Traders expect that sales of jewelry will be in the fourth quarter, ending a long spell of sales decreases, as the end of the summer season will bring more tourists and more Indian expats who would enjoy the festive buying.
Traders said October sales were little changed from the previous month but more than 50 percent from the same month last year.
"It is especially difficult for diamond jewelry," said one trader, speaking on consumers to reduce expenditure on items of high value in difficult economic climate.
Dubai sieraden retailers have dropped about 50 percent so far this year, the trend in the industry said it could pass for tourists to return to the market.
"The season has started, but tourists not to buy. Let's see what happened in the last two months of this year," said a manager at the Marhaba Jewellery chain.
Diwali does not bring in more buyers, but it "just for one day" as consumer sentiment was dampened by record-high price of gold.
Metal rose to a record $ 1,072 an ounce on October 14, three days before Diwali, about 20 percent more than the price at the beginning of 2009. It traded around $ 1,045 on Friday.
Climbing gold prices has also belied the hopes of increased sales on the occasion of Eid al-Fitr, which marks the end of the holy month of Ramadan marks.
Abu Dhabi, a smaller market than Dubai, that does not really rely on tourism spending as a prominent neighbor, saw a 20 percent jump in sales in October from September, but year-on-year decline was 50 percent.
"For Diwali, we see more sales for one day. It's not like before. We have 50 percent less than in October last year," said Tushar Patni Jewellers Ajanta director.More news click here.
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