The UAE’s gold market has reflected a strong momentum in a remarkable show of resilience in a world ridden with conflicts. The gold business has surged 15% in March-April as against the year-ago period, beating initial concerns over geopolitical uncertainty, with a boom in the demand for gold jewellery and bars.
The World Gold Council had pegged the gold demand in the UAE at 7.9 tons during March-April 2025. During the same period this year, the demand has gone up 15-20%, reports suggest, citing data from the Dubai Jewellery Group (DJG).
The increase in demand comes on top of higher purchases of jewellery and gold bars, boosted by the entry of young investors and lower prices encouraging buying.
Akshaya Tritiya and Eid were some of the seasonal demand drivers that kept the momentum up, helping the Dubai gold market sustain itself amid war pressures.
Experts suggest a change in spending patterns also helped gold businesses. While many tourists did not opt for buying gold, DJG chairman Tawhid Abdulla said that locals who cut their travel plans poured their savings into gold investments.
Dubai and the entire Middle East had been caught in a crossfire since the US and Israel started a war against Iran on February 28, with missiles flying overhead raising security concerns in the Gulf trade hub.
The gold business was hit briefly due to the war, said Abdulla, adding that occasions like Akshaya Tritiya generated the usual strong demand.
The markets rebounded quickly after the first two weeks of March, said Abdulla Salam of Malabar Group, describing the March-April period as one of the best in terms of sales for his company.
Demand from investors went up as gold prices came down, he said, adding that April delivered strong results.