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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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