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Dubai gold jewellery sales slump despite Shopping Festival
Source: BI-ME , Author: BI-ME staff
Posted: Thu February 5, 2009 12:00 am
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UAE. Dubai gold jewellery sales have reportedly crashed in January as high bullion prices and the economic crisis hit tourism arrivals despite heavy promotional activities during the annual Dubai Shopping Festival (DSF) taking place from 15 January-15 February.

Tax-free jewellery in the UAE's gold souks and shopping malls in Dubai and Abu Dhabi draw Gulf Arab, Asian and Western tourists.

A senior Dubai Shopping Festival official said that gold sales have lost the luster in the festival season because of the global credit crunch that has affected Dubai. “Our reports say gold sales have crashed by over 60% in January,” he told India's Commodity Online.

He said that gold sales in Dubai's traditional jewellery market have collapsed mainly because of the decline in tourist arrivals. Local jewelers who have been waiting for a big chunk of tourists said that less and less tourists inflow to the city has badly affected the sale of gold.

Gold jewellers are offering discounts and a variety of promotional offers during DSF.  For instance, Damas stores, the leading international jewellery retailer in the Middle East, have offered free gold coins with every purchase of gold and jewellery worth AED500 (US$136).

In a recent interview with Bloomberg, Tawhid Abdullah, Chairman Damas Jewellers, said he expected the financial crisis to have an impact on 2009 gold jewellery sales in the UAE but that it will be limited to a 10-15% drop in sales.

Pure Gold Jewellers, another key jewellery retailer, is offering discounts of up to 55% on its diamond collection. Karim Merchant, CEO, Managing Director said, "Pure Gold Jewellers believes customers with discerning taste are entitled to Pure Diamonds collection at a discounted price. We wish to reward customers further by offering them another exclusive reward. In addition, on every purchase of Pure Diamond collection jewellery, customers receive a 20 point diamond solitaire ring".

Joy Alukkas Jewellery, is giving away 10 BMW cars as part of promotions organized during DSF 2009. The promotion is one among the biggest giveaways organized this year.

Atlas Jewellery has put up 101 sovereigns of gold as total winnings for DSF 2009. Customers have the chance to win through a minimum purchase of AED200. "The promotion is being held in all our showrooms in Dubai”, said M.M.Ramachandran, Chairman of Atlas Jewellery Group.

Gold rallied today, supported by interest in the metal as a haven from risk and a slightly weaker dollar. Spot gold was quoted at US$922 an ounce at 14.02 GMT, up from US$904.70 late in New York on Wednesday.

MIDDLE EAST BUSINESS COMMENT & ANALYSIS

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