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Gold and jewellery are 12% cheaper in UAE after India duty hike
Jewellers in Dubai said the widening price gap could encourage Indian tourists and consumers to increasingly consider the UAE as a preferred destination for jewellery purchases
- PUBLISHED: Thu 14 May 2026, 4:15 PM UPDATED: Thu 14 May 2026, 4:21 PM
Gold and jewellery prices in the UAE are 12 per cent cheaper compared to India after New Delhi hiked import duty on gold, silver, and precious metals from six per cent to 15 per cent, say jewellers.
The decision by the Indian government comes against the backdrop of growing concerns over India’s swelling gold import bill and its impact on the external account, at a time of elevated oil prices and global uncertainty linked to the war in the Middle East.
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Shamlal Ahamed, managing director for international operations at Malabar Gold & Diamonds, said there has never been a better time to buy gold and jewellery in the UAE and across the GCC for smart NRIs, tourists, and savvy investors.
“The price advantage of 12 per cent compared to India is not a marginal difference. The recently revised duty-free allowance is a further incentive. A family of four travelling back to India can now collectively carry up to 140 grams of gold jewellery duty-free, and with the NRI wedding season approaching in July and August, residents can enjoy massive savings by purchasing gold from the UAE,” said Ahamed.
“With the UAE government ensuring strict gold purity standards, and the GCC offering some of the lowest making charges worldwide, customers already enjoy a major advantage. We are prepared to welcome this new wave of discerning shoppers and offer them the quality, variety, and value that only a world-class jewellery destination can deliver,” he added.
On Thursday afternoon, 24K and 22K gold prices were trading at Dh565.0 and Dh523.25 per gram, respectively, in Dubai.
In India, 24K and 22K gold prices were Rs16,233 (Dh622) and Rs14,880 (Dh570) per gram, respectively, on Thursday afternoon.
Tawhid Abdulla, chairman of Dubai Jewellery Group, said India’s decision to increase import duties on gold and silver is expected to create more demand for jewellery in the UAE and have a positive spillover effect.
“The widening price gap, estimated at around 9–10 per cent, could encourage Indian tourists and consumers to increasingly consider the UAE as a preferred destination for jewellery purchases. Apart from competitive pricing, the UAE has long established itself as a global hub for gold and jewellery trade, supported by exceptional product variety, including jewellery products originating from India, superior craftsmanship, transparent regulations, strong consumer confidence, and world-class retail infrastructure,” Abdulla said.
He added that this development may contribute to higher footfall and stronger demand across the UAE jewellery retail sector, particularly during key travel and festive seasons.
Anil Dhanak, managing director of Kanz Jewels, said India’s sharp increase in import duties on gold and silver is likely to make jewellery purchases more expensive there, which could positively benefit the UAE jewellery market.
“Dubai already enjoys a strong reputation for competitive gold prices, purity, and design variety, and we expect more Indian buyers and tourists to prefer purchasing jewellery from the UAE, especially during the festive and wedding season,” he added.
