How Much Can You Save by Buying 1 Kg of Gold in Dubai?
Dubai has long been recognised as one of the world’s most attractive destinations for buying gold, especially for large purchases such as 1 kilogram bars. Thanks to minimal taxes, competitive pricing, and its role as a global bullion trading hub, buying gold in Dubai can result in meaningful savings compared to many other countries.
As of late January 2026, the price of 1 kg of 24K gold in Dubai is approximately AED 629,750, closely aligned with international spot rates and often lower than retail prices in markets burdened by higher taxes and import duties.
Why Gold Is Cheaper in Dubai
Dubai’s pricing advantage is structural rather than promotional. The emirate has positioned itself as a global precious metals hub, supported by efficient logistics, transparent pricing, and favourable tax policies.
Unlike countries such as India or parts of Europe, the UAE imposes no import duty on bullion and does not apply VAT on investment-grade gold. This keeps base prices closer to global spot rates, typically making gold in Dubai around 5% to 7% cheaper before considering any additional savings.
VAT Refund Advantage for Tourists
While tourists purchasing gold jewellery in Dubai pay a 5% VAT at the point of sale, they can reclaim up to 85% of this VAT through the official tourist refund scheme at the airport. For high-value purchases, this refund can add a meaningful layer of savings.
Investment-grade bullion is generally exempt from VAT altogether, making Dubai particularly attractive for buyers focused on bars rather than jewellery.
Making Charges and Negotiation Power
Another cost factor where Dubai stands out is making charges. In many countries, craftsmanship fees on gold jewellery are fixed and relatively high. In Dubai—particularly in areas such as the Gold Souk—making charges are often lower and highly negotiable.
For large-volume buyers or experienced negotiators, this flexibility can further reduce the total acquisition cost, especially when compared to markets where making charges are rigidly applied.
The Role of Customs Duties in Your Home Country
While buying gold in Dubai is competitively priced, the true net saving depends on the customs regulations of the destination country. Gold must always be declared, and applicable duties paid upon arrival.
For example, when importing gold into India, only limited quantities of jewellery are allowed duty-free. A 1 kg gold bar must be declared and is subject to duties that can range around 10% to 11%, depending on residency status and duration of stay abroad.
Even after paying all required duties legally, some buyers have reported savings of approximately ₹250,000 (around USD 3,300) on a 1 kg gold bar compared to purchasing the same quantity locally in India.
Dubai vs Other Countries: Gold Buying Comparison
Dubai’s advantage becomes clearer when compared globally.
In the United Kingdom, gold purchases are typically subject to 20% VAT, significantly increasing retail prices. In the United States, bullion pricing is often close to spot rates, but state-level sales taxes can apply depending on location. Singapore and Hong Kong, like Dubai, also offer tax-friendly environments for investment-grade gold, making them competitive alternatives.
However, Dubai remains one of the few markets combining zero import duty, VAT exemptions on bullion, high liquidity, and competitive dealer premiums—making it a preferred choice for large-scale purchases.
Is Buying 1 Kg of Gold in Dubai Worth It?
For substantial purchases such as 1 kg of gold, Dubai offers a clear pricing edge driven by tax efficiency and market transparency. The savings are most attractive for buyers who understand and comply fully with their home country’s customs rules.
Always retain original purchase invoices, declare gold upon arrival, and confirm the latest import regulations before travelling. When handled correctly, buying gold in Dubai can be both cost-efficient and legally secure.
At Aurantius Real Estate, we closely track alternative asset trends alongside property markets, helping investors understand how gold, real estate, and other hard assets interact within the UAE’s broader investment landscape.
