Dubai, UAE
Dubai gold market – information for investors
Dubai, UAE is one of the world’s most lucrative and well-organized markets for investing in gold, and is also an attractive city for miners to refine and sell their products.
The emirate has set up the Dubai Multi Commodities Centre (DMCC) as a dedicated Organization to help traders in gold and other precious metals, and you can benefit from attractive tax rates and regulation.
The city’s infrastructure also makes it easy to access and do business here, thanks to its location and modern airport with links to most major cities.
Infrastructure makes it easy to buy gold in Dubai
The heartbeat of the Dubai gold trade is the DMCC and its associated free zone. The DMCC was established by the Dubai government in 2002 to regulate and promote trade in a range of goods, including gold.
The DMCC registers companies, and its free zone is a physical campus of around 70 residential and commercial towers, designed to make life as easy as possible for traders.
In 2005, the DMCC set up the Dubai Gold and Commodities Exchange (DGCX), the first dedicated commodities exchange in the Middle East. It is the leading such exchange in the region, so it’s clearly a good choice for trading in gold.
Dubai offers an attractive tax regime
One of the most attractive features of trading gold in Dubai is the fact that you can own 100% of your company here, even if you are not a citizen.
Dubai also has no personal or corporate income tax, and you can take all of your profits out of the country without restriction.
Dubai supports the gold refining process
As well as helping gold traders, Dubai is also well set up for processing and handling physical gold for miners and traders.
In 2005, the DMCC established the Dubai Good Delivery Standard, which is the international standard for 1kg gold bars of .995 purity.
More than a dozen refining companies with DGD accreditation have offices in the free zone, so gold miners can find a reputable refinery to get their raw products to a high standard of purity.
The free zone even has accredited refineries on site, as well as the largest non-sovereign vault in the world, so overall Dubai has excellent resources for gold miners and traders in physical gold.
Local gold market offers opportunities
As well as being a key player in the global gold market, Dubai has a long history of gold trading on a smaller scale. Merchants can sell gold directly to the public at the famous Gold Souk market, in the Deira commercial district.
It’s a popular tourist destination, with several hundred shops offering a huge range of different products.
Slightly less famous, but still a key part of the local scene, is the Gold & Diamond Park, which was created in 2011 with retail spaces, manufacturing facilities and offices.
Overall, Dubai is a welcoming place for the entire gold value chain, from mining and refining to manufacturing, retailing and investing.
Dubai relies on trade for its wealth
Dubai has been a trading hub in the Persian Gulf for centuries, but its world-class gold market is traced back to the arrival of gold merchants from India and Iran during the 1940s, encouraged even then by Dubai’s free trade policies.
The discovery of oil in the 1960s was important for Dubai’s development but, unlike some Middle Eastern nations, Dubai does not rely on oil for its wealth and its economy is now heavily diversified into trade, construction, tourism and finance.
Dubai is ruled by the Emir of Dubai, Mohammed bin Rashid Al Maktoum, and is one of seven self-governing emirates which make up the United Arab Emirates.
Dubai, like all the other emirates, has considerable powers to manage its own affairs within the federal structure of the UAE. This means you may see significant difference in regulations, facilities and taxes if you are also trading gold in other parts of UAE.
Read my latest blogs on the Dubai gold market here.