the following:
Registration with the UAE's anti-money laundering (AML) framework and compliance with Federal Decree-Law No. 20 of 2018 on AML and Combating the Financing of Terrorism
Adherence to the UAE's Designated Non-Financial Businesses and Professions (DNFBP) requirements, which apply directly to precious metals dealers
Maintaining accurate records of all transactions, counterparties, and shipments
Conducting customer due diligence (CDD) and enhanced due diligence (EDD) where applicable
Filing suspicious transaction reports (STRs) with the UAE Financial Intelligence Unit (FIU) via the goAML platform when required
Compliance with Dubai Customs regulations for import and export of precious metals
Businesses should also be aware of the OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas, which is increasingly referenced by institutional buyers and international partners.
Why Dubai South Business Hub Free Zone?
Dubai South is strategically positioned adjacent to Al Maktoum International Airport and the Jebel Ali Port corridor, two of the most significant logistics gateways in the world. For precious metals traders, this proximity is invaluable, enabling rapid clearance, secure storage, and efficient onward distribution. The free zone offers a business-friendly environment with streamlined government services, dedicated support for trading companies, and access to a vast network of logistics providers and financial institutions.
Related Activities
Non-Ferrous Metals Wholesale Trading Business
Metals & Metal Ores Trading Trading License
Iron & Steel Wholesale Trading Trading License
