Thursday, Dec 20, 2007
Gulf News
Dubai: With Eid Al Adha, Christmas and New Year festivities fast approaching, jewellery traders in Dubai are enjoying a bumper retail season.
According to people in the gold industry, sales this month are likely to increase 10 to 15 per cent and will peak further during the weeks ahead with the start of the 13th edition of the Dubai Shopping Festival (DSF) on January 24.
Last year, the DSF drew in 3.5 million visitors over a 45-day period, with sales touching Dh10.2 billion, a sharp 53 per cent increase over the 2005 event.
The event is also a crucial period as it accounts for 30 per cent of the $1.7 billion annual retail sales in the jewellery sector.
"This is a tactical opportunity for the sector to take advantage of. With Eid, Christmas and New Year festivities, people are expected to spend. The shops are already crowded and they are experiencing an increase in footfall," KP Baiju, chief executive officer of Buz DMCC, a jewellery consulting firm, told Gulf News.
Although many expatriates leave the country on annual holidays, retailers continue to experience a windfall due to the massive influx of visitors from places like Europe, Pakistan, India and other GCC countries.
Sarwat Abdul Razzak, chief executive officer of ARY Academy of Gems and Jewellery, said 99 per cent of the tourists who come to Dubai during the holidays are likely to spend money on jewellery.
"This is the busiest time of the year. A lot of people come to Dubai for tourism during the holidays and almost all of them buy jewellery since we offer a variety of beautiful designs and Dubai is known as the City of Gold," she told Gulf News.
"Besides, a lot of expatriate who are going out of the country buy jewellery which they take home as gifts. And those who are staying here, including those celebrating Eid, are likely to buy. So we are looking at a mixed segment," Baiju added.
Gulf News 2007. All rights reserved.
