How Dubai Jewellers Are Wooing Indian Shoppers as Gold Prices Hit Record Highs

For decades, Dubai’s glittering Gold Souk has been a magnet for Indian and Iranian gold lovers, offering competitive prices and an unmatched variety of jewellery. But the dynamics are shifting quickly in 2025.

Gold prices have skyrocketed, jumping more than 30% since the start of the year, and India’s recent decision to slash its gold import duty from 15% to 6% has further reduced the traditional price advantage Dubai once held.

As a result, Dubai’s jewellers are having to get creative. With fewer Indian shoppers visiting solely for bargains, jewellery retailers are focusing on product uniqueness, quality craftsmanship, and global design appeal to stay relevant in a fiercely competitive market, as per the Economic Times report.

Dubai Gold Souk’s New Strategy for Indian Buyers

In response to these market shifts, retailers in Dubai are embracing a more curated approach. Instead of relying on price-led promotions, many jewellers are introducing intricate and exclusive collections ranging from Turkish and Italian artistry to revivals of traditional Indian styles like temple jewellery and Calcutta filigree.

Some jewellers are even importing cutting-edge designs from Singapore and other global fashion capitals.

According to a Khaleej Times report, the focus now is on innovation and exclusivity, appealing to Indian tourists who want something different, not just cheaper.

Read More: Are Jewellery Making Charges Lower in Dubai Gold Souk or India?

Changing Preferences Amid Record Gold Prices

Gold’s recent rally has pushed the price beyond $3,500 an ounce, with Indian retail prices nearing ₹1 lakh per 10 grams. This sharp increase, partly driven by geopolitical tensions and market volatility, is impacting consumer behaviour.

In Dubai’s Gold Souk, retailers have reported reduced footfall and lower purchase volumes as buyers hesitate at these elevated price levels.

Geopolitical Uncertainty Fuels Gold Rally

Global economic instability continues to support the surge in gold prices. The latest catalyst: controversial remarks from former U.S. President Donald Trump, who publicly criticised Federal Reserve Chair Jerome Powell and demanded aggressive interest rate cuts. These comments rattled investor confidence, weakening the dollar and sending gold prices to historic highs.

Read More: How to Get VAT Refund When Buying Gold From Dubai Gold Souk?

Conclusion

As the traditional pricing advantage fades, Dubai’s gold retailers are proving resilient by evolving their business strategies. With India cutting import duties and global prices climbing, the focus has shifted to offering exclusive designs, superior craftsmanship, and modern alternatives like lab-grown diamonds.

For Indian shoppers visiting Dubai, the value proposition is no longer just about cost it’s about character, culture, and creative expression. And for the Gold Souk, this shift may just be the sparkle needed to shine through a challenging retail climate.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.