The United Arab Emirates (UAE) is a leading hub for the jewellery market, attracting entrepreneurs with its favourable business environment, strong demand and advanced infrastructure. Setting up a jewellery manufacturing business in the UAE involves obtaining the right business plan, licence and infrastructure, meeting regulatory standards and investing in high-quality production facilities. According to Statista, the jewellery market in the UAE is projected to reach $0.71bn in revenue by 2025, with an expected annual growth rate of 2.46% between 2025 and 2029. This steady growth presents lucrative opportunities, but businesses must carefully navigate legal, financial and operational aspects to succeed.
A business licence is mandatory for operating a jewellery manufacturing business in the UAE. The type of licence depends on business activities: • Manufacturing licence: Required for jewellery production, including metal casting, stone setting, polishing and engraving. • Trading licence: Necessary for wholesale or retail jewellery businesses. • Import-export licence: Needed to source raw materials (such as gold, silver and gemstones) and sell finished products internationally. Businesses operating on the mainland must obtain a business licence from the Department of Economic Development (DED). At the same time, those in a free zone must apply through the relevant free zone authority.
Entrepreneurs must decide whether to set up in the mainland or a free zone, each offering distinct advantages: Mainland Company • Allows direct sales in the UAE market. • Subject to Value-Added Tax (VAT) and other regulatory compliance. Free Zone Company • Provides 100% foreign ownership and tax benefits. • Offers customs exemptions for international trade. The choice depends on the target market, business model and operational needs.
A jewellery manufacturing business set-up in the UAE requires a well-equipped production facility with: • Casting and moulding equipment for shaping jewellery. • Stone setting, polishing and engraving tools for finishing products. • Security systems to protect raw materials and finished goods. Compliance with safety and environmental regulations is essential, ensuring proper ventilation, waste disposal and workplace safety measures.
Successful jewellery manufacturing relies on a steady supply of raw materials, including: • Gold, silver and platinum sourced from certified suppliers. • Gemstones such as diamonds, rubies and sapphires, either locally sourced or imported. • Packaging and branding materials for finished jewellery. Building relationships with reliable suppliers ensures cost efficiency and consistent product quality.
The UAE enforces strict quality and regulatory standards, requiring jewellery manufacturers to: • Hallmark gold and silver products through ESMA to certify purity. • Follow ethical sourcing guidelines, ensuring conflict-free diamonds and fair trade gold. • Register for VAT (if applicable) with the Federal Tax Authority (FTA). Non-compliance may result in fines, product recalls or business closure.
Jewellery manufacturing requires skilled craftsmen, including: • Designers for creating innovative jewellery concepts. • Goldsmiths and artisans for metalwork and stone setting. • Quality control specialists to ensure product standards.
A strong market presence is key to business success. Jewellery manufacturers in the UAE can explore: • Wholesale partnerships with retailers and jewellery showrooms. • E-commerce platforms to sell directly to customers. • International trade fairs to expand into global markets. Collaborations with local influencers and digital marketing strategies can further strengthen brand visibility. Challenges: • High initial investment in manufacturing infrastructure. • Compliance with strict regulatory standards. • Intense competition from established jewellery brands. Opportunities: • Access to a growing market with increasing demand for luxury jewellery. • Favourable tax policies and business incentives in free zones. • Expansion into international markets through the UAE’s trade networks. Setting up a jewellery manufacturing business in the UAE requires careful planning, obtaining a business licence, securing high-quality infrastructure and ensuring regulatory compliance. With a strategic approach and investment in skilled craftsmanship, businesses can leverage the UAE’s thriving jewellery industry to achieve long-term success.
Setting up a business in the UAE is streamlined with expert consultants. Partner with RAKEZ for guidance on trade licence acquisition, warehouse rental and more. RAK Economic Zone provides reliable support to make your jewellery manufacturing business establishment efficient and seamless. Contact RAKEZ today to embark on your entrepreneurial journey in the UAE: Phone: +971 7 204 1111 Email: info@rakez.com
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