A Complete Guide to Gold in UAE

Dubai is known as the ‘city of gold’ and its geographical location has played a vital role in making it a gold champion all over the world. Not just Dubai has jewellery-making units that make gold bars and jewellery from the imported raw gold but also gold in UAE has refineries and storage vaults for the laboured jewellery.The reason given above justifies the cheaper gold rates in Dubai. Dubai is one of the seven most visited emirates in the UAE. It is famous for its lavish lifestyle, shopping malls, high-class hotels, infrastructure, contemporary architecture, and active nightlife. The city is known as the “city of gold” due to its vast development from a sleepy Gulf port to a global-level business centre in just a few decades.

Dubai has built itself as a significant gold trading hub by obtaining raw gold from Ghana and trading the product to the buyers in the market of the  South Asian countries and the Middle East. Dubai is a city that is a chief gold trader and also a big retailer in the market with thousands of outlets selling yellow metal for years. The city is the hub of observation for traders, visitors, residents, and tourists looking to buy the yellow metal. Buyers can walk in and purchase the customized ornaments and Gold of their choice. 

History of Dubai’s Gold

The city’s fondness for gold ornaments dates back to the 19th century at the time when Dubai was a dull trading port but still the city’s connection with the yellow metal i.e. gold is legendary. The journey of the UAE gold business strained from Beirut from 1965 to 1975.

The history of Dubai’s gold reveals that the gold business was shifted to Kuwait during the Lebanon civil war. And this shift was made before the introduction of the hallmark thing and custom duty in the world that made a move of this business to the Dubai jewelry market. 

The UAE and Dubai procured the Gold business from Kuwait, thus, since then they grabbed it tight and never let it loose because the gold trade is continuously growing under the supportive custom policy and favorable government schemes. With the assistance of the Dubai government, the proposal of Yellow metal thrived and gave an excellent opportunity to grow the business in order to make a profit. 

Tips and Tricks for Purchasing the Gold in UAE

Shopping is surely the first thing that comes to mind when planning a trip to Dubai. The city is heaven for those who want to splurge. From footwear and clothes to chocolates, electronics, spices, and dry fruits, one of the biggest draws to Dubai, known for its purchasing experiences, is its gold ornaments. The New and the Old Gold Souks in Dubai are mostly the best in the world, with people visiting Dubai from all over the globe just to purchase for their special occasions like weddings. 

Purchasing gold from Dubai is very popular as it was previously duty-free, so you did not pay any additional tax. The regulatory measures ensure that the gold follows specific standards so a buyer will be sure of its purity. If a bar of gold meets all the purity standards, buyers can buy gold without worrying whether the purchased gold is fake or inflated in its price.

Therefore, it is essential to remember that despite the gold price sold in Dubai being the cheapest in the world, it could still add on charges that could raise the price of the item you purchase. 

Thus, purchasing gold from Dubai is still not a direct or simple process that you can blindly follow. Here are some effective tips and tricks to keep in mind before you step towards the City Of Gold to ensure that your purchase goes off without a hitch.

Gold Rate in Dubai

As with any gold purchase, it is essential to know its price in the market on that day before you start to purchase. Just like the USA, Dubai also has two prices for gold, thus it is important to dig the actual rates of gold before you make a purchase. 

The rate of gold is figured out on 1 gram of gold and all the prices are shown on big billboards at the grand entrances of the Gold Souks in the UAE. But now after 2018, it is important to keep in mind that the FTA (Federal Tax Authority) of Dubai charges 4% of value-added tax on gold. The tax application on gold has resulted in the increment of gold prices since after 2018.

