- UAE diamond trade exceeds AED 35 billion annually; Dubai ranks as the world’s #3 diamond trading hub after Antwerp and Mumbai.
- A DMCC diamond trading license costs AED 25,000–40,000 per year, with a mandatory physical office inside DMCC.
- The minimum Almas Tower flexi-desk starts at AED 25,000/year; private offices in Almas Tower run AED 60,000–200,000+.
- Every parcel of rough diamonds imported into the UAE must carry a Kimberley Process Certificate (KPC); polished diamonds are exempt.
- Investment-grade diamonds (rough or loose polished, unset): 0% UAE VAT; diamond jewelry set in metal: 5% UAE VAT.
- Total Year 1 setup cost (excluding inventory) is approximately AED 105,000–315,000+; a starter 100 ct polished inventory requires AED 3.5M–6M.
Updated August 2026. Dubai has quietly become one of the world’s most important diamond trading cities—rivalling Antwerp and Mumbai in rough diamond volumes and acting as the primary re-export gateway between Indian cutting centres in Surat and retail markets in the United States and Europe. The engine behind this status is the DMCC Diamond Gate at Almas Tower in Jumeirah Lakes Towers (JLT): the world’s only purpose-built, state-of-the-art diamond trading centre, home to 1,200+ registered diamond companies and the UAE’s sole Kimberley Process Authority. With zero customs duty on diamonds, zero VAT on investment-grade stones, and a strategic time-zone position between producer and consumer markets, Dubai offers traders an unmatched operating environment. This guide covers everything you need to know to start a diamond or precious gemstone trading business in the UAE through DMCC in 2026.
UAE Diamond Market at a Glance
| Metric | Data |
|---|---|
| Annual UAE diamond trade value | AED 35 billion+ (approx. USD 9.5 billion) |
| Dubai’s global ranking as a diamond hub | #3 worldwide, after Antwerp (Belgium) and Mumbai (India) |
| DMCC Diamond Gate companies registered | 1,200+ |
| Year DMCC Diamond Gate opened | 2004 |
| Customs duty on rough and polished diamonds | 0% |
| VAT on investment-grade rough or loose polished diamonds | 0% (UAE Cabinet Decision No. 38 of 2018) |
| VAT on diamond jewelry (set in metal) | 5% standard UAE rate |
| Income tax on trading profits | 0% on profits up to AED 375,000; 9% above threshold (UAE CIT, 2023) |
| Strategic location advantage | Midpoint between Surat’s cutting centres and USA/European retail markets |
DMCC Diamond Gate: The World’s Premier Diamond Trading Centre
The DMCC Diamond, Gold and Gemstone (DMGG) cluster at Almas Tower in JLT is more than a free zone office address—it is a vertically integrated diamond trading ecosystem. “Almas” means diamond in Arabic. The 50-floor tower is reserved exclusively for DMCC Diamond Gate member companies and is equipped with:
- Diamond safe deposit facilities and high-security vault services
- On-site customs clearance for diamond parcels
- A dedicated Kimberley Process (KPC) desk—DMCC is the UAE’s only KP Authority
- On-floor gemological laboratories for grading and testing
- A concentrated community of buyers, sellers, brokers, and graders enabling deal-making rarely matched elsewhere in the Gulf
DMCC administers the Diamond, Gold and Gemstone (DMGG) license category, which covers rough diamond trading, polished diamond trading, colored gemstone trading, gold trading, and related commodity activities. A company may hold multiple commodity activities under a single DMCC license. DMCC’s Diamond Gate is widely considered the most competitive alternative to the Antwerp Diamond District for high-volume, tax-efficient wholesale trading.
