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 licence (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

• Licence Type: Trading Licence, 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 Licence 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 Licence 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 licence is issued as a Trading Licence by Dubai South Business Hub Free Zone and falls within the Trading category.

Permitted activities under this licence include the import, export, re-export, storage, and wholesale distribution of precious stones to other businesses. Traders can use the licence 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 licence 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 Licence Is Suited To

This licence 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 licence 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 licence 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 licence 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 licence 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 licence 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.

References and Citations

• Dubai Multi Commodities Centre (DMCC) - Official Website

• Dubai South - Official Free Zone Authority

• UAE Government Portal - Doing Business in the UAE

• Central Bank of the UAE - Anti-Money Laundering Framework

• UAE Financial Intelligence Unit - goAML Registration

• Kimberley Process Certification Scheme - Official Website

• UAE Government - AML Obligations for Designated Non-Financial Businesses and Professions

• UAE Ministry of Foreign Affairs - Trade Agreements Overview

Frequently Asked Questions

1. How much does it cost to set up a Precious Stones Wholesale Trading licence at Dubai South?

Licence fees typically range from AED 12,000 to AED 25,000 per year depending on the visa quota and office package you select. Additional one-off costs include registration fees and an establishment card. There is no mandatory minimum share capital for most free zone structures, which helps keep initial outlay manageable.

2. Can a foreign national own 100% of the business?

Yes. Dubai South Business Hub Free Zone permits 100% foreign ownership with no requirement to appoint a UAE national partner or sponsor. Shareholders retain full control of the entity and its profits.

3. Are there any special government approvals needed for trading precious stones?

Beyond the standard free zone trading licence, businesses must register with the UAE Financial Intelligence Unit's goAML platform to comply with anti-money laundering regulations. Diamond traders specifically must adhere to the Kimberley Process Certification Scheme to confirm conflict-free origin of stones. These are compliance registrations rather than separate licences, and they can be completed alongside the main setup process.

4. How long does the setup process take?

For applications submitted with complete documentation, the licence is typically issued within three to seven working days. Opening a UAE corporate bank account takes longer, usually two to four weeks, due to the bank's own due diligence process. Factor in the banking timeline when planning your operational start date.

5. What profit margins can wholesale precious stone traders typically expect?

Margins vary considerably depending on stone type, quality, certification, and market conditions. Wholesale diamond and coloured gemstone traders generally operate on margins ranging from a few percentage points for high-volume commodity-grade stones to significantly higher margins for certified, high-quality specimens. Dubai's position as a re-export hub means traders can access competitive sourcing prices while selling into premium Gulf and Asian markets.

6. Can I re-export stones purchased in Dubai to other countries?

Yes. Re-export is explicitly covered under Activity Code 4669.07. Dubai South's free zone status and its adjacency to Al Maktoum International Airport make it particularly well suited to re-export operations. Traders should ensure that all shipments comply with the import regulations of the destination country and that relevant Kimberley Process certificates accompany any diamond consignments.

7. Do I need a physical office or warehouse to hold this licence?

Dubai South offers flexible facility options, including flexi-desk arrangements that satisfy the free zone's physical presence requirement without the cost of a dedicated office. If you intend to store inventory within the free zone, a warehouse or secure storage facility will be required. The appropriate facility option depends on your operational model and should be confirmed with the free zone authority during the application process.

8. Does the licence cover retail sales as well as wholesale?

No. Activity Code 4669.07 covers wholesale trading between businesses, including import, export, re-export, and distribution. It does not automatically permit retail sales to end consumers or jewellery manufacturing. If you wish to add retail or manufacturing activities, you would need to apply for the relevant additional activity approvals from the free zone authority.