Gold: UAE's Investment Oasis in 2025

2025: The Year Gold Reclaimed Its Throne in the UAE

2025 will not only be remembered as a year of economic shifts and political tensions but also as the year of gold — particularly for the residents and investors of the United Arab Emirates. While the global economy grappled with strong inflationary waves, interest rate policy shifts, and geopolitical tensions, gold once again proved to provide safety in times of crisis. Dubai’s gold markets, where the yellow precious metal has long been a popular investment and gift, witnessed an unprecedented surge in gold prices.

A Record Year for Dubai’s Gold Market

On October 21st, the price of 24-karat gold reached 525.25 dirhams per gram, the highest ever recorded in the UAE. However, this price surge was not sustainable and was followed by a sharp correction, which experts called one of the greatest price fluctuations in the past decade. This dynamic movement alarmed short-term speculators but shifted the focus back to gold for long-term market attention. By the end of the year, investors, whether institutional players or regular buyers, turned back to gold for security.

Why Was 2025 So Special for Gold?

The answer is complex. Throughout the year, the global economy sent mixed signals: while some countries raised interest rates to curb inflation, others turned towards easing. Meanwhile, the geopolitical map was anything but calm: new conflicts, trade wars, and overall economic mistrust all contributed to market participants seeking a secure haven again. Gold offered exactly this.

In 2025, the global price of gold approached $4,380 per ounce — an unprecedented peak in modern times. Analysts estimate a 60–65% price increase over the year, primarily driven by physical demand, central bank purchases, and retail and ETF investments.

Dubai and the Gold Culture: More Than Just an Investment

Dubai has been known for its gold markets for decades, particularly the famous Gold Souk, where both tourists and locals are keen to purchase gold jewelry. The jewelry available here is not only eye-catching but also of high quality — often serving as an investment as well. In 2025, this role gained new meaning as many chose to hold a portion of their savings in gold.

According to sellers at Dubai’s gold shops, there was significant growth in demand for gold coins and bars, as many sought not just jewelry but a store of value. Besides tourists, the local population also rediscovered the potential in gold — especially when the cryptocurrency market became uncertain and real estate investments slowed down.

Gold and Bitcoin – Coexistence Instead of Competition

In 2025, the question resurfaced: do gold and cryptocurrencies — especially Bitcoin — compete, or do they complement each other? Experts believe the answer is the latter. While Bitcoin remains the playground for high-risk-loving investors, gold offers stability and reliability — particularly in times of crisis. Central banks still do not view Bitcoin as a reserve asset, unlike gold, which has long been a stable foundation.

While Bitcoin operates with much greater volatility, gold became a sort of "mature asset" in 2025. As stock markets and cryptos fluctuated, investors — especially institutional ones — increasingly returned to gold.

What to Expect in 2026? More Strengthening or Consolidation?

After 2025, it is understandable that investors hold high expectations for 2026 as well. Most analysts believe gold can remain strong, even if no spike similar to the previous year is expected. Rate cuts, growing national debts, and geopolitical tensions are all factors that can continue to favor gold prices.

There are forecasts predicting the price of gold to be between $4,500 and $5,000 per ounce by the end of 2026. Central banks are expected to increase their gold reserves further, and retail demand may also remain high — particularly in markets like the UAE, where gold's social and economic role is significant.

Summary: Gold Hasn't Lost Its Luster – In Fact

2025 undeniably showed that gold remains a relevant, even indispensable, asset in the global financial system. Dubai’s gold markets and the emirates' residents closely followed price developments and were active players in this exciting year. Once again, gold proved that even in turbulent economic environments, it is a stable anchor one can always return to. For those seeking a safe, value-stable investment, gold demonstrated once again in 2025: it still matters.

(The article is based on insights from gold market experts.) img_alt: Gold bar 999.9 investment gold.