If you are planning to start a diamond-trading business in Dubai, you should be aware of the regulations and tax-free market for precious metals. Moreover, Dubai offers state-of-the-art infrastructure and strict inspection procedures that will protect your business. These factors will help you start your business successfully in Dubai.
Obtaining a diamond trading license
If you plan to Setup Company in Dubai for a diamond trading business, the first step is obtaining trading license. Once you have your license, you can choose the best business structure. Moreover, it would be best if you were sure to check the quality of diamonds you buy in Dubai.
There are specific licensing requirements to start a diamond trading business in Dubai. You must obtain a license from the relevant authority. The DMCC, the Government of Dubai Authority, is the hub of the central world diamond industry central world hub. It recently announced a USD 11 billion increase in the diamond trade in the UAE in Q1 of this year. This is an increase of 36% from the same period in 2020. This means that Dubai is fast becoming the world’s most prominent diamond trading hub.
Choosing the proper business structure
Choosing the proper business structure is essential in setting up a diamond trading business in Dubai. It will determine whether you are allowed to operate in the diamond market or not. You will also want to consider whether you will work in the free zone or the Souk market. In the latter case, you must ensure that your company has a license from the Dubai Diamond Exchange.
Diamond trading is a capital-intensive business. You will need to invest in equipment, personnel, and raw materials. In addition, choosing a location for the business is essential. If you are operating an online business, you will need a secure place to store your items. However, if you are a broker, you won’t need a secure location. However, if you plan to trade in physical diamonds, you will need a secure place to store them. It can be costly to rent secure premises.
Dubai is an excellent location for diamond traders. The city is located on the trade routes of the East and West. This makes it a valuable gateway between diamond-producing nations and the largest consuming markets in the world. Its location makes transporting diamonds from South Africa or India to the UAE easier.
The proper business structure is essential for any business in Dubai. This choice affects the business’s ability to raise funds, as well as its ability to grow. A business setup consultant can help you choose your company’s legal structure. It is also necessary to consider your future growth plans and goals.
Profitable diamond trading business
A profitable diamond trading business requires knowledge of diamonds and experience in the diamond business. A diamond trader should have expertise and experience in the valuation and estimate of costs. A legal team should be hired for this purpose. A computer with internet access is also needed. In addition to this, a phone is also essential for daily operations.
The UAE is the largest diamond trading hub in the world. This has attracted traders from various parts of the world to set up their Company registration in Dubai. For example, most of the major diamond companies from India have set their base in Dubai. This makes Dubai a centre of diamond trading in the region.
Dubai is also a global trade centre, and the UAE is the third largest trading centre in the world. Since Dubai doesn’t produce diamonds, the flow of diamonds through Dubai goes through more hands. As a result, traders get a cut of the diamond prices. It’s important to note that the majority of jewellery made in Dubai comes from other regions, raising the cost of production. Additionally, overheads in Dubai are significantly higher than the retail markup.
Having a reliable report is essential when you are buying diamonds in Dubai. In the UAE, diamonds are commonly sold in sealed packets. This makes it challenging to inspect and analyze the diamonds. However, the law requires diamond merchants to provide certificates to their customers. This way, customers can be sure that the diamonds they buy are quality stones.
To run a profitable diamond trading business in Dubai, choosing the proper business structure is essential. The proper business structure will allow you to obtain a license from the relevant free zone. For instance, a Gold and Diamond Park Free Zone business will have a D-DED license, allowing you to operate within the market and carry out international trade. Alternatively, you can obtain a DMCC license, which will allow you to set up your jewellery business in the free zone and make you a member of the Dubai Diamond Exchange.