Business Setup

How to Start a Jewellery Retail Business in Ras Al Khaimah: Setup Guide

Published 26 Jul 2026 · 2 min read

Starting a jewellery retail business in Ras Al Khaimah involves a jewellery-trading activity licence through the RAK Department of Economic Development — this guide covers a general RAK-based jewellery retail licence, distinct from Dubai's Gold and Diamond Park, a specialised free zone combining manufacturing and retail for the gold and jewellery trade specifically.

Licensing considerations

A jewellery retail business needs a gold/jewellery trading activity licence, and depending on whether the business also manufactures jewellery on-site versus purely retailing finished pieces sourced from suppliers, the specific activity classification and any workshop-related approvals differ. A pure retail operation without on-site manufacturing generally faces a simpler approval path than one combining production and sales.

VAT and regulatory considerations

Standard UAE VAT rules apply to retail jewellery sales — 5% VAT generally applies to the full invoice value (gold value plus making charges) for consumer jewellery regardless of purity, distinct from the zero-rating that applies only to business-to-business investment-grade bullion trades. This site's Gold Rate Calculator can help you understand how this plays out on an actual transaction.

Costs and timeline

Costs are driven by premises security requirements (jewellery retail typically needs enhanced security measures given the value of stock held), display fit-out, and initial inventory investment, which typically exceeds the licensing cost itself substantially. Model your base licensing cost with this site's Business Setup Cost Calculator.

Frequently Asked Questions

Do I need to be based in Gold and Diamond Park to sell jewellery?

No — Gold and Diamond Park is a specific Dubai free zone combining manufacturing and retail infrastructure for the jewellery trade, but a general jewellery retail licence through the RAK DED or a RAK free zone is a separate, equally valid route for a standard retail jewellery business.

Does VAT apply differently to gold jewellery than other retail goods?

The 5% VAT rate is standard, but it applies to the full invoice value including making charges for jewellery, and there is a common misconception that high-purity gold is VAT-exempt — it is not, for retail consumer purchases. Only genuine business-to-business investment-grade bullion trades are zero-rated.

Do I need special insurance for a jewellery retail business?

Given the high value of stock typically held, jewellery retailers commonly carry specific insurance covering theft and loss beyond standard business insurance — this is a business decision rather than always a strict licensing requirement, but strongly advisable.

Can I manufacture jewellery on-site as well as retail it?

Yes, though combining manufacturing and retail under one licence may need the activity classification to reflect both functions — confirm this with the RAK DED if your business does both rather than retail alone.

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