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Dubai
has evolved as a significant jewellery manufacturer
as well as wholesaling substantial quantities
of jewellery from Italy, Malaysia, Indonesia
and South Korea. Italy alone exports around
25 tonnes (0.8 million oz) of gold as jewellery
to Dubai annually. Saudi Arabian manufacturers
have also established outlets in Dubai. Factories
in Dubai and the neighbouring emirate of Sharjah
produce around 49 tonnes (1.6 million oz)
of gold jewellery annually.
The
essence of jewellery marketing in Dubai is
high volume and low mark-up. With no sales
tax, it is one of the cheapest places to buy
jewellery. Indeed, Dubai calls itself 'City
of Gold'. The 400 gold shops in its souks
and shopping malls have 9.3 tonnes (0.3 m
oz) on display in 18, 21, 22 and 24 carat
gold, often with jewellery, coins and small
bars.
The
amount of gold jewellery consumed locally
in the UAE stands at around 41 tonnes (1.3
m oz). Retail sales, however, are far higher
because of the very large number of purchases
made by tourists. A major surge in consumption
occurs every March with the Dubai Shopping
Festival which actively promotes gold. During
the March 2001 festival, it is estimated that
over 9 tonnes (0.3 m oz) of gold jewellery
was sold.
The
Dubai Gold & Silver Jewellery Group, an
association of local manufacturers, wholesalers
and retailers, is active in promotion.
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