Indian billionaires who amassed gold fortunes in Dubai face slowdown

In Dubai, fresh fortunes are being minted by the day as new talent and capital flock to the region. But many of the big gains in individual wealth are being driven by some of the city’s longest-standing visitors.

A select group of Indian entrepreneurs, benefiting from the subcontinent’s cultural and historical ties to the Gulf, are transforming the retail gold market in the booming United Arab Emirates city, turning a once-fragmented sector into empires of glitzy showrooms and vertically-integrated supply chains.

From the Gold Souk to high-end malls, names like Malabar Gold & Diamonds, Joyalukkas India Ltd. and Kalyan Jewellers India Ltd., all owned by India’s ultra-wealthy — dominate the region’s landscape of jewelry for the middle class. That’s helped their founders amass total wealth of $9.5 billion, according to the Bloomberg Billionaires Index, which is valuing them for the first time.



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Dubai has traditionally been a favored destination for gold shopping and the tycoons are profiting from a surging South Asian expatriate base, tourist flow and cultural affinity for bullion, building retail networks that span dozens of stores.

The UAE hosted 7.2 million Indian nationals in 2023, more than any other Middle East nation, according to government data. Over 3.5 million Indians live in the country, according to the Ministry of External Affairs. Decades of ties link the two nations.

But rising sales are at risk from recent regulatory changes within India. The country last year cut import duties on the metal, eroding the price advantage of buying overseas and curbing demand from Indian buyers in the UAE.

Demand for jewelry in the UAE dropped 16% by tonnage in the second quarter compared to the same period last year, as record high gold prices and weaker tourist buying — particularly from India — hit sales. The decline in purchases follows the changes to Indian import duties, according to the World Gold Council.

“Most of our customers are Indian, followed by other South Asians and some native Arabs,” said Ramesh Kalyanaraman, executive director at Kalyan Jewellers, which is controlled by his billionaire family.

India has historically had a volatile fiscal landscape when it comes to gold. The current stance may be one that lasts, according to Anindya Banerjee, head of commodities and currency research at Kotak Securities.

The UAE had the highest gold demand per capita in the world at 4.4 grams last year, according to the World Gold Council. Many Indian tourists and expats favor the precious metal as an investment hedge, while others use bars and coins as savings instruments. It’s also purchased as jewelry for weddings and religious festivals.

“Jewelry used to be a yearly shopping, but now it’s a three or four types of shopping in a year. Because people buy according to the occasion for which they want to wear,” said Kalyanaraman.

Kalyan entered the Gulf in 2013 and operates 36 stores in the region. It posted revenue of $369 million from the Middle East in the year to March 31, a 22% jump over the previous period, according to company data. The firm may consider expanding its manufacturing operations in Dubai to navigate US tariffs, according to Kalyanaraman.

Joyalukkas started as a small jewelry shop in the Indian state of Kerala before growing into a large retail brand, opening its first showroom in the UAE in 1988 and later expanding into Qatar and Oman. Now the business has 50 stores in the Middle East, with 28 located in the UAE.

“When I came to Dubai in 1986, I saw possibility where others saw limits,” said Joy Alukkas, chairman of the company.

Malabar runs 67 outlets in the UAE, 17 stores in Saudi Arabia and 39 more in Oman, Qatar, Bahrain and Kuwait. It was founded by Indian entrepreneur M.P. Ahammed who began his career in spice trading. The company opened its first store in the Middle East in 2008.

Some deals are already starting to take place in the sector. Tata Group’s watch and jewelry division Titan Co. agreed to buy a controlling stake in Damas International’s jewelry business in the Gulf countries this summer. Titan operates the Tanishq chain, with locations across the UAE, Qatar, and Oman.

While the changes to import duty narrowed the price gap between India and the UAE, it hasn’t significantly affected Malabar’s business, according to a company spokesperson. Many Indians still perceive the country as a place where they can buy gold of assured quality, unlike in other destinations, they said. The three companies also have a large presence in their home country, hedging against downturns elsewhere.

And some say there’s still room to grow. Malabar recently launched Mojawhraty, a retail concept developed to cater to preferences of Arab clients.

“Jewellers should continue innovating in terms of design, to make sure they appeal to a broader demographic and the wide range of nationalities that are residents or now visit the UAE and the region,” said Andrew Naylor, head of Middle East and Public Policy at World Gold Council.