DMCC Diamond Trading License: Requirements and Costs
To legally import, export, or trade diamonds in the UAE, you must hold a DMCC commodity license with the “Diamond Trade” activity. No other UAE free zone or mainland authority can issue an equivalent license, because DMCC is the sole designated Kimberley Process Authority in the country.
| Requirement | Details |
|---|---|
| Licensing authority | DMCC (Dubai Multi Commodities Centre) |
| License category | Diamond, Gold and Gemstone (DMGG) — commodity license |
| Permitted activities | Diamond Trade (rough and/or polished); Gemstone Trade; Gold Trade |
| Annual license fee | AED 25,000–40,000 |
| Physical office requirement | Mandatory; must be within DMCC (Almas Tower or JLT) |
| Almas Tower flexi-desk (minimum option) | AED 25,000/year |
| Almas Tower private office | AED 60,000–200,000+/year depending on size |
| Foreign ownership | 100% permitted (DMCC is a free zone; no UAE sponsor required) |
| Company structure options | DMCC FZE (sole shareholder) or DMCC FZC (2+ shareholders) |
| Minimum share capital | AED 50,000 (standard DMCC FZE) |
| Right to import rough diamonds into UAE | Exclusive to DMCC-licensed companies only |
| Applicant due diligence | Enhanced AML/KYC; source of funds; industry experience required |
Note: Only DMCC-licensed companies are authorized to import rough diamonds into the UAE. If your business model involves polished diamonds only (already cut, certified, and not requiring further processing), you still need a DMCC license, but the Kimberley Process Certificate (KPC) requirement per parcel does not apply.
Kimberley Process Certificate (KPC): What UAE Diamond Traders Must Know
The Kimberley Process Certification Scheme (KPCS) is the international framework established to prevent conflict diamonds from entering the legitimate supply chain. The UAE joined as a KP participant in 2003. DMCC is the UAE’s sole designated KP Authority, making it the single point of contact for all KPC issuance and verification in the country.
| Diamond Type | KPC Required on Import? | DMCC Declaration Required? | Declaration Cost (AED) |
|---|---|---|---|
| Rough diamonds | Yes — mandatory for every parcel | Yes | AED 500–2,000 |
| Polished diamonds (cut and faceted; loose) | No | Yes | AED 500–2,000 |
| Diamond jewelry (stones set in metal) | No | Varies (processed as jewelry) | Varies |
How the KPC Process Works at DMCC
- On import: Each parcel of rough diamonds arrives sealed with a KPC issued by the exporting country’s designated authority. DMCC verifies the certificate, registers the parcel in the online DMCC portal, and clears it through UAE customs. The DMCC import declaration fee is AED 500–2,000 per parcel.
- On export: When a DMCC company re-exports rough diamonds, DMCC issues a UAE KPC for the outgoing parcel based on the company’s DMGG registration and stock records.
- KPC registration cost: Approximately AED 5,000–15,000 one-time, payable to DMCC, required before a company can handle its first rough diamond parcel.
- Sourcing considerations in 2026: Due to international sanctions risk associated with Alrosa (Russia), the majority of DMCC diamond traders now source rough from De Beers (Botswana Diamonds sight-holder system), HRD Antwerp (Belgium), and IGI-certified producers in Canada and Australia.
Diamond Categories and Price Ranges (2026 Reference)
Diamond prices are quoted per carat (ct) and vary widely by size, cut grade, clarity, color, and treatment state. The table below provides 2026 indicative price ranges for the main categories traded at DMCC.
| Category | Size | Price per Carat (USD) | Notes |
|---|---|---|---|
| Rough diamonds (generic, mixed quality) | 0.5–2 ct | USD 100–1,000/ct | KPC mandatory; 0% UAE VAT |
| Polished — round brilliant (SI1, G color) | 0.5 ct | USD 1,500–3,000/ct | No KPC; 0% VAT; high liquidity |
| Polished — round brilliant (SI1, G color) | 1.0 ct | USD 4,000–8,000/ct | Most liquid size for DMCC wholesale |
| Fancy colored — yellow (SI1) | 1.0 ct | USD 5,000–20,000/ct | GIA fancy color report recommended |
| Fancy colored — pink (VS clarity) | 1.0 ct | USD 100,000–500,000/ct | Rare; requires specialist buyer network |
Polished diamonds traded in Dubai are almost universally accompanied by a grading report from GIA (Gemological Institute of America), IGI (International Gemological Institute), or HRD Antwerp. The grading report service fee carries no UAE VAT.
