Traders at Dubai’s historic gold souq are hoping for a busy Eid Al Fitr despite the precious metal surging to record levels.
Gold prices hit a fresh high on Monday, breaking above the $2,350 per ounce mark as banks and investors enter the market.
The historic souq in Deira is on the front lines of this trade and, while some say sales have slowed the overall picture is complex.
"The gold price is affecting sales a little bit but not to the extent that we will see a major decline in sales," said Arjun Dhanak, director, Kanz Jewels.
Even when gold goes high, it is good to buy
Prasad Waknis
Mr Dhanak said Ramadan tends to be quieter for jewellers so, when combined with the higher prices, a drop was to be expected. But he noted the "first two months of this year were better than last year" without revealing exact figures.
Mr Dhanak ascribed this to the fact people had become used to the price levels during those months and other factors including the influence of Indian weddings such as the Ambani marriage in early March.
Gold rush
"That has a very good, positive, knock-on effect for jewellers because people are going out and buying jewellery for weddings," he said, stating he sees an effect from these events on the shop floor.
Mr Dhanak said the fresh highs this week might make people think twice about buying with Indians coming on holiday to Dubai no longer purchasing gold. People were now also moving to items with less gold and other metals such as platinum, he said. But Eid could change things.
“In the week prior to Eid we see an uptick in sales, which is probably now," said Mr Dhanak, who added visitors from Saudi Arabia still had spending power. "Eid should be good."
Shamlal Ahamed, managing director of international operations at Malabar Gold and Diamonds said sales remained high at its shops in the souq.
"Even though gold prices have been on an upward slope for the past few weeks, the customer footfall and subsequent sales across our showrooms in the UAE have remained high," said Mr Ahamed, stating special offers on gold had also helped.
The historic souq was busy when The National visited on Thursday with a multi-faceted picture emerging of how much was being bought and why.
While other traders said sales were not as high as last year with buyers being more cautious, some said people were intent on purchasing as they could make a profit if prices rise further.
A trusted commodity
Satyen Choksi, director of Nimisha Jewellery in Dubai, said an increase in prices usually causes a short term decrease in sales but strengthens the attraction of gold in the long term.
“The rise [in gold prices] generally points to the strength in the market and how it is being used as a safe haven,” said Mr Choksi, whose wholesale business sells gold jewellery to shops in the souq and abroad.
Mr Choksi said he had noticed the value of sales was up but volumes were down.
“Some of my friends who never wanted to buy gold are now asking me about it,” he said. “We haven’t had a bad month since Covid-19.”
However, the impact of Eid cannot be assessed until after the holiday and the picture of who buys is scattered, ranging from tourists to those celebrating Eid.
“People are being more cautious and waiting for what will happen next,” said Sayimarif, a salesman at Oasis Jewellery and Watches, who stated sales were down when compared with 2023 but tourists are willing to buy. “But Eid will always be busy."
Prasad Waknis at Barakat Jewellery said people were still keen to buy despite the surge in cost.
“People are complaining that prices are high and they are spending more,” said Mr Waknis, outside a shop adorned with gold necklaces and diamonds.
“But in gold sales we are still doing good,” he said, also stating he was expecting a busy Eid.
The surge in global gold prices is being driven by several factors such as anticipated US interest rate cuts, speculation, market volatility, a safeguard against geopolitical uncertainty and major spending in China, particularly in the run up to Chinese New Year.
High investor demand
Andrew Naylor, head of Middle East and public policy at the World Gold Council, noted, however, that high global prices do have an effect on the UAE.
“The high international gold price does tend to impact jewellery buying more than other sectors of demand, which is why we saw a decrease in jewellery consumption in the UAE last year,” said Mr Naylor.
“What’s interesting at the moment is the growth of investment demand, which was up 34 per cent last year in the UAE.”
Mr Naylor said factors such as the UAE growing as a major wealth management centre and country of domicile for global high net worth individuals played a role.
“And new digital technologies being deployed in the gold market, attracting new investors to gold,” he said.
“For example digital gold accounts, or tokenised gold, where the underlying investment is physical gold but the channel of access is digital.”
According to the council, global demand for gold comes from four different sectors of the economy: jewellery at 35 per cent of annual demand; bar and coin investment demand accounts for 39 per cent; central banks at 19 per cent; and technology at 7 per cent.
Retail demand (jewellery, small bars, and coins) is mainly found in emerging markets - 71 per cent - with developed markets accounting for 29 per cent, it noted.
Experts also said there didn’t seem to be any end in sight to gold’s surge.
“At the World Gold Council we believe gold is a longterm, strategic asset,” said Mr Naylor.
Back at the souq, Mr Dhanak also said it was difficult to see a correction in the price soon.
“There is a lot favouring gold such as the Middle East conflict and interest rates. Nothing is going against gold at the moment.”
Mr Waknis, meanwhile, was anticipating a busy Eid Al Fitr.
“Even when gold goes high, it is good to buy.”
