How Gold Prices Are Set in the UAE
Gold is traded worldwide in US dollars per troy ounce. Because the dirham is pegged to the dollar, the UAE price follows the international spot price closely. In Dubai, the Dubai Gold & Jewellery Group (DGJG) publishes official retail rates per gram for each karat several times a day, and jewellers across the city use them.
Prices move with global factors — interest rates, the US dollar, inflation, central-bank buying and geopolitical events — so the same ring can cost noticeably more or less from one week to the next.
Karats & Purity Explained
| Karat | Purity | Typical use |
|---|---|---|
| 24K | 99.9% pure (999) | Bars, coins, investment gold — very soft |
| 22K | 91.6% (916) | Traditional jewellery, the most popular in the UAE |
| 21K | 87.5% (875) | Popular in Gulf-style jewellery |
| 18K | 75% (750) | Diamond and gem-set jewellery, everyday wear — more durable |
Making Charges
Jewellers add a making charge for the craftsmanship, either per gram or as a percentage of the gold value. Simple chains may carry a low charge; intricate or branded designs can cost much more. Making charges are usually negotiable — and they're not returned when you sell the piece back.
VAT on Gold in the UAE
Gold jewellery is subject to 5% VAT, charged on the total price including making charges. Visitors may be able to reclaim part of the VAT through the UAE's Tax Refund for Tourists scheme — ask the retailer.
Gold of 99% purity or higher in a tradable form — such as bars and some coins — is generally treated as investment gold and zero-rated for VAT.
Hallmarks & Quality
Look for the karat stamp (e.g. 22K or 916) and a hallmark from an approved assay office. Reputable shops provide an itemised invoice showing weight, karat, gold rate, making charge and VAT — keep it, as you'll need it to sell or exchange the piece later.
Where to Buy Gold in the UAE
Gold Souk, Deira
Hundreds of shops in one place — ideal for comparing designs and negotiating making charges.
Jewellery chains
Branches in malls across every emirate, with fixed prices and buyback policies.
Banks & bullion dealers
For bars and coins; some banks also offer gold savings accounts.
Digital gold
Apps that let you buy fractional gold backed by physical bullion — check the provider is licensed.
Selling or Exchanging Gold
When you sell, shops pay based on the day's rate for the gold's purity and weight, usually minus a small deduction — making charges and VAT aren't refunded. Exchanging old gold for new jewellery often gets a better deal than selling for cash. The calculator above estimates a typical resale value.
Gold Buying Tips
Check the live rate before you go. Then compare it with the rate on the shop's invoice.
Negotiate making charges, not the gold rate. The gold rate is fixed by the market; the making charge isn't.
Weigh it yourself. Ask to see the piece weighed and keep the itemised invoice.
For investing, buy bars or coins. Lower premiums and no making charges compared with jewellery.
Ways to Invest in Gold
| Option | Purity | Costs | Good for |
|---|---|---|---|
| Gold bars | 24K (999.9) | Small premium, no making charge | Long-term investors |
| Gold coins | 22K–24K | Slightly higher premium | Gifts and smaller amounts |
| Jewellery | 18K–22K | Making charges + 5% VAT | Wearing — less efficient as investment |
| Gold funds / ETFs | Tracks gold price | Annual fund fees | Easy buying and selling |
| Digital gold & bank gold accounts | Backed by bullion | Spread and storage fees | Saving small amounts regularly |
A 1 kg bar today ≈—Photo: UnsplashGold Souk guide
The Gold Souk in Deira is home to hundreds of jewellers under one roof. Prices for gold itself follow the official daily rate, so the real bargaining happens on making charges.
- Go in the eveningCooler, and most shops open late
- Ask for an itemised invoiceWeight, karat, rate, making, VAT
- Watch it weighedOn a calibrated digital scale
- Compare 3 shopsMaking charges vary a lot
Why Gold Prices Move
Because the dirham is pegged to the US dollar, the UAE price per gram moves almost one-for-one with the international price in dollars.
Spotting Real Gold
✓Look for
- Karat or purity stamp — 24K/999, 22K/916, 21K/875, 18K/750.
- Hallmark from an approved assay office.
- Itemised invoice from a registered shop.
- Consistent colour with no flaking at edges or clasps.
✕Be wary of
- Prices well below today's gold rate.
- Street sellers or social-media offers without a shop.
- Magnetic pieces — pure gold isn't magnetic.
- No invoice — you'll struggle to resell it later.
Caring for Gold Jewellery
01Store pieces separately
Soft gold scratches easily — keep each piece in its own pouch or lined box.
02Remove before swimming
Chlorine and harsh chemicals can damage gold and gemstones.
03Clean gently
Warm water, a drop of mild soap and a soft brush, then dry with a lint-free cloth.
04Check clasps yearly
A quick check by a jeweller prevents losing a chain or bracelet.
Gold Buying Checklist
Reading Gold Stamps
| Stamp | Karat | Gold content | Today per gram |
|---|
Units Used for Gold in the UAE
The TT bar (ten tola) is a traditional Gulf bar weighing about 116.64 grams. Kilo bars are popular with investors, while jewellery is always priced per gram.
Popular jewellery styles
The UAE's mix of cultures means you'll find every style of gold jewellery in one market.
- Arabic & Gulf designsBold 21K pieces, often with filigree
- Indian bridal setsIntricate 22K necklaces, bangles and earrings
- Italian chainsFine machine-made 18K chains
- Diamond jewelleryUsually set in 18K for strength
Exchanging Old Gold for New
01Bring the piece and invoice
The original invoice makes the process faster and builds trust.
02Weighing and testing
The jeweller weighs the gold and tests its purity in front of you.
03Valuation at today's rate
The old gold is valued at the day's rate for its karat, minus any deduction.
04Credit towards new jewellery
The value is deducted from your new purchase — you pay making charges and VAT on the new piece.
Buying Gold as a Tourist
Dubai is a favourite place to buy gold on holiday. Keep the itemised invoice, ask the retailer about the Tax Refund for Tourists scheme, and check your home country's customs allowance for gold before you fly. If you carry cash and valuables worth more than AED 60,000 when leaving the UAE, you must declare them.
Gold Savings Plans
Pay a fixed amount each month and redeem it for jewellery later, sometimes with a bonus or reduced making charges. Read the terms on redemption and early exit.
Buy small amounts of gold regularly through a licensed app or bank account, backed by physical bullion, with the option to sell or take delivery.
Gold Glossary
The current international price for immediate delivery, in USD per troy ounce.
The amount above spot charged for bars and coins.
The jeweller's fee for crafting a piece.
Measure of purity out of 24 parts.
Purity in parts per thousand, e.g. 916 for 22K.
31.1035 grams — the standard unit for gold prices.
11.664 grams — widely used in the UAE and South Asia.
Testing gold to confirm its purity.
Gold Rate FAQs
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