Dubai’s renowned shine is fading temporarily — at least for the time being. The city’s thriving gold jewellery market experienced an unexpected decline in early 2025.
The numbers are in
In the first quarter of 2025, the demand for gold jewelry in Dubai decreased to 7.9 tonnes, representing a significant 18% decrease compared to the previous year. That’s a notable decrease in a city renowned for its dazzling souks and lively gold markets.
What could be causing the slowdown?
🔺 sky-high prices
Gold reached a record high price of Dh420 per gram, causing buyers to hesitate or even sell their gold instead of making extravagant purchases.
For example, India recently reduced import duties
One of Dubai’s major buyer groups, Indian tourists and expats, are now discovering more affordable options in their home country due to a decrease in import taxes, leading to a shift in demand away from the UAE.
Both tourists and locals understand the significance of line breaks
Due to the current global economic uncertainty, many individuals are reconsidering their luxury spending, particularly when gold prices are at their highest.
Surprisingly, a few Dubai residents took advantage of the high prices, selling off their old jewelry to make money instead of buying new items.
The main point:
Dubai’s gold market is not losing its luster; it is merely adjusting its approach. In light of price-conscious consumers and evolving global trends, the city might be experiencing a temporary slowdown in its glittery growth. However, it is only a matter of time before the brightness returns.