Buying Gold in Dubai: The Complete Guide
Why Dubai for Gold?
Dubai has earned its nickname "City of Gold" for good reason. The UAE imports over 25% of the world's physical gold trade, making it one of the largest gold markets globally. Gold prices in Dubai are competitive because of low import duties, no income tax on retailers (keeping overhead low), VAT zero-rating on investment gold (≥99% purity), and fierce competition among hundreds of retailers. Whether you're buying a wedding set, investment bars, or a simple chain, Dubai offers selection and pricing that's hard to beat.
The Gold Souk Experience
Deira Gold Souk is the most famous gold market, with over 300 retailers packed into a covered walkway near the Al Ras metro station. You'll find everything from simple 22K bangles to elaborate 21K Arabic-style sets and 24K investment bars. Other popular locations include Gold Land in Mall of the Emirates, Gold & Diamond Park in Al Quoz, and numerous shops in Dragon Mart and Global Village. The Gold Souk is open 10 AM–10 PM Saturday through Thursday, and 4 PM–10 PM on Fridays. It's busiest on weekends and during festive seasons — visit on a Tuesday morning for the most relaxed shopping experience.
Understanding Making Charges
The price you pay for gold jewellery has two components: the gold rate (based on international spot price) and making charges (the craftsmanship fee). The gold rate is non-negotiable — it's set by the market and all shops charge the same per-gram rate for each karat. Making charges, however, are absolutely negotiable. Simple pieces like plain bangles or chains have making charges of 5–8%, while intricate designs with detailed craftsmanship can go up to 15–25%. Always ask "what's the making charge?" before discussing the price. Gold bars and coins have minimal making charges (often zero or 1–2% for packaging).
Karat Explained
Gold purity is measured in karats. 24K is 99.9% pure gold — too soft for most jewellery but perfect for investment. 22K (91.67% pure) is the most popular choice for traditional jewellery in the Middle East and South Asia — it's durable enough for daily wear while maintaining a rich gold colour. 21K (87.5%) is popular for Arabic-style jewellery. 18K (75%) is used in designer and Western-style jewellery, often with gemstones — the alloy metals make it harder and available in different colours (white gold, rose gold). Lower karats like 14K and 9K exist but are uncommon in Dubai.
Hallmarking and Authenticity
All gold sold in the UAE must be hallmarked with the karat purity by an accredited assay office. Look for the hallmark stamp on every piece — it shows the karat (e.g., 750 for 18K, 916 for 22K, 999 for 24K) and the assay office mark. The Dubai Central Laboratory and Dubai Gold and Jewellery Group ensure compliance. If a piece lacks hallmarking, don't buy it. Reputable retailers provide a detailed invoice showing weight, karat, making charges, and the gold rate used. Keep this invoice — you'll need it if you want to resell the gold or if there's a dispute about purity.
Selling Gold in Dubai
When selling gold back to a shop, expect to receive 2–5% below the current spot price. The shop deducts this to cover refining costs, testing, and their profit margin. You will not recover making charges when selling — that's essentially the "cost" of owning jewellery. For investment gold (24K bars and coins), the buyback discount is typically smaller (1–3%). Some shops offer better buyback rates if you purchased from them originally — keep your receipts. Gold bought from certified dealers can also be sold to any other gold shop in the UAE; you're not locked in to one retailer.
VAT on Gold
Investment gold (≥99% purity, i.e., 24K bars, coins, and ingots) is VAT zero-rated in the UAE. This means no 5% VAT is charged, making Dubai particularly attractive for gold bullion purchases. All gold below 99% purity — including 22K, 21K, and 18K jewellery — is subject to the standard 5% VAT. The VAT is applied to the total price including making charges. Tourists can claim a VAT refund on jewellery purchases through the Tax Free scheme at the airport (minimum AED 250 per receipt), though this doesn't apply to zero-rated investment gold since no VAT was charged in the first place.