Dubai has evolved as a significant jewellery manufacturer
as well as wholesaling substantial quantities of jewellery
from Italy, Malaysia, Indonesia and South Korea. Italy
alone exports around 25 tonnes (0.8 million oz) of gold
as jewellery to Dubai annually. Saudi Arabian manufacturers
have also established outlets in Dubai. Factories in Dubai
and the neighbouring emirate of Sharjah produce around
49 tonnes (1.6 million oz) of gold jewellery annually.
essence of jewellery marketing in Dubai is high volume
and low mark-up. With no sales tax, it is one of the cheapest
places to buy jewellery. Indeed, Dubai calls itself 'City
of Gold'. The 400 gold shops in its souks and shopping
malls have 9.3 tonnes (0.3 m oz) on display in 18, 21,
22 and 24 carat gold, often with jewellery, coins and
amount of gold jewellery consumed locally in the UAE stands
at around 41 tonnes (1.3 m oz). Retail sales, however,
are far higher because of the very large number of purchases
made by tourists. A major surge in consumption occurs
every March with the Dubai Shopping Festival which actively
promotes gold. During the March 2001 festival, it is estimated
that over 9 tonnes (0.3 m oz) of gold jewellery was sold.
Dubai Gold & Silver Jewellery Group, an association
of local manufacturers, wholesalers and retailers, is
active in promotion.