Gold making charges are the labour fee a jeweller adds on top of the raw gold value, and in the GCC they are usually charged either per gram (around AED 15 to AED 60 in the UAE) or as a percentage of the gold value (roughly 8 to 16 per cent). They are the one cost buyers most often overpay, because unlike the gold rate, which is fixed daily, making charges are negotiable.
How do gold making charges work?
Your final price has three parts: the day’s gold rate multiplied by the weight, plus the making charge, plus any VAT. The gold rate is set by the market and is the same across a city on a given day. The making charge is where shops differ, because it covers the design, craftsmanship and finishing. Simple machine-made chains cost far less to make than hand-finished bridal sets.
- Per gram: a flat amount for every gram, best for plain, heavier pieces.
- Percentage: a share of the gold value, which gets expensive on high-value items.
In Dubai, plain machine-made chains typically carry AED 15 to AED 25 per gram, while handcrafted traditional designs run AED 30 to AED 60 per gram.
Does 22K, 21K or 24K change the charge?
Purity affects both the gold value and the making charge. 24K is nearly pure and soft, so it is used mainly for bars, coins and investment gold with low making charges. 22K and 21K are alloyed for strength and are the norm for jewellery in the Gulf, with 22K the most common in Dubai. Intricate 21K and 22K designs carry higher making charges because they involve more craftsmanship.
How much VAT do you pay on gold across the GCC?
Tax is a big reason total prices differ between Gulf countries. Investment-grade gold (99.5 per cent purity and above) is generally zero-rated, but jewellery and its making charge are usually taxed.
| Country | VAT on gold jewellery / making charge (2026) |
|---|---|
| UAE | 5% (investment-grade gold zero-rated) |
| Saudi Arabia | 15% |
| Bahrain | 10% |
| Oman | 5% |
| Qatar | No VAT yet |
| Kuwait | No VAT yet |
This is why the UAE and Qatar are often cheaper for jewellery than Saudi Arabia, where 15 per cent VAT applies, though Saudi and other states may offer partial tourist VAT refunds on eligible purchases.
Souk versus branded stores across the Gulf
Where you buy shapes what you pay. Traditional souks, such as the Dubai Gold Souk in Deira, the gold markets of Manama in Bahrain and the older souks of Doha and Riyadh, tend to be more flexible on making charges, especially if you pay in cash and buy more than one piece. Branded chains, including large Gulf jewellery retailers, usually fix their making charges but add value through hallmark certification, transparent pricing and formal buy-back schemes. In Saudi Arabia, where 15 per cent VAT applies, branded stores still dominate malls, while UAE and Qatar souks remain popular with tourists chasing lower total prices. Whatever the outlet, insist on a proper invoice showing weight, purity and the making charge separately, and check for the hallmark stamp that certifies the karat.
How do I bargain and avoid overpaying?
- Always ask for the “making charge per gram”, not just the total, so you can compare shops.
- Check the live gold rate on your phone before entering, so you know the metal cost.
- Prefer machine-made or lightweight designs if you want to minimise making charges.
- Compare a traditional souk with a branded store: souks often flex more on making charges, while branded stores fix them but may offer certification and buy-back.
- Ask about buy-back or exchange terms, as making charges are usually lost when you resell.
Frequently asked questions
Are gold making charges negotiable in Dubai?
Yes. The gold rate is fixed daily, but making charges are set by each shop and are the main thing you can negotiate at the Dubai Gold Souk.
Which is cheaper for gold jewellery, Dubai or Saudi Arabia?
Dubai is often cheaper because the UAE charges 5 per cent VAT versus 15 per cent in Saudi Arabia, though final cost also depends on the making charge you negotiate.
Do you pay making charges on gold bars?
Very little. Investment bars and coins carry minimal making charges and investment-grade gold is usually VAT zero-rated, which is why bars are cheaper per gram than jewellery.
Do you get making charges back when you sell gold?
Usually not. When you sell or exchange jewellery you are typically paid for the gold value only, so the making charge is a one-time cost.
Bottom line: Focus your negotiation on the making charge, not the gold rate, and factor in each country’s VAT. For live pricing and souk tactics, see our guides on buying gold in Dubai 2026, how gold rates compare across the GCC, and the Dubai Gold Souk 2026 guide.
