Gold Prices Cheaper in India or Dubai?
Recent claims that gold prices in India have become cheaper than in the UAE are being strongly denied by UAE jewellers, who maintain that buying gold in the UAE remains more cost-effective.
Import Duty Reduction in India
India’s recent move to reduce gold import duty from 15% to 6% has narrowed the price gap, but UAE traders emphasize that the UAE still offers significant savings. Anil Dhanak, Managing Director of Kanz Jewels, explains, “Even after factoring in the import duty cut, the UAE’s tax-free benefits make purchasing gold here considerably cheaper.”
Comparing Prices
For instance, the current price of 22K gold in India, including import duty and GST, is around Dh316 per gram, whereas in the UAE, the same is priced at Dh308 per gram (including 5% import duty), according to Shamlal Ahmed, Managing Director of Malabar Gold & Diamonds.
Additionally, UAE jewellers highlight the wide variety of international designs available, making it a more attractive market for gold buyers.
Misleading Media Reports
Some recent reports from prominent Indian media outlets have suggested a pricing advantage for Indian gold, allegedly driven by the strong dollar and a weakening rupee. However, UAE jewellers are dismissing these claims as inaccurate and potentially malicious.
Gold Prices and Tourist Trends
Gold’s international price, currently at $2,640 per ounce, has seen fluctuations due to global uncertainties but remains competitive in the UAE. With the year-end tourist surge from India, UAE’s Gold Souq is expected to attract many visitors.
The introduction of India’s UPI payment system in the UAE has further eased transactions for Indian tourists, allowing them to make purchases directly in rupees, enhancing convenience without impacting price advantages.
Despite India’s recent import duty reductions, gold remains cheaper in the UAE, and jewellers are actively addressing concerns raised by misleading reports to reassure their customers.
