Importance of Gold in Dubai’s economy


Description: Dubai is a major business centre with a more dynamic and diversified economy. Gold was always a reputable business in Dubai; that is why it also called a city of Gold.

Dubai is a city of United Arab Emirates and one of the well-known from seven Emirates. The city is famous for its lavish shopping malls, Islamic architecture, and active nightlife and gold. Dubai is referred to as the “City of Gold” because the image of old Dubai was a silent Gulf port, and in just a few decades, it transformed into a global business centre. However, the Gold tag indicates the city’s traders’ and buyers’ preference for the gold. 

Dubai is a major gold trading centre because of sourcing its raw materials from Africa and selling the finished products to clients in the expanding economies of India and China. The gold business of Dubai is very large and according to the latest report of Department of Economic Development (DED), Dubai has 4,000 ongoing companies for gold in with total gold, jewellery and diamond sales touching AED274 billion ($74.6 million). 

As per the report, total issued licences for jewellery were 2498 and issued a permit for jewels of gold and silver 1,184. For trade in gold and precious metals, 392 for goldsmiths and valuable jewellery, seven for gold foundry and expensive metals, and five for gold liquidation.

The gold and jewellery sector provide freedom for residents of Dubai with gold imports from around 30 countries, which also meets the request of tourists who visit Dubai. Dubai retains 29% of gold trade market in the world, with nearly 1,200 tons of the metals traded in the city’s gold marketplaces. 

Now, as you are aware enough about the gold market of Dubai. So being an investor, it’s not a bad idea to invest in Dubai and play around gold, which is equivalent to money.

Why do you prefer to Buy & Sell Gold in Dubai

If you are looking for every day or something more extravagant jewellery, Dubai sellers have plenty of designs to offer when it comes to gold jewellery. Apart from this, here are the reasons why buying gold in Dubai is so popular.

Purity of Gold

Dubai government ensures that all jeweller sells the authentic hallmark jewellery only. The Hallmark is a certificate that specifies details such as the weight and karats of actual gold and stones in the jewellery and the making charge. The Hallmark ensures that the jewellery will be valued worldwide. Due to buying these worldwide valued gold people prefer to shop gold from Dubai. If you are a seller, your customer won’t have trust issue when the government is involved. 

Cheaper in Price

In Dubai, you can buy cheaper gold due to not having extra charges or taxes prices for gold. You only have to pay the value of the gold jewellery. In other countries, like India, apart from VAT, you have to pay additional taxes such as goods and services tax (GST) and excise duty, which make it more expensive. Being a seller, you don’t have to negotiate for the price. 

Larger Choice

As Dubai is a shopping paradise for gold shopkeepers are filled with techniques to create varieties in designs. No matter where you are going, it’s guaranteed that you will find a spectacular designer jewellery shop featuring designs from across the world so you can choose whatever you like. 

Dubai Gold prices follow International Market Rates

All jewellery stores in Dubai follow the international price of gold, which creates uniformity in the price of gold everywhere in the city, which is another characteristic that makes gold purchase experience seamless. Since International gold prices fluctuate as the price of the stock market, it provides an opportunity for gold investors or buyers in Dubai to take advantage of purchasing gold at the lowest rate.

Bargain in the making Charges of Gold in Dubai 

Making charges varies according to the type of gold and jewellery you are buying and also on the shop. It’s not easy to bargain in the big shop, but in a small shop, you can ask to reduce the price easily if you know about it. Here the owner of the big shop has the advantage to not to reduce making charge quickly.

Due to these, all the above factor business of gold in Dubai has lots of scopes to invest and not only the gold, but Dubai has lots of opportunity in other sectors as well. To give your business plan more weight, let’s take a look on below positive factors which will definitely force you to invest in Dubai.

Why choose Dubai for Investment?

The economy of Dubai plays around a competitive mixture of cost, market and environmental advantages that construct an ideal and striking investment climate for locals and expats. In fact, these benefits not only rank Dubai as the Arabian Gulf’s prime multi-purpose business centre and regional hub city, but they place it at the cutting age of the globes, dynamic and appearing market economies.

Dubai, with its antique commercial and sea travelling customs, has long been renowned as the Middle East region’s leading trading axis and has emerged as its key re-export centre. In recent years, the Emirate has become an essential venue for several profitable, growing industries and activities like:

  • Tourism
  • Regional transport, distribution and logistics centre
  • Meetings, conferences, exhibitions
  • Business and industrial consulting
  • Banking, finance and insurance
  • Information and Communications Technology
  • Light and medium manufacturing
  • Corporate, regional headquarters

Apart from gold if you are looking to set a business in Dubai, you can choose from the above options and plan to invest in Dubai free zones. In Dubai, you will be benefitted with warm, welcoming people, world-class facilities and infrastructure and farsighted, open and liberal economic policies of Dubai. For successful business set up in Dubai, it is suggested that you should have a trustworthy advisor with you. 

We at Commitbiz, provide full suport and guidance for your business. We understand the importance of real adviser for decision-makers that’s why our experts work around the entities worldwide to identify, prioritize, and to create an accurate set of research for our clients. Please contact us to discuss your business plan and take advice from our business experts.

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