Dubai gold sales get a boost from jewellers’ discounts for residents
Gold jewellers in Dubai and across the UAE have decreased making charges to boost sales, as their dependence on residents grows amid a drop in tourist demand.
In addition, gold jewellers are pinning hopes on the Akshaya Tritiya festival, which will be marked on April 19, to boost sales this week.
On Wedenesday evening, 24K, 22K and 21K gold were trading at Dh578.0, Dh535.25 and Dh513.25 per gram, respectively.
Jewellers have reduced making charges to zero on some ornaments, especially ahead of Akshaya Tritiya. As the local jewellery market becomes increasingly competitive with the entry of new players and a slowdown in sales due to high gold prices, some jewellers are resorting to further cuts in making charges to stay afloat. They are specifically targeting residents to drive demand during this period.
Aditya Singh, head of international jewellery business at Titan Company, said jewellers in the UAE have reduced making charges “selectively.”
Stay up to date with the latest news. Follow KT on WhatsApp channels.
“Making charge reductions are meaningful in a high gold-price environment because they address the one variable the customer feels they have some agency over. They can't control the commodity price, but a waiver or reduction in making charges makes the total cost of acquisition feel fairer and more negotiable. It's psychologically effective and practically generous,” he said.
Singh added that Tanishq applies this to categories where it wants to drive conversion, particularly studded jewellery and everyday wear ranges, rather than applying it uniformly across the board.
John Paul Alukkas, CEO of Joyalukkas Jewellery, said jewellers are offering competitive making charges and added benefits during this festive period.
Residents shine
With fewer tourists in the country amid travel disruptions, residents are driving gold jewellery purchases.
Alukkas said residents have always been the heart of his business in the UAE, and they continue to lead the way.
“The local community – families, professionals, and long-term expats – understands the value of gold and the significance of Akshaya Tritiya. They are making thoughtful, confident purchases, whether for weddings, gifts, or personal milestones. While we welcome all customers, the resident base is exceptionally strong and loyal – and we see that reflected in steady footfall across our showrooms,” he said.
Aditya Singh stressed that this is a structural shift that predates the current disruption, and the conflict has simply made it more visible.
“For the past several months, residents have been the backbone of our business across GCC markets. We're seeing fewer tourist buyers – that’s natural – and that segment has thinned. But the resident Indian community has shown remarkable resilience in its buying behaviour. These are dual-income households, largely professionally settled, and jewellery purchases for occasions like Akshaya Tritiya are considered, recurring decisions for them, not impulses,” he added.
According to Kalyan Jewellers, its core strength has always been its deep-rooted connection with the resident community. “While tourism contributes to the broader ecosystem, our regular and loyal customer base remains the primary driver of our growth,” it added.
