Gold traders in Oman express cautious optimism after India’s key custom reduction decision 

The Indian government has lowered customs duties on gold and silver from 15 percent to 6 percent, a move that is expected to make gold purchases in Oman more attractive 

Muscat– Gold traders and jewellers in Oman are cautiously optimistic about a potential boost in gold purchases by Indian expatriates following India’s recent reduction in import duties.  

Local traders anticipate that this policy change will encourage more expatriates to buy gold in Oman, where gold is perceived as being of higher quality. “Even with the reduced import duty in India, gold will still be nearly 5 percent cheaper in Oman,” said a trader on Ruwi High Street. “This makes gold and jewellery purchases here even more appealing.” 

Shamlal Ahamed, Managing Director for International Operations at Malabar Gold & Diamonds, praised the policy’s potential benefits. “The 2024 Union Budget’s reduction in import duties is expected to curb illegal gold imports and benefit organized jewelry retailers,” Ahamed said. “This move will foster a regulated and thriving jewellery market, benefiting both consumers and the industry, and promoting economic stability and growth.” 

A senior official from Lakhoos Exchange, a prominent bullion and forex exchange house, noted that the reduction in duties might make buying gold from Oman and transporting it to India a more attractive option. “The lowered duty is a welcome development, and many will still prefer purchasing gold from the Gulf due to its perceived quality,” he said. 

Another wholesale trader in Muscat highlighted that gold prices in the Gulf region would remain relatively lower compared to India, even after the duty reduction. “Indian expatriates and tourists often choose Muscat for gold purchases because of the metal’s purity and the wide range of jewellery designs available,” he noted. 

A senior official at a major exchange house dealing in bullion emphasized that while the new budget provisions are promising, the full impact will require further observation. “We anticipate an increase in gold purchases due to the significant duty cut. Despite fluctuations in prices, people are likely to continue buying gold from the Middle East because of the unmatched quality and variety available here.” 

Mohammed S., a sales manager at a local gold jewellery store, agreed that while gold may become cheaper in India, it remains more attractive to purchase in Oman due to the extensive range of options. 

However, Rafiq Hussain, a trader in Muttrah, advised caution. “The reduction in import duties is a crucial step toward curbing illegal gold imports in India. While it’s a positive move for the Indian market, it’s too early to predict its full impact on Gulf gold traders. The change is expected to create a more transparent and efficient jewellery sector in India, potentially boosting the Indian economy.” 

Despite the optimism, many traders and jewellers in Oman are adopting a wait-and-see approach to gauge the full implications of the reduced import duties. The gold market in Oman stands poised for potential growth, with cautious anticipation for increased demand from Indian expatriates and tourists. 

Retailer Jeweller ME News