Turkey seeks greater role in global gold trade, until now centred in Middle East hub Dubai

While Istanbul has sought to fill the void caused by war and instability in Dubai, analysts say import restrictions and higher costs are likely to limit its ability to rival Dubai’s established gold trading ecosystem

Dubai: Istanbul could challenge Dubai as a centre for the global gold trade, a senior representative of Turkey’s jewellery industry has said, although other market observers believe the Emirate’s position is secure for now. The international gold sector is under pressure, with trade in Dubai disrupted by the war involving the United States, Israel and Iran, according to Ayhan Güner, vice president of the Jewellery Exporters Association of Turkey.

“Today Dubai is the centre of the global gold trade,” Ayhan Güner, vice president of Turkey’s Jewellery Exporters Association told media on March 9. “However, both the war and instability will have global repercussions for our sector. Istanbul, with both its gold exchange and diamond exchange, could fill the void.” Dubai traders are reportedly selling gold at a discount because of falling local demand and uncertainty over how long the war will continue. The precious metal is selling for up to $30 an ounce below the standard rate on the London Bullion Market, according to news agency Reuters.

Global gold prices have also eased since the outbreak of the conflict on February 28, 2026, dipping by about 2%. Turkey’s gold and jewellery industry is also likely to be affected by the trade disruptions, since more than 42% of its $8 billion exports last year went to countries in and around the Gulf region.

However, gold and money markets analyst İslam Memiş dismisses the suggestion that the gold trade could move to Istanbul. Turkey has much to do to put its own house in order before becoming a precious metals trading centre to rival or supplant Dubai, he told the media. This includes easing restrictions on gold imports introduced by the government to try to curb the trade deficit.

“Due to the quota on imports and high workforce costs, gold is much more expensive in Turkey to start with,” Memiş said. “Then let’s ask why this market is based in Dubai as well – no taxes and no registry, not like in Turkey.” Although the war was disrupting Dubai’s gold and jewellery trade, Memiş said Gulf pain would not result in Turkish gain. “It is true that money escapes risks, but it does not mean it comes and falls in your lap – not while the gold situation in Turkey is like this.”

The Dubai Gold and Commodities Exchange reportedly declined to comment on the issue.

Retail Jeweller ME News