The Dubai Gold Souk is a great place to buy gold. You’ll find the market in the Old Town, some distance from the Mall of Emirates. Dozens of vendors and stalls showcase spectacular gold jewellery here, all priced accordingly.
The Dubai Gold Souk began as a simple bazaar in the Deira part of the city, close to other markets in the early 1900s. Local jewellers acted as a conduit for selling and buying gold in the local area, even before the establishment of the UAE.
After improvements in Indian and Iranian trading policies in the 1940s, the souk grew tremendously. Entrepreneurs and traders could move to the region freely and start selling their wares.
By the 1970s, Dubai and the Emirates began selling oil to Europe, America, and the rest of the world. Consequently, inflows of wealth to the area grew dramatically. Dealers began putting enormous items of gold jewellery on sale, far more ostentatious than anything you would find in the West.
Before coffee shops, bars and internet cafés, the gold souk was a focal point for civil society. Kids would come to learn from traders and dealers, setting them up for a life on the gold stalls in the future. And the district was a place for family gatherings. Shoppers would fill their bags with gold before eating and socialising in restaurants nearby.
Today, Dubai’s Gold Souk is home to more than 300 dealers. Due to its importance, it’s where you will find the most accurate gold rate in the UAE.
Buying gold is popular in Dubai because of low production costs. Gold prices are usually only a little over spot, granting shoppers great deals.
Historically, the souk was popular because of the low taxes, allowing it to grow quickly. Dubai only introduced a sales tax in 2018, setting it apart from European and North American countries.
Like the Dubai mall, much of the souk is now air-conditioned and sanitised. However, you can still find traditional arcades.
Indians, Pakistanis, and Filipinos migrants drive most of the gold demand in Dubai’s Gold Souk. These cultures purchase gold on special occasions, such as weddings and births. Interestingly, they don’t stop buying just because the price goes up. Even though the gold rate in Dubai is twice what it was ten years ago, they keep spending. It’s part of their heritage.
The Gold Souk is famous for its spectacular and slightly impractical jewellery. Several years ago, the market hit global headlines after the sale of the biggest gold ring in the world – the 141-pound 21-carat Najmat Taiba, valued at more than $3 million (£2.5 million) at the time.
Many historians believe that the souks of Deira is where the story of Dubai started. Before the markets, the culture was primarily nomadic. Settlement only occurred when local people had a reason to come together.
iGold has a prime location in the Dubai Gold Souk, so check us out for the finest gold and precious metals in the region.By iGold. Published on 21st December 2022.