Gold markets across the Middle East experienced clear divergence in 2025 amid record global prices, which directly reshaped traditional consumption patterns in most Arab countries. At the same time, several Gulf markets continued to post high per-capita consumption levels despite a relative slowdown.
Data show that total consumer demand for gold in the Middle East fell by about 3.5% in 2025, declining to roughly 271.3 tonnes from 281.2 tonnes in 2024. This mirrors the global trend of weakening jewelry demand as higher prices and shifting consumer priorities took hold.
Egypt Leads the Declines as Local Pressures Intensify
Egypt recorded the sharpest contraction among the Arab countries covered, with consumer gold demand dropping by around 9.9% in 2025 to approximately 45.1 tonnes. The decline reflects a combination of domestic economic pressures and the surge in gold prices in Egyptian pounds to unprecedented levels, prompting many consumers to cut back on jewelry purchases or postpone buying decisions, while gold increasingly became a selective savings vehicle rather than a broad consumer good.
Gulf Markets: Measured Pullback and a Shift in Buying Behavior
Across the Gulf, consumer demand declined at varying rates. Demand in the UAE fell by 8.3%, Kuwait by 7%, and Saudi Arabia posted the mildest decline at 4.7%. This performance points to relative resilience in Gulf markets despite their direct exposure to record prices.
In the UAE in particular, jewelry demand saw a sharper pullback as consumers gravitated toward lightweight pieces, gold bars, and coins as alternatives to high-ticket traditional jewelry, while the country retained its position as a regional hub for gold trading and re-exports.
Per-Capita Consumption: UAE Still Tops Global Rankings Despite the Dip
On a per-capita basis, the UAE continues to lead globally despite a modest decline in 2025. Average per-person consumption stood at about 3.99 grams per year, down from 4.34 grams in 2024, keeping the country among the highest worldwide.
Kuwait ranked second regionally at roughly 3.34 grams per person, followed by Saudi Arabia at about 1.71 grams annually. By contrast, Egypt recorded the lowest level among the countries cited, at around 0.41 grams per person—below the global average—underscoring the limited breadth of individual gold consumption and its concentration among specific segments or for selective investment purposes.
Bottom Line
Developments in 2025 suggest that Middle East gold markets are undergoing a period of repositioning. Elevated prices are no longer a universal tailwind for demand; instead, they have become a constraining factor reshaping consumer behavior—especially in middle-income markets. While Gulf countries, led by the UAE, maintained their global standing in gold consumption, major markets such as Egypt face a dual challenge of high prices and weaker purchasing power, potentially driving deeper shifts in demand dynamics in the years ahead.
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