Demand for diamond jewelry in Dubai has surged amid record-high gold prices. This increase in gold prices has led shoppers to look for alternative options. Currently, the international gold price is $4,549 per ounce, while retail rates in the UAE are AED 546 per gram.
According to Dubai-based jewelers, the jump in gold prices has led to a shift in purchasing patterns. “Whatever sales were lost in gold, they are compensated by diamonds. The sales of diamonds have increased significantly,” said Chirag Vora, the Managing Director of Bafleh Jewellers.
He further noted, “We have noticed a 25% - 30% increase in diamond sales compared to last year.”
Chirag pointed out that diamond jewelry has become the preferred choice for gifting. “A diamond-studded article makes a far better impression than pieces made of gold, no matter how small they are. Between diamonds, the growth of lab-created and natural diamonds is the same, and lab-created diamonds will never replace natural diamonds,” he clarified.
Retailers mention that the trend is not restricted to consumer demand but also to what shops display. Chandu Siroya, the owner of Siroya Jewellers, said that 2025 was a challenging year in terms of volume; jewellery sales dropped by 20% to 30%. However, increased prices helped maintain the revenue levels.
“There has been a big change. Jewelers are now promoting more elegant, diamond-studded jewelry instead of very heavy gold pieces,” he said.
According to Siroya, consumer psychology is also changing. “People have accepted that gold will stay around $4,000 per ounce. Once that mindset settles, buying will resume,” he predicted. Chandu added that sales will improve, but remain focused on lighter-weight designs. To make items more affordable, the Dubai Jewellery Group has introduced 14-carat jewelry options.
According to industry experts, lab-created diamonds are also gaining a market with new variants set to debut in 2026. “In today’s market, the most important thing is building brand trust. More big players are concentrating on diamonds. This means that consumers are exposed to more designs, more offers, and more options to wear daily,” said Aditya Singh, Head of International Jewelry Business at Titan Company.
What’s more interesting is that increased gold prices are paving the way for the diamond market in the UAE.