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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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