The new Dubai Gold Souk is “very much on track”, according to the chairman of Dubai Gold & Jewellery Group.
With more than 250 jewellery and non-jewellery retail stores, the souk is scheduled to open in phases. The first phase of the market will open its doors to the public by April 2021.
“The new gold souk is very much on track. A lot of new companies from around the world have signed the contract in January. We will be opening the first phase of the market by April 2021 and we will see full opening by July 2021”, said Tawhid Abdullah, Chairman, Dubai Gold & Jewellery Group.
Gold prices have seen historic highs in the last year with rate shooting up by 15 to 20%, making it a much sought-after commodity for investment. Although gold sales were down during the pandemic, the industry was amongst the first to recover.
With the many promotional schemes and campaigns to attract buyers, Dubai Shopping Festival too is playing an important role in boosting sales. “So far, our promotions are being received very well and currently with the gold prices being favorable to the current buyers, we are expecting a surge with the buying trend during this promotion. Some of the participating outlets have witnessed a 22-30% increase in sales”, he said.
VAT Impact
While the 5% VAT rate has been accepted and adopted by consumers in the UAE, Abdullah believes a rate increase could have an impact on sales.
“5% VAT has been accepted by the people, but we don’t want it to go any higher. I think in Saudi it has gone very high in one shot and it’s not positive for it to go so high”, he said.
The Government of the Kingdom of Saudi Arabia (KSA) had announced the increase of the VAT rate from 5% to 15%, which came into effect in July 2020.
“When VAT was introduced in Europe, the volume of the gold jewellery being sold was much lower than when it was un-VATed”, he concluded.
Watsons to open 20 new stores in the GCC
In 2020, global health & beauty retailer AS Watson Group signed its
April 29, 2024 | By Rupkatha BAsda and Deliverect Deepen Partnership to Power Rapid Delivery Across Asda Express
SQUATWOLF’s Kuwait Flagship Store Anchors Its Regional Growth Ambitions
Global beauty icon Ulta Beauty to make Riyadh debut at Panorama Mall
/ 
For decades, Haldiram’s built deep recall across the UAE through its packaged
When House of Habanero opened its first physical location at Alserkal Avenue
Union Coop has completed a significant expansion of its Hatta Souq branch,
Saudi Arabia is set to welcome U.S. food exporters this week, as
Majid Al Futtaim has officially entered the discount retail segment with the
As convenience increasingly becomes currency in the region’s grocery landscape, Union Coop
As wellness becomes a lifestyle in the UAE, the grocery aisle is
Grandiose, one of the leading grocery retailers in the UAE with a
With shifting consumer behaviour, rising cost pressures, regulatory changes, and rapid digitization,
Union Coop’s blend of retail expansion, digital innovation, and community focus is
Abu Dhabi-based MAIR Group has marked a pivotal stage in its transformation
In a move that blurs the line between shopping and investing, Apparel
/ 
Why cinemas, wellness sanctuaries and cultural districts are becoming emotional infrastructure for
From bullion to boutiques, investment to immersion, Dubai Gold District marks a
NRF Vice President of Education Strategy Susan Reda forecasts 2025’s retail trends
The Dubai Duty Free (DDF) has recorded sales of $1.94 billion up
In what comes as a significant announcement, Middle East based eyewear majors
Emirati Gen Z women are seeking collaborative, culturally diverse and creatively enriching
GMG’s Everyday Goods – Retail division celebrates expansion milestone hitting 60 stores
Among several others, three key factors have fuelled the growth of homegrown
Empowering women, transforming communities: The rise of female-led businesses in Times Square Center
In its central Dubai location, Times Square Center stands not just as
Previous Article
