Arab Press

بالشعب و للشعب
Monday, Sep 01, 2025

What makes Dubai the 'City of Gold'?

What makes Dubai the 'City of Gold'?

Dubai’s reputation as a leader in the gold market happened decades ago. Since then the gold industry has seen tremendous growth thanks to the city’s increasing role as a hub for trade and tourism.


For over a century, traders have travelled to Dubai's Souks in search of spices, pearls and gold. With such a strong trade, Dubai became known as the 'City of Gold'.

In the first nine months of 2020, gold trade in the country was valued at 41 billion euros, according to Dubai Customs. It is the city’s most lucrative export after oil. Dubai has capitalised on its geographical position by setting up gold vaults, jewellery-making facilities and refineries.

The entire gold chain


At Al Etihad Gold, they refine and convert gold into investment-grade bars. They supply bullion banks and traders, but also jewellery wholesalers. The whole process is carried out on the premises. Al Etihad also holds the Dubai Good Delivery accreditation which is an international benchmark for quality and technical specifications.

Gold Souks-Dubai

The co-owner of Al Etihad Gold Refinery, Salah Khalaf, says he sees gold remaining a popular purchase from a jewellery and investment perspective. He actively encourages people "only to invest in gold". "I see the whole circle is completed here in this city, especially the infrastructure and the stability and the security", he adds.

A constant value


The refinery makes gold bars in a variety of sizes. Like any commodity, its price can change. At current market rates, a 10kg bar is worth just shy of 450 000 euros. Finished bars are sold to bullion banks, traders and wholesalers.

One of the biggest wholesalers in the city was set up by the Abdullah family in 1955. At Jawhara, they specialise in trading gold, jewellery and diamonds. They later expanded into retail.

Tawhid Abdullah is the CEO of Jawhara and the Chairman of the Dubai Jewellery Group. He says the industry in the city is thriving, "at any point of time, there are 40-50 tons available on the market, either on the retail front or on the wholesale. And due to the big numbers that we turn over, our prices, you know, become the world's most competitive prices".

Gold jewellery being made-Dubai

The jewellery and gold industry is well regulated in Dubai too. Over 700 members are part of the Dubai Gold and Jewellery Group, a non-profit trade body. Tawhid Abdullah tells us that self and government compliances mean they have a “perfect product”.

It’s estimated that between 20% to 40% of the world's gold stocks pass through Dubai every year, and most of that comes to the Gold Souk. In the area, 300 shops are found in just a half square kilometre.

A great location


Another factor to Dubai’s success is geographic location. Gold brokers take advantage of the time zone. Open from 6 am until 11 pm locally, it is thus one of the few exchanges in the world that catches every time zone from Australia to the west coast of the USA.

For Jeffrey Rhodes, Founder of Rhodes Precious Metals Consultancy (RPMC), the heart of the gold industry in the UAE will always be in Dubai’s traditional gold Souks along the banks of the Creek. Rhodes explains that there are various factors that contribute to the gold trade's lasting success there. "It’s the people, it's the infrastructure, it's the leaders" are some of the reasons he says. Another factor is the price, "it's simply the most cost-effective place in the world to buy gold jewellery. The taxation is very high. This is the best place to buy. You get the most value for your money".

In terms of value, Dubai's gold is tax-free for tourists. That's why many stock up at the Gold Souk or across town at the Gold and Diamond Park.

Co-Founder and Director of Cara Jewellery

Kiran Pithani set up Cara jewellery with his brother in 2005. They have several stores and workshops with the busiest being in the Gold and Diamond Park. They specialise in custom jewellery with 85% of the workload being bespoke designs, setting and product work.

Continued popularity


To Pithani, “gold is always popular. It's one of the metals which is connected with currency". He believes people would rather invest in gold, particularly during unsettling times.

Like many sectors, the demand for jewellery during the early stages of the pandemic. But in Q4 of 2020, trading picked up and the 'City of Gold' is banking this continuing.

