Updated August 2026. The UAE is the world’s third-largest diamond trading hub by value, processing approximately USD 22 billion in rough and polished diamond trade annually through the Dubai Diamond Exchange (DDE) and wider DMCC ecosystem. As Kimberley Process chair positions rotate through MENA jurisdictions and Dubai’s position as a transshipment point for Sub-Saharan African rough diamonds grows, the UAE offers a compelling combination of regulatory infrastructure, zero diamond tax, 100% foreign ownership, and proximity to the world’s fastest-growing diamond jewellery consumption markets in South Asia and China.
- DMCC diamond activity license costs AED 15,500–22,000 per year; first-year total for a standard diamond trading entity is AED 50,000–80,000 including office space.
- Kimberley Process Certification Scheme (KPCS) compliance is mandatory for all rough diamond traders — UAE is a KP participant and all rough diamond shipments must carry a valid KP Certificate.
- The Dubai Diamond Exchange (DDE), operated by DMCC, has over 1,200 registered diamond and jewellery companies and hosts weekly diamond trading sessions with over USD 10 million in stones transacted per session.
- DED (Dubai Department of Economy and Tourism) Jewellery Retailer License costs AED 10,000–18,000/year and is required for companies selling jewellery directly to consumers in the UAE mainland market.
- UAE imposes 5% VAT on jewellery sales but zero VAT on investment-grade loose diamonds sold for industrial or investment purposes, creating a structuring opportunity for high-volume diamond traders.
UAE Diamond and Jewellery Market Overview 2026
Dubai’s diamond market operates at three levels. The wholesale/institutional level is centred at the Dubai Diamond Exchange (DDE) in DMCC, where registered members trade rough and polished diamonds, coloured gemstones, and pearls. The manufacturing level, located primarily in the Dubai Multi Commodities Centre and Gold and Diamond Park, encompasses diamond cutting and polishing factories (predominantly operated by Indian and Israeli master cutters), jewellery manufacturers, and stone setters. The retail level is distributed across Dubai Gold Souk (Deira), the Gold and Diamond Park (Al Quoz), Dubai Mall, Mall of the Emirates, and approximately 400+ jewellery retail locations across the UAE.
In 2025, the UAE imported AED 80+ billion in rough and polished diamonds, with re-exports to India (the world’s largest cutting and polishing centre), Israel (Ramat Gan diamond bourse), Belgium (Antwerp World Diamond Centre), and Hong Kong (Chow Tai Fook supply chain) accounting for approximately 65% of total imports. The UAE’s geographical position — 3 hours from Mumbai, 7 hours from Antwerp — makes it the natural waypoint for Sub-Saharan African rough diamonds moving to Indian cutting centres.
DMCC Diamond Activity License
The DMCC issues diamond-specific activity licenses covering rough diamond trading, polished diamond trading, coloured gemstone trading, and jewellery manufacturing. Depending on your business model, you may need one or multiple activity designations on your DMCC license. Each additional activity beyond the primary one costs AED 1,500–3,000 per year.
Primary activity license costs 2026: Company registration AED 9,020 (one-time); annual trade license for diamond trading LLC AED 15,500–22,000. Flexi-desk office: AED 22,000–35,000/year. Total first-year: AED 46,520–66,020 excluding any premium DDE membership or vault access. Minimum paid-up share capital: AED 50,000.
DMCC additionally operates the Dubai Diamond Exchange (DDE) as a dedicated trading floor for DMCC members engaged in diamond and gemstone trading. DDE membership (included in standard DMCC registration for diamond activity holders) provides: access to DDE weekly trading sessions, use of DDE testing equipment (DiamondView, Presidium, GIA iD100), access to DDE conference facilities, and inclusion in the DDE member directory for buyer/seller discovery. Premium DDE “Active Member” status (required for hosting your own trading sessions) costs an additional AED 15,000–25,000/year.
Kimberley Process Certification Scheme (KPCS)
The Kimberley Process Certification Scheme (KPCS) is an international diamond certification framework established in 2003 to prevent “conflict diamonds” (rough diamonds used to fund armed conflict) from entering the legitimate diamond supply chain. The UAE has been a KPCS participant since 2003, and all rough diamond shipments entering or leaving the UAE must be accompanied by a valid Kimberley Process Certificate.
For UAE-based rough diamond traders, KPCS compliance requirements are as follows: (1) Every shipment of rough diamonds must be imported in tamper-resistant containers with a KPCS certificate from the exporting country. (2) Upon importation, the UAE Ministry of Economy (as the UAE’s KPCS Authority) records the shipment in the UAE’s national KPCS register. (3) When re-exporting rough diamonds, the UAE trader must apply to the Ministry of Economy for a UAE KPCS export certificate. Application fee: AED 1,000–2,000 per certificate; processing time: 1–3 business days for routine shipments. (4) Annual KPCS compliance reports must be submitted to the Ministry of Economy by 31 January each year, covering all rough diamond import/export transactions from the previous calendar year.
