Start a Precious Stones Wholesale Trading Business in Dubai
Dubai sits at the crossroads of the world's most active diamond and gemstone supply chains, making it one of the most strategically valuable locations on earth to trade precious stones at wholesale scale. This guide explains how to obtain a Precious Stones Wholesale Trading license (Activity Code 4669.07) at Dubai South Business Hub Free Zone, covering market context, setup costs, compliance steps, and why Dubai is built for this trade.
Key Stats at a Glance
Activity Code: 4669.07 - Wholesale of Precious Stones
License Type: Trading License, Dubai South Business Hub Free Zone
Foreign Ownership: 100% permitted, no UAE national partner required
Corporate Tax on Qualifying Free Zone Income: 0%
Import/Export Duties Within the Zone: 0%
Typical License Cost: AED 12,000 to AED 25,000 per year
Estimated Setup Timeline: 3 to 7 working days for complete applications
AML Threshold for Enhanced Due Diligence: AED 55,000 per transaction
Dubai's Precious Stones Market: Why the Opportunity Is Real
The UAE ranks among the world's leading re-export hubs for diamonds, coloured gemstones, and precious metals. The Dubai Multi Commodities Centre facilitates billions of dollars in annual gemstone trade, underpinning the emirate's reputation as a global trading gateway rather than merely a regional market.
Demand is driven by several converging forces. The Gulf retail jewellery sector continues to grow, supported by high consumer spending and a luxury tourism industry that attracts millions of high-net-worth visitors each year. International B2B buyers regularly pass through Dubai to source stones, negotiate contracts, and consolidate shipments destined for markets across Asia, Europe, and the Americas.
Geography plays a decisive role. Dubai sits naturally between African mining regions, Indian cutting and polishing centres, and the vast consumer markets of East and Southeast Asia. This positioning creates an organic wholesale flow that few other cities can replicate. Post-Expo 2020 infrastructure investment and the UAE's Vision 2031 trade diversification targets reinforce the long-term stability of this market, offering investors and traders a reliable foundation for multi-year business planning.
What the Precious Stones Wholesale Trading License Covers
Activity Code 4669.07, classified under the ISIC framework, permits the wholesale trading of precious and semi-precious stones. This includes diamonds, rubies, emeralds, sapphires, and comparable gemstones traded in bulk between businesses. The license is issued as a Trading License by Dubai South Business Hub Free Zone and falls within the Trading category.
Permitted activities under this license include the import, export, re-export, storage, and wholesale distribution of precious stones to other businesses. Traders can use the license to source stones internationally, hold inventory within the free zone, and redistribute to buyers across the region and beyond.
It is important to note that the license does not automatically cover retail sales to end consumers or jewellery manufacturing. Businesses wishing to add those activities would need to apply for additional activity approvals. However, for pure wholesale and distribution operations, Activity Code 4669.07 provides comprehensive coverage. Crucially, the free zone structure permits 100% foreign ownership with no requirement to appoint a UAE national partner, giving international traders full control of their entity.
Who This License Is Suited To
This license is particularly well suited to the following business profiles:
International gemstone traders and diamond brokers seeking a UAE base to serve Middle East, African, and Asian markets from a single, tax-efficient jurisdiction
Jewellery manufacturers and wholesalers that need to source and redistribute certified stones across the region without establishing multiple legal entities
Investment firms and commodity traders looking to add precious stones to a diversified trading portfolio within a regulated and reputable framework
Entrepreneurs relocating from high-tax jurisdictions who want a zero-corporate-tax free zone environment with full profit repatriation and no restrictions on moving capital out of the UAE
Setup Costs, Steps, and Compliance Requirements
Typical trading license costs at Dubai South Business Hub Free Zone range from AED 12,000 to AED 25,000 per year, depending on the visa allocation chosen and the office package selected. Additional costs to budget for include registration fees, an establishment card, and optional facility arrangements such as a flexi-desk or dedicated warehouse space for stone storage. There is no mandatory minimum share capital requirement for most free zone structures, which reduces the initial capital commitment for new entrants.
For straightforward applications submitted with complete documentation, the timeline from application to license issuance is typically three to seven working days.
Step-by-Step Setup Process
Choose a business name and confirm it complies with UAE naming conventions, which prohibit offensive terms and references to political or religious bodies
Submit the application to Dubai South Business Hub Free Zone with passport copies, a business plan summary, and proof of address for all shareholders
Receive initial approval and pay the applicable license and registration fees
Open a UAE corporate bank account, which is required for trading operations; allow two to four weeks for bank onboarding and due diligence
Obtain visa entitlements for shareholders and employees as required by the size of the operation
Compliance and Regulatory Requirements
Precious stones traders operating in the UAE must meet specific compliance obligations that reflect the high-value nature of this commodity. Key requirements include:
Registration with the UAE Financial Intelligence Unit's goAML platform as part of the country's anti-money laundering and combating the financing of terrorism framework
Businesses dealing in high-value goods above AED 55,000 per transaction are classified as Designated Non-Financial Businesses and Professions and must conduct thorough customer due diligence on counterparties
Compliance with the Kimberley Process Certification Scheme for any diamond trading activity, confirming that stones originate from conflict-free sources
Annual license renewal and maintenance of updated Emirates ID or visa documentation for all registered individuals to keep the company in good standing
Why Dubai South Is a Strong Base for This Trade
Dubai South's location adjacent to Al Maktoum International Airport, which is planned to become the world's largest airport by capacity, is a significant operational advantage for precious stones traders. High-value stones can be airfreighted with minimal transit time, reducing exposure to risk during transport and enabling faster fulfilment of international orders.
The free zone's financial benefits are equally compelling. Qualifying income is subject to 0% corporate tax, there are no import or export duties within the zone, and traders enjoy full repatriation of profits and capital with no restrictions. These terms make Dubai South one of the most cost-efficient bases available to international commodity traders.
The surrounding ecosystem adds further value. Dubai's dedicated gold and diamond district provides proximity to established industry players, and a network of logistics providers specialising in secure precious goods transport operates throughout the emirate. The UAE has signed over 100 bilateral trade agreements and double taxation treaties, reducing friction for cross-border wholesale transactions and improving the economics of trading with key partner countries. A stable regulatory environment, world-class banking infrastructure, and English-language business operations reduce complexity for international operators setting up for the first time.
Conclusion
A Precious Stones Wholesale Trading license at Dubai South Business Hub Free Zone gives international traders a tax-efficient, strategically located, and fully foreign-owned base to operate across one of the world's most active gemstone corridors, with a straightforward setup process and a clear compliance framework. The combination of geographic advantage, financial incentives, and robust regulation makes Dubai a genuinely compelling choice for serious wholesale operators.
Speak with a Dubai South-registered business setup adviser to confirm current fee schedules, visa packages, and facility options before submitting your application.
Related Activities
Specialised Products Wholesale Trading Trading License
Plastic Materials Wholesale Trading Trading License
Rubber Products Wholesale Trading Trading License
