Dubai has evolved as a significant jewellery manufacturer
as well as wholesaling substantial quantities
of jewellery from Italy, Malaysia, Indonesia and
South Korea. Italy alone exports around 25 tonnes
(0.8 million oz) of gold as jewellery to Dubai
annually. Saudi Arabian manufacturers have also
established outlets in Dubai. Factories in Dubai
and the neighbouring emirate of Sharjah produce
around 49 tonnes (1.6 million oz) of gold jewellery
essence of jewellery marketing in Dubai is high
volume and low mark-up. With no sales tax, it
is one of the cheapest places to buy jewellery.
Indeed, Dubai calls itself 'City of Gold'. The
400 gold shops in its souks and shopping malls
have 9.3 tonnes (0.3 m oz) on display in 18, 21,
22 and 24 carat gold, often with jewellery, coins
and small bars.
amount of gold jewellery consumed locally in the
UAE stands at around 41 tonnes (1.3 m oz). Retail
sales, however, are far higher because of the
very large number of purchases made by tourists.
A major surge in consumption occurs every March
with the Dubai Shopping Festival which actively
promotes gold. During the March 2001 festival,
it is estimated that over 9 tonnes (0.3 m oz)
of gold jewellery was sold.
Dubai Gold & Silver Jewellery Group, an association
of local manufacturers, wholesalers and retailers,
is active in promotion.