September 15, 2025 | Dubai, UAE: Free gold coins are being offered by gold jewellers in Dubai and UAE are implementing measures to reduce profit margins and are introducing customer incentives, including complimentary gold coins and vouchers, in response to the unprecedented rise in gold prices. According to retailers, this approach by gold jewellers in Dubai and UAE aims to preserve customer trust and ensure that jewelry remains affordable in one of the largest gold markets globally, with free gold coins acting as a key attraction for buyers.
Record Prices Force Gold Jewellers in Dubai and UAE to Act
Gold prices remain at historic levels. On Monday, 24-carat gold was priced at AED 440.50 per gram, while 22-carat stood at AED 408 per gram. These rates are among the highest ever seen in the UAE.
The surge has discouraged many buyers, especially middle-income shoppers who are now delaying purchases or opting for lighter designs. Retailers acknowledge that walk-ins have dropped and average transaction sizes have shrunk. To retain customers, UAE jewellers are voluntarily reducing margins and absorbing part of the cost.
Key initiatives now common across the market include:
- Free gold coins and vouchers for customers spending above AED 3,000–7,500.
- Reduced or waived making charges, with discounts of 25 percent or more in some cases.
- Price-lock guarantees that secure the gold rate for customers at the time of booking.
- Zero-deduction gold exchange, allowing buyers to swap old jewellery without financial loss.
Retailers argue that these steps are essential to keep jewellery purchases attractive despite global volatility. Free gold coins, waived making charges and vouchers are now central incentives that UAE jewellers are using to encourage demand.
Jewellers Emphasize Fair Pricing
Industry leaders emphasize that the focus of this strategy is not primarily on immediate profit generation, but rather on safeguarding customer relationships.
Shamlal Ahamed, Managing Director of International Operations at Malabar Gold & Diamonds, expressed that the company is dedicated to maintaining fair pricing, ensuring that customers receive value irrespective of market variations.
Anuraag Sinha, Managing Director of Liali Jewellery, articulated that retailers are intentionally reducing profit margins to maintain affordability for consumers. He pointed out that marketing initiatives, such as the elimination of making charges on older collections and promotional giveaways like free gold coins, have garnered positive responses from customers.
Aditya Singh, Head of the International Jewellery Division at Titan, remarked that fostering customer trust supersedes the pursuit of short-term profits. He further noted that Titan has optimized its operations to support competitive offers that align with consumer expectations, even amidst fluctuating market conditions.
Looking Ahead
Analysts predict that the fluctuations in gold prices will continue due to factors such as global inflation, currency volatility, and economic uncertainty. Larger gold jewellers in Dubai and UAE possess a greater ability to endure lower profit margins; conversely, smaller independent retailers may find it challenging to sustain these pricing strategies should prices increase further.
Currently, consumers are benefiting from the heightened competition in Dubai and throughout the United Arab Emirates. The combination of reduced charges, promotional incentives like free gold coins, and clear pricing has fostered a more advantageous environment for customers, despite gold trading at unprecedented levels.
The overarching message from the industry is explicit: UAE jewellers are prepared to absorb some of the costs at present to ensure sustained demand and loyalty from customers in the future. For consumers, this presents an opportunity to conduct careful comparisons of offerings, inquire about terms, and make well-informed purchases in a market that is striving to remain accessible.
