Gold Rates in the UAE on May 16, 2025

As of May 16, 2025, the gold rates in the United Arab Emirates (UAE) were as follows:

24K: AED 387.75 per gram

22K: AED 359.25 per gram

21K: AED 344.50 per gram

18K: AED 295.25 per gram

UAE's Position in the Global Gold Market

The UAE has established itself as a significant player in the global gold trade. In 2019, gold constituted over a third of the country's imports, amounting to approximately $20 billion. The primary export markets for UAE gold include India, Switzerland, and the United States.

Supply and Demand Dynamics

Consumer purchases, particularly of jewelry, drive nearly half of the gold transactions within the UAE. Institutional investors and banks also contribute significantly, especially during periods of economic uncertainty. While the UAE has some domestic gold production, it relies heavily on imports, primarily from Africa and Europe, to meet its supply needs.

Future Outlook

The UAE's gold market faces potential challenges from geopolitical and economic factors, such as fluctuations in oil prices and global economic growth concerns. Additionally, the shift towards digital investments may impact the traditional gold trading landscape. Nevertheless, the UAE's robust infrastructure, supportive governmental policies, and active participation in international initiatives position it well for continued prominence in the industry.

Understanding Gold Purity

Gold purity is measured in carats (K), with 24K representing pure gold. However, pure gold is soft and often alloyed with other metals to enhance durability, especially for jewelry.

24K: 100% pure gold

22K: 91.7% gold

21K: 87.5% gold

18K: 75% gold

14K: 58.3% gold

9K: 37.5% gold