Our World - Jeddah Gold Souk

One of the most popular purchases of visitors to Saudi Arabia is gold jewelry.  Why, you might ask?  There are several factors at play here, making gold a better value in Saudi Arabia.  The Magic Kingdom is the largest manufacturer and supplier of gold jewelry in the whole region of the Middle East. The quality of the gold available here can be found in higher karat content than in many places around the globe.

Another reason is that competition is fierce, with business districts of many places having a large and thriving gold industry.   Also, taxes are lower as well, at a nominal 5% VAT.  Added to these reasons is the fact that labor costs are cheap here in Saudi Arabia. with gold manufacturers and gold souks frequently staffed by a labor force imported from less affluent countries in Asia. 

Many of the gold fashions of Saudi Arabia are heavy, intricate, and bulky, and much of it could be described as gaudy.  Since the gold content of many pieces is higher, it appears bright yellow in color.
Lately though there has been a problem reported in Saudi Arabia, with religious pilgrims (short term visitors to the kingdom who tend to purchase gold when visiting) becoming the target of gold scams and being sold inferior quality gold as pure gold (24K).

TIPS FOR BUYING GOLD -
- Check the gold rate - it fluctuates daily
- Pay cash, if possible. Purchasers have more bargaining power if they don't use a credit card.
- Take along someone who speaks Arabic, if you can. It will make negotiating a lower price easier.
- Go to the local gold souks, where you will likely get a better price than at mall shops.

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