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Dubai has evolved as a significant jewellery manufacturer
as well as wholesaling substantial quantities of jewellery
from Italy, Malaysia, Indonesia and South Korea. Italy
alone exports around 25 tonnes (0.8 million oz) of
gold as jewellery to Dubai annually. Saudi Arabian
manufacturers have also established outlets in Dubai.
Factories in Dubai and the neighbouring emirate of
Sharjah produce around 49 tonnes (1.6 million oz)
of gold jewellery annually.
The
essence of jewellery marketing in Dubai is high volume
and low mark-up. With no sales tax, it is one of the
cheapest places to buy jewellery. Indeed, Dubai calls
itself 'City of Gold'. The 400 gold shops in its souks
and shopping malls have 9.3 tonnes (0.3 m oz) on display
in 18, 21, 22 and 24 carat gold, often with jewellery,
coins and small bars.
The
amount of gold jewellery consumed locally in the UAE
stands at around 41 tonnes (1.3 m oz). Retail sales,
however, are far higher because of the very large
number of purchases made by tourists. A major surge
in consumption occurs every March with the Dubai Shopping
Festival which actively promotes gold. During the
March 2001 festival, it is estimated that over 9 tonnes
(0.3 m oz) of gold jewellery was sold.
The
Dubai Gold & Silver Jewellery Group, an association
of local manufacturers, wholesalers and retailers,
is active in promotion.
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