They are under no legal obligation to purchase gold they have sold, Dubai Economy says.
Jewellery buyers should know that making charges will not be counted when reselling jewellery in Dubai, and jewellers are not legally obliged to take back gold or jewellery already purchased, said a senior official of the consumer protection department at Dubai Economy.
“We urge consumers purchasing jewellery to make sure of the price of gold and the making charges, which varies according to the distinct designs of jewellery. Buyers should also be aware that the making charge will not be counted when reselling jewellery, as they are only acquiring the raw gold. If a jewellery piece is redesigned or used to make a new item, then the value of the workmanship may be restored,” said Mohammed Ali Rashed Lootah, CEO of Commercial Compliance & Consumer Protection (CCCP) Department at Dubai Economy.
Also, a merchant is not legally obliged to take back a gold or jewellery already purchased, Dubai Economy said in a statement.
According to the UAE law, it said, the consumer is defined as anyone who receives goods or services in fulfilment of their personal need. Therefore, those who wish to sell gold and jewellery are not considered consumers, and the merchant has the right to set the conditions for the buying process within the framework of commercial regulations and terms as agreed upon between the two parties.
Official figures show that gold, jewellery and diamonds were the highest-traded commodity by value in 2019, contributing Dh370 billion to Dubai’s Dh1.37 trillion non-oil trade. Gold worth Dh169.5 billion was traded last year while jewellery’s trading amounted to Dh116.6 billion and diamonds accounted for Dh83.9 billion.
Sharing the trend of local market, jewellers revealed that most of the new jewellery is generally bought by tourists while the residents tend to sell their existing jewellery and buy new designs.
Lootah added that regulations and procedures put in place to maintain the attractiveness of the market and ensure the rights of merchants and consumers alike have complemented the growth of the local gold and jewellery sector.
Gold and jewellery purchases accounted for hardly 0.5 per cent of the total consumer complaints received in 2019, according to the annual report of Dubai Economy.