VAT on Diamonds in the UAE: The Full Breakdown
The UAE’s VAT treatment of diamonds is one of the most trader-friendly in the world and is a primary driver of Dubai’s competitive advantage over European diamond centres. The key legislation is Cabinet Decision No. 38 of 2018, which zero-rates investment precious metals and stones.
| Transaction Type | UAE VAT Rate | Legal Basis |
|---|---|---|
| Investment diamonds (rough; not set in jewelry) | 0% | UAE Cabinet Decision No. 38 of 2018 |
| Polished diamonds (loose; unset) | 0% | Investment precious stones zero-rate |
| Diamond jewelry (diamond set in gold, platinum, or silver) | 5% | Standard UAE VAT rate on finished jewelry |
| Diamond grading report (GIA, IGI, HRD service fee) | 0% | No VAT on grading report service |
| Import customs duty on diamonds | 0% | UAE GCC common customs tariff exemption |
| Corporate income tax on trading profits | 0% / 9% | 0% on profits up to AED 375,000; 9% above (UAE CIT 2023) |
Practical implication: A trader dealing exclusively in loose rough or polished diamonds (not set jewelry) can turn over hundreds of millions of AED with zero VAT liability, zero customs duty, and minimal income tax. This compares favorably to Antwerp (21% Belgian VAT on polished diamonds, partially recovered under a margin scheme) and Mumbai (3% Indian GST on diamonds).
Total Year 1 Setup Cost for a DMCC Diamond Trader
The table below outlines realistic cost ranges for establishing and operating a DMCC diamond trading company through its first year. Inventory capital is shown separately since it varies significantly by trading strategy.
| Cost Item | Cost Range (AED) | Notes |
|---|---|---|
| DMCC license (Diamond Trade activity) | AED 25,000–40,000 | Annual; renewable |
| Almas Tower flexi-desk (minimum) | AED 25,000–60,000 | Private office: AED 60,000–200,000+/year |
| KPC registration (rough diamond traders only) | AED 5,000–15,000 | One-time; polished-only traders exempt |
| Cargo / all-risk insurance | 0.15%–0.30% of diamond value | Mandatory for shipments; varies by insurer and route |
| In-office safe and security system | AED 50,000–200,000 | Required by insurers; one-time capex |
| Visa fees (2 visas, typical) | AED 5,000–10,000 | Per visa, including medical and Emirates ID |
| Total Year 1 (excluding inventory) | AED 105,000–315,000+ | Does not include trading stock |
| Initial polished stock (100 ct; avg 0.5 ct; G/SI1) | AED 3,500,000–6,000,000 | Illustrative; actual inventory varies by strategy |
How to Start a Diamond Business in Dubai as a Foreigner: Step-by-Step
Foreign nationals can own 100% of a DMCC-licensed diamond trading company with no UAE national sponsor required. Here is the practical process for 2026:
- Define your diamond niche. Decide whether you will trade rough diamonds (requires KPC), polished diamonds, fancy colored stones, precious gemstones, or a combination. Your niche determines the specific DMCC activities on your license, your KPC registration need, and your initial capital requirements.
- Apply for DMCC membership and company registration. Submit your application through the DMCC member portal at dmcc.ae. Required documents include a passport copy, business plan, source-of-funds documentation, and evidence of relevant industry experience. DMCC applies enhanced due diligence on diamond license applicants given the high-value commodity and AML risk profile of the trade.
- Choose your office in Almas Tower or JLT. For Diamond Gate membership and direct access to KPC services, Almas Tower is strongly preferred. A flexi-desk (AED 25,000/year) is the minimum; most active traders take a private office to accommodate secure diamond-viewing facilities and client meetings.
- Register for the Kimberley Process (rough diamond traders only). File the KPC registration with DMCC’s DMGG team. Allow 2–4 weeks for approval before you can legally handle your first rough parcel.
- Set up corporate banking and insurance. Open a UAE corporate bank account (Emirates NBD, Mashreq, and RAKBANK are commonly used by DMCC commodity traders). Arrange all-risk cargo insurance through a specialist insurer (Lloyd’s of London market or approved UAE equivalents). Banks will require your DMCC license, AML documentation, trade references, and source-of-funds evidence before opening a diamond trader account.
- Install a certified safe and security system. Your insurer will mandate a minimum safe security rating (UL-listed TL-30 or equivalent). Budget AED 50,000–200,000 for a quality in-office safe, CCTV, and alarm system.
