Dubai Gold Merchants Aim at Indian Consumers with Fresh Designs Following Import Duty Reduction

Jewellers in Dubai are implementing new strategies to attract gold buyers from South Asia, including importing innovative designs from abroad and producing jewellery locally.

Following India’s reduction of the import duty on gold from 15% to 6% last year — the lowest it has been in over ten years — the appeal of jewellery purchases for Indian tourists in the UAE has diminished. A significant portion of gold and jewellery sales in Dubai comes from South Asian tourists and residents, particularly during festive occasions such as Akshaya Tritiya and Diwali.

Chirag Vora, the managing director of Bafleh Jewellers, noted that India’s policy changes have had a direct effect on the market in the UAE and beyond. “The business is impacted, no doubt. Previously, the price difference made buying in Dubai significantly cheaper, but now the advantage is only about 6%. This has reduced its appeal for tourists. Additionally, the purity standards in India have improved significantly, with mandatory hallmarking,” he explained in an interview with a local publication during an event in the Dubai Gold Souk Extension.

Stay informed on the latest updates.

While he emphasized that Dubai still offers greater variety, he acknowledged that Indian manufacturers are producing attractive options as well. His business is also now sourcing jewellery from China.

Last week, gold prices reached unprecedented highs in Dubai and around the world, influenced by factors such as the US tariff policies, increased central bank purchases, and predictions of interest rate reductions.

Rohan Siroya, CEO of Siroya Jewellers Retail Division, mentioned that many years of strong sales were largely due to price discrepancies.

“However, India’s significant reduction in duties has impacted the sales of 24-karat gold across the board. We have shifted our focus to providing unique retail designs that are not available in India. Tourists used to view Dubai as a one-stop shopping experience, but now we cannot solely rely on gold rates to attract them. The pieces must captivate their interest,” he added.

Siroya noted that Turkish jewellery is becoming more popular in Dubai, alongside a revival of Calcutta, Temple, and enamel jewellery styles.

“Dealers are working to introduce distinctive models that are unlike anything in India, such as fresh Italian, Singaporean, and local designs tailored for South Asian customers.” He emphasized that, alongside design and pricing, the quality of finishing must meet international standards to appeal to Dubai’s global clientele.

“We cater to both ultra-high-end customers from Europe and the middle-class market. Turkish jewellery tends to be lightweight yet appears substantial,” Siroya highlighted.

“We are witnessing various trends emerging, like the ‘Dubai Ring’ which has seen exceptional sales. It’s a one-carat lab diamond ring at a surprisingly affordable price. Tourists visit Dubai seeking unique experiences, and they are increasingly satisfied. The variety here surpasses that of almost any high street in India,” he remarked.

Siroya pointed out that Dubai is also drawing gold jewellery purchasers from numerous countries, including China, Singapore, the Far East, Africa, and Europe.