During the summer holiday season in the UAE, there is a noticeable decline in gold jewellery purchases by tourists. However, this decrease is balanced out by an increase in sales from expat residents who buy jewellery for gifts, festivities, and to take advantage of cheaper local rates before flying back to their home countries. The growing population of expatriates in the UAE, particularly from Asian countries, contributes significantly to the rise in sales of yellow metal jewellery during the summer months.
Jewellery retailers in Dubai have noted a trend of expatriates purchasing more gold jewellery while visiting their home countries in the summer. This trend is driven by favorable gold prices in Dubai compared to other countries, potential tax advantages, and exemptions that expats can take advantage of when buying jewellery. Additionally, expatriates often purchase gold jewellery to present as gifts to family and friends or as a secure investment before heading back to their home countries for their annual vacations.
World Gold Council data for 2023 shows a fluctuation in demand for gold jewellery throughout the year, with Q3 showing a decrease compared to Q1, Q2, and Q4. Gold jewellery purchases by tourists slow down during the summer months due to fewer visitors in the country, but sales usually pick up during the festival season and winter. Summer is considered a peak travel period for expats due to school holidays, and a significant portion of jewellery sales during this time comes from resident customers.
Some gold jewellers have reported a mixed reaction in terms of jewellery sales during the current summer season. While some have observed an uptick in gold jewellery sales compared to previous seasons, others have experienced a decline in sales due to various factors such as economic conditions and fluctuating gold prices. Despite the differences in summer season dynamics, the primary buyers of gold jewellery during this time are still Asians. Overall, jewellery retailers in Dubai are hopeful for a positive trend in sales due to factors like increased tourist influx, celebrations, and a broader economic recovery fostering consumer confidence and expenditure.
