A gold jewellery price in Dubai has three parts: the value of the gold, the making charge and VAT. Once you can read the three parts, you can compare any two shops fairly. This guide explains each part and shows a worked example.
Part 1: the gold value
The gold value is the weight of the piece in grams multiplied by the day's rate per gram for its karat. The rate follows the international gold price, so it changes daily.
Each karat has its own rate, because each contains a different share of pure gold:
| Karat | Pure gold | Stamp | Rate per gram compared with 24K |
|---|---|---|---|
| 24K | 99.9% | 999 | The full rate |
| 22K | 91.6% | 916 | About 92% of the 24K rate |
| 21K | 87.5% | 875 | About 88% of the 24K rate |
| 18K | 75.0% | 750 | About 75% of the 24K rate |
On the same day, the rate for a karat is close to the same in every shop. If two quotes differ, the difference is almost always in the next part.
Part 2: the making charge
The making charge pays for the design and the workmanship. It depends on the piece:
- A plain machine-made chain or bangle has a low making charge.
- A detailed, handmade or custom piece has a higher one, because it takes more work.
Shops quote it either per gram or as one amount for the piece. Ask which, and ask for it as a separate figure. This is the part of the price you can compare between shops.
Part 3: VAT
Gold jewellery in the UAE carries 5% VAT. It should be shown as its own line on the invoice.
Tourist VAT refund (tax-free)
7 Rain Jewellery is registered with Planet, the operator of the UAE's Tax Refund for Tourists scheme. If you are a visitor to the UAE, ask for a tax-free tag when you buy and show your passport. The scheme applies to purchases of AED 250 or more. Validate the tag at the airport, port or border when you leave, within 90 days of the purchase, and Planet refunds the VAT less its fee.
A worked example
The numbers below are round figures chosen to show the arithmetic. They are not today's rate or our making charge.
| Line | Calculation | Amount |
|---|---|---|
| Gold value | 20 g of 21K × AED 400 per gram | AED 8,000 |
| Making charge | 20 g × AED 30 per gram | AED 600 |
| Subtotal | AED 8,600 | |
| VAT | 5% of AED 8,600 | AED 430 |
| Total | AED 9,030 |
Four questions to ask any shop
- What is the exact weight in grams? Watch it on the scale.
- Which rate per gram are you using today for this karat?
- What is the making charge, as a separate figure?
- Will the invoice show the karat, the weight, the making charge and the VAT?
How 7 Rain Jewellery quotes
At our four Gold Souk showrooms, every piece is weighed in front of you, and the weight, the day's rate for its karat, the making charge and VAT are written out separately. Customers abroad get the same breakdown on WhatsApp, with photos, before they order. See our guides to 21K gold, 18K gold and buying in the Gold Souk.