The retail price of gold jewellery is determined by multiple factors, including making charges, design complexity, brand positioning, craftsmanship quality, and applicable taxes.
The UAE is home to over 4 million Indian nationals, with millions more visiting each year for tourism and business. Shopping — especially for gold jewellery — remains a top priority for many Indians travelling to Dubai.
Dubbed the City of Gold, Dubai features a diverse mix of Middle Eastern, Asian, and Western jewellers, offering a wide variety of designs and ornaments. For Indian buyers, however, the main consideration is value for money: is it more cost-effective to purchase gold jewellery in Dubai or in India?
“While a few jewellers argue that gold jewellery costs are comparable in both markets, the majority contend that Dubai is more economical.”
Dubai often offers better value for gold jewellery than India, industry experts say.
Karim F. Merchant, Group CEO and Managing Director of Pure Gold, explained that customers frequently find greater overall value in Dubai, particularly for high-purity gold, due to transparent pricing aligned with international rates and lower indirect taxes.
“While India has strong domestic demand for gold, prices can be comparatively higher because of layered taxes and import duties. Customers in the UAE can buy gold with greater peace of mind. Making charges are also generally more competitive in Dubai compared to India,” Merchant said.
Chirag Vora, Managing Director of Bafleh Jewellers, noted that Dubai’s transparent pricing structure and relatively low taxation have cemented its reputation as a global gold trading hub.
“The UAE levies a 5% VAT, while India applies import duty along with GST, increasing the overall landed cost of gold. These structural differences often make the base gold rate in Dubai more competitive,” he said.
However, Vora emphasised that the final retail price of jewellery depends on factors beyond the daily gold rate.
“These include making charges, design complexity, brand positioning, craftsmanship standards, and applicable taxes. In India, making charges vary significantly by region and design intricacy. In Dubai, the market is highly competitive, and making charges are usually more transparent and negotiable.”
Recent policy changes in India also impact purchasing decisions. The latest budget revised customs rules for gold jewellery, allowing non-resident Indians (NRIs) to carry it under a weight-based rather than value-based allowance, simplifying compliance for expatriates in the UAE and elsewhere.
Arun Narayanan, Global CEO of the Jewellery Division at Titan Company Limited, observed that gold jewellery prices are now nearly on par between Dubai and India following India’s customs duty revisions and the signing of the Comprehensive Economic Partnership Agreement (CEPA) with the UAE.
Cost comparison: 5-gram bangle
- Dubai: With 22K gold priced at Dh245–255 per gram and design-specific making charges, a simple 5-gram bangle retails around Dh1,300–1,450, including 5% VAT and moderate making charges (Pure Gold).
- India: With 22K gold at Rs6,200–6,500 per gram plus duties, a comparable 5-gram bangle costs roughly Rs33,000–36,000 (Dh1,333–1,454), including GST and making charges.
While absolute prices fluctuate with global gold rates and currency movements, Dubai generally maintains a pricing advantage, driven by lower duties, high market liquidity, and strong regulatory transparency.
Key factors influencing gold jewellery prices
- Import duties: India imposes import duties on gold, directly increasing retail prices, while the UAE does not.
- VAT/GST: The UAE applies a 5% VAT, compared with India’s GST plus embedded customs duties.
- Gold rate benchmarking: Dubai’s gold prices are closely linked to international spot rates and updated multiple times daily.
- Making charges: While both markets vary by design complexity, Dubai’s competitive retail environment often keeps margins lower.
- Regulatory changes: India’s revised NRI rules in Budget 2026 may influence expatriates’ buying decisions, balancing price advantages with compliance requirements.
