2 days ago
UAE: Gold jewellery sales to pick up slightly as summer travel season begins
Gold and jewellery sales are expected to pick up ahead of the summer holidays, as residents purchase gold jewellery as gifts, wedding presents, or to mark personal milestones when they travel back to their home country.
However, given the reduced price arbitrage between the UAE and certain Asian countries, the trend is expected to be muted, according to jewellers in Dubai.
A large number of families travel for vacations during the two-month summer break to their home countries, spending a significant amount of their budget on gifts, including gold and diamond jewellery.
Local jewellers said they cater to this demand by offering lightweight, travel-friendly designs, customised gifting solutions and attractive seasonal offers tailored for outbound travellers.
'The onset of summer vacation and the subsequent travel plans of residents always bring with increased sales in jewellery. With expats planning to travel to their home countries, we see an increased demand for mostly lightweight articles that are an ideal gifting choice,' said Shamlal Ahamed, managing director for international operations at Malabar Gold & Diamonds.
'We do see a noticeable uptick in jewellery purchases during the summer months — especially among expatriates who travel home. Many choose to buy gold jewellery before flying out as gifts, wedding presents, or to mark personal milestones back home,' Joyalukkas said in a statement.
'Gold from Dubai is still widely considered a symbol of quality and purity; furthermore, buying here offers price advantages and design variety. Whether it's a pair of elegant bangles for a mother, a solitaire for a sibling, a gold chain as a cherished keepsake or ornaments for an upcoming wedding - these purchases often carry deep emotional value beyond the price tag,' said the statement.
Echoing his industry peers, Anuraag Sinha, managing director of Liali Jewellery, added that sales often pick up during summer in Dubai despite the heat as many residents buy gold or diamond jewellery as gifts for family before travelling to their home countries.
In addition, he said the inflow of tourists from the GCC, Dubai Summer Surprises and community events like weddings and aggressive discounts by jewellers boost sales.
Aditya Singh, head of international jewellery business at Titan Company, said there has been a trend in past years where Indian and Asian customers, before travelling to their home countries, used to buy gold for their families.
'However, the trend is expected to be muted, given that the price arbitrage has reduced between the countries. Many people also take vacations during the summer period, and therefore, jewellery sales tend to become muted. Fewer tourists coming to Dubai during summer months also have an impact on sales,' added Singh.
However, Dubai has been promoting the Dubai Summer Surprises offer period during July and August, making it a good time to buy jewellery for those looking for good bargains, he added.
