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