- Source your first inventory. Common sourcing channels from Dubai include: rough diamond tenders hosted by De Beers in Botswana, HRD in Belgium, and GJEPC in Surat; polished parcel buying trips to the Surat manufacturing belt; and the Dubai Diamond Conference (annual, organized by DMCC). In 2026, most traders avoid Alrosa-origin rough until international sanctions clarity improves.
- Begin trading under DMCC compliance. Every import and export parcel is declared in the DMCC online portal. KPC certificates accompany all rough diamond shipments. DMCC conducts periodic compliance audits of member companies’ stock records, trade declarations, and AML filings.
Frequently Asked Questions
What are the DMCC diamond trading license requirements in 2026?
To trade diamonds in the UAE, you need a DMCC commodity license with the Diamond Trade activity under the Diamond, Gold and Gemstone (DMGG) category. Key requirements are: an annual license fee of AED 25,000–40,000; a physical office in DMCC (minimum Almas Tower flexi-desk at AED 25,000/year); full compliance with DMCC’s enhanced AML/KYC due diligence process including source-of-funds documentation; and, for rough diamond traders, separate Kimberley Process (KPC) registration with DMCC costing AED 5,000–15,000. The company is structured as a DMCC FZE (single shareholder) or DMCC FZC (2+ shareholders) with a minimum share capital of AED 50,000. Foreign nationals can hold 100% ownership with no UAE sponsor.
Do rough diamonds need a Kimberley Process Certificate (KPC) in the UAE?
Yes. Every parcel of rough diamonds imported into or exported from the UAE must be accompanied by a valid Kimberley Process Certificate. The certificate is issued by the Kimberley Process Authority of the exporting country and verified upon entry by DMCC, which is the UAE’s sole designated KP Authority. A parcel without a valid KPC cannot legally enter or leave the UAE. Polished (cut and faceted) diamonds do not require a KPC but still need a DMCC import or export declaration (AED 500–2,000 per parcel). Diamond jewelry mounted in metal is processed under jewelry trade rules and is outside the scope of the Kimberley Process entirely.
Is there VAT on diamonds in the UAE?
The UAE applies a 0% VAT rate on investment-grade diamonds—both rough and loose polished stones not set in jewelry—under Cabinet Decision No. 38 of 2018. Once a diamond is set into gold, platinum, or silver, the finished piece is taxed at the standard 5% UAE VAT rate. Import duty on diamonds is 0% under the GCC common external tariff. Diamond grading report fees from GIA, IGI, or HRD carry no VAT. This tax structure means a wholesale trader dealing in loose rough or polished diamonds can operate with zero VAT exposure—a significant advantage over Antwerp (21% Belgian VAT) and Mumbai (3% Indian GST).
Can a foreigner own a diamond trading company in Dubai?
Yes. DMCC is a UAE free zone, which means foreign nationals can own 100% of a DMCC diamond trading company without a UAE national sponsor or local partner. There are no nationality restrictions. The applicant must pass DMCC’s enhanced due diligence process (AML/KYC), demonstrate relevant industry experience or a credible business plan, and provide source-of-funds documentation. Once registered, the company founder receives a UAE residence visa through the DMCC visa scheme, allowing them to live in the UAE. The entire setup can be completed remotely for initial stages, with a physical visit to Almas Tower required to activate the office and KPC registration.
What is the minimum budget to start a diamond business in Dubai?
The minimum realistic budget for establishing a DMCC diamond trading company in Year 1, excluding inventory, is approximately AED 105,000–315,000 (roughly USD 29,000–86,000). This covers the DMCC license (AED 25,000–40,000), an Almas Tower flexi-desk (AED 25,000+), KPC registration for rough diamond traders (AED 5,000–15,000), a security-rated in-office safe (AED 50,000–200,000), and visa costs. Inventory capital is entirely separate: a starter polished inventory of 100 carats at 0.5 ct average (G/SI1 quality) typically requires AED 3.5 million to AED 6 million. Most successful DMCC diamond traders enter with combined setup-plus-first-inventory capital of AED 4–7 million or more.