GCC jewellery market glitters

Dubai: As the global financial crisis continues to take its toll, jewellery traders around the world are increasingly looking to tap the GCC's market, where consumer purchasing power remains strong.

The upcoming Dubai International Jewellery Week 2008, the region's premiere watch and jewellery event, is a testament to that, as the number of participants has increased by 30 per cent.

So far, over 520 firms from 30 countries have enlisted for the event, which will run from November 11 to 15 at the Dubai International Convention and Exhibition Centre, organisers said.

About 85 per cent of the companies exhibiting at the event are international, reflecting the region's appeal to the global jewellery traders.

"Despite the global econ-omic challenges, the Middle East and particularly the GCC market, continues to hold itself up well. Companies are increasingly seeking out emerging markets with strong consumer purchasing power," said Hilal Saeed Al Merri, chief executive officer of the Dubai World Trade Centre, the show's organiser.

Economic climate

"The regional market presents great opportunities for jewellery traders as we emphasise the development of long term business relationships.

"I am confident the economic climate today will not curtail the long term development prospects of our high growth markets here," Al Merri added.

Industry experts said that while the financial crisis could affect consumer spending in general, the traditional appeal of jewellery, particularly gold, as a safe and trusted investment during dire times will keep people buying.

According to Rolf Schneebeli, economic adviser for ARY gold firm, the global financial turmoil will trigger a shift in consumer buying preferences, with many expected to turn to gold jewellery and investment products like small bars, coins and medallions.

"There will be some move back into the direction of gold and gold jewellery.

"For how long? As long as the crisis lasts, after the collective consumers' memory will soon be cleared and the trends to diamonds and stones will resume," Schneebeli told Gulf News.

Dubai's gold imports are expected to double in the coming years with retail trade reaching Dh11.01 billion ($3 billion).

The jewellery event will showcase watch and jewellery brands and feature international pavilions from 10 major markets.