People, but also governments, banks and companies have always invested in gold and other precious metals. The turnover related to gold and jewellery in the United Arab Emirates is estimated approximately in 2.5 billion U.S. dollars making it one of the main five world markets together with China, India U.S.A. and Russia.
Dubai owns around the 30% of the Middle East market. It is a recognised as a trading hub for gold, diamonds, precious gem stones and metals.
To invest in this sector, having Dubai as a base, it is important to keep the following features in mind:
- knowledge about the most important driving forces of this market. Gold price for instance is established by the London Buillon Association, which includes five banking groups;
- knowledge about the main mining countries and update on the political, economic and social situation;
- it is also important to be acquainted with the main consumer countries and the sectors where such metals are used, since this has an influence on the demand. It is not enough, for instance, to know that Arabs are very fond of gold and jewellery.
- it is necessary to get a suitable licence registration
Dubai Multi Commodities Center (DMMC) is the best solution to open a gold and precious metals trading company. This licence allows the registration with the Emirates Gold refinery, the customs and the authorised courier (Transguard) which assist in import – export procedures and in delivering the products to the customers.
The cost to set up a company is approximately 45,000 US dollars the first year, and the cost for annual licence renewal is around 15,000 US dollars.
For more details, do not hesitate to contact us for the procedures and the economic updates.