UAE Shoppers Outsmart Rising Costs To Keep Diwali Gold Traditions Alive

(MENAFN- Khaleej Times) Gold jewellery buyers in the UAE have become noticeably more cautious as the cost of living rises, but leading retailers say the tradition of buying gold at Diwali remains firm.

Jewellers and trade representatives said shoppers now set budgets, compare options and time purchases around occasions. Dhanteras falls on November 6 and Diwali on November 8 in the UAE.

Recommended For You

Stay up to date with the latest news. Follow KT on WhatsApp Channels.

The cost of living has increased due to higher oil prices, putting pressure on household budgets. Housing rents, school fees, groceries, healthcare and dining expenses are among the key costs residents need to manage.

Anil Dhanak, managing director of Kanz Jewels, said jewellery is usually bought after essential expenses, so customers are more conscious of their budgets. Even so, he said gold“is not just a purchase but also a symbol of prosperity and a store of value”, and the company expects strong festive sales.

Niraj Bhakare, AVP and chief sales and marketing officer, International Business, at Titan Company Limited, said customers are“increasingly taking the time to compare options, prioritise their needs and choose pieces that offer lasting value and personal significance”.

Many still buy for gifting, milestones and personal occasions, he said.

Price movements have also given buyers some relief. On Monday morning, 24K gold in Dubai traded at Dh481.5 per gram, with spot gold at $4,007 an ounce.

Due to the drop in prices, some NRI and expatriate families had brought forward festive purchases when prices slipped below Dh500.

The retailers' observations match global figures. The World Gold Council's Q2 2026 Gold Demand Trends report showed jewellery demand fell 17 per cent year on year as consumers bought less gold and shifted towards lighter products, while the value of first-half jewellery demand rose 22 per cent to $86 billion.

Meena Jewellers said customers are comparing options, setting budgets and choosing designs that suit both the celebration and their means. Festive promotions add value, it said, but trust, quality and the right design remain important.

Lighter, versatile

Shamlal Ahamed, managing director of International Operations at Malabar Gold and Diamonds, said consumers are not significantly cutting purchases but are becoming“more selective and value-conscious”.

He said there is growing demand for versatile, lightweight lifestyle jewellery that offers both investment value and everyday wearability. Customers are also planning ahead and using gold rate protection schemes to maximise value.

Chirag Vora, managing director of Bafleh Jewellers, said economic pressure and fluctuating prices have led shoppers to plan purchases more carefully. Buyers have moved towards versatile, lightweight pieces, and Bafleh has introduced flexible purchasing options and curated collections.

The Dubai Jewellery Group said inflation inevitably influences discretionary spending, but gold is both a cherished purchase and a savings instrument.“While consumers may reduce the quantity they purchase, the underlying tradition and desire to buy gold and jewellery remain firm,” it said.

ALSO READ

UAE consumers stretch gold jewellery budgets as prices fall below Dh500 per gram Dubai gold below Dh500: Shoppers prepone jewellery buying ahead of Navratri, Diwali Diwali deals: UAE jewellers offer 10% cashback, 50% off diamonds, free gold coins, smartphones

MENAFN26102026000049011007ID1111864493