AOJ E-NEWS: The ongoing blockade of Qatar by its neighbouring nations has raised concern among Indian jewellers who have operations in the Gulf Cooperation Council countries. Jewellers said sales dropped in the region because buyers from Qatar, who are known to prefer high value items, are absent from the market.

Traders said they are hoping that the situation will normalise by the last week of June, when consumption of gold is expected to go up in the region on the occasion of Ramadan.

Saudi Arabia, Bahrain, Egypt and the United Arab Emirates have cut off ties with Qatar. “There has been a drop in gold jewellery offtake since the blockade was declared,” said Rajiv Popley, director of Popley Group, which has presence in Dubai. “Qatar is a mature market as far as offtake of luxury items is concerned. Residents from Qatar buy a lot of jewellery.”

Saurabh Gadgil, chairman of PNG Jewellers said, “We have operations in Dubai as well. During Ramadan, purchases may not pick up, but post Eid people want to splurge in West Asia. We hope by that time the problem will be sorted out.”

Joy Alukkas, chairman of retail jewellery firm Joyalukkas group, which has a strong presence in West Asia, said that as of now there is no impact on the business because of the Qatar blockade. “We are keeping a close watch on the development in the GCC,” he said.

Praveen Shankar Pandya, Chairman of Gem & Jewellery Export Promotion Council said, “Any disruption in the region will impact exports. India’s exports of gems and jewellery last year Qatar’s currency, the riyal, touched a new low against the dollar on 13th June, as the country’s diplomatic crisis continued. The riyal hit 3.67 to the dollar, which is the weakest since 1998, the Financial Times reported. Qatar’s central bank has pegged the currency to 3.64 to the dollar so even small movements are likely to produce new lows.

Qatar’s finances have come under pressure in the wake of a diplomatic row with its Gulf neighbours. The Qatari stock market has tumbled around 9% since the announcement and its currency, the riyal, has fallen to an 11-year low.”

Courtesy- Pressreader.com