Dubai's secret: Why diamonds are up to 20% cheaper in UAE than India?

18/06/2026 04:27 AST

Diamond jewellery is cheaper in Dubai than India, costing between five to 20 per cent less, according to UAE jewellers.

The precious metal industry executives said savings becoming even more pronounced on larger solitaires and high-value pieces once Indian taxes are factored into the final price.

Chirag Vora, managing director of Bafleh Jewellers, put the gap at 10 to 20 per cent, pointing to a clear tax disparity between the two countries.

India levies a five per cent import duty on polished diamonds along with three per cent general sales tax (GST), while the UAE charges zero import duty and a tourist-refundable five per cent VAT.

He said customers who compare final invoice prices, rather than just listed rates, consistently find Dubai the better-value destination.

Home to over four million Indian nationals, the UAE attracts millions of Indian tourists every year as well. In addition to sight-seeing, shopping - especially gold and diamond jewellery - is among the top of the shopping lists due to better rates and purity factors.

Anil Dhanak, chairman and managing director of Kanz Jewels, offered a similar estimate of five to 15 per cent, noting that the difference widens further for larger solitaire diamonds and high-value diamond jewellery pieces.

He said Dubai's status as a global trading hub for gold, diamonds and precious stones is the primary driver of this price advantage, supported by an efficient supply chain, lower import duties on loose diamonds, competitive operating costs for international traders and a business-friendly tax structure.

The concentration of international diamond suppliers and manufacturers in the emirate, he added, has created a highly competitive market that ultimately benefits consumers.

The Dubai-based jewellers said certification and trust play a major role in attracting Indian shoppers to Dubai.

Vora noted that Indian tourists are drawn to the emirate partly because of strict government regulations mandating Gemological Institute of America (GIA) or International Gemological Institute (IGI) certification for authenticity, as well as the wide variety of modern, international designs on offer and the ease of claiming digital VAT refunds at the airport.

Dhanak said the sector''s emphasis on internationally certified diamonds - backed by globally recognised laboratories - gives buyers transparency and confidence to compare products before making a purchase.

He added that diamond and diamond-studded jewellery continue to see strong demand from tourists, especially from India, many of whom plan their purchases in advance, viewing Dubai as a trusted destination offering value, contemporary design and assured quality. Categories such as solitaires, bridal diamond jewellery, tennis bracelets and everyday luxury collections are seeing rising demand from residents and visitors alike, he said.

A notable shift in buying behaviour is also emerging among younger consumers, according to Dhanak, who said diamonds are increasingly being chosen as a lifestyle and fashion statement rather than reserved for special occasions, with buyers seeking versatile pieces for everyday wear.

Vora pointed to two additional trends shaping the market: a resurgence in demand for traditional 22K jewellery and pure gold following an increase in Indian import duty, and the rapid growth of certified lab-grown diamonds (LGDs) in Dubai, which he said is allowing budget-conscious tourists to buy significantly larger stones for a fraction of the cost of natural diamonds.

Shamlal Ahamed, managing director of international operations at Malabar Gold and Diamonds, said diamond jewellery continues to record strong growth in demand across both traditional and younger customer segments, with Dubai's position as a global retail hub giving shoppers access to a wide range of international design collections.

With competitive pricing, robust certification standards, world-class retail infrastructure and a diverse product offering, industry leaders expect Dubai to further cement its position as a leading global destination for diamond jewellery, particularly among the large base of Indian visitors who continue to drive demand.

Khaleej Times