Dubai has long had a reputation as the golden city thanks to its 7-star luxury, bustling Gold Souks and historically low prices. But thanks to a surge in gold prices worldwide and rock-bottom prices here, Dubai is officially the golden city.
Global gold prices are nearing a record price of $1,600 an ounce due to recent global volatility. But shoppers in Dubai are pouncing on the region’s ultra-low rates.
Tourists get the best deals
There is a catch, however. Those rock-bottom prices only apply to tourists who are able to claim back the VAT from their sales.
“Tourists are also buying more gold per transaction – the average purchase in terms of weight would involve about 32-40 grams based on the last seven day,’ Cyriac Varghese, General Manager at Sky Jewellery told Gulf News. ‘They are buying more bangles and heavy chains, two products that had not been moving well since June.’
Dubai still 15% cheaper than global rates
But even with VAT, Dubai residents are still getting a good deal on gold in the UAE compared to other countries, with prices around 15% cheaper than other countries.
Part of that is thanks to the rigorous system of checks ensuring strict quality control and a high level of buying trust. Alongside that, the UAE has zero import duty on raw materials and one of the lowest insurance rates in the world, meaning those savings can be passed onto buyers in the UAE.