New Market Report: Jewellery in the United Arab Emirates

From: Fast Market Research, Inc.
Published: Fri Oct 30 2015

Sales of jewellery in the United Arab Emirates were impacted by a combination of factors in 2015, from events leading up from the last quarter of 2014. The local market saw sales impacted by the combination of a softening of prices, specifically in gold in the latter half of 2014, as well as the removal of the 80:20 import rule on jewellery in the Indian market. The rule, outlining that 20% of all gold that was imported be set aside for re-export, was enforced to reduce the current account deficit in the country, and was in place for most of 2014. Furthermore, non-resident Indians prefer to buy gold from the United Arab Emirates to mitigate the high import duties. However, in early 2014 new customs regulations outlined a maximum AED2,800 for male passengers bringing customs-free gold to India and double the amount for female passengers.

Competitive Landscape

Damas remained the leader in jewellery in 2014, accounting for a 20% value share, with its closest competitor, Joyalukkas Holdings, accounting for a 9% share. Damas benefits from a strong reputation for quality and from its Emirati heritage, with many tourists closely associating the brand with Emirati jewellery. Jewellers are now borrowing tactics which have proven useful to retailers operating in other markets, with loyalty schemes, extended payment options, free gold coins on larger purchases and buyback guarantees. Some retailers are dropping what is referred to as "making" charges in order to offer some savings, especially on 22 carat gold.

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Industry Prospects

During 2014 gold was in relatively high supply, due to the short supply of the metal during the previous year. However, prices are holding and are expected to rise slowly as demand steadily increases again. A myriad of factors will play a part in demand, including regional uncertainties, the strength of the middle-class in emerging Asian economies and the dollar movement. Jewellery, however, is expected to see a CAGR of 8% in value terms at constant 2015 prices in the forecast period. The preference for diamond jewellery is also growing against the backdrop of more focus being given to this growing the segment by retailers. The Indian government did not reduce import duties as expected in 2015 from 10%, which was put in place to counter the burgeoning current account deficit.

Report Overview

Discover the latest market trends and uncover sources of future market growth for the Jewellery industry in United Arab Emirates with research from Euromonitor's team of in-country analysts.

Find hidden opportunities in the most current research data available, understand competitive threats with our detailed market analysis, and plan your corporate strategy with our expert qualitative analysis and growth projections.

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You may also be interested in these related reports:

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