Dubai, which was once known as the city of gold, is currently experiencing a decline in its popularity.
The most recent statistics indicate that jewellery demand in the first quarter of 2025 decreased to 7.9 tonnes, representing a decline of 18% compared to the previous year. So, what’s causing this unexpected downturn in one of the region’s vibrant retail sectors?.
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Due to the exorbitant prices of dh420 per gram, numerous consumers are delaying their purchases, eagerly anticipating a decrease in rates.
For example, India recently reduced import duty
One of Dubai’s largest gold buyers is now purchasing more locally, thanks to India’s recent reduction in import duties, which has made gold more affordable within the country.
🛍️ Changing shopping behavior
Visitors, who previously flocked to deira and gold souk in search of bargains, are now reconsidering significant purchases, particularly in light of global economic uncertainty.
💸 sell, not shop
Surprisingly, some individuals and visitors decided to profit from the inflated prices by selling their current jewelry instead of purchasing additional pieces.
What it implies:
Although Dubai’s gold market is currently experiencing a temporary decline, its underlying strength and stability remain intact. Despite this change, it is important to recognize how global pricing, regional policies, and consumer sentiment can significantly influence even the most enduring markets.
