Updated August 2026. The UAE is the world’s third-largest gold trading hub by volume, processing over USD 75 billion in gold trade annually through Dubai alone. With a zero-VAT regime on investment-grade gold, a deep network of refiners, bullion dealers, and LBMA-accredited vaults, and a regulatory framework administered by the DMCC Authority, Dubai and Abu Dhabi offer gold and precious metals traders a combination of market access, credibility, and cost-efficiency that no other jurisdiction in the region can match.
- A DMCC gold trading activity license costs AED 15,500–24,000 per year; company registration adds AED 9,020.
- Investment-grade gold (99.5% purity and above) is zero-rated for UAE VAT under Federal Decree-Law No. 8 of 2017, giving UAE-based traders a material cost advantage over competitors in VAT-imposing jurisdictions.
- LBMA (London Bullion Market Association) accreditation is not legally required in the UAE, but it is commercially essential for trading with institutional counterparties; the accreditation process takes 6–12 months and costs USD 10,000–30,000.
- DMCC’s Gold Price Standard, published daily, is used as the benchmark for physical gold settlement across MENA, making Dubai the region’s de facto gold pricing centre.
- Total first-year cost to establish a DMCC-regulated gold trading company: AED 50,000–85,000 for a standard trading entity; AED 120,000+ if physical vault storage and LBMA refinery accreditation are required.
UAE Gold Market Overview 2026
Dubai’s gold market is anchored by three distinct but interconnected ecosystems. The Dubai Gold Souk in Deira — home to over 380 gold merchants — handles retail and semi-wholesale trade in jewellery and coin. The Dubai Multi Commodities Centre (DMCC) in JLT houses the wholesale and institutional market, including the Dubai Gold & Commodities Exchange (DGCX) gold futures contracts and the Dubai Gold Price standard. The Dubai Airport Free Zone (DAFZA) and associated vaults handle gold transit and re-export, which accounts for roughly 40% of Dubai’s total gold trade by weight.
In 2025, the DMCC reported 2,400+ gold-related member companies, ranging from artisanal jewellery importers to sovereign wealth fund bullion operations. The UAE’s gold supply chains include imports from sub-Saharan Africa (Democratic Republic of Congo, Ghana, Sudan), Russia, Switzerland, and Latin America, with a growing share of LBMA-accredited production from UAE-based refineries such as Emirates Gold, Kaloti Precious Metals, and Regal Jewellery. Dubai exported approximately 3,200 tonnes of gold in 2025, making it the world’s largest re-export hub for physical gold.
DMCC Gold Activity License: Requirements and Costs
The DMCC issues gold-specific activity licenses under its commodity trading framework. For a company engaged in buying, selling, and trading physical gold (bullion, bars, coins), the relevant activities are “Commodity Trading — Gold” and, if dealing in jewellery, “Commodity Trading — Precious Metals & Jewellery”. Multiple activities may be listed on one license at an incremental fee of AED 1,500–3,000 per additional activity.
License costs 2026: Company registration AED 9,020 (one-time); annual trade license AED 15,500–22,000 for a standard gold trading LLC; flexi-desk office AED 22,000–35,000/year; dedicated office 250–500 sq ft in JLT AED 75,000–180,000/year. Minimum paid-up share capital for a DMCC LLC: AED 50,000. Total first-year cost for a standard gold trading entity: AED 46,520–66,020 excluding office space above flexi-desk.
DMCC additionally requires gold trading members to declare all gold sourcing under its Responsible Sourcing Framework (aligned with OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas). New members must submit a Responsible Sourcing Declaration within 90 days of registration. Failure to comply risks suspension of trading activities.
Dubai Gold Souk: Licences for Traditional Market Trading
Traders wishing to operate in the Dubai Gold Souk — the physical retail and semi-wholesale gold market in Deira — require a DED (Dubai Department of Economy and Tourism) mainland trading license specifically for “Jewelry and Watches Trading” or “Precious Metals and Stones Trading”. License fee: AED 10,000–18,000/year. A physical shop lease in the Gold Souk ranges from AED 60,000–250,000/year depending on location and size.
