At first it sounds like a marketing ploy, but when you break down each element - from listed gold prices, manufacturing costs to the tax system - it becomes clear that the United Arab Emirates (UAE) is actually a rare "low point" in terms of price in a global market that is heating up every day.

Gold prices are on an unprecedented bull run. In just the past year, the price of an ounce of gold (about 31.1 grams) has skyrocketed.

Analysts once believed that the level of 2,300-2,400 USD/ounce was the psychological threshold, but the market quickly shattered those records, going straight to the 2,800 USD mark in February 2025, and even reaching the 3,300 USD mark in May.

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Low taxes, cheap processing costs and a streamlined supply chain make gold prices in the UAE more competitive than in other countries. Photo: Bloomberg.

In that context, most consumers in major markets such as India, the UK, Malaysia, or Qatar have become cautious. However, in the UAE, especially Dubai, the precious metal trading atmosphere is surprisingly bustling, according to Gulf News .

Shamlal Ahmed, International CEO of Malabar Gold & Diamonds, one of the region's largest jewelry brands, commented that the UAE is keeping gold prices extremely competitive compared to many other countries.

He cited that on January 29, the price of 22K gold in the UAE was only 309.25 AED/gram (equivalent to about 2.1 million VND).

Meanwhile, buyers in India pay up to AED 323 per gram for the same gold due to import duties and foreign exchange charges. In Malaysia, the price is AED 322, in the UK it is AED 326 and even neighbouring Qatar is higher at AED 315 per gram.

In other words, the UAE sells gold from 5 to nearly 20 AED cheaper per gram than many major markets, which means savings from a few dozen to more than 100,000 VND per gram.

This difference is not only due to the base gold price, but also the result of an overall strategy: the UAE applies low taxes, extremely competitive processing fees and maintains a lean supply chain, helping to optimize costs at every stage.

Thanks to that, while global gold prices are rising, the UAE still maintains a significant advantage, affirming its position as the world 's gold buying paradise.

Crafting fees - the secret weapon in the gold price race

As gold prices climb, consumers tend to pay more attention to “extra costs”, especially manufacturing costs. Grasping that trend, major jewelry brands in the UAE have quickly launched many unprecedented promotional programs.

Some chains are pledging to drastically reduce or even waive processing fees during specific hours, days or locations.

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Low tax rates and a booming tourism industry have turned gold in the UAE into a unique consumer "specialty", attracting international visitors. Photo: Francois Nel/Getty Images.

For example, Joyalukkas - a "big guy" in the industry, has launched a "100% free processing" program at a single store in Silicon Central Mall (Dubai), attracting an unexpectedly large number of customers to buy gold during the weekend.

“Even when gold prices hit AED 314 per gram, consumers still bought gold without hesitation. The savings on processing fees were too attractive to miss,” another retailer revealed.

In addition to the cost advantage, the UAE also benefits from a preferential tax system. While many countries apply VAT of 10% or more on jewelry products, the UAE only charges 5%. In particular, the country is entering the peak season for tourism and conferences. This is a factor that boosts the demand for gold consumption from international tourists.

“Tourists now not only buy gold as souvenirs but also see it as a safe investment channel during times of instability and they come to the UAE to optimize costs,” said an industry representative.

The UAE press believes that the gold market in 2024 has proven one thing: Gold prices are not easy to reverse. In that context, a new mentality is spreading among investors and consumers: "If you intend to buy, buy now. Hesitating is wasting more money."

With a smart pricing strategy, flexible tax policies and a constant flow of international tourists, the UAE is emerging as a "promised land" for those hunting for gold during the price storm.

Not only is it significantly cheaper, the experience of buying gold here also gives customers the feeling of making a wise investment decision when each gram of gold is not only an asset but also a testament to the buyer's acumen and sophistication.

(According to Gulf News)

Gold price today 5/25/2025 USD plummets, gold and Bitcoin reign . Gold price today 5/25/2025 ended the week with a strong increase in the context of USD and US Treasury bonds becoming less attractive to investors. SJC gold and plain rings increased by up to a million VND per tael.

Source: https://vietnamnet.vn/quoc-gia-vo-nguc-tu-hao-hay-den-day-neu-muon-mua-vang-re-nhat-the-gioi-2404536.html