Is Jewellery Cheaper in Dubai?

Dubai is known as the “City of Gold” for a reason. For centuries, traders flocked to Dubai in search for jewellery pieces made of gold, silver, platinum, pearls and gems, making it a major hub for gold trade in the Middle East.

Today, the city is still one of the top gold trading cities in the world. It’s famous for its gold souks and jewellery stores where you can find almost every type of jewellery made by local craftsmen and jewellery makers. 

Dubia offers some of the cheapest prices for jewellery anywhere in the world. The city has low tax rates, prices are regulated, and jewellery is always certified as authentic.

Moreover, there are a wide range of options to choose from and making charges are negotiable! 

In this article, we’ll find out why it’s cheaper to buy jewellery in Dubai and what are the best places in the city to go jewellery shopping.

Dubai Has One of the Lowest Tax Rates for Jewellery Purchases

One of the biggest reasons that jewellery is cheaper in Dubai is its low Value Added Tax (VAT) rate. 

In fact, Dubai and the rest of the United Arab Emirates (UAE) didn’t impose taxes on jewellery purchases made in the country for many years. 

But the Federal Tax Authority started implementing a 5% VAT on gold, silver and platinum jewellery purchases with less than 99% purity starting 1 January 2018.

On the other hand, jewellery pieces with more than 99% purity will not be charged with any VAT.

But the city still has one of the lowest VAT rates for jewellery purchases anywhere in the world  as shown in this table:

Dubai also offers tax refunds for tourists buying jewellery and other goods in the city. 

Under the VAT Refund Tourist Scheme of the UAE, a tourist can claim up to 85% of VAT returns through tax refund hubs in airports, seaports and border ports.

Eligibility for Tourist VAT Refund in the UAE

• The product purchased should not be excluded from the Refund Scheme of the Federal Tax Authority
• The product should be purchased from a business that is participating in the Tax Refund for Tourists Scheme of the UAE
• The tourist must bring the purchased products out of the country within 3 months from the date of purchase
• The tourist must have the intention to leave the UAE within 90 days from the date of purchase together with the products bought
• The purchase must be made in accordance to the rules required by the Federal Tax Authority

If you want to apply for a tax refund on your departure from Dubai or anywhere in the UAE, you need to submit a copy of your passport and credit card if used for the purchase.

You also need to present the tax invoice for your purchases from the retail outlets registered under the Tax Refund Scheme.

If you qualify for a refund, you can have the amount transferred to your credit card or given to you in Dirhams. 

Jewellery Prices are Regulated by the Government

The gold, pearl and precious stone market accounts for 37% of Dubai’s non-oil industry and the city is known for being one of the best places to buy jewellery in the world.

To protect Dubai’s credibility, the government made sure that all prices are properly regulated. All jewellery stores are registered and gold rates follow international market prices.

The Department of Consumer Protection under the Dubai Economic Department is known to conduct mandatory assessments and surprise visits to souks to check for prices.

This helps ensure the uniformity and transparency in pricing in all of the jewellery stores in the city.

Following international market rates, here are the latest prices for gold per gram in Dubai as of February 2023:

All Jewellery in Dubai Are Certified to be Pure

Aside from making sure that all prices are regulated, the government also requires all gold jewellery sellers to get a Bareeq Certification as a sign of the purity of their gold.

What is a Bareeq Certification?

A Bareeq Certification is issued to a jewellery shop that passed all the requirements of the DCLD Bareeq Certification Scheme.

This certificate also signifies that a store is following the Good Jewellery Trading Practice.

So, if you’re buying jewellery in the souks and jewellery stores, you’re always assured of its quality even if you’re paying a lower price.

The Dubai Central Laboratories Department (DCLD) tests all the gold jewellery sold in the city for purity following these steps:

• The retailer’s compliance to the government’s rules and regulations in terms of product quality, labeling and other factors.
• Inspectors take note of their findings during assessments to ensure the purity and quality of the gold being sold in stores.
• Retailers may get voluntary certifications to increase their credibility in selling good quality jewellery pieces.

When you visit a jewellery store in Dubai, whether it’s in a souk or shop at the mall, you can ask for a Bareeq Certification to prove that you’re investing in good quality pieces.

Dubai’s stores usually have gold jewellery in 18, 21, 22 and 24 Carats defined by their purity and characteristics.

These characteristics also influence the prices of each piece.

In this table, we’ll describe each karat and what type of jewellery pieces they’re used for:

According to the government, 98% of Dubai’s jewellery stores are certified while only 2% are committing fraudulent activities.

The Federal Decree Law No. (11) of 2015 on the control of trading and hallmarking of precious stones and precious metals was created to protect consumers buying jewellery in Dubai.

Offenses stated in the 31-article law will be punished accordingly. This includes:

• Anyone forging the hallmarks of precious metals and/or using fake certifications of precious stone jewellery to sell, possess or trade them will be sentenced to at least two years in prison and/or fined between $136,125 and $272,251.

• Authorized institutions that issue certificates for gold, metals and precious stones showing incorrect or false information will be fined between $27,225 and $136,125.

• Anyone dealing, trading or selling precious stones and precious metal jewellery in Dubai without proper certification and hallmarking from authorized institutions will be sentenced to at least one year in prison and/or fined between $68,062 and $136,125.

• Anyone proven to violate any of the provisions of this new law will be imposed a fine between $13,612 and $27,225.

This law was issued by former UAE President H.H. Sheikh Khalifa Bin Zayed Al Nahyan with the goal of protecting all consumers buying jewellery in Dubai and the UAE.

It also aims to help preserve the country’s credibility for being one of the best places in the world to invest in high quality jewellery pieces.

“Making Charges” of Jewellery in Dubai Are Negotiable

Another great way to reduce the prices of jewellery in Dubai further is by negotiating for the “making charge”.

What is a Making Charge?

A “making charge” is the fee that local sellers and craftsmen will charge you for the labor done in creating the jewellery piece that you want to purchase.

The good thing is, you can always negotiate to lower these charges and make the jewellery cheaper, which most of these shop owners would be happy to oblige.

However, you can’t expect to haggle in malls since jewellery pieces sold in these shops are already at fixed prices.

A good trick would be to go around the souks first to see which seller offers the lowest prices and negotiate for the making charges. 

This will help you save some money on your purchase without sacrificing the quality of the jewellery that you’re buying.

You Have a Wide Range of Options for Jewellery in Dubai

Dubai has some of the best jewellery stores that you can find in the Middle East.

It even has a dedicated souk where you can buy all types of gold, gemstone and pearl jewellery pieces at the best prices.

Dubai’s malls are also filled with artisan jewellery shops that offer a wide range of options for you to choose from.

Since there’s strong competition, the prices of jewellery are also lower in most of these shops to encourage customers to buy from them.

Here, we list some of the best jewellery shops where you can buy high quality but cheaper pieces:

But you should not miss visiting the famous gold souk in Dubai not only for the beautiful jewellery pieces created by local craftsmen but also to take a trip down Dubai’s history.

Shop for Jewellery at the Best Prices in Dubai

Shopping for jewellery in Dubai isn’t just for investment. It’s also an experience that you won’t find anywhere else in the world.

Jewellery is definitely cheaper in Dubai because the government values the importance of jewellery as a part of the city’s culture, history and economy.

The trick here is to know what you’re looking for, find your best options and of course, negotiate to get the best prices for the pieces that you want to invest on.

Are you ready to go jewellery shopping in Dubai?