As gold hits record high prices in the UAE, the demand for diamond jewellery is increasing, according to Dubai jewellers.

Gold prices hit a record high in 2025, reaching $4,549 per ounce globally and crossing Dh546 per gram in the UAE. Jewellers in Dubai said the demand for both natural and lab-grown diamonds is growing in the UAE as trust for the latter is also on the rise.

“One of the main factors that's determining the market today is the gold price. It's hurting everyone. But we've all done better with the diamond sales as they have picked up. So, whatever business losses happened because of gold, they’re being covered up by diamond sales. We've grown almost 25-30 per cent year-on-year in diamond sales. Diamond is offsetting the effect of gold sales for almost all the companies, because we are into wholesale, so we sell a lot to the industry,” said Chirag Vora, managing director of Bafleh Jewellers.

Amidst high yellow metal prices, Vora sees people are now finding it better to give diamond products as a gift as compared to smaller gold ornaments. “When you give someone a diamond-studded gift, it gives a much better impression. Within the diamond category, both natural and lab-grown diamonds are growing at the same pace."

However, Vora does not think the lab-grown diamond will overtake its natural counterpart. "Both of them are growing equally and in parallel,” he added.

Chandu Siroya, owner of Siroya Jewellers, said 2025 was a challenging year in terms of sales for the retailers.

“If you count the absolute rupee or dollar terms, everybody has (done well) because the gold price has gone up very well. In terms of quantities, (sales have) been lower by around 20 to 30 per cent."

"There has been a very big change as many jewellers are now promoting more diamond-studded and elegant jewellery — not just the usual very heavy stuff," he told Khaleej Times in an interview recently.

Buyers accepting high gold prices
He added that 2026 is going to be a new era for jewellery, because everybody has accepted that the yellow metal is going to be around $4,000 per ounce.

“Once everybody has accepted that idea, we just have to consolidate the position and start buying again. Going forward, we can expect good sales, but we will have to be innovative and carry lighter-weight jewellery. Due to this reason, the Dubai Jewellery Group has also introduced 14-carat jewellery, so that people can afford it,” he said.

He said that lab-grown diamonds are also doing very well. “In 2026, new varieties of lab-grown diamonds are coming to the market."

Aditya Singh, head of International Jewellery Business at Titan Company, said people trusted the brand Tanishq in India for the diamonds.

“That is one category we are promoting; you're also seeing a lot of other players starting to look at that category very seriously. It is not that the interest has shifted suddenly, but because a lot of large players have started to focus on the diamond category. So, more designs, more products are being made available, with good offers coming in. Diamond is getting a lot of attention. Because of high gold rates, lighter-weight products are also getting a lot of attention, which you can actually wear on an everyday basis,” he told Khaleej Times during an interview on the sidelines of the opening of Tanishq’s flagship store in Meena Bazar, Dubai.

Courtesy : Khaleej Times