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Trump tariffs: Perfect time for Indian gold manufacturers to enter Dubai market, says expert
The value of non-oil trade between Dubai and India exceeded Dh142 billion during the first nine months of 2024, achieving year-over-year growth of 19 percent
- PUBLISHED: Tue 8 Apr 2025, 5:44 PM
With US President Donald Trump imposing widespread tariffs, it is the perfect time for Indian gold manufacturers to enter the Dubai market, according to an expert. Tawhid Abdullah, Chairman of the Dubai Jewellery Group and CEO of Jawhara Jewellers, also said that gold had become “more important than ever” in the current economic climate.
“We are already a country with over 200 tonnes of gold production, and I think we can reach more in the next couple of years if Indian manufacturers join us within UAE to build more manufacturing units in gold and in fine jewellery,” he said. “We have been an extremely successful trading hub in terms of gold and we would like to expand our succession story into manufacturing as well.”
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He also said that gold was the “hero of the situation” in the current economic climate. “Gold has become very important as a safe haven,” he said. “It has proven that it is the right commodity to keep for whenever there is a margin call or whenever cash is needed. We have seen a new high every single day, increasing 37 percent this year and 30 percent last year. We could see a correction but we will see the prices between $2,800 and $3,300 per ounce during this year.”
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He was speaking on the sidelines of the Dubai–India Business Forum organised in Mumbai on Tuesday by Dubai Chambers. The event coincides with third anniversary of the Comprehensive Economic Partnership Agreement (CEPA) between the UAE and India, which has seen a mutually beneficial trade corridor open between the two countries. The value of non-oil trade between Dubai and India exceeded Dh142 billion during the first nine months of 2024, achieving year-over-year growth of 19 percent.
Win-win situation
Tawhid added that Indian manufacturers coming to the UAE would be a win-win situation, in light of the new trade tariffs introduced by Trump. “The tariff UAE has to export to United States and other parts of the world are far lower than what it is in India,” he said. “So, establishing some joint venture between us and Indian companies is a win-win situation and will help both of us to go to the final consumers in the US.”
During the forum, members of Dubai Chambers highlighted how Dubai could support Indian companies in their aspirations to go international. In his presentation, Salem Al Shamsi, Vice President of international relations at Dubai Chambers highlighted how the emirate was a logistics hub with over 250 flights every day and more than 74 DP World global ports.
Gold jewellery trends
According to him, gold jewellery trends have been a shift in recent times with many youngsters choosing to wear jewellery, unlike their predecessors. “Yellow gold is very much back in fashion and I think the youth are becoming good consumer,” he said. “That makes a big difference because when the new generation are buying jewelry, that means they are gifting it and wearing it- which means it is in fashion.”
He added that it has become a trend for many youngsters to buy miniature pieces of traditional jewellery. “We are seeing many people choosing traditional, chunky designs and transforming it into miniature versions suitable for daily use,” he said. “So it keeps them in touch with the culture, but is also convenient for daily wear and suits the needs of our working women.”
