February 18, 2026

Dubai is globally known as the City of Gold. From locals to tourists, everyone trusts Dubai for buying gold, diamonds, and fine jewellery. If you are planning to enter this high-value industry, opening a gold shop in Dubai can be a highly profitable move when done correctly. In this guide, we break down how to open a gold shop in Dubai, covering licensing, costs, approvals, location choices, and compliance. We will also touch on related businesses such as a jewellery shop in Dubai and a diamond shop in Dubai, because many entrepreneurs expand into these areas once established. Why Open a Gold Shop in Dubai? Dubai is one of the largest gold trading hubs in the world. The market is regulated, transparent, and trusted internationally. Here is why entrepreneurs choose Dubai: Whether you want to open a small retail outlet or a large jewellery shop in Dubai, the ecosystem supports growth. Types of Gold and Jewellery Businesses You Can Open Before applying for a license, you must define your business activity clearly. Common options include Each activity may require a slightly different license wording, so clarity at the start saves time and cost later. Legal Structure Options for a Gold Shop in Dubai You can open a gold shop under different jurisdictions. Mainland Company Free Zone Company For a physical gold shop in Dubai, mainland setup is the most common option. Gold Shop License in Dubai To legally operate, you need a gold trading or jewellery trading license. Main authorities involved The license activity usually falls under: If you plan to open a diamond shop in Dubai, diamond-specific compliance is also required. Step by Step Process to Open a Gold Shop in Dubai Step 1. Choose Your Business Activity Clearly define whether you are opening: This affects approvals and compliance requirements. Step 2. Reserve Trade Name Your trade name must: Approval usually takes one to two working days. Step 3. Initial Approval Initial approval confirms the government has no objection to you starting the business. Documents usually include: Step 4. Select Shop Location Location is critical for success. Popular areas for gold shops include: Dubai Municipality will inspect the shop layout, security, and safety measures before final approval. Step 5. Security and Safety Approvals Gold shops require strict security compliance. This includes: Security approval is mandatory before license issuance. Step 6. Final License Issuance Once all approvals are in place, the trade license is issued. You can now legally operate your gold shop in Dubai. Cost to Open a Gold Shop in Dubai Costs vary based on location, size, and business model. Estimated cost breakdown Expense Estimated Cost (AED) Trade license 15,000 to 25,000 Shop rent 80,000 to 300,000 yearly Security systems 10,000 to 25,000 Fit-out and interiors 50,000 to 150,000 Initial gold inventory Depends on scale Opening a jewellery shop in Dubai or diamond shop in Dubai may require higher capital due to inventory value. Bank Account for Gold Business Opening a business bank account for gold trading requires: Gold and diamond businesses are considered high-value sectors, so proper documentation is critical. VAT and Tax Compliance for Gold Shops Gold businesses must comply with UAE tax laws. Key points: Professional accounting support is strongly recommended. Expanding into Jewellery and Diamond Business Many entrepreneurs start with gold and later expand. Jewellery shop in Dubai Diamond shop in Dubai Dubai’s market supports long-term expansion if compliance is maintained. Common Mistakes to Avoid Avoiding these mistakes saves time, money, and legal trouble. Why Dubai Is Ideal for Gold and Jewellery Businesses Dubai offers: This makes opening a gold shop in Dubai one of the most attractive business opportunities in the region. Why Choose AB Capital for Gold Shop Setup AB Capital Dubai helps you with: From idea to launch, everything is handled under one roof. Final Thought Opening a gold shop in Dubai is not just about selling gold. It is about trust, compliance, and long-term planning. With the right setup and guidance, you can build a profitable and scalable jewellery business in one of the world’s most trusted gold markets. FAQs 1. Is opening a gold shop in Dubai profitable in 2026? Yes, opening a gold shop in Dubai remains highly profitable in 2026 due to strong local and tourist demand, global trust in Dubai gold purity, and consistent trading volumes. Dubai attracts buyers from Asia, Europe, Africa, and the Middle East, making gold retail a high-turnover business. Profitability depends on location, sourcing strategy, inventory management, and compliance. Many shop owners also increase margins by expanding into jewellery or launching a diamond shop in Dubai after establishing their gold business. 2. What license is required to open a gold shop in Dubai? To open a gold shop in Dubai, you need a Gold and Precious Metals Trading License issued by the Department of Economy and Tourism. Additional approvals are required from Dubai Municipality, Dubai Police, and sometimes Dubai Central Laboratory for quality compliance. If you plan to sell diamonds or jewellery, your license must explicitly include jewellery trading or diamond trading activities. 3. Can a foreigner open a gold shop or jewellery shop in Dubai? Yes, foreigners can open and fully own a gold shop or jewellery shop in Dubai. Mainland businesses now allow 100% foreign ownership for most trading activities. Foreign investors can also sponsor themselves for residency visas through company formation, making it easier to manage and grow the business long term. 4. How much capital is required to open a gold shop in Dubai? There is no fixed minimum capital, but realistically, opening a gold shop in Dubai requires sufficient funds for licensing, rent, security systems, interiors, and inventory. While license and setup costs may start from around AED 100,000, inventory costs depend entirely on the scale of the business. Jewellery shops and diamond shops in Dubai usually require higher capital due to premium stock. 5. Is VAT applicable to gold and jewellery businesses in Dubai? Yes, VAT rules apply to gold and jewellery businesses, but the