How to Buy Gold in UAE: Dubai Gold Souq Guide & VAT

The UAE charges no import duty on gold, which is the main reason Dubai's rate tracks the international spot price so closely. Compare India, where 6% duty sits inside the rate, or Saudi Arabia, where 15% VAT applies — and Dubai's advantage is clear. The metal price in Dubai is the international price, converted to dirhams.

The daily rate is set by the Dubai Gold & Jewellery Group and displayed in every shop in the souq. Before you buy, check the day's rate — the live rate strip at the top of this page shows it — and use it as your baseline for every negotiation.

The UAE charges 5% VAT on gold jewellery, applied to the total including making charges. But investment-grade bullion (bars and coins of 99%+ purity) is zero-rated — no VAT at all. For an investment buyer, that makes Dubai one of the cheapest places in the world to buy gold bars and coins.

Tourists can reclaim VAT on jewellery purchases through the tax-free shopping scheme, subject to the scheme's rules and minimums. Keep your receipts and ask the shop for the tax-refund form at the time of purchase — it cannot be arranged afterwards.

The Gold Souq in Deira is the heart of Dubai's gold trade: hundreds of shops, every karat in depth, and the daily rate displayed everywhere. Bargaining is expected — the first quote is an opening position, not a price. The gold rate is fixed; what you negotiate is the making charge.

The technique is simple: know the day's rate, ask for the making charge separately, compare it in two or three shops, and ask the jeweller to match the best quote. Plain pieces should carry low making charges; ornate work costs more. Walk away once if you need to — the next shop is twenty steps away, and the jeweller knows it.

Dubai stocks every karat because it serves every nationality: 22K for the Indian and Pakistani market (the largest buyer groups), 21K for the Arab market, and 18K for the European and fashion market. 24K bars and coins are available for investment, and 24K jewellery is rare (too soft for everyday wear).

Check the karat stamp on every piece before you buy — 22K should be stamped 916, 21K stamped 875, 18K stamped 750. Dubai's gold is strictly regulated, and the Dubai Municipality assays shops regularly, but checking the stamp costs nothing and protects everything.

Beyond the Gold Souq, Dubai's mall jewellers (in the Dubai Mall, Mall of the Emirates and City Centre) offer branded jewellery and fixed prices — convenient, but usually with higher making charges than the souq. Abu Dhabi's souqs and Sharjah's Central Souq (Blue Souq) offer the same bargaining culture with less tourist traffic.

For investment gold, the souq's bullion dealers and the UAE's online bullion platforms offer bars and coins at low premiums over spot. Buy zero-rated bullion for investment, and jewellery for wearing — and do not confuse the two.