Dubai has evolved as a significant jewellery manufacturer
as well as wholesaling substantial quantities of
jewellery from Italy, Malaysia, Indonesia and South
Korea. Italy alone exports around 25 tonnes (0.8
million oz) of gold as jewellery to Dubai annually.
Saudi Arabian manufacturers have also established
outlets in Dubai. Factories in Dubai and the neighbouring
emirate of Sharjah produce around 49 tonnes (1.6
million oz) of gold jewellery annually.
essence of jewellery marketing in Dubai is high
volume and low mark-up. With no sales tax, it is
one of the cheapest places to buy jewellery. Indeed,
Dubai calls itself 'City of Gold'. The 400 gold
shops in its souks and shopping malls have 9.3 tonnes
(0.3 m oz) on display in 18, 21, 22 and 24 carat
gold, often with jewellery, coins and small bars.
amount of gold jewellery consumed locally in the
UAE stands at around 41 tonnes (1.3 m oz). Retail
sales, however, are far higher because of the very
large number of purchases made by tourists. A major
surge in consumption occurs every March with the
Dubai Shopping Festival which actively promotes
gold. During the March 2001 festival, it is estimated
that over 9 tonnes (0.3 m oz) of gold jewellery
Dubai Gold & Silver Jewellery Group, an association
of local manufacturers, wholesalers and retailers,
is active in promotion.