UAE gold jewellery demand drops 28% in Q2 due to Middle East conflict

According to the Khaleej Times, the United Arab Emirates witnessed a 28 percent decline in demand for gold jewellery during the second quarter of the year. Industry analysts attribute this significant downturn primarily to the ongoing geopolitical instability across the Middle East, which has impacted consumer sentiment and purchasing power within the retail sector.

The report highlights that the volatility in the region has led to a cautious approach among consumers, who are increasingly prioritizing liquidity amidst broader economic uncertainty. Gold, traditionally a staple of the UAE retail market, has seen reduced transaction volumes as households adjust their discretionary spending in response to the regional climate.

While the UAE remains a global hub for gold trading and retail, this quarterly contraction reflects the broader challenges facing luxury and non-essential goods markets during periods of heightened regional tension. Market observers will be monitoring the upcoming quarters to determine if this trend represents a temporary shift in consumer behavior or a more sustained impact on the local jewellery industry.