Dubai is the one of the seven emirates in the United Arab Emirates. The city is known for its luxurious shopping malls, contemporary architecture, and active nightlife. Dubai is crowned as the “City of Gold” because of the city’s dynamic growth from a quiet Gulf port to a global business hub in just a few decades. However, the sobriquet indicates the city’s traders’ and buyers’ penchant for the yellow metal. Dubai has built itself as a major gold trading center by sourcing its raw materials from Africa and selling the finished products to buyers in the expanding economies of India and China. Dubai owns 29% of gold trade market in the world, with almost 1,200 tons of the metals traded in the city’s gold souks.
The traders believe that gold prices will continue to rise, despite some stagnancy, as the governments and speculators lean on the yellow metal as a sure thing in the unstable global economy. In addition to its status as a chief gold trader, the city is also a major retail market with hundreds of shops selling gold. The Gold Souk, as well as the other shops in the city, is the biggest draw for traders, tourists, and residents looking to buy gold. The customers can walk in and buy jewelry of their choice and ever get it customized. Dubai’s love for gold and jewelry dates back to the 19th century when the city was a sleepy trading port. Dubai’s connection with the king of metals is legendary. The journey of the Middle East Gold and Jewelry business began from Beirut, Lebanon during 1965-1974. The civil war in Lebanon shifted the trade to Kuwait briefly before the introduction of obligatory hallmarking and compulsory customs duty that moved it to the UAE gold jewelry markets. The UAE captured the trade from Kuwait and since then, it has been increasing continuously because of the favorable Customs Policy and supportive Government schemes for the industries. Together with the government’s support, the gold business in Dubai flourished and gave the traders an excellent opportunity to grow.
Dubai’s geographical location plays a key role in making it one of the most admired gold trade markets. The tax-free status of the city makes it one of the most affordable places in the world to buy gold. There are gold refineries, storage vaults, and jewelry-making units that import gold and melt it to make gold bars. The Dubai Gold and Commodities Exchange allow traders and investors to purchase and sell gold on the commodities market.
Buying Jewelry in Dubai? Here is what you should know:
Purity: The Gold Jewelry that you buy from Dubai is of the highest purity. The Dubai Central Laboratories Department ensures the best quality of the jewelry through stringent regulatory procedures. There is a voluntary quality management organization by the name of ‘Bareeq’ that runs a certification scheme regulated by the Central Laboratories Department for gold jewelry shops. This group has widely helped to endorse and give proper recognition to shops that satisfy the good practice standards for gold trading. These standards guarantee the quality of the jewelry products that are sold in the shop and gives confidence to the consumers that they are purchasing only the world-class products.
Cost: The cost of gold jewelry is the most competitive in Dubai and also the lowest because of the large volumes of the dealings done every day. The minimum taxes levied by the government as the well the high turnover and low margin policy by the jewelry makers resulted in the UAE and Dubai offering the world’s most excellent jewelry at the great prices. This is one of the factors that Dubai is called the ‘City of Gold’ where the wholesalers and retail buyers from across the world where come to find the choicest jewelry.
Variety: Around 180 nationalities live in Dubai and the city’s jewelry market has everything to offer to people of different tastes and ethnicities – Arabic, Western, Asian, European, etc.
Check before buying: The local law makes it compulsory for gold jewelers to show the gold purity hallmark to the buyers. Don’t forget to ask for the same whenever you buy gold. Make sure you get the invoice containing all the description of the purchased jewelry. These documents would be required at the airport. If you are buying gemstone or diamond-studded pieces, ask the jeweler to provide the certificate of Authenticity.
From the time when Dubai was a treasure fishing city to today’s ritzy commercial center, the allure of its gold business has grown manifold. The famous Dubai Gold Souk Gold, one of the most famous places to buy gold, is situated in the city’s commercial area in Deira, in the neighborhood of Al Dhagaya, therefore, the name the “Deira Gold Souk”. The market consists of more than 300 jewelers located at the site to cater to all the gold-related needs of the customers. Both well-established brands and small stores operate in the gold souk. The place is touted as the one to the world’s biggest retail gold markets. The center was set up in 1900′s with only a few retailers but the number grew significantly over the following decades. The annual imports of gold run into hundreds of tons, making Dubai the regional Gold capital and the largest trading centre in the Middle East. Various promotional activities on the local as well as global platform for selling quality jewelry at the best price has helped Dubai in branding itself as the “City of Gold”, or simply the jewelry paradise on the Earth. Whether you want to buy some exquisite pieces or simply admire the craftsmanship, the Dubai Souk has everything worth your visit. It is reported that roughly 10 tons of gold is there in the souk at any given time! It could be in the form of necklaces, bracelets, bangles, chains, rings, earrings, diamond or gemstone studded jewelry, etc., making the Souk a must-visit destination in the Middle East.