emirates7 - Jewellers in Dubai are adopting new approaches to recapture the interest of South Asian gold buyers, including importing contemporary designs from abroad and developing unique styles locally.
This shift comes in response to India’s significant reduction in gold import duties—from 15% to 6% last year—its lowest in over ten years. This change has diminished the appeal of buying gold in the UAE for Indian tourists. Traditionally, South Asians have been a major customer base for gold purchases in Dubai, especially during key festivals like Diwali and Akshaya Tritiya.
Chirag Vora, managing director of Bafleh Jewellers, acknowledged in an interview with Khaleej Times that India’s revised import policy has impacted gold sales in the UAE and beyond. "Business has definitely taken a hit," he explained. "The price gap between gold in Dubai and India used to be around 15%, but now it’s narrowed to just 6%, making Dubai less enticing for gold buyers. Also, India has improved its gold quality standards—hallmarking is now mandatory there."
Despite this, Vora emphasized Dubai’s superior variety of designs, though he acknowledged that Indian manufacturers are progressing quickly. His company has started sourcing jewellery from China as part of their strategy to stay competitive.
Adding to the challenge, gold prices recently reached all-time highs both in Dubai and internationally due to factors like global trade tensions, increased central bank gold buying, and anticipated interest rate cuts.
Rohan Siroya, CEO of Siroya Jewellers’ Retail Division, noted that Dubai enjoyed strong sales for years due to the price advantage. “India’s cut in import duties has impacted the demand for 24-karat gold. So, we’ve shifted our focus to offering exclusive designs that aren’t available in India,” he said. “Tourists used to come to Dubai for the unique experience of finding diverse styles. Now, that experience is even more important, since we can no longer rely solely on price differences.”
He pointed to a growing presence of Turkish jewellery in Dubai and a revival of styles like Calcutta, Temple, and enamel jewellery. Retailers are also introducing distinctive pieces from Italy, Singapore, and local artisans to appeal to South Asian tastes.
Siroya highlighted that quality craftsmanship is critical in Dubai’s diverse market, which attracts a global clientele—from European luxury buyers to middle-class shoppers. Turkish jewellery, for example, is gaining popularity for its lightweight yet visually rich appeal.
He also mentioned the success of innovative offerings like the “Dubai Ring”—a lab-grown one-carat diamond ring sold at an exceptionally competitive price—saying, “This is the kind of experience tourists are coming to Dubai for now. They’re no longer disappointed, because the market has evolved. The selection here now surpasses what you'd typically find on Indian high streets.”
Siroya added that Dubai continues to draw gold buyers from regions such as China, Singapore, Africa, the Far East, and Europe, reflecting its global reach in the jewellery market.
This shift comes in response to India’s significant reduction in gold import duties—from 15% to 6% last year—its lowest in over ten years. This change has diminished the appeal of buying gold in the UAE for Indian tourists. Traditionally, South Asians have been a major customer base for gold purchases in Dubai, especially during key festivals like Diwali and Akshaya Tritiya.
Chirag Vora, managing director of Bafleh Jewellers, acknowledged in an interview with Khaleej Times that India’s revised import policy has impacted gold sales in the UAE and beyond. "Business has definitely taken a hit," he explained. "The price gap between gold in Dubai and India used to be around 15%, but now it’s narrowed to just 6%, making Dubai less enticing for gold buyers. Also, India has improved its gold quality standards—hallmarking is now mandatory there."
Despite this, Vora emphasized Dubai’s superior variety of designs, though he acknowledged that Indian manufacturers are progressing quickly. His company has started sourcing jewellery from China as part of their strategy to stay competitive.
Adding to the challenge, gold prices recently reached all-time highs both in Dubai and internationally due to factors like global trade tensions, increased central bank gold buying, and anticipated interest rate cuts.
Rohan Siroya, CEO of Siroya Jewellers’ Retail Division, noted that Dubai enjoyed strong sales for years due to the price advantage. “India’s cut in import duties has impacted the demand for 24-karat gold. So, we’ve shifted our focus to offering exclusive designs that aren’t available in India,” he said. “Tourists used to come to Dubai for the unique experience of finding diverse styles. Now, that experience is even more important, since we can no longer rely solely on price differences.”
He pointed to a growing presence of Turkish jewellery in Dubai and a revival of styles like Calcutta, Temple, and enamel jewellery. Retailers are also introducing distinctive pieces from Italy, Singapore, and local artisans to appeal to South Asian tastes.
Siroya highlighted that quality craftsmanship is critical in Dubai’s diverse market, which attracts a global clientele—from European luxury buyers to middle-class shoppers. Turkish jewellery, for example, is gaining popularity for its lightweight yet visually rich appeal.
He also mentioned the success of innovative offerings like the “Dubai Ring”—a lab-grown one-carat diamond ring sold at an exceptionally competitive price—saying, “This is the kind of experience tourists are coming to Dubai for now. They’re no longer disappointed, because the market has evolved. The selection here now surpasses what you'd typically find on Indian high streets.”
Siroya added that Dubai continues to draw gold buyers from regions such as China, Singapore, Africa, the Far East, and Europe, reflecting its global reach in the jewellery market.