Buying Gold in Dubai: 22K vs 24K, Making Charges, VAT and Tourist Refunds
The gold price is fixed and VAT is fixed — the making charge is where you win or lose. What you're really paying for and which karat to choose.
By the Finance Arabia team4 min read
Dubai is called the City of Gold for a reason: from the Gold Souk in Deira to the jewellers in every mall, it's one of the most competitive places in the world to buy gold. But the price on the tag is made up of three parts — the gold itself, the making charge and VAT — and knowing how each works is the difference between a good deal and an expensive one. This guide explains what you're paying for, which karat to choose and how tourists and residents are treated differently. Check today's rates on our live gold price page.
What makes up the price
| Component | What it is | Negotiable? |
|---|---|---|
| Gold value | Weight × the day's rate for that karat | No — it follows the global market |
| Making charge | The jeweller's fee for design and craftsmanship, per gram or per piece | Yes, often |
| VAT | 5% on jewellery (gold value + making charge) | No |
Retail gold rates in Dubai are published daily by the Dubai Gold & Jewellery Group and track the international spot price closely, so the gold value itself is very similar from shop to shop. Where shops really compete is the making charge.
22K, 24K, 21K or 18K?
| Karat | Gold content | Best for |
|---|---|---|
| 24K | 99.9% | Bars and coins for investment — too soft for most jewellery |
| 22K | 91.7% | Traditional jewellery, very popular with Indian and Pakistani buyers |
| 21K | 87.5% | The classic Gulf choice for jewellery |
| 18K | 75% | Everyday and diamond-set pieces — harder-wearing, cheaper per gram |
A simple rule: if you're buying gold as an investment, buy 24K bars or coins with the lowest possible premium. If you're buying jewellery to wear, choose the karat you like — but remember that making charges are rarely recovered when you sell.
A worked example
Say 22K gold is trading at AED 450 per gram (an illustrative figure — check the live rate) and you buy a 20-gram necklace with a making charge of AED 30 per gram:
- Gold value: 20 × 450 = AED 9,000
- Making charge: 20 × 30 = AED 600
- VAT at 5%: 5% × 9,600 = AED 480
- Total: AED 10,080
If you sold it back the same day, you'd typically get close to the gold value only — the making charge and VAT are gone. That's the real cost of jewellery as an "investment".
VAT: residents vs tourists vs investors
- Jewellery: 5% VAT applies to the gold value and the making charge.
- Investment gold: bars and coins of at least 99% purity are zero-rated, so no VAT is charged.
- Tourists: visitors can claim back most of the VAT on jewellery through the Tax Refund for Tourists scheme. Ask the shop for a tax-free tag and validate your purchase at the airport before you fly; a small processing fee is deducted. UAE residents can't use the scheme.
How to negotiate the making charge
- Ask for the breakdown — weight, karat, rate per gram and making charge — before talking about the total.
- Compare two or three shops for similar pieces; machine-made chains usually carry much lower making charges than handcrafted designs.
- Watch for promotions such as reduced or zero making charges during festivals and Dubai Shopping Festival.
- Exchanging old gold? Ask how much the shop will pay per gram for your old piece and whether making charges apply to the new one.
Protect yourself
- Buy from established jewellers and keep the itemised invoice showing weight, karat and charges.
- Check for the hallmark showing purity.
- For bars and coins, buy recognised brands with an assay certificate.
- Be wary of "deals" far below the day's published rate — the gold is unlikely to be what it claims.
Gold and zakat
If your gold is above the nisab — the value of 85 grams of pure gold — and you've held it for a lunar year, zakat may be due. Our zakat calculator uses today's live gold price to work out the nisab for you.
FAQs
Is gold cheaper in Dubai than in India?
The gold itself follows the same global price, but competitive making charges and VAT refunds for tourists often make Dubai cheaper overall. If you carry gold into another country, check that country's customs allowance and duty first.
What's the best time of day to buy?
Rates move with the global market and are updated during the day. Check the live price before you go, but don't try to time small moves — the making charge matters more.
Can I negotiate the gold price?
Rarely. The per-gram rate is set by the market; the making charge is where there's room to negotiate.
The bottom line
When you buy gold in Dubai, the gold price is fixed, VAT is fixed — the making charge is your lever. Buy 24K bars or coins to invest, buy the jewellery you love to wear, and always ask for the breakdown. Start with today's numbers on our gold price page.
Information correct as of October 2026. VAT rules and refund procedures can change; confirm with the retailer or the Federal Tax Authority.
Prices, fees and features change often. We check our facts at the time of writing, but always confirm the latest details with the provider. This article is for information only and is not financial advice.
