Gold and jewellery has always been an essential aspect of life in UAE; it is interwoven in the lives of the people and remains a very significant element of their culture. In fact this yellow metal has been instrumental in turning around Dubai's fortune from a small fishing town by the creek to the international business hub that it is today. Even now the gold and jewellery industry is a vital component of the UAE's economy, making up 10% of the non-oil GDP. Located at the cross roads of Asia, Africa and Europe, the UAE is a gateway to major markets of gold and jewellery and its proximity to sources of precious metals and gemstones has been instrumental in positioning it as the regional hub and largest redistribution centre for the gold and jewellery trade. As a result Dubai is now known internationally as the 'City of Gold'.

In 1996 Dubai imports were reported to be around 650 tones. UAE per capita consumption of gold is the highest in the world amounting to 34 gm per annum, much above the world average of only of 1 gm. An upsurge in oil prices and economic diversification based on direct investment, internationalization and development of new industries has bought about surplus liquidity. Increased prosperity has enhanced consumer spending across GCC and triggered demand for luxury products. It is anticipated that by 2010 the middle luxury market is expected to grow to $100bn. High purchasing power has also triggered demand for gold jewellery, particularly fine jewellery. These trends have led to a phenomenal growth in the GCC diamond market, making it the fourth largest diamond market in the world with Dubai as its centre. Even the jewellery retail trade is enormous; in 2007 the revenues from the gold and jewellery in Dubai amounted to $35bn, making up 20% of the global trade of $173bn. Dubai is gaining momentum as a major global player and is consolidating its position to become the "World Jewellery Destination'.

In spite of such huge demand and immense opportunities, for Dubai to retain its position as a regional leader it has to bring about professionalism and create a culture to make industry specific education widespread. The future lies in knowledge based economies that can bring about innovation and change. Dubai must have professionals with specialized industry knowledge to address the requirements of today's well-informed customers, particularly the huge influx of international customers that are a vital component of the total revenues generated from the gold and jewellery industry.