The UAE stands as the world’s third-largest diamond trading hub — after London and Antwerp — handling AED 120 billion or more in rough and polished diamonds annually. At the heart of this ecosystem sits the Dubai Diamond Exchange (DDE), the world’s largest rough diamond exchange by volume, operating since 2002 from the DP World Centre in Dubai with over 4,000 members. For any entrepreneur looking to enter diamond or precious stone trading, the UAE offers one of the world’s most structured, transparent, and tax-efficient regulatory environments.
DMCC Diamond Dealer License: The Primary Pathway
The Dubai Multi Commodities Centre (DMCC) is home to 12,000-plus companies handling roughly 30% of global physical commodity trade. For diamond and precious stone dealers, DMCC offers two primary activity categories:
- Diamond Dealer License — for businesses buying, selling, and trading polished and rough diamonds. Annual license fee: AED 10,000–25,000 depending on entity type and activity scope.
- Precious Stones License — covers rubies, emeralds, sapphires, and other coloured gemstones. Similar fee range to the diamond dealer category.
DMCC-licensed businesses benefit from 100% foreign ownership, no personal income tax, no corporate tax on qualifying income up to the threshold, and proximity to the Dubai Diamond Exchange. Office space within the DMCC free zone is a licensing requirement; options range from flexi-desks to dedicated offices within the JLT (Jumeirah Lakes Towers) cluster.
Dubai Diamond Exchange (DDE): World’s Largest Rough Diamond Hub
The Dubai Diamond Exchange — established in 2002 under DMCC — achieved DDE trading volume of AED 30 billion or more in 2024 alone. The DDE functions as the primary global venue for rough diamond trading in the Middle East, connecting:
- De Beers UAE sales — De Beers conducts sightholder viewings and rough diamond sales through DDE infrastructure, making Dubai an essential node in the global De Beers supply chain.
- Alrosa UAE subsidiary — Russia’s Alrosa, one of the world’s largest rough diamond producers, maintains a UAE subsidiary through DMCC, trading Russian diamonds in the DDE marketplace.
- Gemfields UAE — Zambian rubies and emeralds from Gemfields are traded and exhibited through UAE facilities, with Dubai acting as a pricing hub for coloured gemstones.
- GGTC (Geneva Gem Trade Centre Dubai) — a specialised entity bridging Swiss gem-trading expertise with the DDE platform.
DDE membership is required to participate in DDE trading sessions. Membership fees and annual dues are separate from DMCC licensing costs and are structured by membership category (associate, full, corporate).
Kimberley Process Certification Scheme (KPCS): UAE Compliance
The Kimberley Process Certification Scheme (KPCS) — established by UN Resolution 55/56 in 2000 and operational since 2003 — is the international mechanism for certifying rough diamonds as conflict-free. The UAE is a KPCS participant, with the UAE Ministry of Economy (MoE) serving as the national focal point for all KPCS matters.
UAE MoE KPCS Import/Export Certificate
Any rough diamond import or export into/from the UAE requires:
- A KPCS Certificate of Origin issued by the exporting country’s Kimberley Process authority
- An MoE KPCS Certificate for UAE imports (applied through the Ministry of Economy’s trade licensing portal)
- Tamper-evident containers and declared values matching UAE Customs declaration
Polished diamonds are not subject to KPCS controls; KPCS applies exclusively to rough (uncut, unpolished) diamonds. UAE compliance with KPCS has helped position Dubai as a preferred routing point for ethical rough diamond flows from Africa and Russia.
UAE Legal Framework: Cabinet Decisions 55 and 57 of 2015
The UAE Precious Metals and Gemstones Law is governed primarily by two Cabinet Decisions:
- Cabinet Decision 55 of 2015 — regulates the import, export, and trade of precious metals (gold, silver, platinum, palladium) within the UAE, establishing hallmarking and assay requirements.
- Cabinet Decision 57 of 2015 — specifically addresses precious stones (including diamonds, rubies, emeralds, sapphires), setting standards for grading, certification, and commercial transactions.
Both decisions are enforced jointly by the UAE Ministry of Economy and relevant emirate-level authorities. Non-compliance can result in license suspension and criminal penalties under Federal Law No. 4 of 1979 (Commercial Fraud Law) and subsequent amendments.
