Editor’s Note
**Editor’s Note:** This article examines the seasonal surge in gold purchases among Indian expats in the UAE, driven by summer travel and homeward journeys. Insights from industry leaders highlight the cultural and economic factors behind this recurring trend.
With the summer vacation in full swing and large number of Indian expats travelling home, a familiar trend is emerging in gold souks across Dubai and Sharjah. Many residents are stocking up on jewellery before their flights home.
Thanveer CP, Founder and Chairman of Arakkal Gold & Diamonds, has witnessed the surge firsthand.
But these are not impulse purchases. According to Thanveer, buyers are usually strategic.
Plain gold chains are particularly popular, as they can be easily traded in at Indian jewellery stores without the complications that come with intricate or stone-studded designs.
Amina Mohamad Ali, Managing Director of MFar Jewellers, said her store is capitalising on the demand with promotions.
Earlier this year, India relaxed its baggage rules to allow eligible passengers who have lived abroad for more than one year to bring more jewellery duty-free. Women can now bring 40 grams of jewellery and men can bring up to 20 grams.
Gold holds deep cultural and financial significance in Indian households. It is a symbol of prosperity, a wedding essential, and a portable store of value. Retailers are keen to accommodate this. Simple designs, lightweight pieces, and plain chains dominate the shelves, ensuring customers can easily exchange or resell the jewellery in India without losing value.
According to experts, buying gold in the UAE can be up to 13 per cent cheaper than in India. While the exact savings vary by retailer and product type, most experts agree the UAE offers a significant price advantage over India, causing many savvy shoppers to seize the opportunity to buy while they can.
The price gap stems from a combination of factors, including the UAE’s zero import duty on gold and lower making charges compared to India, where customs duties and taxes significantly increase retail prices.
Thanveer added that in the case of customers buying gold bars or coins, savings could go up to 13 per cent, but these could be taxable when transporting to India.
For expatriates, this means significant savings, especially during wedding seasons or family visits when gifting gold is customary. A single purchase can save hundreds of dirhams, making the trip to the gold souk a practical addition to any travel checklist.
Amina Mohamad Ali, Managing Director of MFar Jewellers, estimates the savings at around 13 per cent — a figure that resonates strongly with budget-conscious travellers.
The trend of buying gold in the UAE before travelling to India is not new, but it has intensified as travel resumes and gold prices remain favourable in the aftermath of the US-Israel-Iran war.