Dubai’s Gold City: A Glimpse into the World of Gold Trade and Import Restrictions
Dubai, famed as the ‘Gold City’, continues to be a magnet for travelers and tourists around the globe. Renowned for trading in vast quantities of gold, the city annually procures raw gold from South Africa, which is later refined and sold in large volumes. There is a widespread belief that one can procure gold at the lowest possible prices in Dubai. Hence, millions of expatriates, including those from India, find employment opportunities in Dubai and have the option to purchase gold there.
The Allure of Dubai’s Gold Market
Gold, one of the precious metals found globally, has always been priced differently at various locations. However, Dubai’s Gold City stands as a universal attraction due to its reputation for trading substantial amounts of this coveted metal. The city annually imports raw gold from South Africa in large quantities, purifies it, and sells it, making it a pivotal player in the global gold trade.
It’s believed that Dubai offers the lowest possible prices for gold. With millions of expatriates working in Dubai, many seize the opportunity to purchase gold there. Interestingly, of all the Asian inhabitants in Dubai, Indians alone make up a staggering 50%.
The Central Board of Indirect Taxes and Customs: The Limit Imposed
However, this golden opportunity is not without its restrictions. The Central Board of Indirect Taxes and Customs has imposed a limit on the import of gold from Dubai to India. This rule applies not only to Dubai but to any emirate, ensuring a controlled flow of the precious metal into the country.
Since April 2016, a rule by the Central Board of Indirect Taxes and Customs states that any individual who has resided in Dubai for more than a year can bring back any gold jewelry.
The Gold Import Limit: Based on Gender
The limit on bringing gold from Dubai depends on one’s gender. A male can bring a maximum of 20 grams of gold, while a female can bring up to 40 grams of gold, provided the value does not exceed one lakh. It’s important to note that the duty-free limit applies only to gold jewelry.
If someone brings gold from Dubai without having stayed for six months, they will have to pay an additional 36.05% custom charge. According to the UAE Embassy, a traveler coming from the UAE to India cannot bring more than ten kilos of gold, and custom and other charges will apply.
|Maximum gold a male can bring||20 grams|
|Maximum gold a female can bring||40 grams|
|Value limit of gold that can be brought||1 lakh|
|Custom charge if gold is brought without a six-month stay||36.05%|
|Maximum gold quantity as per the UAE Embassy||10 kilograms|