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.

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.