Everyone knows there’s no better place to purchase jewelry than in the UAE. The region has a long history as a trading center for precious metals and gemstones, which has led to the thriving jewelry manufacturing industry that operates today.
A significant portion of the jewelry manufactured in the UAE is exported around the world. Gold and diamond jewelry that hail from the UAE are instantly recognizable, due to their distinct quality. Since gold and jewelry have become the most popular types of jewelry produced in the UAE, they have also fueled a strong tourist market.
For a fine jewelry manufacturer, there’s no better place to be than the UAE. The industry includes large-scale factories that produce for international brands alongside smaller workshops for small-scale brands. Big or small, each brand’s quality can be described as top-notch and draws in a wide clientele.
The government in the UAE actively supports the industry, making it an attractive location for businesses to set up and expand their operations. Apart from fine jewelry, however, imitation jewelry and bijouterie are immensely popular as well; there is, overall, a huge demand for all types of jewelry.
As an entrepreneur, depending on your speciality, here are the business activities we recommend.
3210.00 – Manufacture of jewellery and related articles
This business activity involves the creation of ornamental items, typically worn for personal adornment. This includes both genuine jewelry made with precious metals and stones, as well as imitation jewelry crafted from less valuable materials. In essence, jewelers and related businesses produce items like necklaces, rings, bracelets, earrings, and other accessories that are often considered decorative or status symbols.
However, this business activity excludes:
- Manufacture of non-metal watch bands (fabric, leather, plastic etc.): This refers to the production of watch straps made from materials other than metal.
- Manufacture of articles of base metal plated with precious metal (except imitation jewellery): This involves coating base metals with precious metals, but it does not include the production of imitation jewelry.
- Manufacture of watchcases: This refers to the production of the outer casing of a watch.
- Manufacture of (non-precious) metal watch bands: This involves the production of metal watch straps made from non-precious metals.
- Manufacture of imitation jewelry: This encompasses the creation of jewelry using synthetic materials to mimic the appearance of precious metals and stones.
- Third-party Approval: No third-party approvals are required for this business activity
- Filing of Economic Substance Return: Business activity 3210.00 is exempt from this requirement.
- Anti-Money Laundering Compliance: Business activity 3210.00 is exempt from this requirement.
3211.01 – Production of worked pearls
Production of worked pearls involves the processing of natural or cultured pearls into finished products for use in jewelry and other items. This includes activities such as cleaning, grading, drilling, shaping, and polishing pearls to prepare them for setting in jewelry.
Production of worked pearls does not encompass the manufacturing of watch bands, whether made from metal, fabric, leather, or plastic. Additionally, it excludes the creation of watchcases, the plating of base metals with precious metals (except for imitation jewelry), and the production of imitation jewelry itself.
- Third-party Approval: No third-party approvals are required for this business activity
- Filing of Economic Substance Return: Business activity 3211.01 is exempt from this requirement.
- Anti-Money Laundering Compliance: Business activity 3211.01 is exempt from this requirement.
3212.00 – Manufacture of Imitation Jewellery and Related Articles
There’s always room to experiment with imitation jewelry. It offers a fashionable and affordable alternative to precious pieces. In fact, although they use different materials and techniques, the manufacturing process has many similarities.
Here, designs tend to be more creative and experimental since costume jewelry embraces trends and affordability. A wide selection of materials are used in imitation jewelry, so let’s look at some of them:
- Base metals: brass, copper, aluminum, iron are common choices
- Plating: gold, silver, rhodium are common finishes
- Non-precious stones: glass, cubic zirconia, plastic, imitation diamond, acrylic all serve as substitutes for diamonds and gemstones
- Other materials such as wood, fabric, beads, shells, and recycled materials are often incorporated creatively
Imitation jewelry tends to rely on simpler and faster methods for mass production, and has a large market of consumers from all ages, genders, and demographics. Under this license, there’s always something for everyone.
3212.01 Manufacture of costume or imitation jewellery: rings, bracelets, necklaces, and similar articles of jewellery made from base metals plated with precious metals, jewellery containing imitation stones such as imitation gemstones, imitation diamonds, and similar
The potential under this segment is immense, considering the diverse market size and multiple customer groups that a manufacturer can target. A jewelry factory can produce sizable numbers of rings, necklaces, bracelets, anklets, and other modern forms of jewelry, with the confidence that buyers are available, given that effective marketing strategies are used.
3212.02 – Manufacture of metal watch bands (except precious metal)
For watch-makers who wish to produce a wide variety of watches, this license is essential to ensure that you can produce watches with precious metals, regular metals, leather, fabric, leather, plastic, and other straps.
After all, when it comes to watches, popularity is not constrained to precious metals. The market is quite diverse and appeals to customers with varied tastes and cost preferences.
Under this license, however, manufacturers cannot produce jewelry made from or plated with precious metals, jewelry with real gemstones, and watch bands made from precious metals.
- Third-party Approval: No third-party approvals are required for these business activities.
- Filing of Economic Substance Return: Business activities 3212.00, 3212.01, and 3212.02 are exempt from this requirement.
- Anti-Money Laundering Compliance: Business activities 3212.00, 3212.01, and 3212.02 must meet these requirements as they are considered ‘Designated Non-Financial Businesses and Professions’.
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