Bloomberg has reported that wealthy individuals from India are revitalizing the gold market in Dubai. The agency noted that Dubai has become a hub for new wealth creation, as significant investments and talent flow into the region. According to Bloomberg, a group of Indian entrepreneurs, leveraging the cultural and historical connections between the Indian subcontinent and the Gulf, has transformed the retail gold market in the UAE from a fragmented sector into sophisticated showrooms with vertically integrated supply chains.
Prominent names such as Malabar Gold & Diamonds, Joyalukkas India, and Kalyan Jewellers India, owned by affluent Indians, are taking center stage in the luxury jewelry market aimed at the middle class in the Emirates.
According to the Bloomberg Billionaires Index, this evolution has allowed the founders of these companies to amass fortunes totaling $9.5 billion, marking the first time they have been assessed in such a manner.
Ramesh Kalyanaramana, CEO of Kalyan Jewellers, which is family-owned, stated, “Most of our clients are Indian, followed by other South Asian nationals, and then some local Arabs.”
Many tourists and Indian expatriates view gold as a safe investment, while others use it for savings in the form of bars and coins. It is also a primary choice for jewelry in weddings and religious occasions. Kalyanaramana added that jewelry purchases have shifted from once a year to three or four times annually depending on occasions.
Malabar operates 67 stores in the UAE, 17 in Saudi Arabia, and 39 more across Oman, Qatar, Bahrain, and Kuwait. Founded by entrepreneur M.P. Ahmed, who started in the spice trade, the company opened its first jewelry stores in the Middle East in 2008.
A spokesperson for Malabar remarked, “Many Indians consider the UAE a reliable destination for purchasing guaranteed quality gold, unlike other locations.” Experts noted, according to Bloomberg, that there remains ample room for growth, as Malabar recently launched a new business concept called “My Jewelry,” specifically designed to cater to Arab customer preferences.
In this context, Andrew Naylor, Head of Middle East and Public Policy at the World Gold Council, emphasized, “Jewelry retailers must continue to innovate in design to attract a broader consumer base, given the significant diversity of nationalities living in or visiting the UAE and the region.”