Gold Purchases in UAE Become More Attractive for Indian Expats

May 14, 2026

84 min

May 14, 2026 00:30

Why buying gold in UAE will now be cheaper for Indian expats

## Impact of India's Import Duty Increase

India's recent decision to raise import duties on gold and silver from 6% to 15% is significantly affecting buying trends in the Gulf region. This change is expected to boost demand for gold in the UAE among Indian residents, tourists, and investors, as prices in the UAE become more competitive compared to India.

## Price Gap and Duty-Free Allowances

The increased duty has widened the price gap, making gold in the UAE about 12% cheaper than in India. This is particularly advantageous for Indian expats traveling home during the wedding season, as they can carry a certain amount of gold duty-free. Under the new rules, women can carry up to 40 grams and men up to 20 grams of gold jewelry without incurring duties.

## Additional Benefits in the UAE

Beyond pricing, the UAE offers other advantages such as VAT exemptions on investment-grade gold bars and VAT refunds for tourists on jewelry purchases. Additionally, the UAE has lower making charges and stricter purity standards, enhancing its appeal as a gold shopping destination.

## Economic Context

The policy shift in India is driven by broader economic concerns, including rising energy costs and a weakening rupee. Gold demand in India is increasingly seen as a financial safeguard against inflation and currency instability. This has led to a surge in gold imports, which is putting pressure on India's current account deficit.

## Implications for Indian Expats

For Indian expats in the UAE, the immediate benefit is the ability to purchase gold at more favorable prices. This is particularly relevant for those planning weddings or making investment purchases, as the summer travel season approaches.

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