Arab shoppers buy into gold as asset theory
Dubai (Jan 12) Dubai’s jewellery trade is striking a rich vein of demand from a relatively new shopper demographic – the (non-GCC) Arab – during the ongoing Dubai Shopping Festival (DSF) sales cycle. The increased buying activity from this consumer base — both resident and visitors — is also translating into higher value purchases on their part, market sources say.
“There is a clear spike in gold and jewellery related purchases from non-GCC Arab shoppers — and particularly Syrians, Iranians or Egyptians — in recent weeks, a trend which first became evident in November but since January 2 is becoming quite significant,” said Shamlal Ahmad, director of international operations at Malabar Gold.
“The impression is that these shoppers are buying into gold as a sort of defensive asset against social or economic uncertainties in their home countries. In particular, they are going for 22-carat which was never their preference earlier.”
The Arab Spring and the events since had gone on to benefit Dubai’s economy across multiple layers, with its real estate being a prime beneficiary. Now, it seems, one of the key categories in Dubai’s retail sector — gold and jewellery — is on the cusp of a major gain from the Arab asset purchase flow
