Dubai Gold Souk
Encyclopedia
Souk
A souq is a commercial quarter in an Arab, Berber, and increasingly European city. The term is often used to designate the market in any Arabized or Muslim city, but in modern times it appears in Western cities too...
) in Dubai
Dubai
Dubai is a city and emirate in the United Arab Emirates . The emirate is located south of the Persian Gulf on the Arabian Peninsula and has the largest population with the second-largest land territory by area of all the emirates, after Abu Dhabi...
, United Arab Emirates
United Arab Emirates
The United Arab Emirates, abbreviated as the UAE, or shortened to "the Emirates", is a state situated in the southeast of the Arabian Peninsula in Western Asia on the Persian Gulf, bordering Oman, and Saudi Arabia, and sharing sea borders with Iraq, Kuwait, Bahrain, Qatar, and Iran.The UAE is a...
. The souk is located in the heart of Dubai's commercial business district in Deira
Deira, Dubai
Deira is an area in the city of Dubai, United Arab Emirates bordered by the Persian Gulf, Sharjah and Dubai Creek. Historically, it has been the center of Dubai, but has been losing its importance during the past few decades due to recent development along E 11 road and areas further down the...
, in the locality of Al Dhagaya
Al Dhagaya
Al Dhagaya is a locality in Dubai, United Arab Emirates . Located in eastern Dubai in Deira, Al Dhagaya forms part of Dubai's northeastern coast along the Persian Gulf...
. The souk consists of over 300 retailers that trade almost exclusively in jewellery
Jewellery
Jewellery or jewelry is a form of personal adornment, such as brooches, rings, necklaces, earrings, and bracelets.With some exceptions, such as medical alert bracelets or military dog tags, jewellery normally differs from other items of personal adornment in that it has no other purpose than to...
. Retailers in the souk include both well established stores like Damas, ARY Jewellery, Shyam Jewellery and Joy Alukkas as well as smaller stores that operate mainly in the gold souk. By some estimates, approximately 10 ton
Ton
The ton is a unit of measure. It has a long history and has acquired a number of meanings and uses over the years. It is used principally as a unit of weight, and as a unit of volume. It can also be used as a measure of energy, for truck classification, or as a colloquial term.It is derived from...
s of gold is present at any given time in the souk It is bordered to the north by the Dubai Fish and Vegetable Market and the Deira Corniche
Deira Corniche
The Deira Corniche is a waterfront promenade in Dubai, United Arab Emirates. The Deira Corniche, sometimes also referred to as the Dubai Corniche lies in northeastern Dubai, in Deira...
Near Baniyas Square at Sikkat al-Khali Street which is at walking distance of Deira Bus Stand, Dubai Gold Souk can be reached by going down to creek and pick UBRA a water boat from Bur Dubai which may not take more than 10 minutes to the Dubai Gold Souk .
Trade in the gold souk grew during the 1940s due to Dubai's free trade
Free trade
Under a free trade policy, prices emerge from supply and demand, and are the sole determinant of resource allocation. 'Free' trade differs from other forms of trade policy where the allocation of goods and services among trading countries are determined by price strategies that may differ from...
policies that encouraged entrepreneurs from India
India
India , officially the Republic of India , is a country in South Asia. It is the seventh-largest country by geographical area, the second-most populous country with over 1.2 billion people, and the most populous democracy in the world...
and Iran
Iran
Iran , officially the Islamic Republic of Iran , is a country in Southern and Western Asia. The name "Iran" has been in use natively since the Sassanian era and came into use internationally in 1935, before which the country was known to the Western world as Persia...
to set up stores in the souk. Despite a general slump in the global gold market, Dubai's share of value of trade in gold and diamonds to its total non-oil direct trade increased from 18% in 2003, to 24% in 2004. In 2003, the value of trade in gold in Dubai was approximately Dh.
Dirham
Dirham or dirhem is a unit of currency in several Arab or Berber nations, and formerly the related unit of mass in the Ottoman Empire and Persian states...
21 billion (US$
United States dollar
The United States dollar , also referred to as the American dollar, is the official currency of the United States of America. It is divided into 100 smaller units called cents or pennies....
5.8 billion), while trade in diamonds was approximately Dh.
Dirham
Dirham or dirhem is a unit of currency in several Arab or Berber nations, and formerly the related unit of mass in the Ottoman Empire and Persian states...
25 billion (US$
United States dollar
The United States dollar , also referred to as the American dollar, is the official currency of the United States of America. It is divided into 100 smaller units called cents or pennies....
7 billion) in 2005. India
India
India , officially the Republic of India , is a country in South Asia. It is the seventh-largest country by geographical area, the second-most populous country with over 1.2 billion people, and the most populous democracy in the world...
is Dubai's largest buyer of gold, accounting for approximately 23% of the emirate's total gold trade in 2005. Switzerland
Switzerland
Switzerland name of one of the Swiss cantons. ; ; ; or ), in its full name the Swiss Confederation , is a federal republic consisting of 26 cantons, with Bern as the seat of the federal authorities. The country is situated in Western Europe,Or Central Europe depending on the definition....
was Dubai's largest supplier of gold ingot
Ingot
An ingot is a material, usually metal, that is cast into a shape suitable for further processing. Non-metallic and semiconductor materials prepared in bulk form may also be referred to as ingots, particularly when cast by mold based methods.-Uses:...
s, wastes and scrap. Similarly, India accounted for approximately 68% of all diamond-related trade in Dubai; Belgium
Belgium
Belgium , officially the Kingdom of Belgium, is a federal state in Western Europe. It is a founding member of the European Union and hosts the EU's headquarters, and those of several other major international organisations such as NATO.Belgium is also a member of, or affiliated to, many...
's share in Dubai's diamond trade was about 13% (2005).