Buying gold from Oman now more beneficial

Muscat: Indians living in Oman and the other GCC should buy their gold in these nations, as compared to buying it when in India, a leading jewellery chain in Oman has said.

The news comes after the Indian government decided to increase its customs duty on gold from 10 per cent to 12.5 per cent, and Abdul Salam KP, the group executive director of Malabar Group, the parent company of Malabar Gold and Diamonds, says this will encourage more people to buy gold from overseas.

“Even the most popular designs and artefacts of India will be much cheaper in Oman, other GCC states, Singapore and Malaysia,” he said.

“Earlier these markets depended on imports from India, but now many of these markets have developed with manufacturing facilities. As the machinery and manpower is available from various parts of the world, jewellery manufacturing is growing in these markets. Customers from the subcontinent, especially from India, can take advantage of this price benefit."

Abdul Salam added: “With the revised duty structure, the customer will save more than INR 400 (about OMR 2.25) per gram on gold purchases from GCC countries. This will definitely encourage bulk buyers, especially on wedding related purchases, to visit Muscat or any of these markets. If a family of four visits and brings back jewellery in a reasonable quantity, they can cover their trip cost easily. They also have the additional benefit of a much wider choice from international jewellery”

The current difference in price as compared to India is because of the presence of the increased customs duty of 12.5 per cent, as well as other taxes, which hover at around three to four per cent. However, in the Gulf countries, gold bullion is zero rated for tax.

“The increase in import duty from 10 per cent to 12.5 per cent will also affect the import of jewellery from different parts of the world into India,” explained Abdul Salam. “This will affect the availability of internationally designed and manufactured jewellery. Customers will therefore find a much larger array of designs and jewellery in markets in the GCC, Singapore and Malaysia.”

“People from the Indian subcontinent still believe gold is the ideal investment compared to other options,” he added. “As a substance with high market liquidity, it can be easily sold without having to alter the price. In addition, it is a movable asset whose value does not witness depreciation with uncertain economies. So, this price advantage will be beneficial for those who buy gold as an investment.”

Oman is part of the six-member Gulf Cooperation Council, which also includes Saudi Arabia, United Arab Emirates, Qatar, Bahrain and Kuwait. According to the National Centre for Statistics and Information, there are 1,957,285 expatriates currently living in Oman, of which 651,311 are Bangladeshis, 642,291 are Indians, and 212,011 are Pakistanis. There are also 21,876 Sri Lankans and 16,889 Nepalese in Oman.