Eid marks the start of the festival buying season

Gold and diamond jewellers in the UAE have geared up for the festival buying season brought on by the onset of Eid Al Fitr.

It will be followed by Diwali, Indian marriage season, Christmas and New Year demand.

Wholesale dealers expect considerable growth in demand from regional customers.

This is the peak season for gold and jewellery sales in the region. Many families buy jewellery as part of their tradition to give gifts.

With record gold price, retailers are also focusing on diamond jewellery where profit margins are higher than gold.

"Most of the Saudi jewellers have offices in Dubai and source their stock for the Eid and Ramadan sales from here,” says Pearl Chandrawansa, Director Aaron Shum Middle, a master jeweller from Hong Kong.

“Jewellers are stocking items for Eid Al Fitr, Ramadan, Eid Al Adha, Diwali and Christmas.

We are here to meet this requirement from regional jewellers. Other wholesalers are also busy with the anticipated demand, she added.

Dubai's fame as the City of Gold continues to attract business and Aaron Shum is one of the latest to arrive.

"We have chosen to open our headquarters here during this tough economic time to serve our existing customers better.

They are getting ready for the festival season and shopping for new designs,” Chandrawansa said.

The regional headquarters in Dubai Gold Land will serve retail customers from the UAE, Saudi Arabia, Oman and other GCC countries as well as retailers from Iran, Iraq, Egypt and other countries in the Men region.

Aaron Shum has a strong business imprint across the world with a presence in Hong Kong, Japan, Europe, USA, Australia and China.

Chandrawansa said the gold trade in the UAE is gaining from the surge in jewellery demand from other Arab countries, especially Saudi Arabia, Iran, Iraq and new emerging markets like Jordan.

“We have already got a good client base in the Mena region.

They used to purchase directly from Hong Kong. Instead of visiting three times a year, these retailers can now easily visit us in Dubai 365 days.”

She said jewellers are looking for value for money in designs and products to fit their fixed budgets.

 “Customers are not looking for ornaments with heavy gold content, but instead looking at diamonds jewellery."

She said the overall rental fall in Dubai has not affected the rent level in Gold Land or Gold Souq, the hub of regional gold trade.

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