Rising import duties in India are strengthening Dubai’s position as a global gold and jewelry shopping destination.
India’s decision to sharply increase import duties on gold, silver, and precious metals is widening the price gap between India and the United Arab Emirates, making gold purchases in Dubai significantly more attractive for buyers, tourists, and NRIs.
Jewelry industry leaders in the UAE say the latest duty hike has created a major pricing advantage, with gold and jewelry in the Emirates now estimated to be around 12 percent cheaper compared to India.
The move comes as India attempts to control its rising gold import bill amid elevated oil prices, geopolitical uncertainty, and pressure on its external accounts.
Dubai Strengthens Its Position as a Gold Hub
According to jewelers across Dubai, the widening price gap could drive higher demand among Indian tourists and residents looking to purchase gold during the upcoming festive and wedding seasons.
Malabar Gold & Diamonds Managing Director for International Operations, Shamlal Ahamed, described the current market situation as one of the strongest opportunities in recent years for buyers purchasing jewelry in the UAE and wider GCC region.
He noted that the price difference is no longer marginal and, combined with revised duty-free allowances for travelers returning to India, creates substantial savings for families purchasing wedding jewelry from Dubai.
Under the updated rules, a family of four traveling back to India can collectively carry up to 140 grams of gold jewelry duty-free.
Gold Prices Highlight the Gap
On Thursday afternoon, Dubai gold rates stood at:
- 24K gold: Dh565 per gram
- 22K gold: Dh523.25 per gram
In comparison, Indian market prices were significantly higher:
- 24K gold: Rs16,233 per gram, approximately Dh622
- 22K gold: Rs14,880 per gram, approximately Dh570
The difference has further reinforced Dubai’s long-standing reputation as one of the world’s most competitive gold markets.
Why Buyers Continue Choosing the UAE
Industry leaders say pricing is only one part of Dubai’s appeal.
Dubai Jewellery Group Chairman Tawhid Abdulla said the UAE continues to attract consumers because of its trusted gold purity standards, broad product selection, transparent regulations, and internationally recognized retail infrastructure.
He added that many jewelry designs sold in Dubai already cater specifically to Indian tastes and preferences, making the transition natural for visiting shoppers.
The UAE also benefits from relatively lower making charges compared to several international markets, further improving overall affordability.
Festive and Wedding Demand Expected to Rise
Jewelry retailers expect the strongest impact to emerge during the Indian wedding and festive season, traditionally one of the busiest periods for gold buying.
Kanz Jewels Managing Director Anil Dhanak said Dubai’s combination of pricing, purity, and design variety is likely to attract more Indian buyers in the coming months.
As India’s import duties raise domestic gold prices further, Dubai could increasingly become the preferred destination for large jewelry purchases, particularly among NRIs and tourists already traveling through the Gulf region.
For the UAE jewelry sector, the shift may translate into stronger retail demand, higher footfall, and renewed momentum across one of Dubai’s most established trading industries.
India’s sharp increase in import duties on gold and silver is likely to make jewellery purchases more expensive there, say jewellers in Dubai. Photo: Shihab