KPCS non-compliance carries severe consequences: seizure of the shipment, criminal prosecution under UAE Federal Law, and blacklisting from KPCS-participating countries (covering 55+ states including the US, EU, India, and Russia) — effectively ending the company’s ability to trade rough diamonds globally. DMCC’s Responsible Sourcing Framework for diamonds extends beyond the KPCS to include Responsible Jewellery Council (RJC) certification standards, which over 1,800 companies in 70 countries have adopted as the industry gold standard.
Dubai Diamond Exchange (DDE)
The Dubai Diamond Exchange, operated by DMCC since 2004, is the MENA region’s only dedicated diamond bourse recognised by the World Federation of Diamond Bourses (WFDB). WFDB recognition is commercially significant: it means that diamonds traded at the DDE are eligible for entry into any of the 30 WFDB-member bourses globally (including Antwerp, Ramat Gan, Mumbai, Hong Kong) under reciprocal trading arrangements.
DDE trading sessions take place every Tuesday and Wednesday. Diamond lots are displayed in the DDE trading hall, where buyers and sellers negotiate prices. DDE does not take a transactional commission — it operates as a neutral marketplace and does not manage title transfer or settlement. Trades are settled bilaterally between members according to WFDB Standard Trading Conditions (STC), which govern payment terms (typically 7–30 days), dispute resolution (arbitration through WFDB), and return rights.
DDE membership is available to DMCC-registered entities with a diamond or precious stones trading activity license. The membership provides: a physical trading booth in the DDE hall, a DDE email address, inclusion in the DDE online member directory, and access to DDE’s security facilities (on-site police post, safe deposit boxes, armed courier service). Access to DDE gem testing laboratory is AED 100–500 per stone depending on the test required (grading report, fluorescence, origin analysis).
DED Jewellery Retailer License
Companies wishing to sell jewellery directly to consumers in UAE retail locations — Dubai Mall, Gold Souk, standalone boutiques — require a mainland DED (Dubai Department of Economy and Tourism) Jewellery and Watches Trading license or Precious Metals and Stones Retailing license. License fee: AED 10,000–18,000/year. Physical retail space lease in prime UAE locations: Dubai Mall from AED 2,500/sq ft/year; Gold Souk from AED 600/sq ft/year; standalone boutique AED 200–800/sq ft/year.
Jewellery retailers must comply with UAE Cabinet Resolution No. 38 of 2014 on Precious Metal Hallmarking. All gold jewellery must bear a UAE hallmark stamp certifying carat (18K, 21K, 22K, 24K). Hallmarking is carried out at ESMA-authorised hallmarking centres in Dubai, Sharjah, Abu Dhabi, and Ras Al Khaimah. The hallmarking fee is AED 0.50–2.00 per piece. Retailers must install in-store hallmarking verification equipment (XRF analyser) costing AED 15,000–40,000. Non-compliance with hallmarking requirements attracts fines of AED 10,000–500,000 under UAE Consumer Protection Law No. 15 of 2020.
Diamond and Jewellery Company Costs 2026
| Business Type | License (AED/yr) | Office/Retail (AED/yr) | Compliance Costs (AED) | Total Year 1 (AED) |
|---|---|---|---|---|
| DMCC Rough Diamond Trader | 15,500–22,000 | 22,000–35,000 | 10,000–25,000 | 56,520–91,020 |
| DMCC Polished Diamond Trader | 15,500–22,000 | 22,000–35,000 | 5,000–15,000 | 51,520–81,020 |
| DDE Active Member (rough + polished) | 30,500–47,000 | 22,000–35,000 | 15,000–30,000 | 76,520–121,020 |
| DED Jewellery Retailer (Gold Souk) | 10,000–18,000 | 60,000–250,000 | 20,000–50,000 | 99,020–327,020 |
| DMCC Jewellery Manufacturer | 15,500–22,000 | 45,000–120,000 | 10,000–25,000 | 79,520–176,020 |
Step-by-Step Setup Process for Diamond and Jewellery Companies
Step 1 — Define Business Model: Determine whether you are trading rough diamonds, polished diamonds, coloured gemstones, manufacturing jewellery, or retailing to consumers. Each model has different license requirements and compliance obligations.
Step 2 — Incorporate DMCC or DED Entity: For wholesale/trading: DMCC LLC with diamond activity (3–5 business days). For retail: DED mainland license (5–10 business days).
Step 3 — Apply for DDE Membership: If trading diamonds through the Dubai Diamond Exchange, apply for DDE membership as part of DMCC registration. Submit DDE member application form, WFDB compliance declaration, and KYC documents.
