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's position as a global gold and jewellery hub makes it one of the most commercially viable locations in the world to trade pre-owned and second-hand jewellery. The emirate accounts for a significant share of global gold re-exports, and its retail jewellery sector draws consistent demand from residents, expatriates, and high-spending tourists year-round.
Activity code 4774.94 — Used Jewellery Trading — covers the retail and wholesale of pre-owned gold, diamond, and gemstone jewellery. It sits within a broader sector that continues to grow in both volume and sophistication. The UAE jewellery market is projected to reach substantial figures over the coming years, driven by tourism, a large expatriate population with disposable income, and the emirate's established role as a re-export corridor for the wider Gulf and South Asian markets.
- The UAE is among the world's top five gold trading hubs by volume
- Dubai's gold and jewellery sector contributes significantly to non-oil trade, with re-exports forming a core revenue stream
- Tourist spend on gold and jewellery in Dubai remains among the highest per-visitor globally, according to data from Visit Dubai — Department of Economy and Tourism
- UAE jewellery market size is forecast to grow steadily through 2028, per Mordor Intelligence
The pre-owned segment specifically benefits from estate liquidations, expatriate departures, and a growing appetite for vintage and certified second-hand pieces at accessible price points.
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The core activity under this licence is straightforward: buy pre-owned jewellery, assess its value, and resell it at a margin. In practice, that covers a range of operational models.
Most operators in this space combine retail resale with wholesale supply to other traders. Some run auction-style sales or list inventory through online platforms targeting regional buyers. Others focus on sourcing from estate liquidators, pawnbrokers, or private sellers, then supplying to jewellery retailers who prefer not to handle pre-owned stock directly.
Products typically include:
- Pre-owned gold jewellery (rings, chains, bangles, sets)
- Second-hand diamond and gemstone pieces
- Vintage or antique jewellery with provenance documentation
- Loose stones acquired as part of jewellery lots
Target customers span individual sellers looking to liquidate assets, regional wholesalers sourcing inventory, tourists seeking certified pre-owned pieces, and institutional buyers such as pawnbrokers or small jewellers. Complementary services — valuation, third-party certification referrals, and repair coordination — can meaningfully increase margins and customer retention without requiring additional licences.
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Used jewellery trading in the UAE carries specific compliance obligations that operators must address from day one.
Anti-money laundering (AML): Dealers in precious metals and stones are designated non-financial businesses under UAE AML legislation. This means mandatory registration with the relevant supervisory authority, customer due diligence requirements, and transaction reporting obligations above defined thresholds. The Official UAE Government Portal provides updated guidance on AML obligations for this sector.
Customs and re-export: If you intend to import or re-export jewellery, documentation requirements apply through Dubai Customs and the Ports, Customs and Free Zone Corporation (PCFC). Accurate declaration of gold content, weight, and origin is non-negotiable.
VAT: The UAE applies a standard 5% VAT rate. Used goods may be eligible for the profit margin scheme under specific conditions, which can reduce the VAT liability on second-hand items. Registration is mandatory once turnover exceeds the threshold set by the Federal Tax Authority. Even below the threshold, voluntary registration is often commercially sensible.
Free zone vs. mainland: A Meydan Free Zone licence permits trading and re-export activity without requiring a physical retail shopfront. Selling directly to UAE consumers on the mainland requires either a mainland DED licence or a distribution arrangement with a licensed mainland entity.
How to Set Up via Meydan Free Zone: Step-by-Step
Meydan Free Zone offers a practical, cost-effective route to licensing with 100% foreign ownership and no local sponsor requirement. The process for activity code 4774.94 follows a clear sequence.
- Confirm your activity and licence type. Select Used Jewellery Trading (4774.94) under a trading licence category. Verify that your intended scope — retail, wholesale, or both — is covered.
- Reserve your trade name. Submit your preferred company name for approval. Names must comply with UAE naming conventions and cannot reference regulated terms without prior approval.
- Submit incorporation documents. Passport copies, proposed shareholding structure, and completed application forms are standard requirements at this stage.
- Receive your trading licence. Once approved, your Meydan Free Zone licence is issued. This grants you legal standing to operate, sign contracts, and open a corporate bank account.
- Open a corporate bank account. UAE banks require a valid licence, shareholder documents, and a business plan. Allow adequate time for bank onboarding, which varies by institution.
- Register for VAT if applicable. Submit your registration to the Federal Tax Authority once your turnover meets or approaches the mandatory threshold.
- Apply for visas. Free zone entities are eligible for investor and employee visas. The number of visas available depends on your chosen licence package.
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Used jewellery trading in Dubai is a commercially sound, well-regulated activity with genuine, sustained demand. The market infrastructure — logistics, finance, tourism, and trade corridors — is already in place. What the activity requires is proper licensing, AML compliance from the outset, and a clear commercial model.
Meydan Free Zone offers a straightforward path: full foreign ownership, competitive setup costs, and a licence that covers both retail and wholesale trading. If you are ready to move forward, speak to the Meydan Free Zone team to confirm your activity scope, check name availability, and get your licence in place.
References
- Visit Dubai — Department of Economy and Tourism (visitdubai.com)
- Mordor Intelligence (mordorintelligence.com)
- Official UAE Government Portal (u.ae)
- Ports, Customs and Free Zone Corporation (PCFC) (pcfc.ae)
- Federal Tax Authority (tax.gov.ae)
