Dubai: Gold sales in Dubai are up again, according to business managers at the Deira Gold Souq.
"There is a demand for gold because people have more confidence in gold," said Shamlal Ahmad, managing director of international operations at Malabar Gold during the launch of a new store.
Malabar Gold, a gold and jewellery business in India with showrooms in the UAE as well, opened its eighth showroom in the UAE Monday.
Located at the Gold Centre of the Deira Gold Souq, the new retail store has Dh20 million worth of gold and Dh5 million worth of diamonds.
"We get more than 120 nationalities to this building [Gold Souq] so those who want to buy gold come directly to the Gold Souq because of the promotions going on," he said.
Ahmad said that many people from India and the sub-continent tend to buy gold as an investment rather than as jewellery. "It's a purely cultural thing," he said. "Other tourists buy it as jewellery."
Sunny Gabria, area sales manager of Pure Gold in Deira, echoes. "It was down six months ago, but it's now picking up," he says. "In fact we can say that there is growth in terms of diamond sales."
Gabria said that although buying gold is an investment for some people, it's only true to a certain extent. "You cannot buy let's say 10 kilograms of gold and keep it with you. You can buy a certain amount," he said. He said the investment is really happening in diamonds now.
Ahmad said that it's a matter of time before the market fully revives again. "I don't think there are major issues in the [gold] market. We're still growing and still expanding. We didn't slow any of our projects," he said.
Malabar Gold has plans to expand its presence in the UAE by opening six new showrooms this year across the country. "We will be opening another showroom in Al Nahda, Sharjah, next week," Ahmad said.
