Dubai jewellery trade posts record sales this summer

DUBAI - Jewellery and diamond sales in Dubai surged to a record level this summer with the Dubai Gold & Jewellery Group describing the traditionally lacklustre season as the best ever with a 34 per cent year-on-year growth.

By Isaac John

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Published: Tue 5 Aug 2003, 12:18 PM

Last updated: Wed 27 Mar 2024, 10:21 AM

Tawhid Abdullah, chairman of the Dubai Gold & Jewellery Group, said favourable gold prices and a big surge in visitor traffic from neighbouring AGCC countries were the prime drivers of this upswing. "We had the best ever June and July in our history with all outlets reporting upbeat sales volumes during an otherwise lean period," he said.

Abdullah said visitor traffic from neighbouring countries during the period was about 40 per cent higher vis-a-vis the same 2002 period, thanks to the lure of Dubai Summer Surprises. "We have been able to post positive growth in all segments, including gold jewellery and diamonds, as a result of an aggressive sales campaign initiated alongside the DSS promotions," he said.

He said Dubai's jewellery trade, which collectively accounts for more than $1 billion in sales per year, has consolidated its position not only as a global gold hub, but also as a vibrant diamond centre of a region currently ranked as the fourth largest in the world for the precious stones with a $1.3 billion market. The region's total jewellery sales is worth $2 billion.

According to Abdullah, a comfortable price level for the retail gold sector would be in the range of $340 to 360 per troy ounce. Although the prevailing price at $340 per ounce is higher compared to June-July last year when the yellow metal was trading at $310 per ounce, consumer sentiment remains positive.

Abdullah said one of the immediate goals of the group is to ensure that all member outlets achieve zero tolerance in terms of purity. "We have achieved a remarkable headway in winning consumer confidence with a purity drive ever since hallmarking was initiated in 1996."

Various promotions by the group, running concurrently with those of the DSS include a specially designed "City of Gold" one-kilo coin every week as well as a "win back half your purchase scheme." In addition, there are over a thousand scratch and win prizes offering gold coins in denominations ranging from 10 grams to one gram. Another attraction is a joint promotion the group has launched with Visa International offering a 100 gram solid Visa Gold Card every week.

Apart from the ongoing promotions, as a key sponsor of the "Forever Dubai" initiative by the Department of Tourism and Commerce Marketing, the group will offer delegates, tourists and Dubai shoppers a chance to win 25 kilos of gold on spending Dh200 at any one of the 1000 retail outlets during the two-week promotion that will run from September 10 to 25.

"As title sponsor of the Forever Dubai initiative, we look forward to promoting Dubai. The precious metals and stones business plays a significant role in the commercial success of Dubai, and to promote the City of Gold to so many influential global visitors is an opportunity not to be missed," said Abdullah. "We welcome this chance to work with DTCM and to support this prestigious tourism initiative. We also look forward to adding value to our 400 gold and jewellery partners citywide," he added.

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