These new UPI-based payment options and attractive retail incentives have created a unique opportunity for Indian tourists visiting Dubai this Diwali, making it simpler and more beneficial to invest in gold abroad
As Diwali approaches, Indian visitors in Dubai are seizing the opportunity to buy gold using their rupee-based Unified Payments Interface (UPI), a recent addition that enhances their purchasing power abroad, reports Gulf News.
This option, launched earlier this year in the UAE, allows Indian travelers to directly use their domestic bank accounts through platforms like RuPay and PhonePe, simplifying their shopping experience for one of the season’s most sought-after assets: gold.
The introduction of UPI-linked services has seen retailers across the UAE swiftly adopt these payment options, just in time for the festive gold-buying season. Traditionally, Diwali, particularly on ‘Dhanteras,’ spurs a surge in gold and diamond jewelry sales, with 2024 marking a notable increase due to the ease of payments for Indian tourists.
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The popularity of buyback schemes is growing, according to Joy Alukkas, Chairman and Managing Director of Joyalukkas Jewellery
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He notes that “guaranteed buybacks” provide shoppers the security of trading their old jewelry for cash or new pieces while minimizing losses on making charges, an essential offer in times of high gold price volatility
A key advantage lies in the approximate 6% price difference favoring UAE gold prices over those in India. Abdul Salam K. P., Vice-Chairman of Malabar Gold & Diamonds, points out, “Indian visitors no longer have to navigate complex INR-AED exchange rates. They can simply spend in rupees, making it easier to manage their planned budgets, whether for a few thousand or several lakhs.” He also highlights an added benefit: a VAT refund credited directly to the buyer’s Indian bank account.
This year, gold prices have edged close to all-time highs, reaching $2,750 an ounce and the UAE gold rate standing at Dh307.25 per gram for 22K gold. Despite these elevated prices, UAE jewelers are drawing crowds through subsidized making charges, promotional offers with free gold coins, and buyback guarantees.
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