Gold demand rises in UAE as Eid Al‑Adha gifts and heavy discounts boost jewellery sales
Gold demand in the UAE rose during Eid Al‑Adha as extended holidays, lower prices and steep discounts prompted purchases of jewellery, diamonds, bullion.
Retailers across Dubai and Sharjah reported a clear uptick in footfall and transactions over the Eid Al‑Adha holiday, driven largely by shoppers buying gifts and taking advantage of seasonal offers. Shop managers and industry groups said promotions on making charges and markdowns on diamond and pearl pieces encouraged many consumers to complete purchases during the extended break. The surge in gold demand came even as spot prices moved only marginally, suggesting buyers responded more to retail incentives and holiday timing than to large swings in bullion markets.
Retailers Report Uptick in Gold Demand
Several mid‑size and independent jewellery outlets told reporters that sales volumes climbed noticeably during the holiday period. Stores said a combination of shoppers seeking traditional gifts and tourists visiting family occasions accounted for the increase.
Chain retailers and a local trade group confirmed higher customer visits and larger baskets, particularly for designs in 21‑ and 22‑carat gold commonly purchased for gifting. Sales staff noted that engagement with diamond and pearl ranges was also stronger than in typical weeks outside festive seasons.
Promotional Offers and Discounts Drive Footfall
Market participants highlighted a wave of promotions as a key catalyst for the recovery in demand. One group of retailers launched seasonal campaigns offering discounts of up to 65 percent on selected diamond and pearl jewellery, complimentary engraving services and gift incentives on qualifying purchases.
Many outlets also reduced or waived parts of the making charge for gold work to compete for customers, while “half‑price” and similar limited‑time deals on curated collections attracted price‑sensitive buyers. The broad mix of incentives created a competitive retail environment that helped convert interest into sales.
Dealers Cite Eid Al‑Adha and Price Signals
Retail executives attributed the stronger demand to both the holiday buying pattern and prevailing market sentiment. Several dealers said the extended Eid break gave families more time to shop, while the recent lower levels of the metal encouraged purchases across bars, coins and ornamental pieces.
Industry voices, including store managers from independent shops, said expectations of future price increases also prompted some customers to buy now rather than wait. These buyers favored a mix of bullion for investment and finished jewellery for gifting, balancing value preservation with ceremonial use.
Market Price Movements Last Week
Price indicators in Dubai and Sharjah showed modest upward moves at the end of the week, after a period of relative softness in the metal. The listed prices rose by amounts ranging roughly between AED 2.50 and AED 4.25 per gram across common purities, reflecting small market corrections.
By the end of the reporting week, the price of 24‑carat gold stood at AED 547.50 per gram, an increase of AED 4.25 from the prior week. Twenty‑two carat was priced at about AED 507 per gram, up AED 4, while 21‑carat reached AED 486 per gram, marking a AED 3.50 rise. Eighteen and fourteen carat rates were also higher, with 18‑carat at around AED 416.75 and 14‑carat near AED 325 per gram.
Shift Toward Bars and Diamond‑Pearl Pieces
Shop managers reported a notable split in buyer preferences between investment and ornamental segments. Some customers gravitated toward bullion and bars of varying weights, citing the metal’s price trajectory and the convenience of holding physical assets.
At the same time, demand for diamond and pearl sets remained robust, particularly for items marketed as Eid gifts. Retailers noted that promotional packages and bespoke engraving on gold items helped close purchases for celebratory occasions and milestone presents.
Outlook: Demand May Continue Amid Price Expectations
Sellers are cautiously optimistic that heightened consumer interest could persist into the near term, especially if retailers maintain competitive offers and if market sentiment supports further price appreciation. Several dealers signalled plans to extend select promotions into the coming weeks to keep momentum.
However, the market outlook remains subject to typical drivers such as international bullion trends, currency movements and broader economic signals that may influence consumer appetite for discretionary purchases. Retailers said they were monitoring these variables while tailoring offers to sustain sales volumes.
Consumer preference for both investment bars and jewellery, coupled with aggressive retail marketing during the Eid period, helped lift gold demand across UAE markets and may shape buying patterns in the weeks ahead.
