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How to Get a Jewelry and Watch Store License in Dubai

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Jewelry & Watch Store License in Dubai

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.

Table of Contents

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:

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

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:

3.2 Free Zone License

Issued by authorities like:

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:

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:

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

Jewelry & Watch Store License in Dubai
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:

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:

Step 3: Choose a Trade Name

Your trade name must:

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:

Approval confirms that you can legally start preparing your business.

Step 5: Prepare Required Documents

Mainland (DET) Requirements:

Free Zone (DMCC/DAFZA) Requirements:

Step 6: Select the Business Premises

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

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:

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.

Expense Type Estimated Cost (AED)
Trade Name Reservation 620 – 720
Initial Approval 1,200 – 2,000
Commercial License Fee 10,000 – 15,000
Office/Shop Rent (per year) 50,000 – 250,000
Security System & CCTV 5,000 – 15,000
DMCC Registration (if applicable) 9,000 – 12,000
Visa & Immigration Fees 3,000 – 7,000
Total Estimate ~AED 80,000 – 300,000

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:

Late renewal may attract penalties or suspension.

10. Key Authorities Involved

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:

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:

13. Marketing and Branding Your Store

To succeed in Dubai’s competitive luxury market:

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

15. Common Mistakes to Avoid

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:

17. Future of the Jewelry and Watch Industry in Dubai

Dubai’s jewelry sector is evolving with:

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

19. Renewal and Compliance Checklist (Annual)

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.

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