National gold trade potential soars after ‘up to 200’ Dubaian jewelers enter Turkey
More than a hundred Dubai-based jewelry companies have withdrawn from the emirate after the application of 5% customs tax and 5% VAT in the UAE. Turkey, known as a center of international gold trade, has benefited from this development, with potential for further trade much increased.
“We want to make Istanbul one of the important centers of gold trade,” said Ayhan Guner, head of the Jewelry Exporters’ Association. “Because of the new taxes, Dubai will lose this feature. After [the announcement of ] this development, most of the 110 companies from Dubai came to Kuyumcukent.”
The companies that moved to Turkey during the last year favored Kuyumcukent, the Grand Bazaar and the Nuruosmaniye district of Istanbul as areas to open their own shops and workshops. According to Guner, the reason behind Dubai’s new taxation comes after pressure from surrounding Arab countries, especially Saudi Arabia. While the countries in the region had been applying 5% customs tax and 5% VAT for some years, Dubai had not implemented it to maintain its central location. This caused a reaction from the surrounding countries that included allegations of unfair competition after consumers from other Arab countries were buying untaxed jewelry from Dubai and taking it home. Dubai eventually caved in to this pressure and started applying the tax. Istanbul Chamber of Commerce Jewelry Business Committee Chairman Erhan Hoshanli said that the knock-on effect of Dubai’s new tax system has huge potential in terms of making Turkey a gold trade center. “Turkey is already an important center, but this capacity can be undoubtedly increased much more. We can get wholesalers, manufacturers in Dubai to our side. We haven’t got an official figure right now but based on our observations 150 to 200 companies came. These arrivals will continue,” he said.
Norayr Isler, president of Istanbul Chamber of Jewelry, also confirmed the arrival of Dubaian jewelry companies. “Today, we see that companies of foreign origin have been established and continue to occupy places in important areas for the industry. We see that in Kuyumcukent, one of the important production and export centers of Turkish jewelry, almost 100 workshops from foreign countries have been established. The same developments are striking in Nuruosmaniye Street and the Grand Bazaar. We can say that foreign firms and brand entrances have intensified, especially this year,” Isler said. Abdulkarim Malallah Jewelry, Al Rafinda Jewelry, Al Sukhon Jewelry, Assel Alrafedeen Jewelry, Brown Kabul Jewelry, Dafne Jewelry Trade and Industry, Gold Star Jewelry, Jasmine Jewelry, Jawharah Jewelry, Kingston Jewelry, Nahr Al Kawthar Jewelry, Spike Gold Jewelry, Somer Jewelry and Nancy Gold are among the companies that have entered Turkey in the last year.