- DMCC jewellery and gemstone trading license: AED 15,000–25,000/year; Dubai Diamond Exchange (DDE) membership: AED 5,000–20,000/year.
- RJC (Responsible Jewellery Council) certification is strongly recommended for all UAE jewellery exporters: AED 5,000–20,000 setup cost.
- Kimberley Process Certification Scheme (KPCS) compliance is mandatory for rough diamond traders operating in the UAE.
- UAE diamond trade reaches USD 26 billion annually (2025), making Dubai the world’s third-largest diamond trading hub after Antwerp and Mumbai.
- Rough diamond imports into the UAE are duty-free (0%); polished diamonds attract 5% GCC tariff (EFTA suspended for some countries).
- AML/CFT compliance under CBUAE 2019 regulations requires enhanced due diligence for all precious metals and stones dealers.
- Gemstone traders must label goods with country of origin, carat weight, and disclosure of any treatments applied.
- Year 1 total business setup cost: AED 100,000–250,000 including license, trade memberships, and compliance.
Updated August 2026. Dubai has evolved into one of the world’s most important hubs for jewellery and gemstone trading, leveraging its strategic geography between the diamond mines of Africa and the jewellery manufacturing centres of India, Belgium, and Israel. The Dubai Diamond Exchange at DMCC — the world’s single largest diamond trading centre — handles billions of dollars in rough and polished diamond transactions annually. Whether you are planning to trade rough diamonds, polished stones, gold jewellery, or coloured gemstones, the UAE’s regulatory framework is well-developed but requires careful navigation. This guide covers every license type, compliance requirement, cost, and market opportunity for jewellery and gemstone traders entering the UAE market in 2026.
Dubai as a Global Jewellery and Diamond Hub
Dubai’s position as a global jewellery hub is built on four structural advantages: zero personal income tax, free repatriation of capital and profits, world-class logistics infrastructure (DXB and DWC airports plus Jebel Ali Port), and a concentration of buyers, sellers, and manufacturers from every major jewellery market in the world. The UAE’s diamond trade volume reached USD 26 billion in 2025, with Dubai serving as the primary re-export corridor linking African producers, Indian manufacturers, and Western retail markets.
The Dubai Diamond Exchange (DDE), located within DMCC in Jumeirah Lakes Towers, is a regulated marketplace where certified members trade rough and polished diamonds under strict KYC and compliance protocols. Beyond diamonds, Dubai is a major market for gold jewellery (with the iconic Gold Souk in Deira trading over 10 tonnes of gold daily), coloured gemstones including emeralds, rubies, and sapphires, and luxury watchmaking components. The UAE’s jewellery retail sector generates over AED 18 billion annually, supported by year-round tourist traffic and a wealthy resident population.
For international jewellery businesses, the UAE offers a uniquely open re-export model: goods imported into DMCC or other free zones can be stored, traded, and re-exported without triggering UAE import duty — making Dubai a cost-effective trans-shipment point for goods moving between India, Africa, Europe, and the US. The Dubai Multi Commodities Centre (DMCC) is the primary regulatory authority for commodities trading in the UAE and holds a dedicated framework for precious metals and stones that is internationally recognized by RJC and the Kimberley Process.
License Types: DMCC vs DED vs Gold and Diamond Park
There are three main licensing pathways for jewellery and gemstone traders in the UAE. The DMCC free zone license is the most internationally recognized and provides direct access to the Dubai Diamond Exchange. DED (Department of Economic Development) mainland licenses allow direct retail trading within Dubai. The Dubai Gold and Diamond Park (DGDP) offers specialized licenses for manufacturers and retailers in a physical gold and jewellery cluster.
| License Type | DMCC Free Zone | DED Mainland | Gold & Diamond Park |
|---|---|---|---|
| Annual License Cost (AED) | 15,000–25,000 | 8,000–18,000 | 10,000–20,000 |
| DDE Exchange Access | Yes (+ membership fee) | No | No |
| Retail on UAE Mainland | Via distributor only | Yes | On-site only |
| Import Duty Exemption | Yes (free zone) | 5% GCC tariff applies | Partial (zone rules) |
| Kimberley Process Eligible | Yes | Yes (DMJEA oversight) | Yes |
| Best For | Diamond wholesale, export | Retail jewellery stores | Manufacturing + retail |
Dubai Diamond Exchange (DDE) Membership
The Dubai Diamond Exchange (DDE) is the world’s single largest diamond exchange floor, located in the DMCC Diamond Commodities Complex in JLT. DDE membership grants access to the exchange trading floor, enables participation in regulated diamond auctions, and provides the recognized market status that diamond traders need to deal with international counterparties. DDE membership costs AED 5,000–20,000 per year depending on membership category: associate members pay lower fees but have limited floor access, while full members have unrestricted trading floor rights and can sponsor guest traders.
