Wednesday 28 / May / 2025
Muscat: High gold prices are forcing many business owners in Oman to put on hold their expansion plans and compelling young people to delay their marriages.
The jump in prices over the last few days is a knock-on effect of the ongoing conflict between Russia and Ukraine, which has impacted the prices of many commodities, including oil, foodgrains, and precious metals.
“Never before have we seen this kind of increase in such a short span of time, and we are also closely monitoring the fluctuations in gold rate,” said K Najeeb, regional head for Malabar Gold and Diamonds. “Gold prices are rallying because of their acceptability as a safe-haven asset, owing to the geopolitical and economic consequences of the conflict between Russia and Ukraine.”
Gold prices have been steadily rising over the past week. The cost of 24 carat gold rose from OMR 24.35 on 28 February to OMR 25.7 on 8 March. Similarly, the price of 22 carat gold rose from OMR 23.3 to OMR 24.55, 21 carat gold increased from OMR 20.9 to OMR 22.1. Gold prices rose to the highest in two years and last week reached $2,000 per ounce.
“I am putting on hold my expansion plans to open another gold shop this year. There is currently a low demand for gold buying. I would say 60 percent of my usual customers have stopped coming in the last four months and that hit my business hard,” Khalfan Al-Rashdi, the owner of a gold shop in Seeb, told Times of Oman.
Business owners are also hoping the current situation cools down quickly.
“The war in Ukraine is making it worse. Half of my supply comes from the East European countries where the no-fly zone and sanctions to Russia and Ukraine are taking place. The import of commodities are now expensive because of high cost of insurance and that drives up inflation,” Haidar Al Salami, an owner of building materials in Barka, told Times of Oman.
New SME owners also are putting on hold their plans to start their trades until the inflation situation calms down.
“I was about to start a food distribution business to the Batinah cities but suddenly found that the prices of commodities have gone up because of inflation. If I start the business now, then I would have to increase prices and that would not go well with my prospective customers,” Rashid Al Maqbali, a 26-year old from Seeb, told Times of Oman.
In turn, higher gold prices are now forcing young people in Oman to tone down their wedding celebrations while some simply delay tying their matrimonial knots waiting for some reprieve in the near future.
“I got engaged and my wedding is due in June this year, just after the Eid Al Fitr. But the prices of gold are almost double compared to last year when my sister got married. As a bride to be, I would certainly need to buy gold for my wedding. It looks like I would not be able to buy much from the dowry I would get,” Jokha Al Zaabi, told Times of Oman.
But high cost of marriages have not only been driven by record gold prices, but the general wedding costs due to inflation, too, according to young Omani men who are considering tying matrimonial knots.
“I would need to work another year and save more money before I even consider getting married. It is not just the gold prices which are high but the wedding costs like the hotels, food, gifts and clothes as well, have gone up. So I am just delaying my marriage for another year,” Khalid Al Harthi, told Times of Oman.
