Table of Contents
Frequently Asked Questions
What is activity code 4774.94 and what does it permit in Dubai
Activity code 4774.94 — Used Jewellery Trading is the official licence classification in Dubai that covers the retail and wholesale of pre-owned gold, diamond, and gemstone jewellery. It permits businesses to buy, assess, and resell second-hand jewellery pieces, including vintage and antique items with provenance documentation.
The activity sits within a broader precious metals and stones sector and allows operators to work across multiple business models, including direct retail, wholesale supply to other traders, and online or auction-style sales targeting regional buyers.
Why is Dubai considered a good location to start a used jewellery trading business
Dubai is ranked among the world's top five gold trading hubs by volume, and its jewellery sector draws consistent demand from residents, a large expatriate population, and high-spending tourists throughout the year. The emirate also functions as a key re-export corridor for the wider Gulf and South Asian markets, creating strong wholesale demand.
Tourist spend on gold and jewellery in Dubai is among the highest per-visitor globally, according to data from the Visit Dubai — Department of Economy and Tourism. The pre-owned segment specifically benefits from estate liquidations, expatriate departures, and growing consumer appetite for certified second-hand pieces at accessible price points.
What types of products can a used jewellery trader buy and sell under this licence
Operators licensed under activity code 4774.94 can trade a wide range of pre-owned pieces. Typical inventory includes pre-owned gold jewellery such as rings, chains, bangles, and sets, as well as second-hand diamond and gemstone pieces and vintage or antique jewellery supported by provenance documentation.
Loose stones acquired as part of jewellery lots also fall within the permitted scope. Complementary services such as valuation, third-party certification referrals, and repair coordination can be offered alongside trading activity to increase margins and customer retention, often without requiring separate licences.
Who are the typical target customers for a used jewellery trading business in Dubai
The customer base for used jewellery traders in Dubai is diverse. On the supply side, individual sellers looking to liquidate assets — including departing expatriates and estate executors — are a primary source of inventory. Pawnbrokers and estate liquidators also supply stock to traders who prefer to act as intermediaries.
On the buying side, customers include regional wholesalers sourcing inventory, tourists seeking certified pre-owned pieces at competitive prices, and institutional buyers such as small jewellers who prefer not to handle pre-owned stock directly. This dual-sided market structure gives operators multiple revenue channels simultaneously.
What are the anti-money laundering (AML) obligations for used jewellery traders in the UAE
Used jewellery dealers in the UAE are classified as designated non-financial businesses under UAE AML legislation, which means they carry formal compliance obligations from the moment they begin trading. These include mandatory registration with the relevant supervisory authority, customer due diligence (CDD) requirements, and transaction reporting obligations above defined thresholds.
Operators must implement internal AML policies and procedures appropriate to the risk profile of their business. Updated guidance on these obligations is available through the Official UAE Government Portal. Non-compliance in this area carries significant legal and financial risk, so engaging a compliance adviser before launching is strongly recommended.
How does VAT apply to used jewellery trading in Dubai
The UAE applies a standard 5% VAT rate, and used jewellery trading is not exempt from this obligation. However, second-hand goods may qualify for the profit margin scheme under specific conditions set by the Federal Tax Authority, which calculates VAT only on the margin between the purchase price and the selling price rather than the full sale value — potentially reducing overall VAT liability.
VAT registration becomes mandatory once annual turnover exceeds the Federal Tax Authority's prescribed threshold. Even below that threshold, voluntary registration is often commercially sensible, particularly if the business trades with VAT-registered wholesale buyers who require tax invoices.
What customs and re-export requirements apply if the business imports or exports jewellery
Businesses intending to import or re-export jewellery must comply with documentation requirements administered by Dubai Customs and the Ports, Customs and Free Zone Corporation (PCFC). Accurate declaration of gold content, weight, and country of origin is a non-negotiable requirement for every shipment.
Dubai's role as a re-export corridor for the Gulf and South Asian markets means these processes are well-established, but errors in documentation can result in delays, penalties, or seizure of goods. Working with a licensed customs broker familiar with precious metals is advisable for operators who plan to trade internationally from the outset.
What business models are commonly used by licensed used jewellery traders in Dubai
The core model is straightforward — buy pre-owned jewellery, assess its value, and resell at a margin — but in practice operators combine several approaches. Many run both retail and wholesale operations simultaneously, selling directly to end consumers while also supplying inventory to jewellery retailers who prefer not to handle pre-owned stock themselves.
Other common models include auction-style sales, listings on online platforms targeting regional buyers, and sourcing partnerships with pawnbrokers or estate liquidators. The flexibility of the licence allows operators to adapt their model as market conditions and inventory availability evolve, making it a commercially versatile activity classification.
How to Start a Used Jewellery Trading Business in Dubai
Dubai has been a gold town for a long time. The UAE sits among the world's top five gold trading hubs by volume, and the jewellery trade here runs on residents, expatriates and tourists all buying at once. Pre-owned pieces are a slice of that market most people overlook.
