UAE Gold Jewelry Demand Falls 15% in 2025

Gold Jewelry Market in UAE: Why Demand Fell 15% in 2025?

In the United Arab Emirates, the demand for gold jewelry showed a significant decline of 15% in 2025 compared to the previous year, according to the latest statistics from the World Gold Council. The underlying cause of this is not a demand crisis but rather the opposite: a rising gold price and its impact. The global market price of gold reached several historic highs during 2025, which did not decrease interest in gold but significantly changed buying habits in the Emirates.

The demand decreased in quantity but increased in value

In 2024, 34.7 tons of gold jewelry were sold in the UAE, while this number fell to 29.4 tons in 2025. The fourth quarter was particularly weak, with exactly a 15% decline, and sales slipped back to 7.5 tons. The decrease in quantity was not due to a lack of interest but to rising prices. Buyers increasingly turned towards lighter jewelry or alternative gold investments like bullion and coins.

Conversely, in terms of value, the picture is quite different. The price of gold rose so much that despite fewer jewelry purchases, the total sales value still showed an increase. This clearly demonstrates that consumers still cling to gold as a store of value, just in different forms.

Demand for coins and gold bars surged

While jewelry demand decreased, the segment for gold bars and coins moved in the opposite direction. Interest in these rose by 24% in the UAE in 2025, with a total of 14.8 tons sold. This suggests that many residents and investors believed the gold price would continue to rise, making it worthwhile to hold the precious metal in physical form. A significant portion of the buyers likely made this decision due to market volatility, inflation, or geopolitical risks.

Looking at the year as a whole, total demand—including jewelry, coins, and bars—was 44.2 tons, marking a 4% annual decrease. Interestingly, demand increased again in the fourth quarter, reaching 11.7 tons compared to 9.7 tons in the third quarter. This may indicate that despite high prices, buyers still believe in gold's long-term value as a stable asset.

Global records were also set

Global trends echo the experiences in the UAE: worldwide, gold demand exceeded 5,000 tons for the first time in 2025. This occurred despite rising gold prices and multiple record highs. The demand was primarily driven by investment considerations: uncertain economic and political environments and inflationary pressures led many investors to purchase gold as a safe haven asset.

Global investment capital flowing into gold reached 2,175 tons. Notably, purchases via ETFs were highlighted, with investors adding 801 tons to their holdings. Global demand for gold bars and coins reached 1,374 tons, valued at 154 billion dollars, also a record.

China and India stood out in the statistics: together, they accounted for more than 50% of the gold bar and coin category, with China increasing its demand by 28% and India by 17%. This clearly shows that eastern markets remain key players in the gold market.

The role of central banks remains significant

Central banks also participated in gold purchases: in 2025, official sector players accumulated 863 tons of gold. Although this falls short of the over 1,000-ton results of the previous three years, it is still remarkably high, reaffirming that gold continues to play an important role in diversifying national reserves.

What to expect in 2026?

According to the World Gold Council's forecasts, current trends may continue in 2026. Economic and geopolitical instability has not shown substantial easing, making it likely that investors will continue to seek gold as a safe haven. Thus, demand in terms of value is likely to remain but may still be limited by rising prices in terms of quantity.

Summary

The 15% decline observed in the UAE's gold jewelry market is not due to disappearing demand but market adaptation. Buyers responded to rising prices by choosing smaller-weight jewelry or purchasing investment-targeted bars and coins. This trend fits well into the global pattern, where confidence in gold remains unchanged, but the emphasis has shifted among asset forms. As such, gold continues to be a key player in the investment and jewelry markets in the United Arab Emirates and globally—the question remains how much further its price can rise.