Experts advise tourists and NRIs to buy gold jewelry instead of coins when traveling from the UAE to India

According to leading jewelers in Dubai, Non-Resident Indians (NRIs) and tourists in the United Arab Emirates (UAE) should prefer purchasing gold jewelry over gold coins when buying gold in the UAE.

Economic advantage of buying in the UAE

This is due to conversion costs and restrictions that may arise when transporting gold coins. Buyers can potentially save between 12 and 15 percent compared to gold prices in India.

Anil Dhanak, Managing Director of Kanz Jewels, noted that it is more advantageous for buyers to purchase jewelry directly rather than coins. He explained that tourists may face difficulties or restrictions when transporting gold coins, and NRIs who wish to exchange coins for jewelry later incur additional manufacturing costs.

Price comparison and tax benefits

Dhanak emphasized that depending on current exchange rates, taxes, and prices, buyers can achieve savings of about 12–15 percent by purchasing gold jewelry in Dubai compared to many markets in India. Shamlal Ahmed, Managing Director of International Operations at Malabar Gold and Diamonds, agreed with this view, pointing to India's increasing import duties on gold as the main reason for the price difference.

He stated that gold prices in the UAE can often be approximately 15 percent lower than in India. For investors, the difference can be even more noticeable because the UAE does not levy Value Added Tax (VAT) on investment gold, such as certain 24K bars and bar products. Tourists purchasing gold in the country are also eligible for VAT refunds, which further increases their savings.

Popularity of jewelry among NRIs

In Dubai, prices for 24K, 22K, 21K, and 18K gold were traded at rates of Dh496.5, Dh459.75, Dh440.75, and Dh377.75 per gram, respectively. Both jewelers noted that the vast majority of NRI buyers in Dubai choose jewelry over coins, driven by personal use and family events.

Dhanak reported that purchases related to weddings constitute a significant portion of demand, alongside daily personal use. Ahmed added that purchases are usually tied to 'personal use, gifts, family celebrations, festive occasions, and, most importantly, children's and close relatives' weddings,' noting the cultural significance of gold in Indian families, which makes jewelry the preferred choice. Coins and bars, conversely, are more often acquired by those seeking an investment asset or a means of capital preservation.

Regulations and customs rules

Ahmed also mentioned that consumer trust is one of the main reasons for the attractiveness of the UAE for gold buyers, as purity and quality are strictly controlled and regulated by UAE authorities, ensuring transparency that reassures buyers. The jewelers cautioned buyers to familiarize themselves with India's customs limits before traveling. According to provisions of the Indian Budget effective from February 2026, female travelers can carry up to 40 grams of gold jewelry duty-free, and men up to 20 grams, subject to applicable conditions and customs regulations. Dhanak urged buyers to check the latest duty-free import norms and documentation requirements before traveling to ensure full compliance with customs rules.

www.khaleejtimes.comJuly 12, 07:05

Central Bank of Pakistan Scraps Bank Incentives Schemes, But No Rise in Money Transfer Fees from UAE Expected

The State Bank of Pakistan's (SBP) decision to cancel two incentive schemes for banks should not disrupt money transfer flows or increase transaction costs for Pakistanis living abroad who send funds from the UAE and other countries.

Change in Incentive System

Effective July 1, the central bank of Pakistan discontinued the Telegraphic Transfer Incentive Scheme (TTCIS) and the Sohni Dharti Remittance Program (SDRP). These programs previously reimbursed banks for processing costs of relevant domestic remittances free of charge. Under TTCIS, SBP compensated banks for telegraphic charges on eligible transfers, ensuring operations were free for both senders and recipients.

Regarding SDRP, it rewarded Pakistanis abroad with points for using official banking channels. Points accumulated before June 30 can be used until June 30, 2027, after which SDRP will be completely closed.

New Conditions for Banks

SBP has instructed banks and exchange companies to continue providing remittance services that meet the criteria free of charge to customers, despite the cessation of government subsidies. This means the cost burden effectively shifts to the financial institutions themselves. Meanwhile, the Pakistan Remittance Initiative program, which is separate and larger, where banks receive a percentage reward from remittance volumes, remains unchanged.

Remittance Volume

According to Khaleej Times on Thursday, remittances from Pakistanis abroad increased by 8.6 percent, reaching a record $41.6 billion during the 2025–26 fiscal year. Saudi Arabia and the UAE led this growth. Pakistani Prime Minister Shehbaz Sharif expressed gratitude to Pakistanis abroad on Thursday for increasing the volume of funds sent.

SBP data showed that Pakistanis in Saudi Arabia transferred over $9.78 billion, followed by the UAE ($8.80 billion), the UK ($6.32 billion), the USA ($3.62 billion), and Italy ($1.54 billion). More than 15 million Pakistanis live abroad and send money home monthly to support their families. A significant number of these people work and reside in six Gulf countries: Saudi Arabia, UAE, Qatar, Oman, Bahrain, and Kuwait.

Expert Opinion on Impact

Ali Al Najjar, CEO of Al Ansari Exchange, when asked whether the SBP's decision would affect exchange bureaus and transfers from the UAE, stated that at this stage, he does not expect a significant impact from the SBP's decision on the operations of Al Ansari Exchange or the broader money transfer market in the UAE. He noted that Pakistan remains one of the largest corridors for remittances for the company, and this policy apparently concerns systemic incentives within the Pakistani banking system, rather than fundamental aspects of cross-border demand or infrastructure.

Al Najjar also suggested that Pakistanis abroad are likely to continue using existing channels to send money. He added that there is currently no expectation that this decision will affect remittance flows into Pakistan, as Pakistanis will continue to send money home to support families and fulfill regular financial obligations, while established channels, including digital platforms, will remain accessible.

Question of Cost Increase

Responding to the key question of whether the cancellation of incentives will lead to higher transfer costs for Pakistanis from the UAE, Al Najjar reported that customers are unlikely to feel any changes. He emphasized that reports indicate that expected remittances to Pakistan are anticipated to remain free for both senders and recipients. He clarified that the responsibility for this arrangement now lies with the receiving institutions in Pakistan, and customers can continue to send money as usual. He concluded that any changes affecting customers will be communicated through appropriate channels.

www.aajtak.inJune 29, 16:15

Indian Households Sell Old Gold Due to Fears of Further Price Decline

Despite the decline in global gold prices over the past five months, Indian families have begun selling their old jewelry in large numbers. The main reason for this trend is the fear that gold prices may fall even further in the near future. According to data from the Indian Bullion and Jewellers Association (IBJA), during the quarter from April to June, Indian households sold about 50 tons (50 thousand kilograms) of old gold, which is 43% more than in the same period last year. Instead of the traditional exchange of old ornaments for new ones, people now prefer to receive cash. This increase in sales contributes to the development of the organized gold recycling industry in the country, as accumulated gold returns to the mainstream economy. Globally, factors such as growing uncertainty between the US and Iran, as well as concerns about further interest rate hikes by the US Federal Reserve, are putting pressure on prices.