A new survey conducted by AC Nielsen and commissioned jointly by the Dubai Gold and Jewellery Group, Dubai Multi Commodities Centre (DMCC) and World Gold Council (WGC) has revealed that tourists account for more than half of the gold and jewellery sales in Dubai.
 
They make up 52 percent of all sales, nine points ahead of Dubai residents who account for 43 percent. Gold jewellery sales account for 45 percent of annual retail turnover, followed by diamond jewellery with 35 percent.
 
Twenty-two karat (22kt) gold is the largest selling variant, capturing 44 percent of the market, followed by 18 karat (42 percent), 21 karat (10 percent) and 24 karat (4 percent).
 
Dubai Shopping Festival (DSF), Dubai Summer Surprises (DSS), and Dubai The City That Care initiatives, retailers said, accounted for nearly two-thirds of annual sales.
 
Non-branded jewellery emerged a clear winner over its branded rivals, with the former accounting for 84 percent of all sales. Locally manufactured jewellery trails behind its imported competition, accounting for 42 percent of sales.
 
Dubai has over 600 shops, the densest concentration in the world. Dubai's Gold Souq has 275-plus shops in a half a square kilometer area. At any given time over 25 tonnes of gold is on display in jewellery shop windows.
 
Dubai imported 522 tons of gold in 2005, up from 502 tons in 2004. DMCC said one in every eight tonne of gold supplied in the world comes to Dubai.  
 
Dubai's top eight trading partners for gold remain India, Switzerland, UK, Malaysia, Saudi Arabia, US, Singapore and South Africa.
 
Dubai's gold and jewellery retail space currently accounts for only five per cent of the total retail space in the emirate. By 2010, it will increase to seven per cent and 10 per cent by 2020.