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Dubai has evolved as a significant
jewellery manufacturer as well as
wholesaling substantial quantities
of jewellery from Italy, Malaysia,
Indonesia and South Korea. Italy
alone exports around 25 tonnes (0.8
million oz) of gold as jewellery
to Dubai annually. Saudi Arabian
manufacturers have also established
outlets in Dubai. Factories in Dubai
and the neighbouring emirate of
Sharjah produce around 49 tonnes
(1.6 million oz) of gold jewellery
annually.
The
essence of jewellery marketing in
Dubai is high volume and low mark-up.
With no sales tax, it is one of
the cheapest places to buy jewellery.
Indeed, Dubai calls itself 'City
of Gold'. The 400 gold shops in
its souks and shopping malls have
9.3 tonnes (0.3 m oz) on display
in 18, 21, 22 and 24 carat gold,
often with jewellery, coins and
small bars.
The
amount of gold jewellery consumed
locally in the UAE stands at around
41 tonnes (1.3 m oz). Retail sales,
however, are far higher because
of the very large number of purchases
made by tourists. A major surge
in consumption occurs every March
with the Dubai Shopping Festival
which actively promotes gold. During
the March 2001 festival, it is estimated
that over 9 tonnes (0.3 m oz) of
gold jewellery was sold.
The
Dubai Gold & Silver Jewellery
Group, an association of local manufacturers,
wholesalers and retailers, is active
in promotion.
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