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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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