Dubai, known as the world’s shining gold capital, is experiencing a cooling effect on its jewellery market this year. What was once a constant glow has experienced a noticeable decrease in speed.
The demand for gold has decreased
In the first quarter of 2025, the demand for jewelry decreased to 7.9 tonnes, representing a decline of 18% compared to the previous year. For a city known for its glitz and glamour, that’s a significant decline.
What could be causing the slowdown?
🔺 gold hits record highs
Due to the skyrocketing prices of bling, many shoppers are delaying their purchases, choosing to wait for prices to decrease before indulging in their desire for jewelry.
For example, India recently reduced import duty
One of Dubai’s largest customer groups, Indian tourists and expats, are now finding more affordable options in their home country due to reduced import taxes, diminishing the motivation to purchase goods abroad.
🛍️ Shoppers are very selective
Both tourists and residents are reevaluating their spending choices, prioritizing savings or necessary items over indulgent purchases, particularly in light of economic uncertainty.
Sellers step in
Surprisingly, the surge in gold prices has led to a surge in the resale market, as individuals are eager to sell their old jewellery and take advantage of the current market conditions.
✨ the takeaway:
Dubai’s gold market is not losing its appeal indefinitely, but it is adapting to a new normal. As prices stabilize and trends change, the city’s renowned gold trade is anticipated to regain its former glory, shining brightly once again.