Gold Bars Gain Huge Popularity in Dubai as US Tariffs Shake Market

In the bustling markets of Dubai, especially in the famous Gold Souq, something interesting is happening. More people are asking about gold bars than the usual gold jewellery. This has caught the attention of many gold retailers who noticed this change over the last few days.

Usually, gold jewellery is the top choice for buyers in the UAE. But recently, fewer people are buying jewellery, even though there are still good deals and promotions available. One main reason is the high price of gold. The price for 22-karat gold recently reached almost 379 dirhams per gram, close to the highest ever price of about 383.75 dirhams.

Despite the high gold prices, some shoppers are focusing on gold bars. Many want to buy bars that fit their budget, with some even purchasing 1-ounce gold bars that cost over 12,000 dirhams. This is a big change because usually, at such high prices, demand for gold bars slows down.

A key factor behind this shift is recent US government tariffs on gold, especially on 1-kilo gold bars imported from Switzerland. These tariffs have pushed gold prices higher worldwide. Gold prices surged to nearly $3,400 per ounce, and gold futures for late 2025 even hit an all-time high of $3,534 per ounce. This price jump has made people in Dubai and across the UAE look at gold bars more seriously.

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Data shows that during the first half of 2025, gold bars were the only gold product category that grew in sales in the UAE, while sales of gold jewellery and gold coins actually dropped. This trend suggests that many investors and shoppers prefer gold bars as a safer way to hold gold.

One reason gold bars are popular is that they do not have VAT (value-added tax) in the UAE, unlike gold jewellery, which often has extra making charges and taxes. This means buyers get more value when they buy bars. Also, gold bars do not incur making charges if the owner decides to sell them later.

Another important point is that smaller gold bars are easy for expatriates to carry when returning to their home countries. These bars can be sold easily anywhere, making them a flexible investment.

People shopping for gold now are more aware than before of the extra costs involved in buying jewellery, such as making charges. Many see gold bars as a better alternative because they offer pure gold value without hidden costs.

Though not everyone in the UAE will switch from jewellery to gold bars, this shift is growing. The US tariffs have given a fresh push for many buyers to consider gold bars as a strong investment and a good way to protect their money against inflation. Gold has long been seen as a safe place to keep money when prices of other things are rising.

In short, the market in Dubai is seeing a growing interest in gold bars. Shoppers and investors are choosing bars for their purity, tax advantages, and ease of resale. This is a new trend in Dubai’s gold market that may continue as global prices and policies change.