How To Set Up A Jewelry Manufacturing Business In The UAE

May 27, 2024

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. .   

Jewelry manufacture can be a blend of age-old techniques and modern technology. The process at a jewelry factory can involve, design, model making, casting, fabrication, stone setting, polishing, plating, and quality checking. Fine jewelry manufacturers can choose to go down the mass production route or specialize in handcrafted pieces.

The techniques used to manufacture jewelry can vary greatly, depending on the materials being used, designs complexity, and customer vision. Here are some key materials a jeweler can work with under this activity: 

  • Worked pearls
  • Precious and semi-precious stones
  • Industrial quality stones
  • Synthetic or reconstructed precious or semi-precious stones 
  • Diamonds 
  • Precious and base metals 

Production of the above materials, and using combinations of the above materials to manufacture jewelry, are both enabled. But this activitygoes beyond the basics of simple jewelry, such as rings, earrings, bracelets, and more. 

Here are some other items an entrepreneur can focus on manufacturing, using precious metals or combinations of base metals and precious metals: 

  • Dinnerware, flatware, and hollowware
  • Toilet articles
  • Office or desk items
  • Items for religious use
  • Technical or laboratory articles of precious metals such as crucibles, spatulas, electroplating anodes, etc (excluding instruments and instrument parts)
  • Watch bands, wristbands, watch straps
  • Cigarette cases
  • Coins (including for use as legal tender)

Many customers often ask for customization. With this activity, jewelry manufacturers can also engrave precious and non-precious metal products, such as wedding bands, pendants, watches, and more.

While a wide variety of items falls under this business activity, here are specific items you cannot manufacture: 

  • Non-metal watch bands (fabric, leather, plastic, etc)
  • Items of base metals plated with precious metal (except for imitation jewelry) 
  • Watchcases 
  • Non-precious metal watch bands
  • Imitation jewelry 
  • Third-party Approval: No third-party approval is required for these business activities.
  • Filing of Economic Substance Return: Business activity 3211.00 is exempt from this requirement.
  • Anti-Money Laundering Compliance: Business activity 3211.00 must meet these requirements as it is considered a ‘Designated Non-Financial Business and Profession’.

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’.

Did you find what you were looking for? Explore the other guides in our Activity Hub for exploring unique business ideas in Dubai and navigate the essentials of business setup with ease.

You can also calculate your business setup costs easily using our handy cost calculator and choose from our customized company setup packages to find your perfect fit.

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