Dubai is known for its luxurious shopping experiences, and one of the most sought-after items is gold jewellery. But with so many stores selling gold, it can be overwhelming to know where to buy and how to ensure that the gold is genuine.
In this post, I’ll guide you through the process of buying real gold jewellery in Dubai.
What are the benefits of buying gold in Dubai?
There are several benefits of buying gold in Dubai, which has long been known as the “City of Gold.” Here are some of the advantages:
- Tax-free: One of the biggest advantages of buying gold in Dubai is that it’s tax-free. Dubai has a tax-free policy on gold, which means that there are no import duties, sales taxes, or value-added taxes (VAT) on gold. This can make gold jewellery significantly cheaper to buy in Dubai than in other parts of the world.
- High-quality gold: Dubai is renowned for the quality of its gold. The gold souks in Dubai have a reputation for selling high-quality gold that is 18, 21, or 22 karat. This is because the gold sold in Dubai is subject to strict quality control standards, and the purity of the gold is verified by the Dubai Municipality’s Dubai Central Laboratory (DCL).
- Large selection: Dubai is home to some of the largest and most luxurious gold souks in the world, with hundreds of shops offering a wide range of traditional and modern gold jewellery designs. This means that there is something for everyone, whether you’re looking for a simple gold chain or an elaborate piece of jewellery.
- Competitive prices: Due to the high volume of gold traded in Dubai, the prices are very competitive. This means that you can often find gold jewellery at a lower price than in other parts of the world.
- Safe and secure: Dubai is a safe and secure city, and the gold souks are no exception. There is a heavy police presence in the gold souks, and the shops are generally very secure. This means that you can shop for gold with peace of mind.
Where’s the best place to buy gold in Dubai?
Dubai is famous for its gold souks, traditional markets where gold jewellery is sold. The most popular souk is the Dubai Gold Souk, located in the heart of Dubai’s commercial district. It has over 300 shops, offering a vast array of gold jewellery designs and styles to choose from.
Another popular gold souk is the Dubai Gold & Diamond Park, which is an indoor air-conditioned mall with over 90 retail stores.
If you’re looking for jewellery with no making charges (I’ll explain what this means soon), then head to The Gold Center.
How is gold priced in Dubai?
Gold is priced based on the weight and purity of the metal. In Dubai, the price of gold is based on the international market rate, which changes frequently. All shops display the daily rate.
The weight of gold is measured in grams, and the purity is measured in karats. The higher the karat, the more expensive the gold jewellery will be.
Apart from the weight and purity of the gold, it’s essential to keep in mind additional costs that may affect the final price you pay for your gold jewellery. These include:
- Making fees: Depending on the design and intricacy of the jewellery, making fees may be added to the price of the gold. It’s important to ask the seller if there are any making fees and factor this into your budget.
- Tax: Since January 2018, a 5% Value Added Tax (VAT) has been applied to all goods and services in Dubai, including gold. However, the VAT refund scheme is available for tourists who are not residents of the United Arab Emirates (UAE).
- Tax Refunds: As a tourist, you are eligible to claim a VAT refund on purchases made in Dubai, including gold jewellery. To claim your tax refund, ensure that you request a tax invoice from the seller at the time of purchase. When leaving Dubai, present your goods and tax invoice at the airport’s designated tax refund counter. You will receive the refund in the form of cash or credited back to your credit card. You’ll get 85% of the tax back.
By understanding these additional costs, you can have a better idea of how much you can expect to pay for your gold jewellery in Dubai. And don’t forget to claim your tax refund at the airport to save some money on your purchases
Is gold actually cheaper in Dubai?
Yes, gold is generally 8-11% cheaper in Dubai compared to other countries.
The reason for this is that Dubai has a tax-free policy on gold, making it more affordable for consumers. Also, Dubai’s gold souks have a lot of competition, which drives the prices down.
But don’t forget, there are hidden charges that can make the gold more expensive than buying it in your home country!
If paying with a credit card there’ll be a foreign currency conversion fee of around 5%.
You might want a fancy piece of jewellery and the making charges could be 30%!
If you want to make sure you come out on top, be sure to shop at stores that have zero-making fees. But you won’t get the best designs!
How to avoid buying fake gold?
When buying gold in Dubai, it’s essential to make sure you’re purchasing genuine gold. Here are some tips to help you avoid buying fake gold:
- Buy from a reputable seller: Purchase your gold jewellery from a reputable seller who has a good reputation and is licensed to sell gold.
- Don’t trust the various hustlers on the street in the Gold Souk!
- Look for hallmarks: Genuine gold will have hallmarks stamped on it, indicating the purity of the gold. The hallmarks should be clearly visible and easily readable.
- Do a magnet test: Gold is not magnetic, so if your gold jewellery sticks to a magnet, it’s likely fake.
- Get a receipt: Make sure to get a receipt when purchasing gold, as it will have details about the jewellery and its purity.
- Get your gold tested at a Gold Laboratory.
Where can you get gold tested for purity in Dubai?
If you’re unsure about the purity of your gold, you can get it tested at one of the many testing facilities in Dubai.
Not all gold laboratories offer testing to the general public, but I found ARY Gold Laboratory does.
ARY charge 20 AED, and they’ll do an XRF laser test on your jewellery and give you a rough indication of its karats.
There are a lot more laboratories around, but just call them first and check if they can do an XRF laser test – some can’t.
Also, some big stores have their own testing machines, so they can even check the gold for you in the store.
Buying gold jewellery in Dubai can be a wonderful experience, as long as you take the necessary precautions.
Stick to reputable sellers, check for hallmarks, and get your gold tested if you’re unsure about its purity. By following these tips, you can be confident that you’re purchasing genuine gold jewellery in Dubai.
If this blog post helped you, please leave a comment.