Gold Making Charges in the UAE: How Much and How to Negotiate

When you buy gold jewellery in the UAE, the price has three parts: the gold value, the making charge and VAT. The gold rate is almost the same in every shop. The making charge is where shops really differ.

What is a making charge?

It is the cost of crafting and designing the piece. Shops calculate it in one of three ways, so always ask which one applies:

An amount per gram, for example AED 15 per gram.
A percentage of the gold value, for example 10%.
A flat fee for the whole piece.

How much are making charges?

According to the chairman of the Dubai Jewellery Group, quoted by Gulf News, making charges in the UAE range from AED 3 to AED 30 per gram. Simple chains sit at the low end, intricate and handmade designs at the high end.

Fixed or percentage?

A percentage charge rises in dirhams whenever the gold rate rises. A per-gram charge stays the same. Always compare the final amount in dirhams, not the percentage on its own.

Worked example

A 20-gram 22K necklace, with 22K gold at AED 432.94 per gram (gold at $4,000 an ounce, for illustration only):

Gold value = 20 × 432.94 = AED 8,658.73.
Making charge at AED 15 per gram = AED 300, so the subtotal is AED 8,958.73.
5% VAT = AED 447.94, for a total of AED 9,406.66.
At a 20% making charge, the charge alone would be AED 1,731.75 instead of AED 300.

Do you get the making charge back when you sell?

Usually not. When you sell used gold, the shop buys it as metal, so the making charge and the VAT you paid are not counted. If you are buying to save, bars and coins with low making charges make more sense. Read 22K or 24K gold in Dubai.

How to negotiate

Check today's gold rate in Dubai before you walk into a shop.
Ask each shop for the net weight, gram rate, making charge, any stone charges and the final amount.
Compare final bills, not discounts: 50% off a AED 1,000 making charge still costs more than a AED 400 charge with no offer.
Making-charge offers are common during the Dubai Shopping Festival. Read when to buy gold in Dubai.
Get the exchange and buyback policy in writing, and keep your invoice.