Step 4 — Register for KPCS (Rough Diamond Only): If trading rough diamonds, register your entity with the UAE Ministry of Economy KPCS Authority. No fee for registration; first KP export certificate AED 1,000–2,000.
Step 5 — Register on goAML: Diamond and precious stone dealers are classified as DNFBPs. Register on UAE FIU goAML platform within 60 days of commencing operations.
Step 6 — Open Corporate Bank Account: For diamond and jewellery businesses, banks require enhanced due diligence. Expect 4–8 weeks. UAE banks with experience in diamond trade finance: Emirates NBD, Mashreq, and Standard Chartered UAE.
Step 7 — Obtain RJC Certification (optional but commercially valuable): Responsible Jewellery Council (RJC) certification demonstrates ethical supply chain practices. Annual membership: USD 1,000–10,000; certification audit: USD 3,000–15,000. Over 1,800 companies globally hold RJC certification, and major jewellery retailers (Tiffany, Richemont brands, Signet) require it from suppliers.
AML Compliance for Diamond and Gemstone Traders
The UAE classifies all dealers in precious metals and stones (DPMS) as Designated Non-Financial Businesses and Professions (DNFBPs) under Federal Decree-Law No. 20 of 2018 on AML/CFT. Diamond and gemstone traders must implement: customer due diligence (CDD) including identity verification and source-of-wealth checks for all counterparties; enhanced due diligence (EDD) for high-risk customers (politically exposed persons, customers from high-risk jurisdictions); transaction monitoring; and suspicious transaction reporting (STR) to the UAE FIU via the goAML platform within 35 days of suspicion arising.
The Ministry of Economy conducts periodic and risk-based inspections of DPMS entities. In 2025, the Ministry levied fines totalling AED 85 million against UAE-based precious metals and stones dealers for AML/CFT deficiencies — an eight-fold increase from 2022, reflecting the UAE’s intensified compliance enforcement posture following its 2022 FATF grey-listing and subsequent 2024 removal. Companies with inadequate AML/CFT policies face fines of AED 50,000–1,000,000 and potential license suspension.
Is the Kimberley Process certification mandatory for diamond trading in UAE?
Yes, for rough diamonds. All rough diamond shipments entering or leaving the UAE must be accompanied by a valid Kimberley Process (KP) Certificate. UAE rough diamond traders must obtain a UAE KP export certificate from the Ministry of Economy for each outbound shipment (AED 1,000–2,000 per certificate, 1–3 business days). Non-compliance risks seizure, criminal prosecution, and global blacklisting from KPCS-participating countries. Polished diamond traders are not subject to KPCS but should comply with Responsible Jewellery Council (RJC) standards to trade with major international buyers.
What is the Dubai Diamond Exchange and how do I join?
The Dubai Diamond Exchange (DDE), operated by DMCC, is the MENA region’s only WFDB-recognised diamond bourse. To join, incorporate a DMCC LLC with a diamond activity license (AED 46,520–66,020 first year) and apply for DDE membership as part of your DMCC registration. DDE membership provides access to weekly Tuesday/Wednesday trading sessions, DDE testing equipment, and WFDB reciprocal trading arrangements with 30 global bourses. Active Member status for hosting your own sessions costs an additional AED 15,000–25,000/year.
What is the DED jewellery retailer license cost in UAE?
A DED (Dubai Department of Economy and Tourism) Jewellery and Watches Trading or Precious Metals Retailing license costs AED 10,000–18,000/year. Additional requirements include: UAE hallmarking compliance under Cabinet Resolution No. 38 of 2014 (AED 0.50–2.00/piece hallmarking fee); in-store XRF hallmarking verification equipment (AED 15,000–40,000 one-time); and VAT registration if annual taxable turnover exceeds AED 375,000. Retail space in the Gold Souk starts from AED 600/sq ft/year.
Do diamond traders in UAE need to register with goAML?
Yes. Diamond and gemstone dealers are classified as Designated Non-Financial Businesses and Professions (DNFBPs) under UAE AML law. Registration on the UAE Financial Intelligence Unit’s goAML platform is mandatory and must be completed within 60 days of commencing operations. Failure to register attracts administrative fines of AED 50,000–1,000,000. The goAML registration process takes 1–3 business days and is free of charge.
What is the VAT treatment of diamonds and jewellery in UAE?
Jewellery (gold, platinum, diamond-set pieces) is subject to the standard 5% UAE VAT rate as a manufactured good. Loose rough and polished diamonds sold for industrial or investment purposes may qualify for zero-rating under specific conditions, but this is a narrow exemption that requires a formal VAT ruling from the Federal Tax Authority (FTA). In practice, most diamond and jewellery traders charge 5% VAT on sales to UAE-based buyers. Sales to non-UAE residents who take physical export of goods qualify for VAT refund under the UAE Tourist Refund Scheme (minimum AED 250 purchase per receipt).