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Jewelry Buying In Dubai

by Ruchi Sarawagi
(Mumbai, India)

Gold in a Dubai's Mosque

Gold in a Dubai's Mosque

Hi Friends,

This is an interesting incident which happened with me when we went to Dubai. We had gone to Dubai Gold Soak - a famous place to buy gold and diamond jewelery.

You will be amazed to know that in Dubai, "making charge" of any jewelery is just 1 Dirham/gram which is equivalent to Rs 12.5/gram whereas in India we pay approx Rs 350 to Rs 450/gram. Then I inquired where is this jewelery made and to my surprise all jewelery is imported from India. Isn't it an irony!

Great! jewelery made in India is expensive in India but cheaper in Dubai. Also, in Dubai quality assurance is guaranteed because if they say purity of gold is 22 carat then actually it is 22 carat. Because, if they cheat and anyone complains to police, then has to pay a penalty of 1 million Dirham and shop is closed for next 6 months.

On the contrary, similar laws are not in India. Here jewelers have taken people for granted. They say it is 22 carat gold, but there are chances that they may give us only 18 carat or 20 carat jewelery.

Hope such laws are there in India and we can save our hard earned money.

You must also read Jeweler's Profit to to understand the different modes through which jewelers usually earn profit.


Added by Megha

Frequently Asked Questions

Q. - Is Dubai duty-free reliable for diamond purchase?

Ans. - Irrespective of from whichever place you are buying diamond, always make sure to get certificate of authentication (like - GIA etc.). Never go by what seller is trying to sell - be it in Dubai or anywhere.

Q. - Is Dubai duty-free better value for money?

Ans. - People from world over go especially to Dubai for jewelry shopping. Obvious reason is, Dubai being a tax-free zone, jewelry is comparatively cheaper there. Also, being a huge jewelry market, prices there are quite competitive. Add to that, if you have a knack of bargaining, then you can definitely get a good deal.

Q. - Who is the biggest buyer of gold jewelry in Gold Souks of Dubai?

Ans. - According to Dubai Gold and Jewellery Group, it's the Indians which forms the biggest group of buyers of gold jewelry in Dubai. According to DGJG, tax-structure on gold in India encourages Indian consumers to purchase gold jewelry from tax-free Dubai where gold is cheap.

Q. - What is the preference of different nationalities in terms of gold purity in Dubai?

Ans. - According to DGJG, following is the preference of buyers from various nationalities:

24kt: Chinese, Far Eastern customers
22kt: Indian subcontinent
21kt: Middle Eastern customers
18kt & below: - US, European customers

Comments for Jewelry Buying In Dubai

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Apr 21, 2012
by: Ruchi

Per my knowledge, you can bring up to 100 gm gold without paying any duty at Indian airport. But, I will suggest you to consult the appropriate authority.

Apr 17, 2012
by: Lakshmi


This is really a good piece of info. I have some transit time to shop in Dubai on the way to India.

Can you tell me if there will be any duty at Bangalore airport if I take the jewelry from Dubai?

Thanks so much.

Jul 27, 2011
Excess Competition
by: Megha

Rightly pointed out by Sumit.

Adding to that, there is excessive competition in Dubai jewelry market. Due to this jewellers operate on very thin margin which ultimately benefits customers.

Jul 27, 2011
No Import Duty and VAT
by: Sumit


Another reason for cheap gold jewelry in Dubai is that it is tax-free place. There isn't any import duty & VAT which is also a factor that leads to lesser price in Dubai as compared to India.

Jul 25, 2011
How come low prices for jewelry low in dubAI?
by: NishitH (Mumbai, India)

If the jewelry is made in India then the cost of making is transfered to final jewelry sent to Dubai. When this jewelry reaches Dubai,it should be more expensive?

May 22, 2011
Gold Jewelry is Cheap in Dubai
by: Megha

Hello Ruchi,

Yes, you are right. Craftsmanship of gold jewelry is cheap in dubai which is reflected in the final price of gold jewelry.

So, although price of gold is driven by international market, final cost of gold jewelry is also determined by craftsmanship, cost of running business etc.


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