Dubai is in need of a new gold hub, that could cater to a wider consumer base amongst UAE residents and tourists, many of whom visit Dubai to buy gold and diamond jewellery for social occasions including festive shopping and weddings.

 

The value of the jewellery market is expected to increase from about $270 billion in 2022 to over $330 billion by 2026, according to Statista, a global market intelligence provider.

 

In 2024, Dubai's gold demand reached previously unseen levels, with the combination of record gold prices and volumes resulting in a Q4 value of $111 billion and an annual value of $382 billion, the highest ever, a recent report said, citing statistics released by World Gold Council.

 

"There was a 300% increase in gold trade flow in Dubai from 2023 to 2024, reflecting the city's growing appetite for gold," said the report.

 

As of 2024, the UAE ranked second globally in per capita consumer demand for gold jewellery, with 5.07 grams, trailing only Hong Kong's 5.12 grams, said Statista.

 

Gold prices ranged between $1,812 and $2,142 in 2023, but as of 2024, prices reached as high as $2,700, marking a bullish trend with substantial yearly growth, it added 

 

According to recent research by the World Gold Council, despite a decline in consumption in the initial two quarters of 2024, the UAE maintains its position as the world's fifth-largest market for gold jewellery. 

 

This high demand is attributed to the nation's high GDP per capita, the cultural importance of gold, tax-free shopping, robust tourism and retail sectors, and gold's status as a secure investment, it stated. 

 

"These elements, coupled with aggressive marketing and accessibility, significantly boost gold consumption," he added.

 

The UAE's annual gold jewellery demand stands at nearly 40 tonnes, tying with Russia and followed by Saudi Arabia at the 7th position.

 

Historically, the age-old Dubai Gold Souq has been catering to the growing needs of jewellery and has been serving the residents and tourists very well. 

 

However, the increase in demand for gold and diamond jewellery in the Middle East, Africa, South and Central Asia, the City of Gold now needs a new Gold Hub.

 

"In addition to the increase in population and increased buying power of consumers, we anticipate an increase in demand for gold and diamond jewellery in the coming years that necessitates the development of a second Gold and Lifestyle Hub in Bur Dubai, where residents and tourists could shop jewellery at their convenience," said Sulaiman TM, the Chairman of Dubai-based Unique World Group.

 

"Following a series of discussions with the leading gold and diamond jewellery retailers, we have seen the demand for such a new Gold Hub and I am glad to announce that such a new Gold Hub will see the daylight soon," he added. 

 

Managing Director Mohammed Suhaib said the new Gold Destination will help jewellery sales to accelerate further.

 

"As the population of Dubai and UAE increases rapidly – to cross 3.8 million in Dubai and 10.8 million in the UAE – we see the creation of a new Gold and Lifestyle Hub an important step in facilitating this industry to grow further," he stated.

 

"In addition to the population growth, a jump in annual tourist inflow – many of whom have gold and diamond in their shopping list – will require a new Gold and Lifestyle Hub that will help shoppers to hunt for new and trendy collection," he added.-TradeArabia News Service