Whereas the gold market within the UAE witnessed a slight pull again impact, following the introduction of the worth added tax (VAT), the market is now firmly in its revival part, stated Ramesh Kalyanaraman, chairman and managing director of Kalyan Jewellers.
Talking at a media roundtable on Saturday, Kalyanaraman described the gold market within the UAE as being very dynamic. “The market is revived submit VAT and clients are shopping for once more. We’re engaged on our targets and have a number of growth plans for the GCC area. We plan to open three extra shops within the UAE by the top of this yr; and we now have plans to open two shops in Kuwait and one in Bahrain.”
Presently, the group has no plans to enter the KSA market, however an entry into the US market may nonetheless be on the playing cards sooner or later. “Proper now, we’re snug with our present showroom unfold and growth for the GCC area.”
Talking concerning the competitors out there, he famous that different jewelry manufacturers had been adopting an identical strategy and tempo. Dubai, he stated, has firmly retained its place as a hub for gold.
“No customer returns from a visit to Dubai with out having purchased not less than some jewelry,” he stated. “Additionally, vacationers are being supplied a refund for his or her VAT and that has positively helped. The charges are nonetheless very engaging right here within the UAE, and, like different adjustments out there that got here earlier than, customers have tailored.”
Requested concerning the current fluctuations in gold costs, Kalyanaraman identified that it was very troublesome to foretell the place gold costs had been headed. “There are a number of exterior elements that decide the value of gold at any given second. Round 10 years in the past, all of it relied on the season; some seasons the costs would go up, whereas some seasons noticed a drop. At the moment, it’s extra than simply the provision and the demand that decide costs.”
Nonetheless, he highlighted the truth that customers as we speak weren’t as affected by gold costs as they’d beforehand been. “Increasingly, we see customers shopping for gold to put on; the truth that it’s an funding is only a bonus to them. In fact, the truth that it’s a extremely liquid metallic simply provides to its reputation.”
Talking on common designs and buyer preferences, Kalyanaraman stated that Bollywood and social media had performed a big position in influencing the demand for sure items. The recognition of yellow gold had slowly waned, he stated. “We used to see yellow gold making up 90-95 per cent of gross sales, nevertheless, now we’re seeing it drop to 75 per cent roughly. Because of social media and the movie business, clients are seeing a lot of new and totally different designs they usually need to put on them. We see this as a chance to innovate.”
Responding to a query about plans for an IPO, he stated: “Sure, an IPO is all the time there in the back of our thoughts, however we’ve not reached a call on the timing. At any time when we want capital, we’ll go for an IPO, however as of now, we’re proud of working the present for the following couple of years with our personal capital.”
I’m a reporter and sub-editor on the Enterprise desk at Khaleej Instances. I primarily cowl and write articles on the UAE’s retail, hospitality, journey, and tourism sectors.Initially from Lahore, I’ve been residing within the UAE for greater than 20 years. I graduated with a BA in Mass Communication, with a focus in Journalism, and a double minor in Historical past and Worldwide Research from the American College of Sharjah.When you see me out and about on project in Dubai, be happy to cease me, say howdy, and we are able to chat concerning the newest kitten movies on YouTube.
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