Dubai: More Indian jewellery chains are likely to launch their operations in the Gulf market following a recent change by India in its regulations governing bullion imports, according to a media report. Kalyan Jewellery, one of the leading jewellery chains in India, recently entered the Gulf market with six outlets. "There is speculation that some leading jewellery chains will soon be launching their operations here and even one owned by an Indian conglomerate," Shamlal Ahmad of Malabar Gold and Diamonds was quoted as saying by the Gulf News. "The UAE and the Gulf are the only natural markets for them to expand into if they are to meet the requirement that 20 per cent of what they buy as bullion in India should be exported," Ahmad said.

Dubai's jewellery retailers had a good start to the year. They surfed through the Dubai Shopping Festival (DSF) campaign by selling over seven tonnes and helped by gold price that remained below USD 1,250 an ounce. However, demand cooled by 5 to 15 per cent post the DSF as prices increased to USD 1,300 an ounce. "It will take a little time for shoppers to absorb the higher level," says Ahmad. Cyriac Varghese of Sky Jewellery says the period immediately after a DSF has historically seen sales lose some of its luster. "The trade does not see as the USD 1,300 mark as leading to shoppers staying away for a longer timeframe. Local consumption was fairly high at the USD 1,500-1,600 an ounce range last year," Varghese said.