The soaring global gold prices have not deterred buyers from flocking to Dubai, the ‘City of Gold’, including Pakistanis who continue to be drawn to the emirate’s thriving gold trade amid the Eid season.

Despite the recent record-high bullion prices, retailers in Dubai remain confident that sales will continue to thrive. Vendors at Damas Jewellery, a prominent Middle Eastern brand, highlighted the key factors attracting buyers to Dubai’s gold market.

“Gold is appealing in Dubai due to the variety on offer, tax-free shopping, and the promise of authenticity,” said Fahad, a Damas Jewellery representative.

He added that the outlet has collections from European designers and Turkey. “We have had Pakistani customers looking to authenticate gold bought from back home that was sold to them as 21 carats, which we discover is not more than 14 or 16 carats. This would never happen in Dubai.”

According to the shop representative, there was big difference between variety and authenticity.

Abdullah Abdul Razzak Chand, the vice president of the All Pakistan Gems and Jewellers Sarafa Association, echoed such sentiments.

He was of the view that customers intend to shop in Dubai due to the availability of a vast collection.

Chand noted that while the gold rate in Pakistan was a bit lower than the rate in Dubai, sales continued to be depressed due to low purchasing power and high inflation.

Despite the recent surge in global gold prices driven by geopolitical uncertainty in the Middle East, Dubai’s thriving gold trade remains resilient, showcasing the emirate’s enduring reputation as the ‘City of Gold’.

While the high bullion prices have influenced retail buying patterns, industry executives remain confident that the dip in sales is only temporary, as gold continues to be viewed as a solid investment.

“The upward trend in gold prices is certainly influencing retail buying patterns,” said Tawhid Abdulla, the Dubai Jewellery Group chairman.

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But he added that a rush has been seen in markets on occasions like Eid and other celebrations continue as jewellery remains an integral part of family traditions and cultural practices.

Dubai’s diverse international population, comprising over 180 nationalities, further contributes to the sustained demand for gold in the emirate.