To become a DDE member, an applicant must hold a valid DMCC trading license with appropriate precious stones or commodities activity codes, pass KYC and anti-money laundering (AML) screening, provide two trade references from existing DDE members, and demonstrate prior experience in the diamond trade. New entrants without prior trade references can engage a DMCC-registered corporate services firm to assist with member sponsorship. DDE also requires members to maintain compliance with the Kimberley Process and, for RJC-certified goods, to keep valid RJC certification active throughout their membership period.
Beyond the trading floor, DMCC operates the Dubai Diamond Conference annually — one of the most important industry gatherings in the global diamond calendar, attracting buyers, sellers, and miners from over 60 countries. DMCC membership gives companies access to this network, as well as to DMCC’s price benchmark data for rough and polished diamonds, which is published weekly and used as a reference rate by traders globally.
RJC Certification: Responsible Jewellery Council
The Responsible Jewellery Council (RJC) is the international standard-setting body for the jewellery supply chain. RJC certification is not legally mandatory in the UAE, but it is increasingly a commercial prerequisite for trading with major retail chains, luxury brands, and institutional buyers in the US, UK, and EU who have commitments to ethical sourcing. RJC certification covers responsible business practices including human rights, labour rights, environmental impact, and business ethics across the jewellery and watch value chain.
UAE jewellery and gemstone businesses typically spend AED 5,000–20,000 obtaining initial RJC certification, which includes a third-party audit by an RJC-approved auditor. Initial certification takes 3–9 months from the time of application, depending on the complexity of the business and the scope of supply chain operations. Annual RJC membership fees range from AED 1,500–8,000 depending on company revenue. Re-certification audits are required every three years. DMCC actively promotes RJC certification among its jewellery license holders and has partnerships with several RJC-approved auditing firms operating from Dubai.
Kimberley Process Certification Scheme (KPCS)
The Kimberley Process Certification Scheme (KPCS) is an international governmental certification system designed to prevent conflict diamonds from entering the mainstream rough diamond market. Participation in the KPCS is mandatory for any UAE business involved in the import, export, or re-export of rough diamonds. The UAE is a full KPCS participant, with the Ministry of Economy’s Minerals and Gemstones Section serving as the designated KPCS authority.
Under KPCS rules, all shipments of rough diamonds crossing international borders must be accompanied by a Kimberley Process Certificate issued by the exporting country’s KPCS authority, and the UAE importer must present this certificate to UAE customs upon import. Each rough diamond shipment must be sealed in tamper-resistant containers and the certificate must describe the contents. UAE exporters of rough diamonds must obtain a KP Certificate from the UAE Ministry of Economy before export. KPCS compliance is verified through annual UAE government statistical reporting and periodic peer reviews.
The KPCS applies only to rough diamonds — it does not cover polished diamonds, coloured gemstones, gold, or other jewellery. For polished diamonds, traders rely on self-regulatory supply chain assurance programmes such as the RJC certification scheme and the Responsible Minerals Initiative (RMI). For coloured gemstones, the Gemological Institute of America (GIA) and other gemological labs provide origin reporting that is increasingly required by luxury buyers.
AML/CFT Requirements for Precious Metals and Gemstone Dealers
Under the Central Bank of UAE (CBUAE) AML/CFT framework introduced through Federal Decree-Law No. 20 of 2018 and updated regulations in 2019 and 2021, dealers in precious metals and precious stones (DPMS) are classified as Designated Non-Financial Businesses and Professions (DNFBPs) and are subject to enhanced anti-money laundering obligations.
