Dubai jewellers are exploring new strategies to win back South Asian gold buyers, from importing fresh designs from international markets to creating pieces locally.

Since India reduced import duty on gold from 15 per cent to 6 per cent last year — the lowest level in over a decade — jewellery has lost shine for Indian tourists in the UAE. South Asian tourists and residents account for a large chunk of gold and jewellery purchases in Dubai, especially during festivals like Akshaya Tritiya and Diwali.

Chirag Vora, managing director of Bafleh Jewellers, said India's policy has affected the UAE and other countries. "The business is affected, for sure. Earlier, people found a substantial gap in buying in Dubai as compared to India because the gold price was 15 per cent cheaper. Now that gap is only 6 per cent. So that has made it less attractive for the tourists to buy. Purity in India has come up far ahead. Hallmarking is a must in India," he told Khaleej Times in an interview during an event at the Dubai Gold Souk Extension.

But he stressed that in terms of variety, Dubai is better, but Indian factories are also coming up very nicely. His company is now sourcing jewellery from China as well.

Gold prices hit a record high in Dubai and globally last week, driven by the US tariff war, central bank buying and expectations of interest rate cuts.

Rohan Siroya, CEO of Siroya Jewellers Retail Division, said there were strong sales for many years because of a price differential.

"But India, which is a big tourist-driving nation, cut its duties. So that's had an impact on 24-karat sales across the board. We changed our gears and searched and offered retail designs that people would not find in India. Tourists used to see Dubai as a collective experience of stores where they would find things they would not find anywhere else. But now that's been turbocharged because we don't have the cushion of just the gold rate to rely on. So the tourist must love the piece," he added.

He said Turkish jewellery is coming into Dubai and UAE and there is a resurgence of Calcutta, Temple and enamel jewellery designs as well.

"Dealers are trying to introduce new models that are not in India and something unique for South Asians, such as fresh Italian, Singaporean, and local designs."

In addition to design and cost aspects, he pointed out that the level of finishing that has to be offered in the market, like Dubai, has to be the best because the emirate gets global customers.

"We have the ultra-high-end from Europe, and then we have the middle class. Turkish designs are lightweight, but look heavy," added Siroya.

"These are all trends that we're seeing. We have a Dubai Ring and it's been selling like crazy. It's a lab diamond ring, a one-carat ring at a price that people haven't heard of. This is the experience that tourists are coming to Dubai for. I think they're not disappointed anymore because people have changed gears, and now what you get here is much wider variety than almost any high street in India," said Siroya.

He noted that Dubai is attracting gold jewellery buyers from many other countries such as China, Singapore, the Far East, Africa and Europe.

Courtesy: Khaleej Times