Dubai’s jewellery industry demonstrates remarkable resilience as gold prices reach unprecedented levels, with 24K gold surpassing Dh500 per gram in the UAE markets. Despite the Dubai Jewellery Group’s recent introduction of official 14K gold rates—a first for the emirate—industry leaders confirm that traditional 22K jewellery maintains its dominant position among consumers.
Market analysis reveals that Dubai’s distinctive gold purchasing culture prioritizes purity over price sensitivity. According to Anil Dhanak, Managing Director of Kanz Jewels, “The Dubai jewellery customer has always been extremely particular about purity. Buyers may compromise on design or reduce overall weight, but they rarely compromise on purity.” This sentiment is particularly strong among residents from the Indian subcontinent and GCC regions, where 22K gold carries significant cultural and investment value.
The recent pricing milestone saw 24K gold at Dh505.75 per gram, with 22K, 21K, 18K and 14K trading at Dh468.25, Dh449.0, Dh385 and Dh300.25 per gram respectively. While globally gold closed at $4,197.81 per ounce, Dubai’s market dynamics differ substantially from Western trends.
Industry executives indicate that 14K gold will likely find its niche in diamond-studded jewellery and contemporary designs targeting younger, fashion-conscious consumers. Chirag Vora of Bafleh Jewellers noted that select pilot programs for 14K bracelets, pendants, and studs are underway, with broader rollout plans pending market response.
Shamlal Ahamed of Malabar Gold and Diamonds emphasized that record prices reinforce gold’s status as a value-appreciating asset, combining aesthetic appeal with investment security. The consensus among jewellers suggests that while 14K may expand product ranges, it cannot displace the deeply rooted preference for higher purity gold that defines Dubai’s reputation as the ‘City of Gold.’