MGT 302-W1 Business Environment in UAE and GCC Part 2

 

Dubai Gold and Diamond Park



CLO1: Practices and Opportunities

The Dubai Gold and Diamond Park, as the name suggests is located in Dubai, UAE. The park is an extension of the Jebel Ali Free Zone and is one of the Free Trade Zones of UAE. It was established in the year 2001 and opened its door to the public in January 2007. The reputed Emaar Properties are the developers of Dubai Gold and Diamond Park. The park spreads across an area of 511, 343 square feet, which is just Phase 1, as per the developers. It is strategically located on Sheikh Zayed Road and is only 23.5 km from Dubai International Airport. The park is also close to the First Gulf Metro Station and all means of public transport is easily available. There are also ATMs and foreign exchange centers which makes shopping in foreign currency much easier.


CLO2: Discussion of Different Aspects

As the name suggests the park is a treasure trove of all kinds of gold and diamond laid objects. It displays some of the world’s finest jewelries, gemstones, and precious stones, platinum and not to mention gold and diamond. High end accessories are also available here. As these are for trade purposes, craftsmanship and skill are worth mentioning. Each trader focuses specially on premium quality and high skilled labour to produce unique designs of objects. Custom made designs are also available to the public. Due to the shopping festivals held in Dubai, this park has also become a major tourist attraction.


CLO3: Different Circumstances

For business opportunities, retail space is available and also the park gives access to 118 manufacturing blocks for jewelers and traders. Commercial leasing also includes 350 offices, ranging from spaces between 310 sq. ft to 14,000 sq. ft. and not just shops. Cafes and restaurant owners can also conduct business here, as the park has a food courtyard equipped with cafes and restaurants for the public (Gold & Diamond Park, 2020). There are also supermarkets, salons and health and fitness centers which are open to business.



CLO4: Skills of Business Practices

The business setup here is done through a structured process and follows all the rules that is followed in Dubai Free Zones. It gives foreigners 100% ownership under the Dubai Laws, unlike the LLC companies where an Emirati partner is necessary. A foreigner too has 100% repatriation of capital and profits and is exempted from income tax and corporate tax. The leasing options usually are for one to five years depending on the trader. Any trader would require a list of documents for registration, like passport, portfolio of business, trade name and license, proof of initial approval, notarized memorandum of association, which must be attested and legalized by an attorney. A lease agreement from the Jebel Ali Authority and a minimum capital is also required. If the trader is a resident of UAE, the minim capital requirement is not needed (Farahat & Co., 2020).

The company formation fee is usually AED 1525, an offshore company registration would cost up to AED 525. The government requires a minim of AED 150,000 for the business setup. Apart from this, rent would be required for the park, submitted to the management and a 15% of the annual rent is refundable to the trader. A trader is also liable to pay maintenance fee, fees required for licensing (usually AED 5500) and permit and others in case of any. Most of the paperwork is usually done via consultants, who provide an accurate structure of what is required for a setup (Commitbiz Managing Consultants, 2020). After the setup, each trader is provided with an ID card which costs AED 100 for one year or AED 150 for two years.

 

 

References

Commitbiz Managing Consultants. (2020, April 03). Dubai Gold Business Setup: A complete business guide. Retrieved from Commitbiz Managing Consultants: https://www.commitbiz.com/blog/dubai-gold-business-setup-complete-business-guide

Farahat & Co. (2020, April 03). Business Formation in Dubai Gold & Diamond Park. Retrieved from Farahat & Co.: https://www.farahatco.net/business-setup-in-gold-diamond-park/

Gold & Diamond Park. (2020, April 03). About Gold & Diamond Park. Retrieved from Gold & Diamond Park: https://www.goldanddiamondpark.com/about/

 

Find Part 1 here

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