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Indoor cricket in a nutshell
Indoor Cricket World Cup – Sep 16-20, Insportz, Dubai
16 Indoor cricket matches are 16 overs per side
8 There are eight players per team
9 There have been nine Indoor Cricket World Cups for men. Australia have won every one.
5 Five runs are deducted from the score when a wickets falls
4 Batsmen bat in pairs, facing four overs per partnership
Scoring In indoor cricket, runs are scored by way of both physical and bonus runs. Physical runs are scored by both batsmen completing a run from one crease to the other. Bonus runs are scored when the ball hits a net in different zones, but only when at least one physical run is score.
Zones
A Front net, behind the striker and wicketkeeper: 0 runs
B Side nets, between the striker and halfway down the pitch: 1 run
C Side nets between halfway and the bowlers end: 2 runs
D Back net: 4 runs on the bounce, 6 runs on the full
UAE currency: the story behind the money in your pockets
Which honey takes your fancy?
Al Ghaf Honey
The Al Ghaf tree is a local desert tree which bears the harsh summers with drought and high temperatures. From the rich flowers, bees that pollinate this tree can produce delicious red colour honey in June and July each year
Sidr Honey
The Sidr tree is an evergreen tree with long and strong forked branches. The blossom from this tree is called Yabyab, which provides rich food for bees to produce honey in October and November. This honey is the most expensive, but tastiest
Samar Honey
The Samar tree trunk, leaves and blossom contains Barm which is the secret of healing. You can enjoy the best types of honey from this tree every year in May and June. It is an historical witness to the life of the Emirati nation which represents the harsh desert and mountain environments
It Was Just an Accident
Director: Jafar Panahi
Stars: Vahid Mobasseri, Mariam Afshari, Ebrahim Azizi, Hadis Pakbaten, Majid Panahi, Mohamad Ali Elyasmehr
Rating: 4/5
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- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
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UAE v Gibraltar
What: International friendly
When: 7pm kick off
Where: Rugby Park, Dubai Sports City
Admission: Free
Online: The match will be broadcast live on Dubai Exiles’ Facebook page
UAE squad: Lucas Waddington (Dubai Exiles), Gio Fourie (Exiles), Craig Nutt (Abu Dhabi Harlequins), Phil Brady (Harlequins), Daniel Perry (Dubai Hurricanes), Esekaia Dranibota (Harlequins), Matt Mills (Exiles), Jaen Botes (Exiles), Kristian Stinson (Exiles), Murray Reason (Abu Dhabi Saracens), Dave Knight (Hurricanes), Ross Samson (Jebel Ali Dragons), DuRandt Gerber (Exiles), Saki Naisau (Dragons), Andrew Powell (Hurricanes), Emosi Vacanau (Harlequins), Niko Volavola (Dragons), Matt Richards (Dragons), Luke Stevenson (Harlequins), Josh Ives (Dubai Sports City Eagles), Sean Stevens (Saracens), Thinus Steyn (Exiles)
UAE currency: the story behind the money in your pockets
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What the law says
Micro-retirement is not a recognised concept or employment status under Federal Decree Law No. 33 of 2021 on the Regulation of Labour Relations (as amended) (UAE Labour Law). As such, it reflects a voluntary work-life balance practice, rather than a recognised legal employment category, according to Dilini Loku, senior associate for law firm Gateley Middle East.
“Some companies may offer formal sabbatical policies or career break programmes; however, beyond such arrangements, there is no automatic right or statutory entitlement to extended breaks,” she explains.
“Any leave taken beyond statutory entitlements, such as annual leave, is typically regarded as unpaid leave in accordance with Article 33 of the UAE Labour Law. While employees may legally take unpaid leave, such requests are subject to the employer’s discretion and require approval.”
If an employee resigns to pursue micro-retirement, the employment contract is terminated, and the employer is under no legal obligation to rehire the employee in the future unless specific contractual agreements are in place (such as return-to-work arrangements), which are generally uncommon, Ms Loku adds.
COMPANY PROFILE
Founders: Alhaan Ahmed, Alyina Ahmed and Maximo Tettamanzi
Total funding: Self funded
MATCH INFO
Syria v Australia
2018 World Cup qualifying: Asia fourth round play-off first leg
Venue: Hang Jebat Stadium (Malacca, Malayisa)
Kick-off: Thursday, 4.30pm (UAE)
Watch: beIN Sports HD
* Second leg in Australia scheduled for October 10
Specs
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Power: 905hp
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The specs
AT4 Ultimate, as tested
Engine: 6.2-litre V8
Power: 420hp
Torque: 623Nm
Transmission: 10-speed automatic
Price: From Dh330,800 (Elevation: Dh236,400; AT4: Dh286,800; Denali: Dh345,800)
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UAE currency: the story behind the money in your pockets
Electoral College Victory
Trump has so far secured 295 Electoral College votes, according to the Associated Press, exceeding the 270 needed to win. Only Nevada and Arizona remain to be called, and both swing states are leaning Republican. Trump swept all five remaining swing states, North Carolina, Georgia, Pennsylvania, Michigan and Wisconsin, sealing his path to victory and giving him a strong mandate.
Popular Vote Tally
The count is ongoing, but Trump currently leads with nearly 51 per cent of the popular vote to Harris’s 47.6 per cent. Trump has over 72.2 million votes, while Harris trails with approximately 67.4 million.
