According to Mint, India’s financial daily, gold shipments almost dropped to 52.81 tonnes in the fiscal year (FY) 2023 from 99.86 tonnes the year before.

In FY 2003, the UAE imported 18 tonnes of gold, which was the lowest amount ever.

According to the CEPA, a concessional tariff known as the tariff rate quota (TRQ) is applicable on the first 120 tonnes of gold imports in the first year.

Gold imports from the UAE had decreased last year as clarity regarding TRQ was anticipated, Colin Shah, a former vice chairman of the Gem and Jewellery Export Promotion Council told a UAE-based newspaper, Zawya reported.

However, he believed that the UAE’s imports of gold will expand more rapidly in FY 2024.

Under CEPA, imports of gold from the UAE are eligible for a 1% tariff reduction.

The allotment for concessional gold for the first year is 120 tonnes. The limit is 140 tonnes for the second year, 160 tonnes for the third year, 180 tonnes for the fourth year, and 200 tonnes for the fifth, according to the newspaper.

Meanwhile, Dubai International Chamber, one of the three chambers of Dubai Chambers, has successfully assisted Senco Gold and Diamonds in establishing its presence in Dubai.

The company is a household name in India with 139 showrooms and a solid reputation spanning five decades. Senco has annual sales of around USD 450 million and the company’s Dubai showroom will be its first outside of India.

“Senco’s story represents a perfect outcome for all concerned. We are delighted to have helped such a prestigious Indian company – one of the most respected jewellery brands in the entire subcontinent – to take advantage of the opportunities available in Dubai’s thriving gems and jewellery sector. Dubai International Chamber has had a representative office in Mumbai since 2018, and we remain committed to assisting our members to trade with India, as well as helping Indian companies understand all the benefits of setting up business in Dubai”, Mohammad Ali Rashed Lootah, President and CEO of Dubai Chambers commented on the achievement.

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The precious metal is marketed in three categories: 22K, 21K, and 18K, with tens of thousands of gold and jewellery stores strewn throughout the world-famous Dubai Gold Souk and retail malls. Jewellers charge their customers making fees in addition to the purchase of gold. These fees are often fixed for smaller ornaments, but start as low as 4% for larger pieces of jewellery and are calculated on a per-gram basis.

Some prominent Jewellers had shared top tips in order to buy jewellery at cheaper rates in Dubai.

During an interaction with Zawya, Joyalukkas Group Chairman Joy Alukkas said, “A simple rule to buy gold cheap in Dubai is to wait for the price to drop. Shoppers don’t have to worry too much about price when the gold rate is low. We also offer buy now, pay later schemes to make it easier for shoppers. Top credit card institutions also offer attractive long-term payment plans for shopping.”

In addition, if a buyer is in a hurry to buy jewellery while the price of gold is at its peak, Joyalukkas offers its customers an opportunity to take advantage of its low-price model.

“Shoppers who opt for this benefit by paying 100% of value as advance can take advantage of the lowest gold price on the day of booking or within the next 180 days’ period,” Joy Alukkas added.

Ramesh Kalyanaraman, Managing Director of Kalyan Jewelers says Dubai offers significant discounts and special offers such as Dubai Summer Surprise and Dubai Shopping Festival on various products including gold and diamond jewellery.

“These sales are always a great time to look at buying gold to maximise one’s benefits. Apart from these seasonal sales, we also offer exciting deals during the festive seasons, which is also an auspicious time to buy gold,” Ramesh Kalyanaraman said.

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According to the most recent information from the World Gold Council, customers purchased 46.9 metric tonnes of gold jewellery in the UAE from January to December 2022, an increase of 38% from the same time in 2021 (WGC).

The UAE used the most gold in the Middle East in 2022, surpassing Saudi Arabia’s demand, which totalled 37.9 metric tonnes, Egypt’s (33.6 metric tonnes), and Kuwait’s (14.7 tonnes).

The UAE’s demand for jewellery exceeded that of other Middle Eastern nations, with 27.5 tonnes in the overall market.

A Regional Need
Higher than in the Americas (187.8 tonnes), Europe (70.6 tonnes), and other Asian nations, except significant markets like China, which recorded 598.3 tonnes, and India, the demand for gold increased by 15% year over year in the Middle East, reaching 190.4 tonnes (600.4 tonnes).

“Significant advances in the UAE and Saudi Arabia were major factors in the area’s performance. However, growth slowed in the fourth quarter, primarily due to the high and growing gold price,” said the World Gold Council.

One of the largest gold consumers in the world, India has a sizable ex-pat community in the United Arab Emirates. Additionally, foreign buyers of gold make it their preferred location.

Global Trends In Demand
While global jewellery consumption decreased slightly by 3% to 2,086 metric tonnes, primarily due to price hikes in the fourth quarter of 2022, it remained popular in the UAE.

Without over-the-counter sales, total annual gold demand increased by 18% to 4,741 metric tonnes in 2022, matching 2011. Demand for gold bars and coins increased by 2% to 1,217 tonnes, while investment demand increased by 10% to 1,107 tonnes.

Purchases by central banks last year totalled 1,126 metric tonnes, which was the most significant amount in 55 years.

Gold prices rose, reaching USD 2,000 per ounce in February 2022 as Russia started a war with Ukraine. A few months later, prices fell by more than 20% as a result of the aggressive monetary policy of the US Federal Reserve and the strong US currency.

However, prices have been rising since October 31, 2022, from about USD 1,639 an ounce about three months earlier to over USD 1,924 an ounce at the end of January.

Demand For Diamond Jewellery Increases
As per a recent Khaleej Times report, while the demand for traditional jewellery still holds good, gold jewellers in Dubai are seeing a demand increase for diamond jewellery and alternative metals such as platinum, silver, rose gold, and white gold among young consumers.

Gold jewellers in Dubai said that personalised designs were also becoming a vogue among shoppers in the post-COVID period.

Kalyan Jewellers Executive Director Ramesh Kalyanaraman stated that the younger consumers’ jewellery preferences are consistently evolving, influenced by affordability, minimalism, cultural trends and the growing popularity of all-season jewellery.

“This has led to a notable shift in consumer preferences towards alternative metals such as platinum, silver, rose gold and white gold as well as luxury products such as diamonds studded with emerald, sapphire or ruby,” Ramesh Kalyanaraman said.

Bafleh Jewellers Director Chirag Vora stated that the year 2022 saw a lot of demand for smaller jewellery with different colours of gold such as rose, yellow and white.

“Tricolor or multicolour gold jewellery is in trend now. People also like a dash of Minakari work,” he remarked.

Jewellery sales picked up in 2022 on the back of the recovery in the economy and the massive increase of tourist inflows, as many retailers reported double-digit growth in numbers. They also confirmed that gold jewellery sales reached the pre-pandemic level in 2021.

John Paul Alukkas, managing director, international operations, Joyalukkas Group, said that while the demand for traditional jewellery still holds good, there was a shift in preference for bold patterns, especially from the younger customers.

“There is also a preference for diamond jewellery in addition to jewellery with precious stones. Personalised designs are also becoming a vogue. Fine jewellery and fashion jewellery will be the preference in the coming years,” John Paul Alukkas added.

Shamlal Ahamed, Managing Director-International Operations, Malabar Gold & Diamonds, remarked that customers preferring diamond jewellery over gold jewellery is one of the most significant trends emerging in the market.

“There has been a steady increase of millennials amongst our customer base, preferring to buy trendy and lightweight jewellery in the lifestyle category as opposed to heavy pieces. Investment in gold has also shot up amongst both young and old investors due to gold continuing its position as a safe-haven investment,” he said.

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