Many UAE retailers, hypermarkets and supermarket chains have been riding the festive wave for weeks leading up to the big Diwali day celebrations on November 4…reports Asian Lite News
A dip in recent Covid cases in the UAE and easing restrictions in the country is raising hopes of a bumper pre-pandemic Diwali amongst expat Indians and retailers here alike.
A day after authorities in the UAE approved the Pfizer-BioNtech Covid-19 vaccine for children aged 5-11, the country on Monday, November 1, registered 78 new cases for Covid-19, the lowest since figures touched two figures for the first time in over 19 months. This, aided by falling gold prices and a 10-year-high consumer confidence, are making many long-time residents in the UAE upbeat about a Diwali like before.
“We live in a great and culturally diverse city like Dubai where everything is special about Diwali. Be it shopping or decoration or food, we get every vibe of Diwali. We get special discounts in every jewellery and apparel stores. We get variety of Indian sweets and savouries. This is that time of the year when we organise parties for our friends and family. We go out to see fireworks on Diwali night. So it’s a perfect combination of food, festivity and firework. All of this was a bit muted last year with high number of Covid cases and various restrictions but this year, it is going to be like before,” said Sudhashree Dash, a Dubai resident for over a decade.
With the festival of lights just three days away, many like Dash have already gone on their customary Diwali shopping spree. And not all of them are buying candles and lanterns for the festival of lights. “I am planning to buy some gold jewellery for my wife this Diwali, something I had held off for a long time owing to the Covid situation. But the time for it seems just about right,” said Alok Behera, an Abu Dhabi-based engineer buoyed not just by fresh prospects at his new job but also recent fall in gold prices.
The bullion dollar story
Gold prices on Monday morning dipped, extending the previous session’s losses with the dollar strengthening. According to top retailers, this not only means more Indian rupees against the UAE dirham for an expat remitting money but also greater boost to customer confidence.
Spot gold fell 0.1 per cent to $1,781.78 per ounce on Monday morning, after slipping to an over one-week trough on Friday while US gold futures dropped 0.1 per cent to $1,782.80.
In the UAE, the Dubai Gold and Jewellery Group data showed 24K trading at Dh216.0 per gram, 22K at Dh203.0, 21K at Dh193.75 and 18K at Dh166.0 per gram on Monday morning. Yet retailers in the country are don’t seem to mind.
“Diwali and the subsequent six months are all about festivities and celebrations. With the ease of restrictions and tourists returning, we are seeing a considerable increase in footfall across all our stores and we are expecting a significant transformation in the market in the coming weeks as well. The overall consumer sentiment is about celebrating important festivals with family and friends as well as being part of events like weddings and related celebrations, that have become more frequent in the UAE,” said Shamlal Ahamed, MD – International Operations of top UAE gold retailers Malabar Gold & Diamonds, also a BIS certified Indian jewellery group headquartered in Kozhikode, Kerala, India.
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“Regardless of the gold price, it is a good time for consumers to invest in gold, considering the diverse collections and attractive offers we have launched as part of the festive season. With Dhanteras falling on November 2, we expect a good sale with our customers making the best use of this opportunity,” he added, hinting at the general festive mood of the country with several big-ticket events including Expo 2020 Dubai and ICC Men’s World T20 currently taking place in the UAE.
Anil Dhanak, Managing Director of the Dubai-based Kanz Jewels echoed similar sentiments. “We are very optimistic especially with the flights open and the tremendous response of the Expo 2020 so far. Diwali is also an auspicious time to buy jewellery and the wedding season is just around the corner so we expect sales to be very good especially with the designs and offers we have for our clients this time,” he added while indicating that the drop in the recent gold rate was an added incentive for potential buyers of gold jewellery.
“We are certainly looking to achieve numbers of 2019 or perhaps even better this year,” he said, emphasizing that the “post-pandemic era” had already begun in UAE with all the top events taking place.
“The world is very positive about the upbeat momentum UAE has been able to create through its miraculous handling of COVID-19 whereby placing the country on the forefront of global tourist wish-list. We already see double digit growth across our jewellery stores since summer this year and expect this only continue into the upcoming festive (Diwali) season,” added Karim Merchant, the Managing Director of another UAE company Pure Gold Jewellers.
There’s glitter in retail too
However, it’s not all about gold. Many UAE retailers, hypermarkets and supermarket chains have been riding the festive wave for weeks leading up to the big Diwali day celebrations on November 4. “We have done brisk business with our daily sales topping Dh2,000 (INR 40,000 approx.) since we expanded with our second outlet here with Diwali in mind and life’s good,” said Amit Madak who runs the newly-opened Indian goods store selling Diwali items in the busy Abu Shagara area of the emirate of Sharjah. “This wasn’t the case last time around,” added Madak who comes from Pokhara in Nepal that’s represented by a significantly huge Diwali celebrating Hindu population in UAE.