UAE: 18-Karat Gold Jewellery In High Demand As Residents Shop For Eid Al Fitr Gifts

As Gold prices reach record highs, jewellery shoppers in the UAE are shifting their preferences, with increasing demand for 18-karat gold over traditional 22-karat and 24-karat pieces, retailers say.

Jewellery traders and store owners report a noticeable shift towards lighter and more affordable options for the upcoming Eid Al Fitr celebration.

Rising gold prices have led to a growing interest in lightweight collections, according to Rahul Sagar, founder of Dian Jewellery.“Over the last few years, we have seen a clear shift towards lightweight jewellery. Heavier pieces are becoming less affordable for many customers. At the same time, there is a growing preference for delicate and minimalistic designs, which are naturally lighter and more budget-friendly,” he said.

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While 22-karat gold remains dominant in traditional gold markets like the Gold Souk, Sagar pointed out that 18-karat gold is more popular in boutique stores, particularly among long-term UAE residents.

With higher gold prices, 18-karat jewellery has become the preferred choice for gifts and occasional wear. Asim Damudi, managing director of Gold and Gems Gallery at Gold and Diamond Park, said that customers are adjusting their buying patterns for the festival amid increase in gold rates.

“For investment purposes, people still prefer pure gold, such as 24-karat or 22-karat. However, for gifting and occasional wear, 18-karat gold is in demand due to the price increase,” he said.

According to Damudi, the average amount spent on Eid jewellery gifts ranges between Dh1,000 and Dh1,800, with pendants, earrings, and bracelets being the most sought-after items.

Despite the rising prices, some nationalities continue to purchase gold at current rates. Dipen Vadher, manager at Jewel Trading in the Gold Souk Extension, said,“Indian nationals prefer 22-karat pieces, while Arab nationals opt for 21-karat gold. However, for weddings, Emiratis and Arabs often choose diamond necklaces.”

Traders also reported that diamond jewellery prices have dropped, making them a more attractive option for some buyers.

Traders suggest buyers take advantage of small price dips when purchasing gold.“In the long run, gold has always been a strong investment. If you are buying for financial security, the key is to hold onto it for the long term,” said Sagar.

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