UAE Hallmarking: ESMA UAE.S 1432 for Gold
Dealers combining gold jewellery with diamond or gemstone sales must comply with ESMA UAE.S 1432, the Emirates Authority for Standardisation and Metrology’s hallmarking standard for gold and gold alloys. Key requirements include:
- Mandatory hallmarking of all gold jewellery above a minimum weight threshold
- Assay office certification from an ESMA-accredited laboratory
- Carat marking (10K, 14K, 18K, 21K, 22K, 24K) stamped on the piece
- Maker’s mark and assay office mark in addition to carat mark
The Dubai Gold and Jewellery Group (DGJG) and the UAE National Jewellery Manufacturers and Dealers Association provide industry guidance on hallmarking compliance and provide liaison services with ESMA.
Gemmological Certification Bodies in the UAE
For polished diamond and coloured gemstone dealers, third-party gemmological certification is critical for price discovery and consumer trust. Active UAE-linked gemmological bodies include:
- GIA (Gemological Institute of America) UAE — GIA’s Dubai presence offers diamond grading, coloured stone identification, and gem education (GG, AJP, Graduate Diamonds diplomas). GIA reports are the global benchmark for polished diamond transactions.
- IGI Dubai (International Gemological Institute) — IGI has a Dubai laboratory offering diamond grading reports, jewellery identification, and coloured stone reports. IGI is particularly prominent in the Indian diamond community active in Dubai.
- AGS (American Gem Society) — AGS certifications accepted by UAE luxury retailers for premium diamond transactions.
- HRD Antwerp UAE — HRD (Hoge Raad voor Diamant) reports from Antwerp’s diamond council are widely recognised within the DDE community given the historical Antwerp–Dubai trading relationship.
The UAE Polished Diamond Supply Chain
Beyond rough diamonds, the UAE plays a critical role in the polished diamond supply chain for global luxury brands:
- Tiffany supply chain — Tiffany & Co. sources polished diamonds through Antwerp and uses Dubai as a regional supply hub for its Gulf boutiques (Mall of the Emirates, Dubai Mall, Abu Dhabi)
- Cartier — Cartier’s MENA supply chain routes through Dubai, where its regional office coordinates jewellery stock with Paris production
- Luxury retail in UAE — Wafi City, Dubai Mall, DIFC, and The Dubai Mall Gold Souk area house multiple global luxury jewellery brands that source through UAE distributors
Capital Investment Required: AED 500,000 to AED 5 Million
Establishing a credible UAE diamond or precious stone dealing operation requires substantial capital:
- DMCC license & registration: AED 15,000–35,000 (first year, including registration fees)
- DDE membership: AED 5,000–25,000 (depending on membership tier)
- Office/vault setup: AED 30,000–200,000+ (secure storage, alarmed display, CCTV)
- Opening diamond inventory: AED 400,000–4,500,000 (rough or polished stock)
- Insurance (all-risk jeweller’s block): 0.15%–0.35% of inventory value annually
- MoE KPCS permit fees: AED 1,000–5,000 per import/export declaration
Total establishment capital: AED 500,000 to AED 5,000,000 depending on scale and inventory approach.
Why the UAE for Diamond Trading?
- Zero customs duty on rough diamonds — UAE does not levy import duties on rough diamonds classified under HS 7102
- 0% VAT on qualifying diamond exports — exported diamonds are zero-rated for UAE VAT purposes
- DIFC and ADGM offer common-law legal frameworks for complex diamond trading contracts
- Strategic location: 4-hour flight radius covers India (Surat cutting centres), Africa (mining countries), and Europe (Antwerp, Geneva trading hubs)
- Dubai Gold Souk: 300+ retailers in the traditional market, with wholesale diamond activity concentrated in the Gold & Diamond Park, Al Quoz
Frequently Asked Questions: UAE Diamond Dealer License
Can a foreigner own 100% of a UAE diamond trading company?
Yes. DMCC free zone companies allow 100% foreign ownership with no UAE national partner requirement. Since the 2021 Companies Law amendment, mainland DED-licensed businesses in many activities (including commodity trading) also permit 100% foreign ownership.
Is DMCC the only option for diamond trading in UAE?
No. DED mainland licenses can cover precious stone dealing, and ADGM (Abu Dhabi Global Market) offers commodity-related activity licenses. However, DMCC is the preferred choice due to DDE access and the established diamond trading community.
What is the Kimberley Process requirement for importing rough diamonds?
Every rough diamond shipment entering the UAE must be accompanied by a KPCS Certificate of Origin issued by the exporting country’s Kimberley Process authority. The UAE Ministry of Economy issues complementary UAE KPCS certificates for re-export. Shipments without valid KPCS documentation are seized by UAE Customs.
How long does DMCC diamond license processing take?
Standard DMCC license processing takes 7–21 business days from submission of complete documentation. Expedited processing may be available. Pre-approval for diamond-specific activities may require additional MoE review for new applicants.