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 Licence in Dubai represents a gateway to one of the most lucrative commodity markets on the planet. With activity code 4662.04 under the Trading Licence category, this licence 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 (DMCC) 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 Licence Covers

A Precious Metals Wholesale Trading Licence 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 licence covers wholesale trade rather than retail jewellery sales, which requires a separate activity classification.

Who Is This Licence Best Suited For?

This licence 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

• Licence Type: Trading Licence

• 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:

1. 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.

2. Submit your application: Provide passport copies, a business plan, and relevant background documentation to the free zone authority.

3. Obtain initial approval: The authority reviews the application and issues initial approval, usually within a few working days.

4. 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.

5. Pay licence 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.

6. Receive your trade licence: Once all documents are verified and fees are settled, the trading licence is issued.

Licensing and Compliance Requirements

Precious metals trading is subject to heightened regulatory scrutiny globally, and Dubai is no exception. Licence 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.

Frequently Asked Questions

1. What are the approximate costs to obtain this licence?

Costs vary depending on the business structure, office type, and number of visas required. Licence fees, registration fees, and facility costs are the primary components. It is advisable to contact Dubai South Business Hub Free Zone directly for a current and tailored fee schedule, as pricing is subject to periodic revision.

2. Can foreign nationals own 100% of the company?

Yes. One of the primary advantages of establishing within a UAE free zone such as Dubai South is that 100% foreign ownership is permitted. There is no requirement for a local UAE national sponsor or partner.

3. What additional approvals are required for precious metals trading?

Beyond the standard free zone licence, traders classified as Designated Non-Financial Businesses and Professions (DNFBPs) must register with the relevant supervisory authority and implement a compliant AML/CFT programme. Dubai Customs approval is also required for import and export activities.

4. How long does the setup process take?

The typical timeline from application submission to licence issuance is between two and four weeks, provided all documentation is complete and accurate. Delays can occur if additional approvals or background checks are required.

5. What are the typical profit margins in wholesale precious metals trading?

Margins in wholesale precious metals trading are generally thin, often ranging from fractions of a percent to a few percentage points per transaction. However, the high transaction volumes and values involved mean that absolute profit figures can be substantial. Margins vary depending on market conditions, the metals traded, counterparty relationships, and operational efficiency.

6. Is re-export of precious metals permitted under this licence?

Yes. The licence under activity code 4662.04 explicitly covers the re-export of precious metals to international markets, which is a core activity for many traders operating out of Dubai. Dubai's customs and logistics infrastructure is well-equipped to facilitate efficient re-export operations.

7. What facility requirements apply to physical metals storage?

Businesses handling physical precious metals are expected to maintain secure, insured storage facilities that meet the standards required by insurers, auditors, and counterparties. Dubai South offers access to warehousing and vault facilities within its logistics ecosystem. The specific requirements will depend on the volume and nature of metals held.

8. Can this licence be used to trade all precious metals, or only gold?

The licence covers the wholesale trading of a range of precious metals, including gold, silver, platinum, and palladium. Traders should confirm the specific commodities listed on their licence at the time of application to ensure all intended activities are fully covered.

Conclusion

A Precious Metals Wholesale Trading Licence at Dubai South Business Hub Free Zone offers a compelling combination of strategic location, regulatory clarity, full foreign ownership, and access to global markets. Whether you are entering the precious metals trade for the first time or expanding an existing operation, Dubai's infrastructure and business environment provide a robust foundation. With the right compliance framework in place, licence holders are well-positioned to capitalise on the enduring global demand for gold and other precious metals.

To begin your application or to receive a detailed cost breakdown, contact the Dubai South Business Hub Free Zone authority directly or consult a licensed UAE business setup adviser who specialises in commodity trading licences.

References and Further Reading

• Dubai South Official Website

• Dubai Multi Commodities Centre (DMCC)

• UAE Financial Intelligence Unit (FIU) and goAML Platform

• UAE Ministry of Economy: AML/CFT for DNFBPs

• Financial Action Task Force (FATF): Guidance on Precious Metals and Stones

• OECD Due Diligence Guidance for Responsible Mineral Supply Chains

• Dubai Customs: Import and Export Regulations