Start a Used Jewellery Trading Business in Dubai
Dubai has long been regarded as one of the world's most influential jewellery trading hubs, and the market for pre-owned and second-hand jewellery is growing at a remarkable pace. With a culturally diverse population, a thriving tourist economy, and a strategic position between East and West, Dubai offers conditions that few cities can match for this trade. Whether you are an established jewellery dealer or an entrepreneur entering the sector for the first time, obtaining a used jewellery trading license in Dubai gives you access to a regulated, high-value market with strong re-export potential across the Gulf, Africa, and Asia.
Why Dubai Is Ideally Positioned for Used Jewellery Trade
The UAE jewellery market is one of the largest in the Middle East. Dubai alone accounts for a significant share of global gold and jewellery trade, supported by world-class logistics infrastructure, zero personal income tax, and a business-friendly regulatory environment. The city hosts major industry events that attract buyers and sellers from across the globe, reinforcing its status as a premier destination for precious metals and gemstones trading.
Free zones such as Dubai South Business Hub add further appeal. Businesses registered there benefit from 100% foreign ownership, full profit repatriation, customs duty exemptions on goods within the zone, and proximity to Al Maktoum International Airport, one of the largest cargo hubs in the world. For used jewellery traders who rely on fast, secure cross-border movement of goods, this location advantage is considerable.
Key Facts at a Glance
Activity Code: 4774.94 - Used Jewellery Trading
License Type: Trading License
Category: Trading
Free Zone: Dubai South Business Hub
Foreign Ownership: 100% permitted
Minimum Setup Cost: Approximately AED 12,000 to AED 20,000 (subject to package and office type)
Typical License Issuance Timeline: 3 to 7 working days
Re-export: Permitted within free zone framework
What the Used Jewellery Trading License Covers
The activity code 4774.94 under the ISIC classification relates specifically to the retail and trading of used, pre-owned, and second-hand jewellery. This includes gold, silver, platinum, and gemstone-set pieces that have been previously owned. The license permits the holder to buy, sell, store, and re-export such items within the scope of the free zone's regulations. It does not cover the manufacture of new jewellery or the refining of precious metals, which would require separate activity approvals.
Who This License Is Suited To
This license is well-suited to a broad range of business profiles, including:
Individual traders and collectors looking to formalise their buying and selling activity
Jewellery retailers seeking to add a pre-owned segment to their existing operations
Importers and exporters dealing in second-hand precious items across regional markets
Investors interested in gold and gemstone assets as a trading commodity
Online jewellery resellers looking for a UAE base to serve Gulf and international customers
Setup Costs and Steps
Setting up a used jewellery trading business at Dubai South Business Hub involves a straightforward process. Costs vary depending on the office or flexi-desk package selected, the number of visa allocations required, and any additional approvals needed from regulatory authorities.
Step | Action |
|---|---|
1 | Choose your business activity and confirm activity code 4774.94 |
2 | Select a company name and submit for approval |
3 | Choose your office package (flexi-desk, shared office, or dedicated unit) |
4 | Submit incorporation documents and pay license fees |
5 | Receive your trading license and begin operations |
6 | Apply for residency visas and open a corporate bank account |
Licensing and Compliance Requirements
Used jewellery trading in the UAE is subject to oversight due to the high value of goods involved and anti-money laundering obligations. Businesses must comply with the UAE's Federal Decree-Law on Anti-Money Laundering and Combating the Financing of Terrorism. Dealers in precious metals and stones are classified as Designated Non-Financial Businesses and Professions (DNFBPs) and are required to register with the UAE's Financial Intelligence Unit via the goAML platform.
Additional compliance steps include maintaining proper records of all transactions, conducting customer due diligence, and reporting suspicious transactions. These obligations apply regardless of whether the business operates within a free zone or on the mainland.
Profit Margins and Market Opportunity
The used jewellery sector typically offers attractive margins because items are acquired below their intrinsic metal or gemstone value and resold at a premium reflecting craftsmanship, brand, and condition. Margins can range from 15% to 40% depending on the item, sourcing channel, and target market. Dubai's position as a re-export hub means traders can source items locally and sell into markets across South Asia, East Africa, and the wider Middle East, multiplying revenue opportunities significantly.
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