Fine watches occupy an unusual place in global trade. They are compact, high-value and widely recognised, which makes them attractive to collectors, retailers and dealers alike. The same characteristics mean that the wholesale market demands rigorous attention to authenticity, documentation and compliance.
This article sets out the key considerations for trade buyers and sellers operating in the luxury watch wholesale market, with a particular focus on transactions involving the UAE.
Understanding the market
The Federation of the Swiss Watch Industry (FH) publishes the most widely cited data on Swiss watch exports. According to the FH, Swiss watch industry exports totalled CHF 25.6 billion in 2025, down 1.7% on the previous year — a second consecutive annual decline following record years. The number of watches exported fell 4.8% to 14.6 million pieces, and performance varied markedly between markets.
Alongside the primary market for new watches, the pre-owned segment has become a significant part of the landscape. Deloitte's Swiss Watch Industry Study 2025 identifies pre-owned watches as a key growth driver and reports that 40% of Generation Z respondents intended to buy a pre-owned watch in the following 12 months, compared with 20% of baby boomers. Consumers cited affordability and access to unique or discontinued models as key motivations.
For wholesale participants, the practical implication is that demand, supply and pricing can shift between models, materials and markets. Sound decisions rest on verified information about each specific piece rather than on general market sentiment.
Primary, grey and pre-owned channels
Luxury watches reach the market through several channels:
- Authorised distribution. Brands sell new watches through their own boutiques and appointed retailers under contractual arrangements.
- The grey market. Genuine new or unworn watches traded outside a brand's authorised network. These are authentic products, but buyers should understand that warranty terms, servicing arrangements and documentation may differ from those offered by authorised retailers.
- The pre-owned market. Previously owned watches traded between collectors, dealers and specialist platforms, ranging from recent models to vintage pieces.
Each channel is legitimate when the goods are genuine and lawfully sourced. What differs is the information available about a watch and the assurances that accompany it. Independent dealers should never imply that they are authorised by, or affiliated with, any brand unless that is formally the case.
Authenticity: the non-negotiable
Counterfeiting remains a serious concern in the watch sector, and the FH has long run dedicated anti-counterfeiting programmes, including work targeting fake watches sold online. For wholesale buyers, authentication is not a formality — it is the foundation of every transaction.
Good practice includes:
- Physical inspection by experienced specialists, covering case, dial, movement, bracelet and finishing.
- Serial and reference verification, ensuring numbers are consistent with each other and with the documentation.
- Movement inspection where appropriate and permitted, carried out by qualified watchmakers.
- Condition assessment, distinguishing original components from replaced or refinished parts.
- Independent verification for higher-value pieces where doubts arise.
A watch can be genuine yet have replaced parts or undisclosed service history. Transparent condition reporting matters as much as authenticity itself.
Box and papers
In the trade, "box and papers" refers to the original presentation box and accompanying documents — typically the warranty card or certificate, instruction booklets and, where available, original purchase documentation and service records.
Complete sets are generally preferred because they support provenance and can facilitate future resale. However:
- Papers are not proof of authenticity on their own. Documents can be forged or mismatched with a different watch.
- Details should match. Serial and reference numbers on papers should correspond with the watch.
- Missing papers are not automatically a red flag, particularly for older pieces, but they place greater weight on physical verification and provenance.
- Service documentation helps establish a watch's maintenance history.
Provenance and lawful ownership
Beyond authenticity, buyers need confidence that the seller has clear title. Stolen watches can be genuine. Prudent practice includes obtaining documented chains of ownership where available, recording the source of each piece, and checking serial numbers against available stolen-watch registers where appropriate.
KYC and anti-money laundering obligations
High-value, portable goods attract regulatory attention. The FATF's guidance for dealers in precious metals and stones sets out a risk-based approach for businesses in this sector. In the UAE, dealers in precious metals and stones (DPMS) are supervised by the Ministry of Economy and Tourism, whose 2026 supplemental guidance sets out their statutory obligations.
According to that guidance, DPMS must file a Dealers in Precious Metals and Stones Report (DPMSR) through the goAML platform for cash transactions with individuals at or above AED 55,000, and for transactions with companies at or above that amount, whether in cash or by wire transfer. The guidance stresses that the threshold is a legal trigger rather than an exemption: risk-based judgement applies at all transaction values.
Watch businesses whose goods are made of, or incorporate, precious metals or stones should assess carefully whether, and to what extent, these obligations apply to them. Regardless of formal status, sound practice includes:
- Verifying customer identity and beneficial ownership.
- Screening counterparties against the UAE Local Terrorist List and the UN Consolidated List published by the Executive Office for Control & Non-Proliferation (EOCN).
- Recognising red flags, such as reluctance to provide identification, structuring payments to stay below thresholds, or unexplained third-party payments.
- Keeping complete transaction records.
Customs and cross-border movement
Watches moving across borders are subject to customs formalities in each jurisdiction. In the UAE, the official u.ae portal states that the general customs duty rate is 5% of the CIF value of goods, subject to exceptions and exemptions. Free zones offer distinct treatment for goods held within them, while goods entering the mainland are generally subject to duty and declaration. Accurate valuation, correct tariff classification and consistent documentation are essential; under-declaration exposes all parties to penalties and reputational harm.
Shipments of high-value goods also require appropriate insurance and specialist secure logistics.
Transparent commercial terms
Clear terms protect both sides. Wholesale agreements should specify the exact reference and serial number, condition grading, included accessories, inspection rights, payment and delivery terms, and remedies if a watch is found not to match its description.
Discuss your requirements
SOMAK Global Solutions is licensed in the Ajman Free Zone for the wholesale of watches, import and export. We deal in genuine watches only and are not affiliated with or authorised by any watch brand. Our approach emphasises authenticity checks, documentation and transparent terms. If you are a trade buyer or seller, we would be pleased to discuss your requirements.
This article provides general information only and does not constitute legal, compliance or customs advice for any specific case.
