Post VAT era has been one of the most anxious times experienced by the gem and jewellery sector in Dubai and UAE. Confusion, anxiety, resource and system allocation reigned in the minds of every jeweller as they faced the introduction of VAT with confidence over a period of time. 10 months of VAT and the jewellery industry is getting used to the taxation policy and is slowly letting it work to their advantage. Building the VAT percentage into the business strategy, introducing offer's, discounts and wooing the customers with Heritage, lightweight and designer jewellery has become the latest norm in Dubai and the UAE.

According to an independent research UAE gem and jewellery market is supposed to grow over 6% by year ending 2019. While there is definitely a slowdown witnessed in the sector, Jewellers are gearing up for a brighter tourism time which is the biggest selling season in Dubai and UAE. Light weight jewellery, coloured gemstone jewellery, designs etc will play an important role when it comes to presenting to the consumer a wide variety of products.

The New Jeweller UAE bureau has been in conversation with many a jewellery stalwart from the city of Dubai on the current and future market scenario. One of the most important points of discussion was the concern regarding fraudulent activities that are plaguing the gem and jewellery sector. Though Dubai is known to be an excellent Hub for business with a super secured environment, lately there have been some stray instances of thefts, or call it fraud happening within the industry orchestrated by known entities. This is a peculiar situation where in the jewellers trust certain people in business who ultimately dupe them of their earnings and elope. Due to this some of the jewellers have become extra vigilant when it comes to conducting of business.

The Retail jewellery segment of Dubai becomes a torch bearer in these tough times as large retail corporate such as Joy Alukas, Malabar, Pure Gold, Kalyan and many others gear up for a major show this shopping season. Expansions and creating niche markets with unique designs has always been the forte for these and many other jewellers from Dubai so much so that multinational entities in the retail and manufacturing sector are looking at building base in the city of gold. A umber of multinational jewellery companies are also looking at expanding their base in Dubai and UAE through shop in shop concept, appointing distributors etc to get that much needed base in the UAE.

Increase in the disposable income, changing tastes and preferences coupled with taste for luxury and designer jewellery will give a sunrise effect to the sector that will go a long way in rejuvenating local demand and provide the much needed thrust to the gem and jewellery sector in the next few months. The market dynamics is destined to change with the millennial population on the rise. Diamond and Platinum jewellery will witness a spurt in demand as the most preferred metal and stone by the younger generation. Fashion jewellery will also be the crux of demand with time as trend setting designs set to storm the UAE market especially planned by brands such as Tiffany & co, Titan Industries and many others. Dubai and UAE is sure set to become a super International market for gems and jewellery.