Gold has always been one of the most valuable and preferred investment options in India. Whether for weddings, festivals, or as a financial asset, Indians have a deep connection with gold. However, many people notice that gold prices in Dubai are lower than in India. This often raises the question – why is gold cheaper in Dubai? Let’s understand the key reasons behind this price difference and also check the current 24-carat gold price in Dubai.
1. Lower Import Duty on Gold in Dubai
One of the biggest reasons why gold is cheaper in Dubai is the lower import duty. In India, the government imposes a high import duty on gold to control imports and maintain economic balance. Currently, the import duty on gold in India is around 15%, including basic customs duty and additional charges. In contrast, Dubai has a much lower import duty, which significantly reduces the overall price of gold.
2. No GST on Gold in Dubai
India imposes a 3% Goods and Services Tax (GST) on gold purchases. This means that when you buy gold in India, you have to pay an extra tax amount. However, in Dubai, there is no such tax on gold purchases, which helps in keeping the prices lower compared to India.
3. Tax-Free Shopping in Dubai
Dubai is known for its tax-free shopping policies. Tourists can buy gold without worrying about extra taxes, and they can also claim Value Added Tax (VAT) refunds at the airport before leaving. This makes Dubai an attractive destination for gold buyers.
4. Competitive Gold Market in Dubai
Dubai is home to some of the largest gold markets, including the famous Dubai Gold Souk. Since gold is a major part of Dubai’s economy, the market is highly competitive. Jewellers and traders operate on small margins, making the gold price even more affordable.
5. Purity and Certification in Dubai Gold
Another reason why many prefer to buy gold from Dubai is its high purity standards. Dubai strictly follows international gold purity standards, and buyers can find 24-carat, 22-carat, and other gold varieties with proper certification. The Dubai Central Laboratory ensures that all gold sold in the market is of genuine quality.
6. Price Transparency in Dubai’s Gold Market
Dubai follows a transparent pricing system. The price of gold is directly linked to the international market rates. Buyers can check the latest gold prices online or at any jewellery store, ensuring there are no hidden charges. In India, jewellers often include making charges and other costs, making gold slightly more expensive.
7. Cheaper Making Charges in Dubai
The making charges on gold jewellery in Dubai are lower compared to India. In India, jewellers charge high making charges, which can range from 8% to 25% of the gold price. In Dubai, the making charges are minimal, making gold jewellery more affordable.
Current 24-Carat Gold Price in Dubai
The price of gold in Dubai keeps changing based on international market trends. As of today, the 24-carat gold price in Dubai is around AED 250 per gram (approx.). However, it is important to check the latest rates before making a purchase.
Can You Bring Gold from Dubai to India?
Yes, Indian travellers can bring gold from Dubai, but there are certain rules and limits set by Indian customs:
- Men can bring up to 20 grams of gold (worth ₹50,000) duty-free.
- Women can bring up to 40 grams of gold (worth ₹1,00,000) duty-free.
- If you bring more gold than the allowed limit, you will have to pay import duty.
Is It Worth Buying Gold from Dubai?
Buying gold from Dubai can be a good option because of the price benefits, high purity, and lower making charges. However, Indian travellers must check the latest customs regulations and ensure they carry proper invoices to avoid any issues at the airport.
