Gold & Precious Metals Trading in Dubai (DMCC)

Dubai has no gold mines and yet it is one of the world capitals of the metal: a significant share of global physical trade passes through its vaults, refineries and trading desks. The institutional heart of that ecosystem is DMCC — the Dubai Multi Commodities Centre was born precisely to organise commodities trading, and gold is its flagship sector.

For the trader who buys and sells physical metal — doré, bars, granules — the practical question is which exact licence they need and what conditions it carries. The answer lies in one specific activity in DMCC’s official list: Non-Manufactured Precious Metal Trading. This guide breaks it down: what it covers, what requirements the sector adds and how gold is taxed in the Emirates.

The official activity: Non-Manufactured Precious Metal Trading

The Non-Manufactured Precious Metal Trading activity, code 5142-04 in the DMCC list (Precious Metals & Stones sector), covers the resale of the basic minerals of gold, silver, platinum and other precious metals in their pre-extraction state, or in the form of bars, blocks, wires or granules at the pre-manufacturing stage.

Two points on scope. First: this is the activity of the metal as a raw material — finished jewellery, manufacturing and retail trade have separate activities in the list. Second: unlike other sensitive DMCC activities, this one carries no territorial restriction — you can buy and sell inside and outside the UAE under your licence.

The two requirements that set it apart

Gold is a closely watched sector, and the activity reflects that in two layers added on top of the standard licence:

1. The Undertaking Letter. DMCC requires signing the Non-Manufactured Precious Metal Undertaking Letter, the sector-specific letter of commitment with which the company takes on the conduct and compliance obligations of non-manufactured metal trading.
2. SIRA as a special regulator. The listing names Dubai’s Security Industry Regulatory Agency — the body that regulates private security: custody, safes and transport of high-value goods. In practice, the storage and physical movement of the metal rely on providers and protocols approved within that framework.

On top of those two layers comes the cross-cutting one: gold trading is a priority sector for AML supervision in the UAE. Counterparty KYC, traceability of the metal’s origin and documentary support for every transaction are not optional — they are the business’s social licence, and the first thing the bank will review when opening the account.

How gold is taxed in the Emirates

UAE VAT distinguishes the investment perimeter from the general one: trading in investment-grade precious metals that meet the conditions of the regulations (investment-grade purity and tradeable form) benefits from the 0% rate, while outside that perimeter the standard 5% applies. With tight margins and high volumes, classifying each transaction correctly is the difference between a real margin and a theoretical one — and VAT registration comes quickly: it is mandatory once you exceed AED 375,000 in annual turnover.

On profits, Corporate Tax at 9% above AED 375,000 applies as it does to any company, with the qualifying free zone regime as a possible route to 0% — subject, as always, to the activity and the income fitting its conditions. A metals desk needs serious accounting: mark-to-market inventory valuation, price hedging and trade-by-trade reconciliation.

Why DMCC and not another zone

For physical metal, DMCC is not just another free zone: it is the ecosystem. Vaults and custodians inside the zone itself, refineries and counterparties a corridor away, and the densest community of commodities traders in the region. For a business where secure logistics and counterparty reputation are everything, setting up where the market is saves friction in every transaction — from incorporation to the first purchase and sale contract.

Steps to set up the company

1. Activity and scope: confirm that 5142-04 reflects your real operations (raw material, not jewellery) and whether you need to combine it with other activities.
2. Structure and capital: a company with AED 50,000 in share capital.
3. Compliance file: Undertaking Letter, shareholder KYC and an impeccable source of funds — in this sector, the file is the product.
4. Incorporation in DMCC and space in the zone.
5. Banking: a corporate account with appetite for the metals sector — the most demanding point of the launch; arrive with your compliance already in place.
6. VAT and accounting: the 0%/5% classification defined before the first invoice and inventory accounting from day one.

Conclusion

Trading in gold and non-manufactured precious metals has its natural route in DMCC: a specific official activity (5142-04), a reasonable entry capital, no territorial restriction and the metal’s physical ecosystem all around. The real price of entry is not the capital — it is compliance: the Undertaking Letter, SIRA’s security framework and AML that convinces the bank. Those who arrive with the file in place are operating within weeks; those who improvise get stuck at the bank account’s door.