Newsletter

Related Articles

Arab Press
0:00
0:00
Close
Israeli Airstrike in Yemen Kills Houthi Prime Minister
After the Shock of Defeat, Iranians Yearn for Change
YouTube Altered Content by Artificial Intelligence – Without Permission
Iran Faces Escalating Water Crisis as Protests Spread
More Than Half a Million Evacuated as Typhoon Kajiki Heads for Vietnam
HSBC Switzerland Ends Relationships with Over 1,000 Clients from Saudi Arabia, Lebanon, Qatar, and Egypt
Sharia Law Made Legally Binding in Austria Despite Warnings Over 'Incompatible' Values
Dogfights in the Skies: Airbus on Track to Overtake Boeing and Claim Aviation Supremacy
Tim Cook Promises an AI Revolution at Apple: "One of the Most Significant Technologies of Our Generation"
Are AI Data Centres the Infrastructure of the Future or the Next Crisis?
Miles Worth Billions: How Airlines Generate Huge Profits
Zelenskyy Returns to White House Flanked by European Allies as Trump Pressures Land-Swap Deal with Putin
Beijing is moving into gold and other assets, diversifying away from the dollar
Trump Backs Putin’s Land-for-Peace Proposal Amid Kyiv’s Rejection
Zelenskyy to Visit Washington after Trump–Putin Summit Yields No Agreement
Iranian Protection Offers Chinese Vehicle Shipments a Cost Advantage over Japanese and Korean Makers
United States Sells Luxury Yacht Amadea, Valued at Approximately $325 Million, in First Sale of a Seized Russian Yacht Since the Invasion of Ukraine
Saudi Arabia accelerates renewables to curb domestic oil use
Cristiano Ronaldo and Georgina Rodríguez announce engagement
Asia-Pacific dominates world’s busiest flight routes, with South Korea’s Jeju–Seoul corridor leading global rankings
Private Welsh island with 19th-century fort listed for sale at over £3 million
Sam Altman challenges Elon Musk with plans for Neuralink rival
Australia to Recognize the State of Palestine at UN Assembly
The Collapse of the Programmer Dream: AI Experts Now the Real High-Earners
Armenia and Azerbaijan to Sign US-Brokered Framework Agreement for Nakhchivan Corridor
British Labour Government Utilizes Counter-Terrorism Tools for Social Media Monitoring Against Legitimate Critics
WhatsApp Deletes 6.8 Million Scam Accounts Amid Rising Global Fraud
Texas Residents Face Water Restrictions While AI Data Centers Consume Millions of Gallons
India Rejects U.S. Tariff Threat, Defends Russian Oil Purchases
United States Establishes Strategic Bitcoin Reserve and Digital Asset Stockpile
Thousands of Private ChatGPT Conversations Accidentally Indexed by Google
China Tightens Mineral Controls, Curtailing Critical Inputs for Western Defence Contractors
JPMorgan and Coinbase Unveil Partnership to Let Chase Cardholders Buy Crypto Directly
British Tourist Dies Following Hair Transplant in Turkey, Police Investigate
WhatsApp Users Targeted in New Scam Involving Account Takeovers
Trump Deploys Nuclear Submarines After Threats from Former Russian President Medvedev
Germany’s Economic Breakdown and the Return of Militarization: From Industrial Collapse to a New Offensive Strategy
Germany Enters Fiscal Crisis as Cabinet Approves €174 Billion in New Debt
IMF Upgrades Global Growth Forecast as Weaker Dollar Supports Outlook
Politics is a good business: Barack Obama’s Reported Net Worth Growth, 1990–2025
UN's Top Court Declares Environmental Protection a Legal Obligation Under International Law
"Crazy Thing": OpenAI's Sam Altman Warns Of AI Voice Fraud Crisis In Banking
Japanese Prime Minister Vows to Stay After Coalition Loses Upper House Majority
President Trump Diagnosed with Chronic Venous Insufficiency After Leg Swelling
Man Dies After Being Pulled Into MRI Machine Due to Metal Chain in New York Clinic
FIFA Pressured to Rethink World Cup Calendar Due to Climate Change
Iranian President Reportedly Injured During Israeli Strike on Secret Facility
Kurdistan Workers Party Takes Symbolic Step Towards Peace in Northern Iraq
BRICS Expands Membership with Indonesia and Ten New Partner Countries
Elon Musk Founds a Party Following a Poll on X: "You Wanted It – You Got It!"
×