This guide covers what activity code 4774.94 lets you buy and sell, where your stock comes from, the money-laundering and customs rules you have to follow, and how to set up your license through Meydan Free Zone. The compliance side matters more here than in most trades, so it is worth getting right before your first deal.
Key Stats at a Glance
What This License Covers
Activity code 4774.94, Used Jewellery Trading, lets you buy, assess and resell pre-owned gold, diamond and gemstone jewellery, at retail or wholesale.
Your stock can include:
- Pre-owned gold jewellery such as rings, chains, bangles and sets
- Second-hand diamond and gemstone pieces
- Vintage or antique jewellery backed by provenance papers
- Loose stones picked up as part of a jewellery lot
You can also offer valuation, referrals for third-party certification and repair coordination alongside the trading. Those services lift your margin and keep customers coming back, and they do not need separate licenses.
Who Your Clients Will Be
This is a two-sided market, which is unusual. You buy and sell from different sets of people.
Where your stock comes from
- Individuals selling to release cash, including departing expatriates
- Estate executors handling a liquidation
- Pawnbrokers and estate liquidators passing stock on
Who buys from you
- Regional wholesalers building inventory
- Tourists after certified pre-owned pieces at a better price
- Small jewellers who would rather not handle used stock themselves
The core model stays the same throughout. You buy a piece, work out what it is worth, and sell it on at a margin. Around that, traders run auction-style sales, list stock on online platforms aimed at regional buyers, or supply retailers directly. The license is flexible enough to let you change how you work as stock and demand shift.
Mainland or Free Zone
A Meydan Free Zone license lets you trade and re-export without running a shop. To sell straight to consumers on the UAE mainland you need either a mainland license from the Department of Economy and Tourism or a distribution deal with a licensed mainland company. Let your buyers decide it, not the price.
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Step by Step Setup Guide
- Step 1, confirm your activity and license type: Pick Used Jewellery Trading, code 4774.94, under a trading license. Check that the scope you want, retail or wholesale or both, is covered.
- Step 2, book your trade name: Send your preferred company name for approval. It must follow UAE naming rules, and regulated terms need clearance first.
- Step 3, send in your setup documents: Passport copies, your proposed shareholding structure and the completed application forms are what you need at this stage.
- Step 4, collect your trading license: Once approved, the license is issued. That gives you standing to trade, sign contracts and open an account.
- Step 5, open a corporate bank account: Banks want a valid license, shareholder papers and a business plan. Leave time for onboarding, because it moves at a different pace from bank to bank.
- Step 6, register for VAT and apply for visas: Register with the Federal Tax Authority as your turnover approaches the threshold. Free zone companies can also sponsor investor and employee visas, and the allocation depends on your package.
Compliance and What You Need in Place
Anti-money laundering
Dealers in precious metals and stones are treated as designated non-financial businesses under UAE law. Duties start the day you begin trading, not once you reach a certain size. You must register with the relevant supervisory authority, run customer due diligence, and report transactions above the set thresholds. You also need written internal AML policies that match the risk in your own business. Breaking these rules carries serious legal and financial consequences, so take advice before you launch.
Customs and re-export
Importing or re-exporting jewellery brings documentation duties through Dubai Customs and the Ports, Customs and Free Zone Corporation. Declare gold content, weight and country of origin accurately on every shipment. These routes are well worn, but a paperwork error can mean delays, penalties or seized goods. A customs broker who knows precious metals is worth the fee if you plan to trade internationally from the start.
VAT
The UAE charges VAT at 5%, and used jewellery is not exempt. Second-hand goods may qualify for the profit margin scheme under conditions set by the Federal Tax Authority, which charges VAT only on the gap between what you paid and what you sold for. Registration becomes compulsory once turnover passes the threshold, and registering voluntarily below it often makes sense if your wholesale buyers want tax invoices.
Market Opportunity
Dubai's gold and jewellery sector is a real contributor to non-oil trade, and re-exports are a core part of it. That gives a used jewellery trader an outlet beyond local buyers, into the Gulf and South Asian markets the emirate already feeds.
Demand at home holds up year-round. Residents, a large expatriate population with money to spend and high-spending tourists all buy here, and spend per visitor on gold and jewellery in Dubai is among the highest anywhere. The wider UAE jewellery market is expected to keep growing through 2028.
The pre-owned slice has its own drivers. Estate liquidations and expatriate departures keep supply flowing, while buyers have warmed to vintage and certified second-hand pieces at prices they can actually reach.
Conclusion
Used jewellery trading in Dubai is a well-regulated activity with real, steady demand behind it. The logistics, finance, tourism and trade routes you need are already built.
What the trade asks of you is a proper license, AML controls from day one, and a clear idea of how you make money. Meydan Free Zone gives you full ownership and a license covering both retail and wholesale trading. Get the compliance right early and the rest of it is buying and selling.
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