Dubai Gold and Jewelery Group revealed a 10% increase in sales in Dubai markets during the first two weeks of the Dubai Shopping Festival.
She added, during a press conference held in Dubai yesterday, that the total value of the prizes offered by the group during the Dubai Shopping Festival over a period of 25 years amounted to 185 million dirhams, distributed over prizes that included a ton of gold.
Festival Awards
In detail, the Chairman of the Board of Directors of the Dubai Gold and Jewelery Group, Tawhid Abdullah, said that the total value of the prizes offered by the group to shoppers, during the 25 years of the Dubai Shopping Festival, reached 185 million dirhams, including a ton of gold from bullion and coins.
He revealed that the value of the group's prizes in the current session of the festival amounted to seven million dirhams, including five million dirhams spread over 24 kilograms of gold.
He added that the group distributed 1,395 gold coins to 99 shoppers as prizes during the first 18 days of the festival's activities, pointing out that these coins are a special edition bearing the slogan "Dubai, the city of gold".
Stores and sales
He added that the total stores participating in the festival from the group members reached 200 stores, at a time when sales of gold and jewelry increased by 10% during the first two weeks of the activities of «Dubai Shopping».
He pointed out that this rise exceeded expectations that were around 7%, but the tourist boom, the growth of demand from Gulf visitors, New Year's celebrations, and holiday seasons contributed to pushing sales to grow more.
Abdullah expected that sales of jewelry and goldsmiths would increase by more than 12% at the end of the festival's activities, due to the big discounts offered by the participating shops, and that the gold market in general would achieve better results, compared to previous years.
He pointed out that the gold and jewelry markets witnessed good momentum in the first few days of the Dubai Shopping Festival campaign, despite the high prices, pointing out that the recent rise in gold prices is temporary, as prices began to record gradual declines.
Abdullah indicated that he was interested in buying used gold artifacts, estimating that the percentage of their sales from stores is around 25% of the total sales throughout the festival period.
Sales 2019
Abdullah mentioned that gold and jewelry sales in Dubai during the year 2019 recorded a growth of 7%, while the sales of bullion increased by 8%, and the tourists accounted for between 40 and 60% of the sales movement in the emirate.
He explained that the Asian nationalities are the most buying gold in 2019, especially from India, Pakistan, Bangladesh and the Philippines, pointing out that the Dubai market is considered one of the best markets in terms of gold prices and the most reliable, given the great momentum in wholesale trade, the development of infrastructure, and the decline in the cost incurred. On security and transportation compared to other markets.
He believed that the decision to create a multi-entry tourist visa for a period of five years for all nationalities would support the increase in sales in large proportions in the gold and jewelry sector.
The investment value of gold
John Paul Alukkas, CEO of Joy Alukkas Jewelery Group, said that despite the changes in gold prices over the past year, shoppers have adapted to volatile prices and are confident in the investment value of gold.
He stressed that the markets are witnessing good demand from tourists, started in December 2019, and it is clear that it is continuing during the new year, expecting a total increase in the value of sales, in addition to the increase in demand by residents.