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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.
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