Dubai is frequently referred to as the “City of Gold.” In addition to having a whole souk devoted to sell gold, Dubai has long been a popular place to acquire gold and diamonds, particularly among tourists.
However, it is amazing to know this emirate receives preferential treatment while buying these priceless objects?
There are a lot of good reasons to purchase jewelry in Dubai.
Dubai has a lot to offer in terms of gold jewellery, whether you’re searching for something basic to wear daily or something more lavish.
When purchasing gold in Dubai, you won’t need to be concerned about the jewelry’s quality or purity.
The government regulates all goods sold by jewelers, ensuring the legitimacy of every piece of gold sold in Dubai.
Additionally, all jewellery shops in the city are required to display a gold purity hallmark on the things they sell and to give it to customers upon request.
It is a document that lists information like the karats, weight, and cost of the labour as well as the amount of genuine gold and gemstones used in the jewellery.
It guarantees that every purchase is verified and has a global market value.
Every time a genuine diamond item is purchased in Dubai, the law mandates that the diamond merchants present the certificates.
The fifth C is known as diamond certification. It was released by a reputable outside organisation.
The organisation verifies the diamond’s attributes.
The Diamond High Council and the International Gemological Institute are two more respectable organisations in addition to the Gemological Institute of America (GIA), which has the highest level of accreditation (IGI).
In Dubai, purchasing jewellery with a diamond accreditation is simple because most retailers follow the law. Certifications are taken into account by even internet retailers.
Therefore, finding a genuine piece of diamond jewellery is not that difficult.
Diamond jewellery costs can vary widely, and if you don’t do your research, you might wind up paying much more.
It is a well-known truth that diamond prices in Dubai are lower than in the majority of industrialised nations without sacrificing quality.
With good reason, Dubai is regarded as one of the inexpensive locations to purchase diamonds.
It is recognised as one of the three leading diamond trading hubs in the world, along with India and Belgium, for a reason.
Due to its lack of taxes, Dubai has long enjoyed favour.
It is a major factor in people’s decisions to purchase gold and diamonds as well as relocate to the city.
As customers will just pay for the amount of the jewelry, pricing for gold and diamonds in Dubai always seem to be lower due to the emirate’s exclusion of taxes.
Even with the (VAT), which was implemented in 2018, which imposes 5% tax on all purchases, jewelry is still far more affordable in Dubai than it is in other nations across the world.
Additionally, any purchases made in the UAE by visitors are eligible for VAT refunds.
In Dubai, the only tax that is currently levied on gold purchases is VAT.
Other countries have additional taxes on top of the VAT, including the (GST) and excise duty, which raises the price of gold jewellery.
The absence of import tariffs and taxes is the main factor behind Dubai’s relatively low gold and diamond prices.
When it comes to jewellery, there are hardly any taxes and no import tariffs.
The markup or margin that the sellers charge typically represents another element that goes into the price of diamonds.
In some other nations, vendors are able to maintain significant markups, but due to the competition in Dubai, this is not viable.
Due to the large number of visitors who frequent Dubai’s jewellery stores, the merchants there may operate with modest markups.
Additionally, it means that a lot of dealers are open to haggling, which can bring down the cost of the stones even further.
Dubai’s gold rate is based on international gold values, guaranteeing consistency in pricing throughout the city’s retail establishments.
The fact that gold prices fluctuate internationally, much like stock market prices do, gives gold buyers in Dubai the chance to benefit from declining prices and get gold at the lowest price.
Therefore, before making a purchase, always be sure to verify the current gold rate in Dubai.
Some of the top jewellery store chains in the UAE that have achieved success abroad are Joyalukkas, Malabar Gold and Diamonds, and Pure Gold Jewellers.
The majority of jewelers concur that diamonds do not increase in value with time, unlike gold.
Due to its consistency, gold is frequently used as currency and is easily exchangeable sans appraisal, particularly in the case of gold bars.
However, it is significantly more difficult to sell diamonds. Size, cut, colour, and other properties of each diamond are distinctive.
Unless a vendor offers you a time-limited buy-back guarantee, the moment you leave the shop with your diamond jewellery purchase, you may have already lost 20% on its potential resale value.
Make sure you purchase from a reputable jeweller who will provide you with a certificate outlining all the pertinent information about the diamond, including where it was mined, as purchasing a diamond may be extremely expensive.
Diamond dealers are required by law in Dubai to provide these certificates for each purchase of a legitimate diamond product.
Cut, colour, clarity, and carat are the four defining characteristics of a diamond that together make up its quality. When making your purchase, pay attention to these.
There are many places to shop for quality diamonds and gold in Dubai, whether you’re seeking an engagement ring, a pair of earrings, necklaces, or any other jewellery item.
The top locations in Dubai to purchase jewellery include the Gold Souk of Dubai and the Dubai Gold and Diamond park.
There is a lot of transparency in the jewelry buying and selling process in Dubai, so if you visit, make sure to reap the favours.