Dubai is known as the “City of Gold” and has a stunning skyline with huge skyscrapers and top-notch architecture. Dubai has seen a boom in the gold trade because of its open trade rules and the establishment of a well-respected free zone with enough infrastructure. Before we proceed, let us try to understand gold trading and how to get SIRA certificate for the same.
Considering the enormous nature of the business environment in Dubai, there are different types of gold licences. Though it is dependent on market exposure. These licences are based on major business centres providing access to robust infrastructure and a business-friendly ecosystem.
What is SIRA?
SIRA stands for Security Industry Regulatory Agency. This is a nodal agency that regulates trade in precious commodities in Dubai. A testimony to its importance is that when you incorporate the tagline How to Get SIRA Certificate” into the search engine Google, numerous results emerge. The gold trading licence in Dubai ensures a good marketplace and exposure.
It ensures that the facility has the necessary security measures in place when setting up a gold trade facility in Dubai. How to get SIRA certificate clearly specifies that there is a valid period. Apart from providing approval for new gold trading, they also undertake the renewal of gold trading licences.
Though there are a lot of licences that come under the preview of SIRA, A couple of licences commonly known by the vast majority are Dubai Economic Development ( DED) and Dubai Multi-Commodity Centre( DMCC). These licences are popular as they provide access to the gold souq and local markets, apart from an advantageous position in trading. In the UAE, there are other trading licences like the Gold and Diamond Park Free Zone by JAFZA or the Sharjah International Airport Free Zone(SAIF).
Dubai Multi-Commodity Centre (DMCC) Gold Trading Licence
The DMCC is incorporated into the complete gold supply chain. Hence, the companies are categorized under a range of activities, including investment, trading, exploration, manufacturing, etc. The Dubai Gold and Commodities Exchange (DGCX) is a massive network of gold refineries and wholesalers also located in the DMCC that accounts for the majority of the gold trade in Dubai.
The DMCC gold licence is important for the following reasons:
- Absence of personal or business taxes
- 100% returns on profits and capital
- Full foreign ownership
- Alarm system
- CCTV surveillance
- Round-the-clock security and access to operational facilities
- Robust infrastructure
Dubai Economic Development (DED Gold Trading Licence)
A DED gold trading licence is a great option if you require additional retail space and wish to easily enter the local UAE market. For example, the Deira Gold Souq market is a place where gold traders can conduct business. The government’s fair intervention in quality is coupled with high demand from neighbouring countries like India, GCC countries make Dubai the centre of gold exchange. This draws commercial establishments to the city of Gold from investors.
The reasons why a DED gold trading licence is vital
- Heart of the business sector with 300+ dealers
- Local market with the least or no trade barriers at all
- Closeness to Port Rashid, one of the Middle East’s well-connected ports;
- Exemptions from VAT and earnings taxes;
- Absence of minimum capital requirements.
Getting approval from SIRA
The process of how to get SIRA certificate for a gold business is complex. This is not only for a new licence for gold trading but even for the renewal of a gold licence. It is dependent on the model of the business, which varies considerably. There is a lot of paperwork and authorizations involved, which is a cumbersome task. In some cases, the NOC certificate process is involved as well.