Recent amendments to the Precious Metals and Gemstones Law are redrawing the contours of the sector balancing transparency with quality and paving the way for a more competitive Saudi jewelry industry.
In a move that reflects the maturity and institutional evolution of the Saudi market, the revised regulations have come into effect, marking a transformative moment for one of the Kingdom’s oldest and most significant markets.
After decades of organic growth, the new framework sets clearer rules for fair competition, protects consumers from fraud and manipulation, and builds the foundation for a national jewelry industry that meets global standards ushering in a new “golden age” of efficiency and transparency.
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Institutional Structuring: A Partnership Between Commerce and Industry
One of the most prominent features of these amendments is the clear and deliberate separation of roles between the Ministry of Commerce and the Ministry of Industry and Mineral Resources, reflecting the specialized institutional model envisioned by Vision 2030.
The Ministry of Commerce is tasked with overseeing the trade of precious metals and retail outlets, serving as the watchdog for consumer protection and market integrity.
In contrast, the Ministry of Industry and Mineral Resources supervises manufacturing activities and issues industrial licenses.
This division ensures that each entity operates at maximum efficiency within its scope — industry receives developmental support, while trade is subject to strict oversight for quality and pricing. The result is a reduction in bureaucratic overlap and faster decision-making, all supporting the sector’s growth.
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Consumer Protection: Trust Built on Transparency
The amendments introduce a suite of measures designed to strengthen consumer confidence. Chief among them is the mandatory use of registered hallmark stamps, serving as a tamper-proof certificate of authenticity that curbs the circulation of counterfeit or substandard jewelry.
Financial transparency is now also mandatory: businesses must issue detailed invoices for all purchases from individuals, including verified personal data a crucial step in promoting governance and combating money laundering.
Even display practices are now regulated: stores must clearly distinguish between used jewelry and pieces containing synthetic stones, ensuring that buyers know exactly what they’re purchasing before making a decision.
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Mandatory Licensing: The Gateway to a Regulated Industry
On the production side, requiring an industrial license from the Ministry of Industry before engaging in manufacturing represents a major step forward.
This rule serves two core purposes:
1.Enhancing quality by subjecting all workshops and factories to unified technical standards and strict production controls.
2.Integrating the informal economy into the formal system by encouraging small workshops to regularize their status and benefit from official incentives and support.
This reform empowers Saudi designers and craftsmen to hone their skills, localize jewelry manufacturing, and create high-value jobs — transforming Saudi gold from a raw commodity or imported product into a locally crafted symbol of excellence.
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A Future That Shines with Quality and Efficiency
At its core, the revised Precious Metals and Gemstones Law aims to transform a traditional marketplace into a transparent, high-quality, and well-regulated industry, aligned with the Kingdom’s ambitious economic vision.
The goal is not to burden traders but to establish a fair, trustworthy environment for both consumers and investors.
As these new rules take root, the new glow of gold in the Saudi market will no longer be merely monetary it will reflect institutional maturity, strong governance, and **