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Abu Dhabi, Ajman, Fujairah, Ras Al Khaimah, Sharjah and Umm Al Quwain are the other six Emirates and Abu Dhabi acts as the capital of UAE.
Increasingly known throughout the world for luxurious shopping malls, stunning high-rise architecture and active nightlife, Dubai is also known as the ‘City of Gold’, reputedly trading in excess of 1,200 tonnes of the precious metal annually.
From humble beginnings as a quiet Gulf port, Dubai was transformed during the late 1960’s and early 1970’s as civil war in Lebanon, the former centre of precious metal trading in the Middle East, drove traders and merchants to seek a safe haven from which to trade.
Dubai happily embraced the precious metals market. Government support and favourable Customs policies have combined with an advantageous geographic location to allow Dubai to flourish into one of the global centres for gold trading.
The city is now home to gold refineries, wholesalers and distributors, state of the art storage vaults, jewellery manufacturers and a substantial gold retail sector. The Dubai Gold and Commodities Exchange (DGCX) also provide increasing access to the commodities market for traders and investors wishing to trade gold.
Almost 200 nationalities are resident in Dubai and the vast range of jewellery offered in Arabic, Asian, European and Western styles reflects that cultural and ethnic mix, attracting wholesale and retail buyers from across the world.
The famous Dubai Gold Souk in Deira is home to over 300 jewellers and merchants and is one of the world’s largest retail gold markets, reportedly holding up to 10 tonnes of gold at any given time. Prices are always competitive.
Regularly updated current market rates are supplied by the Dubai Gold & Jewellery Group and displayed on Electronic Retail Jewellery Price Display Boards throughout the Souk. This initiative has emerged under the guidance of the Consumer Protection Department and ensures uniformity and transparency in retail jewellery pricing in Dubai. In addition, Dubai law makes it compulsory for gold jewellers to show the mandatory Gold Purity Hallmark of an item to buyers. (Non-resident buyers should ensure that they receive an invoice containing a full description of their purchase as this document will be required when leaving Dubai via the airport.)
Since the beginning of the new millennium, Dubai has solidified a position as a significant player in the global gold trade and in gold refining. This is quite an accomplishment considering the city’s humble beginnings and highlights the positive impact that concerted Government support policy can have on a sector. Dubai has now emerged as a regional gold distribution hub and has also developed links into the surrounding gold hubs of Istanbul and the Indian market.
In addition, the continued growth of exchange-based gold trading on the DGCX and the Emirate’s inherent love of gold will ensure that Dubai and the UAE remain firmly at the heart of the world gold trade
There is no doubt that ongoing Government support and the implementation of customer focussed initiatives have assisted in establishing Dubai as the ‘Jewellery Destination of the World’ and ‘City of Gold’.By iGold. Published on 31st October 2019.