Gold Prices & Buying Gold
Buying Gold in Dubai: How Prices Are Set, VAT and Making Charges
Dubai is one of the world's great gold markets, and prices there are famously transparent: every shop in the Gold Souk works from the same official rate per gram. What differs between shops is everything added on top, mainly the making charge and VAT.
This guide shows how the daily rate is calculated, what the final price on your invoice is made of, and the rules for tourists who want to reclaim VAT.
Key takeaways
- Dubai's gold rate follows the world price in US dollars, converted at the fixed rate of 3.6725 AED per dollar.
- The Dubai Jewellery Group publishes official per-gram rates for 24K, 22K, 21K, 18K and, since 2025, 14K.
- Jewellery carries 5% VAT on the full invoice, including making charges. Qualifying investment bars are zero-rated.
- Tourists can reclaim most of the VAT at the airport through the Planet tax-refund system.
How Dubai's daily gold rate is calculated
Gold is traded internationally in US dollars per troy ounce. Because the UAE dirham has been pegged to the dollar at 3.6725 AED since 1997, converting the world price into dirhams per gram is simple arithmetic:
The Dubai Jewellery Group publishes the official retail board rates several times a day. The board rate for 24K is normally a little above the pure calculation, because retail rates include a small dealer premium.
| Karat | Gold content | Example AED per gram (at $4,000 per ounce) |
|---|---|---|
| 24K | 99.9% | 472.29 |
| 22K | 91.7% | 432.94 |
| 21K | 87.5% | 413.26 |
| 18K | 75.0% | 354.22 |
| 14K | 58.3% | 275.51 |
Why is the dirham pegged? Read why the UAE dirham is pegged to the dollar. Check the live USD to AED rate at any time.
What your final price is made of
- Gold value: weight in grams × the karat rate at the time of sale.
- Making charge: the jeweller's fee for design and workmanship. It is often quoted per gram, ranges from modest on plain chains to much higher on intricate pieces, and is usually negotiable in the souk.
- VAT at 5%: charged on the gold value plus the making charge.
| Item | Example |
|---|---|
| Gold value: 10 g of 22K at AED 432.94 | AED 4,329.40 |
| Making charge (example) | AED 500.00 |
| Subtotal | AED 4,829.40 |
| VAT 5% | AED 241.47 |
| Total | AED 5,070.87 |
Ask for an itemised invoice
A proper invoice shows the weight, karat, gold rate used, making charge and VAT separately. You will need it to claim a tourist VAT refund, to resell, and for customs at home.
See the live gold price in Dubai per gram for 24K, 22K, 21K and 18K, in AED.
Today's gold price in DubaiVAT on gold in the UAE
- Jewellery: 5% VAT on the whole invoice, gold value and making charge alike.
- Investment gold: bars, ingots and coins of at least 99% purity, in a form tradable on global bullion markets, are zero-rated, so no VAT is charged.
- Business-to-business gold trading: special reverse-charge rules apply between VAT-registered dealers.
How tourists claim the VAT back
Visitors can reclaim VAT on jewellery bought from shops that participate in the UAE's tourist refund scheme, which is operated by Planet:
- Shop at a participating store and spend at least AED 250 on the invoice. Show your passport so the shop can issue a tax-free tag.
- Before you leave, validate the purchase at a Planet kiosk or counter at the airport, seaport or land border, within 90 days of buying.
- Receive 87% of the VAT you paid, minus a fee of AED 4.80 per tax-free tag, in cash or back to your card.
You must be 18 or over and not a UAE resident. Airline and ship crew on duty are not eligible.
Practical tips before you buy
- Check the live rate before you go, so you know the gold value of any piece and can focus negotiation on the making charge.
- Compare karats: 18K is the most popular choice among Dubai residents and is harder-wearing; 22K and 24K hold more gold value per gram.
- Look for the hallmark stamp showing the purity (for example 916 for 22K, 750 for 18K).
- Check your home country's customs allowance before flying home with gold. Rules in India and Pakistan, for example, limit duty-free amounts.
- When selling back, shops pay the gold value minus a deduction. Making charges are not recovered, so jewellery is a costly way to invest.
Comparing with Saudi Arabia? See buying gold in Saudi Arabia, where VAT is 15%.
Frequently asked questions
Why is gold cheaper in Dubai?
The gold rate itself follows the world price, as it does elsewhere. Dubai's advantages are low VAT (5%, mostly refundable for tourists), intense competition between hundreds of shops that keeps making charges low, and transparent official rates.
Is 22K or 24K better to buy in Dubai?
24K is purest and best for investment bars and coins, but it is soft for jewellery. 22K and 18K jewellery are more durable. For investment, bars carry far lower premiums than jewellery.
Do I pay VAT on gold bars in Dubai?
Investment gold of at least 99% purity that is tradable on global bullion markets is zero-rated, so no VAT is charged. Jewellery carries 5% VAT.
When is the Dubai gold rate updated?
The official retail rates are published several times a day and follow the international price, so they can move between morning and evening.
Sources
This guide is general educational information, not financial, tax or legal advice. Figures were checked on the date shown and can change. Read how we research and review content in our editorial standards. Source: https://www.floatforex.com/guides/buying-gold-in-dubai