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 jewellery annually.
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 in promotion.