📊 UAE Jewellery Market Consolidates as Gold Prices & Costs Soar.

Record-high gold prices and rising operational expenses — especially rents and borrowing costs — are reshaping the UAE jewellery market, prompting mergers and strategic consolidation among local jewellers while consumer buying patterns shift.

• M&A activity rising: Smaller jewellers are joining forces and larger deals (like India’s Titan acquiring Damas) highlight consolidation as a response to cost pressures and margin squeeze.

• Cost challenges: Fixed costs such as high rents and increased borrowing rates are squeezing profit margins, since making charges per gram haven’t risen with gold prices.

• Shift in demand: Soaring gold rates have softened heavy jewellery demand, nudging buyers toward lighter pieces, investment bars/coins, and alternative categories like diamond jewellery, which is seeing increased interest.

Industry leaders see 2026 as a transformative year — short-term pain from high input costs may give way to a more resilient jewellery sector, with mergers helping reduce overheads and diversified product lines (including diamonds and lightweight options) attracting evolving consumer preferences.

#JewelleryMarket #Titan #JewelleryTrends #InvestmentShifts #DubaiBusiness $XAU