A trip down to the Gold Souk will demonstrate why Dubai has also earned itself the reputation as the 'City Of Gold'. The sheer scale and variety of gold on offer (at marked down prices) will impress even the most seasoned gold trader.

Prices are very reasonable and largely determined by weight, rather than design and craftsmanship. This souk is worth a visit even if you have no intention of buying, just to soak in the atmosphere of the bold affluence of this part of the world.

This souq is aggressively promoted during the Dubai Shopping Festival and Dubai Summer Surprises, which both rocket gold sales into orbit.

Dubai has evolved as a significant jewellery manufacturer. Saudi Arabian manufacturers have also established outlets in Dubai. Factories in Dubai and the neighbouring emirate of Sharjah produce around 49 tonnes (1.6 million oz) of gold jewellery annually. The essence of jewellery marketing in Dubai is high volume and low mark-up. With no sales tax, it is one of the cheapest places to buy jewellery. Indeed, Dubai calls itself 'City of Gold'. The 400 gold shops in its souks and shopping malls have 9.3 tonnes (0.3 m oz) on display in 18, 21, 22 and 24 carat gold, often with jewellery, coins and small bars.

The amount of gold jewellery consumed locally in the UAE stands at around 41 tonnes (1.3 m oz). Retail sales, however, are far higher because of the very large number of purchases made by tourists. A major surge in consumption occurs every March with the Dubai Shopping Festival which actively promotes gold. During the March 2001 festival, it is estimated that over 9 tonnes (0.3 m oz) of gold jewellery was sold.

The Dubai Gold & Silver Jewellery Group, an association of local manufacturers, wholesalers and retailers, is active in promotion.

The sheer scale, ostentation and variety of gold on offer will impress even the most seasoned traveller. Prices are largely determined by weight and the current Dubai gold price rather than by design and craftsmanship. This souk is worth a visit even if you have no intention of buying, just to experience the atmosphere of confident affluence of Dubai.

From earrings, rings, necklaces, bracelets and pendants, just about every conceivable kind of gold jewellery is on offer. Designs can be traditional or modern, bold or conservative, chunky or delicate if you have it in mind then its definitely on display. To entice you further, many different shades of gold are also available. Craftsmen can alter the composition of alloys in the gold to create pink, white, yellow or green hues in one piece.

While purchasing gold don't forget that there is always room to bargain so don't accept the first price and be sure to shop around. Also prices vary depending on whether the piece was made by a machine or a craftsman.