Gold Glimmer Fades: Indian Billionaire Jewelers in Dubai Face Slump

In recent times, the sparkle around Indian jewelry tycoons in Dubai has dimmed. Retail giants like Malabar Gold & Diamonds, Joyalukkas, and Kalyan Jewellers renowned for their glitzy showrooms spanning the UAE are seeing headwinds. According to industry insights, demand for jewelry across the UAE fell by 16% in Q2 compared to the same period last year, primarily due to regulatory changes in India.

These entrepreneurs earned their fortunes building luxurious retail empires, leveraging Dubai’s vibrant Gold Souk, strategic malls, and a large South Asian expatriate community. Their combined wealth is estimated at a staggering $9.5 billion, reflecting how deeply intertwined Indian culture is with Gulf jewelry markets.

But India’s recent decision to slash import duties on gold has reduced the price advantage of shopping in Dubai, especially for tourists and NRI buyers who were a major customer base. Coupled with high gold prices and a dip in tourist footfall post-pandemic, this has had a tangible impact on brick-and-mortar sales.

Industry insiders and analysts suggest that unless conditions improve whether it’s a rebound in tourism or renewed price competitiveness the slowdown may become more entrenched. Still, for investors, these retail brands remain strong assets with valuable regional footprints and long-term resilience.

In short, the lion’s share of recent success for Indian jewelers in Dubai is fading but the groundwork they’ve laid gives them a fighting chance to adapt and shine again.