Dubai: The daily gold rate set by the Dubai Gold & Jewellery Group — and followed by retailers in the other emirates as well — could soon be formally endorsed by a Dubai government agency, according to industry sources.
The Dubai Gold & Jewellery Group is the officially registered industry representative with the Dubai of Commerce and Industry.
“We wanted to create a streamlined process in the way the rates are set and announced,” said Babu John, chairman of Sky Jewellery and a senior member of the board of directors at the Dubai Gold & Jewellery Group. “This way everyone involved — shoppers and retailers alike — can be sure that full transparency is maintained throughout the process.”
“And with a Dubai Government agency putting its approval on the rate, it would convince all shoppers buying from any store associated the Dubai Gold & Jewellery Group that this is the ‘official’ rate. Consumers will be assured at all times this is the real deal,” he said.
“Our effort at all times has been to be completely transparent in the way Dubai’s retailers sell gold. Now, we are going the extra mile to do so.”
As of now, the Dubai Gold Rate is updated four times a day and is based on gold prices on the international commodities market, on a Monday-Friday basis.
The Dubai Gold Rate is applicable to 22k, the most popular form, 18k and 24k. It is set on a per-gram basis and also incorporates a set profit margin for the retailers.
Jewellery retailers in the other Gulf states also take their cue from this rate.
It is unclear if this rate will be mandatory for all jewellery operators in Dubai, but sources say those not in compliance could be excluded from industry-sponsonered promotions.
As important as the individual retailer promotions, what’s of even more significance are the annual campaigns run alongside the Dubai Shopping Festival and Summer Surprises. It is in this context that a Dubai Gold Rate with the endorsement of a government agency will be of such significance. The upcoming DSF2016 is to see the biggest ever campaign mounted by the jewellery trade.
“There are a lot of benefits that the Dubai Government offers to the gold and jewellery trade, such as preferential import duty rates, etc,” said an industry source. “These benefits are in turn passed on to the consumer, and these are the initiatives that have reinforced Dubai’s status as the ‘City of Gold’.”
