Buying gold in UAE? Jewellery demand is down, but investors are still buying
The World Gold Council reports that while gold jewellery demand in the UAE and Middle East has declined due to high prices and geopolitical instability, investment demand for gold bars and coins remains resilient. Investors are increasingly turning to gold as a safe-haven asset amid inflation and regional conflicts.
Why it matters
Shifts in gold consumption patterns reflect broader economic anxieties and the impact of geopolitical tensions on consumer behavior in the Middle East.
Thu, Jul 30, 2026 | Safar 15, 1448 | Fajr 04:20
Gold jewellery demand will likely remain under pressure during the next half of the year, while geopolitical uncertainty, inflation concerns and limited alternative investment options will continue supporting demand in bars and coins, the World Gold Council said.
The Council, an international trade association for the gold industry with offices in the UAE, expects investments to be the primary source of demand growth for the remainder of the year.
In its Gold Demand Trends report for the second quarter of 2026, jewellery demand fell to its lowest quarterly volume since the pandemic (278t), as high gold prices and broader inflationary pressures continued to constrain affordability. In comparison, spending on gold jewellery was up 14 per cent year-on-year at $40 billion.
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