Source: Condé Nast Traveler
Prices put a smile on the face of gold buyers in Dubai as prices have dipped close to Dh7 per gram this week, but tourists have taken the lead over residents.
This past weekend, Dubai Gold Rates had dipped to Dh362.5 per gram for 22K gold and Dh391.75 for 24K, almost Dh7 lower.
Even with such a significant correction in an arena where gold reached peak heights, many local consumers actually hoped for a greater drop. At certain times, it did seem like the Dubai gold rate could finish the week at about Dh357-Dh358 a gram. But as jewelers say, there is always another week for things to happen.
Tourists Step in to Fill the Gap
Never mind, the tourist-shoppers will surely appreciate such a drop of near Dh7, and in recent weeks, there have been countless.
“The UAE resident-shoppers dominated on April 30’s ‘Akshaya Trithiya’, and now most of them will stay on the side-lines until they see a bit more of the price drop,” said a jeweller. “But Dubai and UAE still has a sizable number of visitors/tourists – we are counting on them to keep the gold trade busy in the coming days.”
The allure of Dubai remains for overseas buyers, with golds of the highest quality and duty-free. The primary shopping sites-the Gold Souk and the Meena Bazaar-have continuous foot traffic.
Design diversifications are warranted by shifting buyer preferences.
According to Andrew Naylor is the Middle East and Public Policy head at World Gold Council, diversifying design offerings for UAE jewellers is overdue. He said
“In Dubai, you’ve got a big and growing Chinese resident base,” said Naylor. “They historically prefer 24K jewellery, heritage products, slightly lighter weight options now.
“Then there are the visitors to Dubai/UAE from Europe and further afield – and they come with different preferences on their choice of gold.
“There is a real opportunity for jewellers in the UAE to diversify their designs and options without neglecting their core customer base. If they do tap a more international buyer set, that could mean more growth down the line.”
Interest among Chinese retailers to penetrate the UAE market has also been on the rise. Local jewellers are now trying to adapt better to these new buyers. The real estate sector lends support to this development. One of the UAE’s largest master developers recorded Dh1 billion in property sales to Chinese investors in 2024, remarkably achieving that figure within just the first quarter of 2025.
Prospect: Great Business for Strategic Sellers
Optimism of Retailers. The Dubai gold market has good chances of getting continuity from not just the influx of international visitors but also the changing market dynamics.
It still remains the buyers’ favorite in Dubai, be it for investing, gifting, or wearing. For those who are biding their time, jewellers agree, it could just be a turn away from the next big wave of buying.
