Dubai has always been a popular destination for gold buyers, especially jewelry. This is primarily because gold rates in the emirate have always been lower than the rest of the world. Although gold rates are not usually stable, you can always count on getting the best rates in the City of Gold.
Why gold rates are lower in Dubai
Buying and selling gold has always been popular among residents and visiting tourists because of Dubai’s generally lower rates. But why is gold cheap in the emirate?
No import taxes
The United Arab Emirates does not charge import tax on raw materials like TT bars and gold bars. Hence, gold traders worldwide can import gold bars to the UAE, Dubai specifically, essentially tax-free. However, there is a 5% import duty charge for jewelry.
Numerous gold companies in the United Arab Emirates have become global brands. Leading jewelry chains such as Malabar Gold and Diamonds and Joyalukkas started in Dubai, and their rates in the UAE are cheaper than any other branch worldwide.
Regulated gold rates
The gold rates in Dubai are determined by the Department of Consumer Protection at the Dubai Economic Department. Therefore, there is transparency and uniformity among the retail prices of gold in the country.
Dubai offers cheaper insurance costs for holding gold stocks. This motivates more people to purchase this commodity in the City of Gold.
Gold Rates in Dubai
As with any gold purchase, you should determine the price of gold on the market before buying anything. The gold rates in Dubai depend on the gram of gold, and all prices are indicated at the entrance of the Gold Souk in Dubai.
Like everywhere else in the world, gold rates in Dubai fluctuate regularly. You can check the Dubai City of Gold website for updated rates. Display screens at retail stores of the Dubai Jewelry Group, the largest trade body for Dubai’s jewelry industry, reflect the real-time gold rates for buyers’ easy reference.
Gold bargaining in the UAE
While gold rates are regulated in Dubai, and the rest of the UAE, it is normal for people to bargain for prices of jewelry especially. Sellers in gold souks retail both old and new gold ornaments, and the competition can be cut-throat.
The best way for buyers to bargain while buying gold in the UAE is the labor charges, which usually vary from shop to shop. Some people even get up to 50% discount on labor charges. Moreover, depending on how much gold you buy, you can ask for a discount.
Buying Gold in the UAE
Buying gold in the UAE can be a significant investment. However, you should be vigilant to ensure that you are purchasing according to the retail rate and that the item is hallmarked. Fortunately, it has become more accessible for anyone to confirm the daily gold rate online.
Frequently Asked Questions
How much is the gold rate in the UAE?
- It depends because the gold rate fluctuates and changes throughout the day.
Where can I check the gold rate?
- You can check the latest gold rates in Dubai through the Dubai City of Gold website. Jewelry stores also prominently display the latest gold rates in their shops.
When is the best time to buy gold?
- Purchase gold on a Saturday or Sunday, as prices will not be traded on international exchanges until 2 am on Monday.