Gold promotions will make a return to DSF this year

Dubai: The Dubai Shopping Festival (DSF) gold promotions will make a cautious return on January 20 after a two-year absence with organisers hoping to attract customers from new and growing markets like China and Egypt.

The promotions are expected to boost gold sales by 50 per cent, compared to the rest of the year, according to the organisers.

The promotions were discontinued in 2009, and were also absent in 2010. They are back this year, though, with Dh6.5 million in gold and cash prizes during a campaign titled "Bag of Fortune", which will last 32 days.

However, with gold prices currently near record highs, the yellow metal may be out of reach for many shoppers in this edition of the DSF.

"We may lose some segments that cannot afford it, but we still have prime customers from the GCC, Egypt, India and Pakistan," Anan Fakhr Al Deen, Chairman of the Dubai Gold and Jewellery Group (DGJG), told Gulf News on the sidelines of a press conference held to announce the DSF gold promotions.

Organisers are pumping in Dh2 million to Dh2.5 million in advertising for the gold sector, he said. About Dh50 million in mega raffles and prizes will be given away this year, said Ebrahim Saleh, Festival Co-ordinator General and Deputy CEO of Dubai Events and Promotions Establishment. This is a 20 per cent increase over last year, he added.

Shoppers have the chance to win half a kilo of gold every day in the DSF this year compared to one kilo daily in 2008 when the last gold promotions took place.

"This is not caution," said Fakhr Al Deen on the decreased gold offer. "The monetary value of gold has increased now, and it is more competitive."

The availability of marketing budgets, influx of GCC tourists, the marriage season and sales of 22 carat gold to South Asian customers are expected to drive demand for the yellow metal this DSF, he said.

"Even when prices increase, people invest in gold because it is the safest commodity…Women, especially, like buying gold because it maintains its value," Saleh told Gulf News.

The return of gold promotions this year is a "healthy" indicator of the industry's recovery since its "rough" times of 2009 and 2010, Fakhr Al Deen said.

"It's an indicator that traders have regained their trust in gold sales in Dubai. The crisis affected everyone the past two years and there was a noticeable decline in trade," he added.

There was a 26 per cent increase in visitors from Egypt to the DSF last year and an increase in retail purchases by Chinese visitors, making them target markets for the DSF this year, Saleh said.

About 200 jewellery retailers across Dubai out of 800 DGJG members will participate in the campaign.

Monitoring retailers

Jewellery retailers who violate the Dubai Shopping Festival discount and promotion prices may face fines of Dh5,000 to Dh100,000, or closure of their shops, Ibrahim Saleh, Festival Co-ordinator General, told Gulf News.

Retailers must register their discount rates with the Dubai Events and Promotions Establishment, he said, and added that the Control Department of the Department of Economic Development will conduct inspections to check on the retailers' pricing.

"Bag of Fortune" promotion to give out a total of Dh6.5m

Dubai Gold and Jewellery Group has announced the "Bag of Fortune" campaign during the Dubai Shopping Festival which will offer shoppers Dh6.5 million in gold and cash prizes.

The 32-day campaign will start on January 20 and offer a chance to win 21 kilos of gold worth Dh3.5 million through raffle draws.

Shoppers who spend Dh500 on gold jewellery purchases at the participating outlets can win half a kilo of gold daily and five kilos on the last day of the festival.

Those who spend Dh1,000 on diamond jewellery, pearls or watches have an opportunity to win Dh3 million in cash through a "Scratch and Win" promotion.

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