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Gold sales in Dubai plunge 80%
Gold sales in Dubai's traditional jewellery market have collapsed as much as 80 per cent in the last couple of weeks as the credit crunch hits the pockets of tourists, local jewellers said this week.
- Reuters
- Published: 23:45 December 18, 2008
Dubai: Gold sales in Dubai's traditional jewellery market have collapsed as much as 80 per cent in the last couple of weeks as the credit crunch hits the pockets of tourists, local jewellers said this week.
Gold sales in Dubai, the heart of gold trade in the Middle East, have become very much dependent on tourist interest as gold's nearly 20 per cent price rise in the last three weeks has slashed domestic demand.
"Sales have fallen by 60 per cent in the past two weeks and it is getting worse and worse," said Oday Alfuhaid, 23, who works at Al Bahar Jewellers in Bur Dubai.
"The Dubai market is 80 per cent dependent on tourists - if there is no tourist, there is no business. And the tourists that do come are just window shoppers, not potential buyers," he said. Gold's rise over the past three years has changed trends in Dubai's local market, making it more dependant on foreign sales as domestic consumers are not able to afford big chunks of jewellery any more.
Gold jewellery is a traditional gift in Arab weddings.
"Take this necklace," said Alfuhaid, holding a shiny, ornate piece of gold jewellery. "It has been hanging in the vitrine for the past three years and I can't sell it." Even the Eid celebrations have not managed to raise sales.
"[We have seen] 80 per cent collapse in gold jewellery sales during the Eid holiday," said Haji Hasam Hingora, manager of Kanz Jewels. "I haven't seen a situation like this for five years."
"The tourists are just looking, not buying. They say these prices are very high and they don't have enough money," he said.
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