Dubai, often hailed as the “City of Gold,” has built a world-renowned reputation as a global jewelry and luxury watch trading hub. From the bustling lanes of the Dubai Gold Souk to the glamorous boutiques of Dubai Mall and Mall of the Emirates, the city attracts millions of jewelry lovers and collectors from around the world.

The demand for gold, diamonds, gemstones, and high-end watches has positioned Dubai as a strategic retail and trading destination. But before setting up a jewelry or watch business here, entrepreneurs must obtain a Jewelry & Watch Store License from the Dubai Department of Economy and Tourism (DET) or relevant free zone authorities such as DMCC (Dubai Multi Commodities Centre).

This Blog explains everything you need to know about how to get a jewelry and watch store license in Dubai — from legal requirements and documentation to costs, setup options, and tips for success.

1. Understanding the Jewelry and Watch Business Landscape in Dubai

Dubai is a global luxury retail hub, accounting for a significant share of the Middle East’s gold and watch market. The city’s stable economy, zero personal income tax, strong infrastructure, and business-friendly environment make it an ideal destination for jewelry retailers.

Key Features of Dubai’s Jewelry Sector:

• Home to Dubai Gold and Diamond Park and Gold Souk

• Duty-free import and re-export of gold and jewelry

• High tourist demand from Europe, Asia, and Africa

• Transparent gold and metal trading through DMCC

• Government-backed hallmarking and certification systems

2. Why Choose Dubai for Your Jewelry and Watch Store?

2.1 Strategic Location

Dubai’s position between Asia, Europe, and Africa makes it a global transit hub for jewelry traders.

2.2 Tax Benefits

• 0% personal income tax

• 5% VAT (reclaimable for tourists)

• No import/export tax within free zones

2.3 Safety and Credibility

Dubai enforces strict regulations on jewelry authenticity, ensuring consumer confidence.

2.4 Strong Purchasing Power

The UAE’s affluent population and luxury-loving tourists make it a profitable retail market.

3. Types of Jewelry and Watch Store Licenses in Dubai

Depending on your business structure, there are two main types of licenses:

3.1 Mainland License (Department of Economy and Tourism – DET)

Allows you to:

• Sell jewelry and watches anywhere in Dubai

• Open a showroom in malls, markets, or standalone stores

• Trade locally and internationally

3.2 Free Zone License

Issued by authorities like:

• Dubai Multi Commodities Centre (DMCC)

• Dubai Airport Free Zone (DAFZA)

• Jebel Ali Free Zone (JAFZA)

Best for import/export and wholesale traders focusing on global markets.

4. Business Activities Permitted Under Jewelry & Watch License

Depending on your license type, you can engage in:

• Retail sale of gold, silver, platinum jewelry

• Sale of luxury watches and timepieces

• Sale of diamonds, gemstones, and pearls

• Repair and polishing of watches and jewelry

• Import/export and wholesale trading of precious items

You can also combine jewelry and watch trading activities under one commercial license.

5. Legal Requirements for Jewelry and Watch Store License

Since jewelry and watches are high-value commodities, the Dubai government enforces stringent compliance measures.

5.1 Background and Security Checks

Owners and partners must undergo background verification to ensure no history of fraud or money laundering.

5.2 Premises Approval

Your retail shop must be in a commercial zone approved by DET or the relevant free zone authority.

5.3 Compliance with Gold and Precious Metal Regulations

If you deal with gold, diamonds, or gems, you must:

• Obtain a Precious Metals and Stones Trading License

• Comply with anti-money laundering (AML) regulations

• Maintain transaction records

6. Step-by-Step Process to Get a Jewelry & Watch Store License in Dubai

Let’s walk through the detailed licensing process.

Step 1: Choose Your Business Structure

Decide whether to operate as:

• Sole Proprietorship

• Limited Liability Company (LLC)

• Branch of Foreign Company

• Free Zone Establishment (FZE)

LLC is the most popular structure for jewelry retailers.

Step 2: Select the Location

Mainland: Ideal for retail showrooms and walk-in customers.
Free Zone: Best for import/export and e-commerce operations.

If your target is tourists and local buyers, choose a prime retail area like:

• Dubai Mall

• Gold Souk

• Deira City Centre

• Al Barsha

• Business Bay

Step 3: Choose a Trade Name

Your trade name must:

• Reflect your brand identity

• Be unique and approved by Dubai Economy

• Not include offensive or religious words

Example: GoldenTime Jewelers LLC or Royal Watch Boutique FZE

Step 4: Apply for Initial Approval

Submit your initial approval application to DET or DMCC, including:

• Passport copies of owners

• Trade name reservation

• Business activity details

• Ownership structure

Approval confirms that you can legally start preparing your business.

Step 5: Prepare Required Documents

Mainland (DET) Requirements:

• Application form

• Passport copies of owners/partners

• Emirates ID (if applicable)

• Lease agreement (Ejari)

• Shop layout plan

• NOC from sponsors (if applicable)

• Security clearance certificate

Free Zone (DMCC/DAFZA) Requirements:

• Application form

• Passport and visa copies

• Business plan

• Office or warehouse lease

• Proof of capital

• Shareholder agreement

Step 6: Select the Business Premises

Your jewelry store must meet security and design standards, including:

• CCTV surveillance

• Secure display units

• Alarm systems

• Fire safety measures

The Dubai Police Security Department must inspect and approve the premises before the final license is issued.

Step 7: Submit Final Application

After securing your premises and initial approvals, submit your final license application with all supporting documents.
Pay the required license issuance fee to DET or the respective free zone.

