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Dubai has evolved as
a significant jewellery
manufacturer as well
as wholesaling substantial
quantities of jewellery
from Italy, Malaysia,
Indonesia and South
Korea. Italy alone exports
around 25 tonnes (0.8
million oz) of gold
as jewellery to Dubai
annually. Saudi Arabian
manufacturers have also
established outlets
in Dubai. Factories
in Dubai and the neighbouring
emirate of Sharjah produce
around 49 tonnes (1.6
million oz) of gold
jewellery annually.
The
essence of jewellery
marketing in Dubai is
high volume and low
mark-up. With no sales
tax, it is one of the
cheapest places to buy
jewellery. Indeed, Dubai
calls itself 'City of
Gold'. The 400 gold
shops in its souks and
shopping malls have
9.3 tonnes (0.3 m oz)
on display in 18, 21,
22 and 24 carat gold,
often with jewellery,
coins and small bars.
The
amount of gold jewellery
consumed locally in
the UAE stands at around
41 tonnes (1.3 m oz).
Retail sales, however,
are far higher because
of the very large number
of purchases made by
tourists. A major surge
in consumption occurs
every March with the
Dubai Shopping Festival
which actively promotes
gold. During the March
2001 festival, it is
estimated that over
9 tonnes (0.3 m oz)
of gold jewellery was
sold.
The
Dubai Gold & Silver
Jewellery Group, an
association of local
manufacturers, wholesalers
and retailers, is active
in promotion. |
