Shopkeeper sits in his shop in Dubai gold souk. Photo: Reuters
Dubai’s gold jewellers are adapting to shifting market dynamics by targeting South Asian buyers, particularly from India, following a recent reduction in gold import duties.
As reported by Reuters, India reduced its import duty on gold and silver from 15 percent to 6 percent on July 23, 2024. This move has narrowed the price gap that once made Dubai a preferred destination for gold shopping, diminishing its appeal for Indian buyers, particularly during major festivals like Diwali and Akshaya Tritiya.
As per Khaleej Times, jewellers in Dubai are responding by sourcing distinctive designs from international markets such as China, Turkey, Singapore, and Italy, while also developing exclusive collections locally.
The aim is to offer styles that aren’t easily available in India, enhancing Dubai’s appeal through variety and craftsmanship rather than just price.
Chirag Vora, Managing Director of Bafleh Jewellers, told Khaleej Times that India’s import duty cut has reduced Dubai’s price advantage, impacting tourist demand. He noted India’s improved hallmarking standards but said Dubai still offers greater variety, with his firm now sourcing designs from China to stay competitive.
With Akshaya Tritiya approaching, gold prices in Dubai surpassed the 400 Dirham mark again on Sunday afternoon, April 30, reaching a record high.
According to the Dubai Jewellery Group, a 24-carat gold rate trading at Dh 400.75 (Rs 9,319.37) per gram in the afternoon of the markets on Sunday.
The 22-carat variant was priced at Dh 371.25 (Rs 8,633.36) per gram, while 21-carat and 18-carat were priced at Dh 356.00 (Rs 8,278.72) and Dh 305.00 (Rs 7,092.72) per gram, respectively.
Amid ongoing market uncertainty, central banks and institutional investors are ramping up gold purchases as a safe-haven investment strategy.
This post was last modified on April 20, 2025 5:41 pm