UAE jewellery businesses must: register with the CBUAE goAML platform for suspicious transaction reporting; conduct customer due diligence (CDD) for all transactions above AED 55,000 (cash) or AED 110,000 (non-cash equivalent); perform enhanced due diligence (EDD) for high-risk clients and politically exposed persons (PEPs); maintain transaction records for a minimum of 5 years; and appoint a dedicated AML compliance officer. Penalties for non-compliance include fines of AED 50,000–5,000,000 and potential license revocation. DMCC conducts AML compliance audits of its jewellery license holders annually.
Year 1 Cost Breakdown for UAE Jewellery Trading Business
A complete Year 1 budget for a UAE jewellery and gemstone trading business should include: DMCC license (AED 15,000–25,000), DDE membership (AED 5,000–20,000), RJC certification (AED 5,000–20,000), office/showroom rental in JLT or Gold Souk area (AED 30,000–80,000/year), trade finance facility setup (AED 5,000–10,000 arrangement fees), AML compliance setup including goAML registration and compliance officer (AED 10,000–20,000), and transit insurance for stock (AED 5,000–15,000/year). Total Year 1 setup and operational costs: AED 100,000–250,000 excluding inventory. Working capital for diamond trading typically requires AED 500,000–5,000,000 depending on the scale of trading activity.
Frequently Asked Questions
Do I need a DMCC license to trade diamonds in the UAE?
While you can technically trade polished diamonds under a DED mainland trading license, the DMCC free zone license is the standard requirement for wholesale and international diamond trading in Dubai. The Dubai Diamond Exchange (DDE) only admits DMCC license holders as members, and international diamond trading counterparties from Antwerp, Mumbai, and New York typically require their UAE partners to hold active DMCC membership and DDE affiliation. DMCC’s licensing, AML framework, and KP compliance infrastructure make it the industry-standard regulatory home for diamond businesses in the UAE.
What is the minimum order size for Kimberley Process compliance in the UAE?
The Kimberley Process applies to all commercial shipments of rough diamonds regardless of value, weight, or quantity — there is no de minimis exemption. Even a single rough diamond crossing an international border in a commercial transaction must be accompanied by a valid KP Certificate. Personal carry of rough diamonds for non-commercial purposes may be exempt under certain conditions, but UAE customs authorities have broad discretionary powers to require KP documentation for any rough diamond import. Businesses trading rough diamonds should obtain valid KP Certificates for every shipment and maintain records for a minimum of 5 years.
Can a UAE jewellery business sell directly to consumers in Dubai malls?
A DMCC free zone jewellery license does not automatically permit direct retail sales to end consumers in Dubai mainland malls. To operate a retail jewellery store in a Dubai mall, you need either a DED mainland commercial trading license with a retail jewellery activity code, or a franchise/distributor arrangement with a mainland-licensed entity. The Dubai Gold and Diamond Park (DGDP) provides a physical retail and manufacturing hub where on-site retail is permitted under DGDP-specific licensing. For businesses wanting both wholesale trading at DDE and mainland retail sales, a dual-entity structure (DMCC for wholesale plus DED for retail) is the most common approach.
What gemstone labeling requirements apply in the UAE?
UAE gemstone traders must ensure that all gemstones offered for sale are correctly labeled with country of origin (where determinable), carat weight, and full disclosure of any treatments applied — including heat treatment, fracture filling, beryllium diffusion, irradiation, and coating. Failure to disclose treatments constitutes a commercial fraud violation under UAE Federal Law No. 15 of 2020 on Consumer Protection and can result in fines and license suspension. Gemological certificates from internationally recognized labs — GIA, IGI, HRD, or AGL — are the standard method of treatment disclosure for higher-value stones and are expected by most professional buyers in the UAE market.
Is VAT applicable to jewellery and gemstone sales in the UAE?
UAE VAT at 5% applies to most retail jewellery sales within the UAE. However, investment-grade gold, silver, and platinum in the form of bars and coins meeting specific purity standards (gold 99% or above, silver 99% or above) are zero-rated under the UAE VAT framework. Rough diamonds traded between VAT-registered businesses in designated free zones under the suspended VAT regime may be exempt from VAT under DMCC’s free zone designation. Businesses should obtain specific advice from a UAE FTA-registered tax agent on VAT treatment for their specific product mix, as rules for jewellery, gems, investment metals, and watches differ significantly depending on product type, buyer status, and trade channel.