Dubai Gold Souk traders must also register with the Dubai Municipality’s Consumer Protection Department and comply with UAE Cabinet Resolution No. 38 of 2014 on Hallmarking of Precious Metals. Under this resolution, all gold jewellery sold in the UAE must carry a UAE hallmark stamp certifying purity. Hallmarking is performed by the Emirates Authority for Standardisation and Metrology (ESMA), which levies a fee of AED 0.50–2.00 per piece depending on weight and type. Retailers must install in-store hallmarking verification equipment costing AED 15,000–40,000.
LBMA Accreditation for UAE Gold Traders
The London Bullion Market Association (LBMA) is the global standard-setting body for the gold and silver market. LBMA accreditation is not a UAE regulatory requirement, but it is a commercial prerequisite for trading with international bullion banks (HSBC, JP Morgan, UBS, Standard Chartered), central banks, and sovereign wealth funds. There are two LBMA pathways relevant to UAE-based gold traders.
LBMA Good Delivery List (Refiners): For UAE gold refineries seeking to have their bars accepted as “Good Delivery” — the global standard for bullion settlement. Requirements include demonstrated annual production capacity, independent audits of assay accuracy, and compliance with LBMA Responsible Sourcing requirements. Application cost: USD 15,000–30,000 in fees and testing; timeline: 6–18 months. Emirates Gold, Kaloti, and Regal Jewellery are the three UAE refineries currently holding Good Delivery status.
LBMA Member (Associate): For trading companies (not refineries) seeking LBMA Associate Membership, which signals compliance with LBMA standards to institutional counterparties. Annual membership fee: GBP 8,000–25,000 depending on company size. Requires demonstrated AML/CFT policies aligned with LBMA Responsible Sourcing Guidance (3rd Edition, 2024).
UAE VAT Exemption on Investment Gold
Federal Decree-Law No. 8 of 2017 on VAT, as amended, provides a zero-rate (0% VAT) for investment-grade precious metals meeting the following standards: gold with purity of 99% or higher (investment gold); silver with purity of 99% or higher; platinum with purity of 99% or higher. This means UAE-based traders of investment-grade gold do not charge VAT to their buyers, and they can recover input VAT on eligible business costs through the normal VAT return mechanism.
Critically, jewellery — even gold jewellery of 99%+ purity — is subject to the standard 5% UAE VAT rate because it is classified as “manufactured goods” rather than “investment metal”. This distinction creates a significant arbitrage opportunity: UAE-based gold traders can import investment-grade gold bars duty-free and zero-rated, process them within a DMCC or JAFZA free zone, and re-export without any VAT liability, making the UAE one of only four jurisdictions globally (alongside Switzerland, Singapore, and Hong Kong) that combines zero gold VAT with unrestricted capital movement.
Setting Up a Gold Trading Company: Step-by-Step Process
Step 1 — Choose Structure: Select DMCC (for wholesale/institutional gold trading) or DED mainland (for Gold Souk retail). Most international gold traders choose DMCC for its institutional recognition, commodity-specific framework, and responsible sourcing infrastructure.
Step 2 — Reserve Company Name: Submit three name options to DMCC online portal. Names must avoid restricted terms (“Bank”, “Exchange”, “Royal”, “Emirate”). Fee: AED 650.
Step 3 — Prepare KYC Package: Shareholders: certified passport copies, proof of address (utility bill or bank statement less than 3 months old), source-of-funds declaration, and UBO form for anyone holding 25%+. Corporate shareholders require additional documents: certificate of incorporation, memorandum of association, certificate of incumbency.
Step 4 — DMCC Responsible Sourcing Declaration: Complete DMCC’s gold supplier sourcing questionnaire identifying all expected gold supply countries and counterparties. This is reviewed by DMCC’s compliance team.
Step 5 — Pay Fees and Sign Lease: Pay registration and license fees; sign flexi-desk or office agreement. Timeline: 3–5 business days from complete document submission.
Step 6 — Open Corporate Bank Account: Major UAE banks with strong gold trade finance capabilities: Emirates NBD, Mashreq Bank, RAKBANK, and First Abu Dhabi Bank. Expect 4–8 weeks for account opening due to enhanced due diligence for precious metals businesses.
Step 7 — Register with goAML: Gold dealers are classified as DNFBPs (Designated Non-Financial Businesses and Professions) under UAE AML law. Registration on the FIU’s goAML platform is mandatory within 60 days of commencing business. Non-compliance carries fines of AED 50,000–1,000,000.
