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:
- Zero import duty on gold in many cases
- Strong demand from tourists and residents
- Tax friendly environment compared to other countries
- Global reputation for purity and pricing
- Easy access to gold suppliers and refineries
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
- Retail gold shop selling 22K and 24K gold
- Jewellery shop in Dubai selling gold and diamond jewellery
- Diamond shop in Dubai focusing on certified diamonds
- Wholesale gold trading business
- Gold and jewellery showroom
- Online gold and jewellery store
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
- Required for physical retail shops
- Allows you to sell directly to customers
- Ideal for gold shops in souks and malls
Free Zone Company
- Suitable for trading and wholesale
- Not allowed for walk-in retail sales
- Often used for gold trading or export businesses
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
- Department of Economy and Tourism (DET formerly DED)
- Dubai Municipality
- Dubai Police
- Dubai Central Laboratory (for purity compliance)
The license activity usually falls under:
- Gold and Precious Metals Trading
- Jewellery Trading
- Diamonds and Precious Stones Trading
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:
- A gold shop
- A jewellery shop in Dubai
- A diamond shop in Dubai
- Or a combination
This affects approvals and compliance requirements.
Step 2. Reserve Trade Name
Your trade name must:
- Follow UAE naming rules
- Avoid religious or political terms
- Match your activity
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:
- Passport copies of owners
- Visa or entry stamp if applicable
- Business activity details
Step 4. Select Shop Location
Location is critical for success.
Popular areas for gold shops include:
- Gold Souk Deira
- Meena Bazaar
- Bur Dubai
- Shopping malls
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:
- CCTV cameras
- Alarm systems
- Secure safes
- Police approval
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:
- Clear source of funds
- Business plan
- Supplier details
- Compliance checks
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:
- VAT may apply depending on transaction type
- Corporate tax compliance required
- Proper invoicing and accounting mandatory
Professional accounting support is strongly recommended.
Expanding into Jewellery and Diamond Business
Many entrepreneurs start with gold and later expand.
Jewellery shop in Dubai
- Higher margins
- Custom designs
- Strong branding opportunity
Diamond shop in Dubai
- Requires certified diamonds
- Additional compliance checks
- High trust and documentation standards
Dubai’s market supports long-term expansion if compliance is maintained.
Common Mistakes to Avoid
- Choosing wrong license activity
- Underestimating security requirements
- Poor location selection
- Not understanding tax obligations
- Working with unverified suppliers
Avoiding these mistakes saves time, money, and legal trouble.
Why Dubai Is Ideal for Gold and Jewellery Businesses
Dubai offers:
- International customer base
- Strong regulatory framework
- Low tax environment
- Access to global gold markets
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:
- Gold shop license in Dubai
- Jewellery shop and diamond shop setup
- Location and municipality approvals
- Bank account assistance
- Accounting and tax compliance
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 treatment depends on the nature of the transaction. Certain business-to-business gold transactions may fall under VAT reverse charge mechanisms, while retail sales to consumers are generally VAT applicable. Proper accounting, invoicing, and tax compliance are mandatory to avoid penalties.
6. Where are the best locations to open a gold shop in Dubai?
Popular locations include Gold Souk Deira, Meena Bazaar, Bur Dubai, and major shopping malls. Gold Souk remains the most iconic area due to footfall and buyer trust, while malls attract premium customers. Location approval must meet Dubai Municipality and security requirements before licensing.