Rising gold prices and aggravating regional war have been adversely affecting Dubai's jewelry trade.
The trade is looking forward to a new sheen as Dubai Summer Surprises (DSS) is entered its final stage. Last year 1.51 million guests arrived during Dubai Summer Surprises.
During the Dubai Shopping Festival, jewelry and diamond trade accounted for around $3 billion, of which 52 percent came through tourist shopping. But it was cancelled due to rising regional tensions.
Dh4.5 million promotional campaign had been launched to increase trade volume of jewelry but reverse result occurred; trade volumes dropped 10-12 percent and footsteps decreased 10-15 percent compared to first six months of the last year DSS, informed Tawhid Abdullah, Chairman of Dubai Gold and Jewellery Group.
During DSS 2005, 300 retailers participated and registered gold jewelry sales Dh380 million. But this year just four weeks are left for finale of DSS and only Dh175 million sales have been reported.
Abdullah explained that gold price crossed $600 per ounce level, this rising price has reduced gold jewelry sales to 30 percent since January 2006.
Though increase in gold price across world has worsened the situation, remaining period of 2006 will be positive for trade, Moaz Barakat, Managing Director of the World Gold Council in the Middle East, Turkey & Pakistan stated.
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