Gold and Precious Metals Trading Cost Summary 2026
| Cost Item | DMCC Wholesale Trader (AED) | DED Gold Souk Retailer (AED) | DMCC + LBMA Refinery Track (AED) |
|---|---|---|---|
| License / Registration | 24,520–33,020 | 10,000–18,000 | 24,520–33,020 |
| Office / Premises | 22,000–35,000 | 60,000–250,000 | 75,000–180,000 |
| Hallmarking Equipment | Not required | 15,000–40,000 | Not required |
| LBMA Associate Membership | Not required | Not required | GBP 8,000–25,000 |
| Vault / Storage Access | Negotiated | Not required | Included in refinery setup |
| AML / Legal Setup | 8,000–20,000 | 5,000–12,000 | 15,000–40,000 |
| Total First Year | 54,520–88,020 | 90,000–320,000 | 120,000–273,020+ |
AML Compliance for Gold and Precious Metals Traders
Gold trading is among the highest-risk sectors for money laundering and terrorist financing according to the UAE’s 2024 National Risk Assessment. The UAE follows FATF Recommendation 22, which requires all dealers in precious metals and stones (DPMS) to implement customer due diligence (CDD), enhanced due diligence (EDD) for high-risk customers, record-keeping (5-year minimum), and suspicious transaction reporting (STR). DPMS with annual turnover above AED 55,000 in cash transactions must also implement full AML programme controls under Cabinet Decision No. 10 of 2019 (as amended).
Practical compliance requirements: a written AML/CFT policy approved by the board; appointment of a CAMS-certified (or equivalent) Anti-Money Laundering Compliance Officer (AMLCO); quarterly transaction monitoring reviews; annual external AML audit; registration on the Centralized Know Your Customer (cKYC) platform for financial institution counterparties. The UAE’s AML supervisory body for DPMS is the Ministry of Economy, which conducts both risk-based and random inspections with fines of up to AED 1,000,000 for non-compliance.
Is investment gold zero-rated for VAT in the UAE?
Yes. Under Federal Decree-Law No. 8 of 2017 on VAT, investment-grade gold with purity of 99% or higher is zero-rated (0% VAT) in the UAE. This applies to gold bars, coins, and bullion. Gold jewellery — even at high purity — is taxed at the standard 5% VAT rate because it is classified as a manufactured good rather than an investment instrument. UAE-based gold traders benefit from input VAT recovery on business costs while charging 0% on eligible sales.
Is LBMA accreditation required to trade gold in UAE?
LBMA accreditation is not a UAE regulatory requirement. However, it is commercially essential for trading with international bullion banks, central banks, and sovereign wealth funds that only accept LBMA Good Delivery bars. UAE refineries seeking Good Delivery status face a 6–18 month process and costs of USD 15,000–30,000. Trading companies (non-refineries) can obtain LBMA Associate Membership for GBP 8,000–25,000 annually to signal compliance to institutional counterparties.
What is the minimum capital to start a gold trading company in UAE?
For a DMCC LLC engaged in gold trading, the minimum paid-up share capital is AED 50,000. This is the statutory minimum set by DMCC and is not related to actual trading capital, which will depend on your business plan and banking requirements. Banks providing trade finance for gold typically require minimum collateral or balance sheet strength well above the statutory minimum — expect banks to require AED 500,000–2,000,000 in demonstrated working capital before extending gold trade finance facilities.
Do UAE gold traders need to register with goAML?
Yes. All dealers in precious metals and stones (DPMS) — including gold traders — are classified as Designated Non-Financial Businesses and Professions (DNFBPs) under UAE Federal Decree-Law No. 20 of 2018. Registration on the UAE Financial Intelligence Unit’s goAML platform is mandatory. Companies must register within 60 days of commencing operations. Failure to register attracts administrative fines of AED 50,000–1,000,000 under Cabinet Decision No. 10 of 2019.
Can a gold trading company in DMCC sell directly to UAE mainland customers?
A DMCC free zone entity cannot sell directly to UAE mainland customers without triggering UAE customs duty and potentially losing its Qualifying Free Zone Person (QFZP) status (required for the 0% corporate tax rate). To sell to UAE mainland buyers, a DMCC gold trader must either: (1) set up a mainland branch or subsidiary with a DED trade license; (2) export the gold from the free zone to a mainland distributor who then sells to the end customer; or (3) use a designated zone transit mechanism. DMCC compliance officers can provide guidance specific to each trading structure.