Gold making charges in UAE explained

Gold Making Charges in UAE: Rates by Market, How to Negotiate, and What You Lose on Resale

Making charges are the one part of the gold price in Dubai that’s fully negotiable — and where many buyers leave money on the table. Here’s exactly how they work, what ranges are reasonable, and how to push back.

What Are Making Charges?

Making charges (also called workmanship charges or fabrication charges) are the jeweller’s fee for converting raw gold into a finished piece. They cover labour, equipment, design complexity, and the shop’s margin on craftwork — not the gold itself. VAT applies to making charges as well as the gold value.

Making charges in the UAE are quoted in three ways:

  • Per gram (most common in the Gold Souk): A flat dirham amount per gram of gold in the piece. E.g., AED 6/gram on a 10-gram necklace = AED 60 making charges.
  • As a percentage of gold value: More common in branded/mall stores. E.g., 8% of the gold value.
  • As a flat fixed price: Some shops charge a single amount for a specific design regardless of weight.

Making Charge Ranges in UAE Markets

Market / Store TypeTypical Making ChargesNotes
Dubai Gold Souk (Deira)AED 3–8 per gramMachine-made pieces at lower end; hand-crafted higher
Sharjah Gold SoukAED 3–7 per gramSlightly cheaper than Dubai on average
Abu Dhabi souqAED 4–9 per gramSimilar to Dubai, less competitive pressure
Mall chain stores (Damas, Malabar)8–12% of gold valueLess negotiable; includes brand premium
High-end boutiques15–30%+ of gold valueDesign and brand premium; not price-driven
Custom/bespoke ordersQuoted individuallyAlways get a written breakdown

Are Making Charges Negotiable?

In the Gold Souk: yes, often significantly. On large purchases (50g+), it’s common to negotiate making charges down by 20–40% from the initial quote. Bring cash, be prepared to walk, and compare two or three shops before committing. Shops often open negotiations at AED 8–10/gram and settle at AED 5–6/gram for motivated buyers.

In branded mall stores: minimal negotiation on making charges, but you may get a discount on the piece overall during sales periods. Eid, DSF, and mid-year promotions often waive making charges entirely on selected pieces — worth timing purchases around these events.

Making Charges Are Not Recoverable on Resale

This is the critical point most buyers miss: when you sell gold back or exchange it, the jeweller pays you for the gold weight only at the current gold rate — not the making charges. If you paid AED 600 in making charges on a 100-gram piece, you lose that AED 600 on resale. This makes making charges a pure cost, not an investment — which is why minimising them (especially on pieces bought primarily as investment gold) matters.

For how making charges factor into the total price calculation, see how gold price is calculated in UAE. For the all-in cost on a 10-gram purchase specifically, see 10 gram gold price in UAE with making charges.

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