Dubai set to open new gold hub to boost $382b annual jewellery sale

Dubai, which has solidified its position as the world’s best destination for gold and diamond jewellery as well as its bullion trade, is in need of a new hub that should cater to growing consumer appetite amongst UAE residents and tourists, many of whom visit Dubai to buy gold and diamond jewellery for social occasions including festive shopping and weddings.

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The size 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 $11 billion and an annual value of $38.2 billion, the highest ever, a recent report said.

Citing statistics released by World Gold Council, there was a 300 per cent increase in gold trade flow in Dubai from 2023 to 2024, reflecting the city’s growing appetite for gold,” said the report.

“And in 2024, the UAE ranked second globally in per capita consumer demand for gold jewellery, with 5.07 grams, trailing only Hong Kong’s 5.18 grams. Gold prices ranged between $1,819 and $2,142 in 2023, but as of 2024, prices reached as high as $2,700, marking a bullish trend with substantial yearly growth.