Unprecedented ‘Gold Exchange Mela’ Anticipated in the UAE as Major Events Loom
The UAE is gearing up for a potentially record-breaking gold exchange programme in the coming days, coinciding with three major trade events—Gulfood, Dubai International Boat Show, and the IDEX defence exhibition in Abu Dhabi. Despite gold prices holding at a steep $2,900 per ounce, just shy of the February 10 peak of $2,940, industry insiders are optimistic that visitors will take advantage of exchange opportunities.
The UAE gold rate currently stands at Dh323.5 per gram for 22K gold, slightly lower than the recent high of Dh325.25 on February 10. Jewellery retailers anticipate a surge in gold trade as overseas visitors look to swap old gold for new purchases, leveraging favorable exchange policies and promotions.
Anticipated Exchange Boom
“Even if just 20% of international visitors at these events decide to exchange their gold, it would provide a significant boost to the UAE gold retail market,” said a senior manager at a leading jewellery retailer. “We have already received advance inquiries from shoppers coming to Gulfood from India and Pakistan, eager to know about exchange options.”
Visitors from Saudi Arabia could be another key market, given that they can trade gold in the UAE without paying the 5% VAT applicable back home. With Saudi VAT rates at 15%, this presents a lucrative opportunity for gold traders and customers alike.
Unprecedented Price Surge
Gold prices have seen a historic jump, rising nearly Dh30 per gram since January 1, 2025. Such a price spike is unprecedented in the UAE market, leaving many residents hesitant to make new purchases, having already capitalized on exchanges in the past several months.
However, for international visitors, exchanging or selling gold acquired a year or more ago remains a profitable move. This dynamic is expected to fuel gold trade activity during the upcoming events.
Retailers Cut Making Charges to Attract Buyers
“With high-profile exhibitions like Gulfood, IDEX, and the Dubai International Boat Show, we anticipate a strong impact on the UAE’s jewellery sector,” said Ramesh Kalyanaraman, Executive Director at Kalyan Jewellers. “These events not only drive tourism and business but also create opportunities for luxury retail growth.”
To encourage purchases, major jewellery retailers are rolling out aggressive promotions, slashing making charges to make gold shopping more attractive despite high prices. Kalyan Jewellers, for instance, is offering a 50% discount on making charges for all gold products until February 23.
“The first question tourists and residents ask when entering a gold shop is whether we have discounts on making charges,” noted a retailer. “In 2025, expect jewellery promotions to focus almost entirely on reducing making charges to entice buyers.”
As the UAE welcomes a surge of visitors for these global events, the gold sector is poised for a dynamic trading period, with retailers banking on gold exchange programmes to drive sales despite elevated prices.