Step 8: Obtain Additional Permits

Depending on your activities, you may also need:

• Import/export permit from Dubai Customs

• Hallmarking certificate for gold items

• DMCC Precious Metals License (if dealing in bullion or wholesale gold)

• Retail signage permit from Dubai Municipality

Step 9: Pay Fees and Collect License

Once all approvals are granted, pay your license fee and collect your official Jewelry & Watch Store License.

7. Cost of Jewelry and Watch Store License in Dubai

The total cost varies based on your setup type, location, and scale.

Free zone licenses are typically higher but offer 100% ownership and 0% corporate tax.

8. Timeline for Approval

The average processing time is 10–20 working days, provided all documents are complete.
However, for businesses dealing in precious metals or high-value watches, background and security clearance may take longer.

9. Renewal of Jewelry & Watch Store License

Your license must be renewed annually.

Documents Required for Renewal:

• Existing license copy

• Tenancy contract renewal (Ejari)

• Updated insurance and security compliance

• Payment of renewal fee

Late renewal may attract penalties or suspension.

10. Key Authorities Involved

• Dubai Department of Economy and Tourism (DET) – Mainland licensing

• Dubai Multi Commodities Centre (DMCC) – Gold/jewelry free zone

• Dubai Police – Security approval

• Dubai Customs – Import/export registration

• Dubai Municipality – Retail space compliance

11. Regulatory Compliance for Jewelry Businesses

11.1 Anti-Money Laundering (AML) Rules

Jewelry retailers dealing with precious metals or gemstones must register with the Ministry of Economy (MOE) and comply with:

• Customer due diligence (KYC)

• Record keeping

• Suspicious transaction reporting

11.2 Hallmarking and Authenticity

All gold and silver products must be hallmarked by the Dubai Central Laboratories (DCL) to confirm purity.

11.3 Value-Added Tax (VAT)

All jewelry businesses must register for 5% VAT and maintain proper invoicing records.

12. Hiring Staff for Your Jewelry Store

To ensure high service quality:

• Hire certified jewelers and watch technicians

• Provide customer service training

• Obtain work permits and residence visas through the Ministry of Human Resources and Emiratisation (MOHRE)

13. Marketing and Branding Your Store

To succeed in Dubai’s competitive luxury market:

• Build an elegant brand identity

• Invest in digital marketing (SEO, Google Ads, social media)

• Offer tax-free shopping for tourists

• Participate in events like Dubai Jewellery Week

14. Benefits of Getting a Jewelry & Watch Store License in Dubai

• 100% business ownership in free zones

• Access to global trading markets

• Tax advantages and duty-free benefits

• Strong legal protection

• Stable and luxury-driven consumer base

15. Common Mistakes to Avoid

• Choosing the wrong license type (retail vs trading)

• Failing to comply with AML and hallmarking laws

• Renting unapproved premises

• Missing license renewal deadlines

• Incomplete documentation

16. How Free Zones Like DMCC Support Jewelry Businesses

The Dubai Multi Commodities Centre (DMCC) is a dedicated hub for gold, diamonds, and luxury trading.

Benefits include:

• 100% foreign ownership

• No import/export duties

• World-class vault facilities

• Trade transparency via DMCC Tradeflow platform

17. Future of the Jewelry and Watch Industry in Dubai

Dubai’s jewelry sector is evolving with:

• Blockchain-based diamond tracking

• Smart gold trading platforms

• AI-driven retail analytics

• Sustainable jewelry sourcing

• E-commerce integration

With government initiatives like Dubai Precious Metals Conference and Global Gold Centre, the industry will continue to grow exponentially.

18. Tips for Success in Dubai’s Jewelry Market

• Build trust through transparency and authenticity

• Offer custom designs and limited editions

• Maintain competitive pricing

• Develop loyalty programs for repeat customers

• Leverage Dubai’s tourist traffic

19. Renewal and Compliance Checklist (Annual)

• Renew trade license and tenancy (Ejari)

• Update AML registration

• Renew business insurance and staff visas

• Maintain security compliance certificate

• Renew signage permit

Conclusion

Starting a jewelry and watch store in Dubai is a golden opportunity — both literally and figuratively. With its strategic location, luxury-driven economy, and investor-friendly policies, Dubai remains one of the best places in the world to launch a high-end retail business.

By following the step-by-step process — from selecting your business structure and obtaining approvals to ensuring AML compliance and branding — you can establish a successful and legally compliant store in the heart of the UAE’s luxury market.

Whether you’re an established jeweler or a new entrepreneur, Dubai offers an unmatched ecosystem to shine bright in the world of luxury retail.

FAQs on Jewelry & Watch Store License in Dubai

1. How do I apply for a jewelry store license in Dubai?
You can apply through the Dubai Department of Economy and Tourism (DET) for mainland setup or through DMCC for free zone operations.

2. What is the minimum investment required?
Expect to invest between AED 80,000 – 300,000, depending on your store size and location.

3. Can foreigners own a jewelry business in Dubai?
Yes, foreigners can own 100% of their jewelry business in Dubai’s free zones like DMCC or DAFZA.

4. Is security approval mandatory?
Yes, Dubai Police must inspect and approve your store’s security systems before the license is issued.

5. How long does it take to get a jewelry license?
Typically 10–20 working days, depending on document completion and security clearance.

6. What are the VAT requirements?
All jewelry and watch stores must register for 5% VAT and maintain detailed invoices.

7. Do I need a separate license for watches?
No, watches can be included under the same jewelry and luxury goods trade license.

8. Can I sell online with this license?
Yes, you can add e-commerce activity to your trade license to sell online.

9. What documents are required?
Passport copies, business plan, tenancy (Ejari), layout plan, and police security clearance are mandatory.

10. Where is the best place to open a jewelry store in Dubai?
Popular locations include Gold Souk, Dubai Mall, Al Barsha, Business Bay, and DMCC Gold Park.