The UAE gold sector has shown a positive growth at the start of the year with reports indicating a 25-30 per cent increase in gold sales within the Emirate, following an overwhelming response received by the shoppers this DSF.

The Dubai Gold and Jewellery Group (DGJG) saw a tremendous increase in footfall within all jewellery retail partners as shoppers participated in various promotions, winning daily and weekly raffle prizes.

“The price of gold is one of the most prominent factors that determine the movement of the industry along with the enormity of the prizes offered and its reach during any campaign among the residents and tourists. Moreover, the tourist flow also proved to be a success as the larger chunk of sales was by inbound tourists,” said Tawhid Abdullah Abdullah, chairman of DGJG.

Demand for gold jewellery in Dubai has been steadily increasing due to the comfortable pricing of gold in 2014. This year, the retail sector expects substantial growth as more and more household investors turn to gold, particularly jewellery as an investment. Additionally, the tax structure for gold in other parts of the world further encouraged consumers to travel and purchase gold jewellery in Dubai. Other aspects like, the purity and competitive pricing of gold in this region as compared to various other markets, is one of the key drivers of aggressive demand for gold jewellery, especially during the DSF.

Meanwhile, the diamond wholesaling and retailing also saw an exponential demand. And in order to further support this demand, DGJG had offered to double the chances of winning for those who bought diamond jewellery, pearls or watches, hoping to promote the sales for precious stones during DSF as well.

Commenting on the trends in the gold sector, Babu John, chairman and managing director, Sky Jewellery, said: “2014 has been a great year for jewellery retailers as the gold price declined by 12 per cent compared to 2013 and it definitely translated to higher sales volume. An extravagant marketing campaign and winning opportunities along with the Guinness World Record in hand, we expected a minimum of 50 per cent increase in sales volume as compared to the previous DSF. Unfortunately, sudden increase in price has affected the overall momentum. Volatility in the price is going to be the major factor that determines the growth this year.”

The DGJG promotion has been extended until February 5th, where the mega raffle draws for 40 kg gold and 8 carat diamonds will be hosted. – TradeArabia News Service