India and the United Arab Emirates (UAE) share one of the most dynamic and enduring trade relationships in the world, with gems and jewellery being a pillar of bilateral commerce. From centuries-old trade routes across the Arabian Sea to present-day sophisticated global supply chains, this sector blends tradition, artisanal skill, and strategic economic cooperation.
For Indian manufacturers, traders, and investors, and for UAE-based distributors, retailers, and logistics hubs, the jewellery and gems sector offers significant commercial and regulatory opportunities, especially considering the recent trade reforms and the India–UAE Comprehensive Economic Partnership Agreement (CEPA).
This cluster article explores the key trade opportunities, regulatory frameworks, market drivers, and strategic considerations shaping the jewellery and gems trade between India and the UAE.
Strategic Importance of the India–UAE Jewellery & Gems Corridor
The UAE, particularly Dubai, has established itself as a global hub for:
- Gold trading and bullion storage
- Diamond grading, certification, and re-export
- Luxury jewellery retail
India remains a global leader in:
- Diamond cutting and polishing
- Gold jewellery manufacturing
- Skilled artisanal craftsmanship
Together, these countries form an integrated value chain: India supplies manufacturing expertise, while the UAE provides access to international markets across the Middle East, Africa, Europe, and beyond.
This Article is a Part of Our Why Indian Businesses Consider the UAE a Global Expansion Hub.
Impact of the India–UAE CEPA on Jewellery Trade
The India–UAE CEPA came into force on May 1, 2022, and has transformed trade in gems and jewellery between the two countries by:
- Reducing or eliminating customs duties on a wide range of jewellery and precious metal products. UAE abolished its previous duty on jewellery products under CEPA, while India reciprocally provides significant tariff concessions.
- Streamlining customs procedures and certification requirements under preferential rules of origin.
- Improving market predictability and enhancing exporters’ competitiveness.
Evidence shows that CEPA has propelled bilateral trade significantly: India’s gem and jewellery exports to the UAE rose from about US$4.95 billion in FY2021-22 to over US$8.04 billion in FY2023-24, a growth of over 60%.
The UAE has also emerged as a key export destination, accounting for a substantial share of India’s total gems and jewellery exports.
Key Trade Segments and Opportunities
Gold Jewellery and Bullion
- The UAE is one of the world’s largest importers of gold jewellery, with Indian products commanding strong demand, especially for bridal and traditional designs.
- Bullion trading, refining, and value-added services anchored in UAE free zones like DMCC offer opportunities for Indian players to optimize supply chains.
Diamonds (Rough and Polished)
- India dominates global diamond cutting and polishing, processing 9 out of every 10 rough diamonds worldwide.
- Dubai’s diamond trading, grading, and re-export ecosystem provides access to markets across Africa and Europe.
Coloured Gemstones and High Jewellery
- Demand is rising in the UAE for coloured gemstones such as emeralds, rubies, and sapphires, especially in bespoke and designer jewellery segments.
Lab-Grown Diamonds
- Ethical sourcing trends and growing global acceptance support expanded trade in lab-grown diamonds across both markets.
Regulatory and Licensing Landscape in the UAE
The UAE offers a business-friendly regulatory environment for precious metals and gemstone trade with features like:
- Company incorporation options in mainland and free zones (e.g., DMCC, JAFZA).
- 100% foreign ownership and repatriation of profits in many free zones.
- Customs duty benefits for re-exports and preferential CEPA treatment.
- Compliance with anti-money laundering (AML) and counter-terrorist financing (CTF) norms.
- Mandatory hallmarking and precious metal certification.
The UAE’s free zones also offer access to global vaulting, trading, and logistics facilities, which are essential for high-value consignments and cross-border supply chains.
India-Side Considerations for Exporters
Indian exporters should prepare for the UAE market by focusing on:
- Export documentation and certification under the Indian foreign trade policy.
- Quality standards, hallmarking, and CEPA rules of origin to ensure duty benefits.
- Competitive pricing strategies leveraging duty-free access.
- Partnering with UAE distributors or establishing a local presence to enhance market reach.
Exporters are encouraged to participate in trade shows and initiatives such as the India International Jewellery Show (IIJS) and the India Jewellery Exposition Centre (IJEX) to engage UAE buyers and build networks.
Investment and Structuring Opportunities
Beyond traditional trade, the sector offers:
- Manufacturing or assembly units in UAE free zones.
- Joint ventures between Indian manufacturers and UAE retailers.
- Family office and private investments into luxury jewellery brands.
- Logistics, vaulting, and fintech trading platforms.
Relaxed foreign ownership norms and robust investor protections make the UAE an attractive base for Indian capital within the jewellery ecosystem.
Risk Management and Compliance
While opportunities are significant, operators must navigate:
- AML/KYC regulations especially for high-value gold and gemstone transactions.
- Sanctions compliance and source-of-funds verification.
- Selection of appropriate dispute resolution mechanisms (courts vs arbitration).
Strong internal compliance programs and well-structured commercial contracts are essential to mitigate regulatory and reputational risks.
The jewellery and gems trade between India and the UAE is entering a vibrant phase of growth, driven by CEPA benefits, evolving consumer demand, deeper supply chain integration, and expanding market access.
For Indian exporters, UAE wholesalers and retailers, and cross-border investors, the sector offers scalable, resilient, and high-value opportunities, provided legal, regulatory, and commercial frameworks are effectively aligned.