You can check the current gold price below:

Last 10 Days Gold Rate in Dubai (1 g):

Gold Rate in Dubai: A Comparison

Current Gold Prices in Dubai

DUBAI GOLD VALUE PER OUNCE

GOLD RATE IN DUBAI PER GRAM

1 TOLA GOLD PRICE IN DUBAI

RATE FOR GOLD IN DUBAI PER KG

Prices of Other Commodities in UAE

UAE Exchange Rate

Selected Asian currencies in UAE Dirhams (Rates in 1 Dirham)

Dubai Gold Bargaining

The UAE is world-famous for its gold; people also bargain while purchasing it. You must be shocked because the gold price is fixed, but here you will know how you can still bargain while purchasing gold in UAE.

Numerous gold souks in Dubai sell both new and old gold ornaments. Still, the competition amongst both is tremendous. But there is a thin line amidst it all that gives you room to bargain. Though hard, you need to be very conscious of all the ins and outs while exploring to grab the best gold deals. So, as you know, the price of gold is fixed. The only way to get a discount on gold ornaments is on labour charges, which could vary.

Bargaining is a useful tool you can use at the time when purchasing gold jewelry in Dubai. Despite the fixed rates of gold, you can still haggle your charge down at Gold souks in terms of making charges. The discount percent all depends on how much gold you buy and also on the price of the purchased gold. Concluding all the aspects you can still bargain up to 50% on labor charges. 

Gold Hallmark and Best Gold Markets in Dubai

Note some golden rules before you purchase gold in Dubai, well, the list of rules are some basic things usually people let go of. And the major rule of this list is to check the purity, make sure the gold you purchase has a hallmark sign on it. 

Hallmark is a standard of purity set to ensure that all gold purchasers are not cheated. It was set out as per the Indian standard specifications. All countries have their own official Assaying and Hallmarking Centres to attest the gold and certify the quality of gold jewellery or ornaments to specific standards. So whenever you purchase gold jewellery, always check if the jeweller has a BIS certificate.

Components of a Hallmark Certification:

• Jeweller’s Mark
• BISMark
• Fineness Number (corresponding to cartage)
• Year of marking denoted by a code letter and decided by BIS 
• Assaying and Hallmarking Mark

Top gold markets in Dubai:

• Gold Souk
• Liali Jewellery
• Damas
• Cara
• Gold and Diamond Park
• Agatha
• Cartier
• Damiani
• Khushi Jewellers
• Tiffany & Co

Best Time to Buy Gold in Dubai

As you already know, Dubai is popular as a city of gold due to its refineries and finishing in gold and cheap prices compared to others. Thus, people long to buy gold from the UAE, especially from Dubai, whether they are permanent residents of the UAE, on a trip to Dubai, or have visited Dubai on an official trip. 

But, to be noted, there is a specific time to buy gold from Dubai, not the whole year dealers offer special discounts on jewellery. So it is best to buy gold from the Dubai shopping festival to get unbelievable offers on gold i.e. between December to January. Also, you can purchase gold from Dubai Summer Surprises which happens between June to August every year. 

But, in case you somehow can’t make it for the Dubai Summer Surprises or the Dubai Shopping Festival, at that time, buy gold on weekends, be it a Saturday or a Sunday. 

Mentioned above are some of the most suitable times for the purchase of gold and the best thing is the price of gold will not be charged on international exchanges till 2 am on Monday, so it is possible for you to grab a good deal.

Conclusion

Gold is a very valuable metal that is also an important part of each UAE Emirati household. Beyond being important, this yellow metal is estimated as a family patrimony by most residents of the United Arab Emirates. The gold jewelry and ornaments are passed on generation by generation to another with the purpose to keep the family’s legacy alive. Well, apart from this only Value-added tax is applied on gold in UAE, thus gold is cheaper in UAE as compared to the other countries of the world. 

Several limitations apply to tax-free gold, depending on whether you are a permanent resident of the UAE or not. Therefore, there are many online stores where you can buy gold from the United Arab Emirates, which is still cheaper than the other countries. Besides being the biggest manufacturer and trader of gold, Dubai is also the best in gold designs. Thus, the charge for gold in Dubai is sometimes high, which could raise the price of the gold jewellery you are willing to buy. 

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