Gold Jewellery Demand Surges 30% In Dubai After India Hikes Import Duty And Price Drop

Gold jewellery demand has surged by up to 30 per cent after India increased import duty from six per cent to 15 per cent last week, along with a drop in gold prices.

Jewellers in Dubai said a growing number of Indian residents and tourists are buying precious metal ornaments following India's hike in import duty on gold, silver and other precious metals.

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“Yes, we have definitely seen a noticeable increase in enquiries and purchases from Indian tourists and NRIs immediately after the duty hike announcement. Many customers are advancing their jewellery purchases before travelling back to India,” said Anil Dhanak.

“Tourist-driven jewellery sales have increased by 20 to 30 per cent over the past few days compared to normal market trends. Bridal jewellery, lightweight investment jewellery and 22K collections are seeing especially strong demand from Indian buyers visiting Dubai,” Dhanak told Khaleej Times.

Even after accounting for customs duty, he stressed that many consumers still find value in purchasing jewellery from Dubai due to purity assurance, wider design options, transparent pricing, and tax advantages.

Gold prices have dropped by over Dh28 per gram in the past 10 days as rising oil prices and expectations of interest rate cuts pushed precious metal prices lower.

The prices of 24K and 22K gold were trading at Dh547.5 and Dh507.0 per gram, respectively, in Dubai on Wednesday evening. In India, 24K and 22K gold prices closed at Rs15,944 (Dh606) and Rs14,615 (Dh555) per gram, respectively.

Known as the“City of Gold,” Dubai attracts tourists for gold and jewellery shopping, especially from the Indian subcontinent. Indian residents and tourists in the UAE account for a significant share of gold and jewellery demand in Dubai.

There are over four million Indian nationals living and working in the UAE.

Ramesh Kalyanaraman, Executive Director of Kalyan Jewellers, said Indian tourists have consistently shown strong interest in purchasing gold jewellery from the UAE due to competitive pricing, craftsmanship, purity standards and extensive design choices available in the market.

“Following the increase in import duty in India, consumer interest in jewellery purchases from the UAE has strengthened further, with the UAE continuing to remain a preferred destination for gold jewellery purchases among Indian consumers,” he added.

He said that, apart from pricing advantages, buyers are also attracted by transparent pricing, a wide selection of designs, trusted quality standards and the overall shopping experience available in the region.

“For Indian travellers, gold jewellery purchases from the UAE are often linked to weddings, gifting, festive buying, and long-term value purchases, which continues to drive strong consumer interest in the category.”

Joy Alukkas, Chairman of Joyalukkas Group, also confirmed that they are seeing stronger UAE sales after India's gold import duty hike, as New Delhi's decision has created a strong price advantage for jewellery buyers in the UAE, especially in Dubai.

He added that the combination of higher Indian import duty, baggage rule clarity, and Dubai's competitive gold market has created a clear opportunity for customers.

“Even after considering VAT in the UAE, the price difference between buying gold jewellery in Dubai and India is now almost 11 per cent. This is a very meaningful saving for Indian families and NRIs. Dubai has always offered purity, transparency, wider choice, and attractive making charges. With the latest duty increase in India and clarity on baggage allowance, the benefit of buying from Dubai has become much stronger,” Alukkas said.

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