Is It Cheaper To Buy Gold Jewellery In UAE Or India?

2026-02-23 11:15:21

(MENAFN- Khaleej Times)

Retail price of gold jewellery is influenced by several components, including making charges, design complexity, brand positioning, craftsmanship standards, and applicable taxes

PUBLISHED: Tue 24 Feb 2026, 5:00 AM

By:
Waheed Abbas

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UAE is home to over 4 million Indian nationals, with millions more visiting the Emirates each year for tourism and business. Shopping - particularly for gold jewellery - remains a top priority for many Indians travelling to Dubai.

Known as the City of Gold, Dubai host a diverse mix of Middle Eastern, Asian and Western jewellers, offering a wide range of ornaments and designs to shoppers. For Indian buyers, however, the key consideration is value for money: Is it more economical to buy gold jewellery in Dubai or in India?

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While some jewellers say prices in both markets are largely comparable, the majority of them maintain that Dubai offers a cost advantage.

Karim F. Merchant, group CEO and managing director of Pure Gold, said customers often find better overall value in Dubai, particularly for high-purity gold, due to transparent pricing aligned with international rates and relatively lower indirect taxes.

“While India has strong domestic demand for gold, pricing can be comparatively higher due to layered taxes and import duties. Customers in the UAE can purchase gold with greater peace of mind. Making charges are also generally more competitive in Dubai compared to India,” Merchant said.

Chirag Vora, managing director of Bafleh Jewellers, noted that transparent pricing structures and relatively low taxation have helped position Dubai as a global gold trading hub.

“The UAE levies a 5 per cent VAT, while India applies import duty along with GST, which increases the overall landed cost of gold. These structural differences often make the base gold rate in Dubai more competitive,” he said.

However, Vora emphasised that the final retail price of jewellery is influenced by several factors beyond the daily gold rate.

“These include making charges, design complexity, brand positioning, craftsmanship standards and applicable taxes. In India, making charges can vary significantly depending on the region and intricacy of the design. In Dubai, the market is highly competitive, and making charges are often more transparent and negotiable.”

India has also revised its customs rules on gold jewellery in the latest budget, allowing non-resident Indians (NRIs) to carry it under a weight-based rather than value-based allowance. This move is expected to make compliance easier for expatriates in the UAE and elsewhere.

Arun Narayanan, global CEO of the Jewellery Division at Titan Company Limited, believes that gold jewellery prices are now almost at par in Dubai and India following India's revision of customs duty and the signing of the Comprehensive Economic Partnership Agreement (CEPA) with the UAE.

Cost of 5-gram bangle in Dubai and India

Based on a 22K gold price of Dh245–255 per gram and design-specific making charges in Dubai, a simple 5-gram bangle would typically retail for around Dh1,300–1,450, including 5 per cent VAT and moderate making charges, according to Pure Gold.

In India, with 22K gold prices ranging between Rs6,200–6,500 per gram and additional duty costs, a comparable 5-gram bangle would retail for approximately Rs33,000–36,000 (Dh1,333–1,454), including GST and making charges.

Overall, while absolute price differences fluctuate with global gold movements and currency exchange rates, Dubai continues to offer a pricing advantage driven by lower duties, high market liquidity and strong regulatory transparency.

Factors influencing gold prices

Import duties: India imposes import duties on gold, directly increasing retail prices, whereas the UAE does not levy similar duties.
VAT/GST: The UAE applies a 5 per cent VAT, while India levies 3 per cent GST in addition to customs duties embedded in the base price.
Gold rate benchmarking: Dubai's gold prices are closely linked to international spot rates and updated multiple times daily, ensuring transparency.
Making charges: These vary by design complexity in both markets, but competitive retail dynamics in Dubai often keep margins efficient.
Regulatory changes: India's revised NRI rules in Budget 2026 regarding carrying gold jewellery may influence purchasing decisions, especially for expatriate Indians balancing price advantages with compliance considerations.