Why is Gold in Dubai Cheaper Than in India?
As if this association with gold were not enough, there's another reason Dubai is very popular. Gold in Dubai is cheaper than it is in India.
Is this really true?
We will come back to this. First, let's understand Dubai's association with gold.
It may surprise you to know that Dubai does not have a single gold mine of its own. Then, where does it get its gold? All that glittering gold that you see in Dubai is sourced primarily from African nations, Turkey, Switzerland and Russia.
And who are the buyers? After sourcing from global gold mines and refining it, Dubai gold finds buyers in India and China, the two largest gold-consuming countries in the world.
Now, before we compare India and Dubai gold prices, let us understand the carats and purity levels of gold available in Dubai.
Carat or Karat is the term used to measure the gold content or purity. 24 carat gold is made up of 24 parts pure gold, whereas 22 carat gold is made up of 22 parts gold and 2 parts alloyed metals. Similarly, for 21 and 18 carat where other metals added constitute 3 and 6 parts.
In the West, the karat is expressed in fineness. For example, 24 carat gold is expressed as 1,000 parts out of 1,000 pure or fineness 1.000.
Similarly, 22 carat is expressed as 22 divided by 24, which will give you a fineness of .9166.If you multiply .9166 by 1,000, it gives 916.66 level of purity.
Now, for calculating fineness of 21 karat, 21 is divided by 24 to arrive at .875 fineness and similarly, for 18 karat it is .750 fineness.
The purity level for 21 karat and 18 karat gold is defined as Gold 875 and Gold 750.
So, 22 carat gold can be depicted as fineness of .9166 or 916.66 level of purity.
The Dubai Jewellery Group (DJG), a premier trade association for the Dubai jewellery industry, has a simpler and transparent way of disseminating real-time gold prices for consumers. Most jewellery outlets display the prevailing 'Suggested Retail Jewellery Price' on screen, which are digitally updated 3 times every day.
As an Indian, you need to have the United Arab Emirates Dirham (AED) to buy gold in Dubai. At the current foreign exchange rate, you need Rs 23.50 to buy 1 AED.
On July 23, one gram 24 carat gold was quoted at AED 405.25, approximately Rs 9,523.
Comparatively, gold in India was trading higher at Rs 9,888.
As the purity of gold falls, so do the price. 22K traded at AED 375.25, 21K at AED 359.75 and 18K at AED 308.50.
If you are buying gold worth Rs 2 lakh (about 20 grams) in Dubai, it could help you save over Rs 7,000.
Gold price today in India is Rs 99,450. For the first time in 2025 gold crossed Rs 1 lakh on July 23 to create an all-time high level.
Bringing gold from Dubai may not be simple unless you stick to the laws of the land. I have written about this earlier.
Just to recap…
Gold can be transported in checked baggage up to one kilogram, with a minimum six-month overseas stay required for one kilogram, if disclosed and duty paid.
Indian women are allowed to bring up to 40 grams of gold or up to a maximum value of Rs 1 lakh, while men are allowed to bring up to 20 grams of gold or up to a maximum value of Rs 50,000 without paying any duty.
Got kids? Children under 15 can bring 40 grams of gold ornaments up to a maximum value of Rs 1 lakh without paying customs duty.
And make sure that the weight of gold, including ornaments, should not exceed 1 kg. per passenger. Needless to say, keep all purchase vouchers handy at the airport.
Gold in Dubai is cheaper than in India because of taxes. There's no GST on gold in Dubai. But, there's 5% of value-added tax (VAT).
Not to worry. Dubai makes sure its tax-free shopping for you. You can claim a full refund of VAT. There are time limits to adhere to for such refunds.
If you bring gold from Dubai or any other location, you will have to pay customs duty. The rate will depend on the quantity and the gender. Here are the customs duty rates on gold: 3% for 20 to 50 grams for males/ 40 to 100 grams for females and children
6% for 50 to 100 grams for males/ 100 to 200 grams for females and children
10% for over 100 grams for males/ over 200 grams for female and children
For commercial use, gold imported into India is subjected to GST, Agriculture Infrastructure Development Cess (AIDC) and Integrated Goods and Service Tax (IGST), all adding up to the final in-hand price for consumers.
Indians visiting Dubai for vacation end up buying gold due to the significant price gap between the two countries. For Indians, 24-carat gold can be 5% to 7% cheaper in Dubai.
But wait! You also need to ensure the gold you buy in Dubai is pure. So, just as Hallmarking is a must in India, ensure that gold purchased in Dubai has the Dubai Central Laboratory Department issued Bareeq Certification.
Also read: Dubai Mallathon: Crown Prince Sheikh Hamdan Launches New Summer Fitness Programmes in Shopping Malls
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