The UAE is an important jewellery market in the Middle East: its ten-year average jewellery demand in 2018 at 54.7t, only was second to Saudi Arabia. However, conditions in the UAE have been tough for gold in recent years. Gold jewellery consumption slumped from 64t in 2013 to 45t in 2016. The main drivers of the decline in demand were the escalating political tensions and armed conflicts in the region, lower government revenues due to weak oil prices, rising living costs and, as a result, deteriorating consumer sentiment. What’s more, the government also introduced a 5% custom duty on 1 January 2017 and 5% VAT on 1 January 2018.
Gold’s rising status in the Persian Gulf