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Dubai Jewellery

Dubai has evolved as a significant jewellery manufacturer as well as wholesaling substantial quantities of jewellery from Italy, Malaysia, Indonesia and South Korea. Italy alone exports around 25 tonnes (0.8 million oz) of gold as jewellery to Dubai annually. Saudi Arabian manufacturers have also established outlets in Dubai. Factories in Dubai and the neighbouring emirate of Sharjah produce around 49 tonnes (1.6 million oz) of gold jewellery annually.

The essence of jewellery marketing in Dubai is high volume and low mark-up. With no sales tax, it is one of the cheapest places to buy jewellery. Indeed, Dubai calls itself 'City of Gold'. The 400 gold shops in its souks and shopping malls have 9.3 tonnes (0.3 m oz) on display in 18, 21, 22 and 24 carat gold, often with jewellery, coins and small bars.

The amount of gold jewellery consumed locally in the UAE stands at around 41 tonnes (1.3 m oz). Retail sales, however, are far higher because of the very large number of purchases made by tourists. A major surge in consumption occurs every March with the Dubai Shopping Festival which actively promotes gold. During the March 2001 festival, it is estimated that over 9 tonnes (0.3 m oz) of gold jewellery was sold.

The Dubai Gold & Silver Jewellery Group, an association of local manufacturers, wholesalers and retailers, is active in promotion.

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