Uptick in jewellery sales as gold hits 6-month low
dubai — Residents across the UAE are being careful about where they are putting their money, especially when it comes to paying for car insurance.
Many drivers have opted not to pay for extra add-ons in their car insurance packages in light of what they feel are increasing prices.
Data from yallacompare.com showed that drivers in the UAE paid an average of 14.88 per cent more for their car insurance in 2017 than in 2016. Owners of SUVs valued at under Dh50,000 have been hit particularly hard, with fully comprehensive premiums jumping by an average of 40.59 per cent, compared to 9.53 per cent for saloon car owners.
In another survey, Souqalmal.com disclosed a significant drop in the percentage of UAE consumers opting for agency repair as a policy add-on. While over 42 per cent of buyers opted for agency repair in 2016, this number dropped to 18 per cent in 2017. Most insurers in the UAE offer agency repair as a standard benefit for a period of up to three years. But, in most cases, car owners have the option to extend the agency repair coverage for up to five years. This feature is available as a policy add-on, subject to an additional premium.
“A rise in car insurance premiums following the introduction of the unified car insurance policy at the start of 2017, coupled with rising concerns about the future impact of VAT on the cost of living, has definitely had an impact on
Founder and CEO of Souqalmal CEO of InsuranceMarket.ae OWNERS CAUTIOUS ABOUT POLICY ADD-ONS MOTORISTS PAY MORE PREMIUMS
Of buyers opted for agency repair in 2016 Of buyers opted for agency repair in 2017 Average hike in comprehensive premiums for saloon segment Average rise in general car insurance costs last year Of car owners opted for personal accident cover for drivers in 2016 Of car owners opted for personal accident cover for drivers in 2017 Average increase in fully comprehensive premiums for SUVs
The trend we’re seeing now is that customers are happy to settle for non-agency repair, the cheaper alternative
We are seeing a trend of customers being more cost-conscious of not just the car’s overall price but also associated costs
REASONS FOR HIGH PREMIUM ON CAR INSURANCE
Poor driving record with lots of fines and accidents
Add-ons including roadside assistance and off-road cover Vehicle is heavily modified Making frequent claims Vehicle falls under the ‘risky car’ category
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* * * KT GRAPHIC • SOURCES: SOUQALMAL.COM, YALLACOMPARE.COM, RTA AND UAE INSURANCE AUTHORITY
dubai — With the price of gold dipping to a six-month low, Dubai’s jewellery outlets have started to see an upswing in sales of up to 30 per cent in June after a prolonged lull.
International gold prices dropped to near $1,260 an ounce on Thursday but climbed back during Friday’s session as the dollar slipped from its 2018 high near 95.20.
Jewellery outlets in the UAE witnessed a sudden pick-up in sales as expatriates preparing to return to their home countries for school holidays rushed to get the most out of the price advantage.
“Jewellery sales have shot up by 25 to 30 per cent in June compared to the average sales volume during the first five months since January,” said Joy Alukkas, chairman of Joyalukkas Group. “Sales this month have gone up by 10 per cent compared to June 2017,” he said.
“The dip in gold price is encouraging customers to come back to jewellery stores and we expect them to make full use of this opportunity as school vacation is round the corner. We have been witnessing a significant increase in customer footfall over
Gold is firmly in a downtrend, mainly due to the strength in the dollar
MAK Harid, managing director, Paradigm Financial Services
the past few days,” said Shamlal Ahamed M.P., managing director — international operations, Malabar Gold & Diamonds.
Globally, gold prices failed to gain despite the ongoing trade war due to dollar strength as the US Federal Reserve kept its outlook for higher interest rates.
On Monday, gold futures finished with a loss, with the precious metal marking another low year to date, even as the dollar, strong throughout the month, weakened against its currency rivals.
“Gold is firmly in a downtrend, mainly due to the strength in the dollar. Higher rates and a stronger dollar are headwinds for commodities because they don’t offer a yield and a strengthening buck tends to weigh on assets priced in the currency, making them more expensive for purchasers using other monetary units,” said MAK Harid, managing director, Paradigm Financial Services.
— issacjohn@khaleejtimes.com