Gold Purchases in the Four Largest Arab Markets Reach 41 Tonnes in Q1 2026

Marsad Al Dahab for Economic Studies revealed that total gold purchases across Saudi Arabia, the United Arab Emirates, Egypt, and Kuwait reached approximately 41 tonnes during the first quarter of 2026, according to data from the World Gold Council. The figures indicate a notable shift in consumer behavior across Arab markets, with declining demand for gold jewelry offset by stronger investment demand for gold bars and coins.

According to Marsad Al Dahab, the data confirm that Arab gold markets continue to demonstrate resilient demand despite the record-high global gold prices recorded during the first quarter. However, consumers have become increasingly selective in their purchasing decisions, with a growing preference for investment products that carry lower fabrication costs and offer stronger value preservation.

Total demand across the four markets consisted of 24.43 tonnes of gold jewelry and 16.57 tonnes of gold bars and coins, reflecting continued strength in consumer demand alongside growing investment activity.

Saudi Arabia remained the largest Arab gold market, recording total purchases of 17.80 tonnes during the first quarter, including 12.70 tonnes of jewelry and 5.10 tonnes of bars and coins. The Kingdom's performance reflects robust consumer spending, supported by economic growth and resilient household demand.

Egypt ranked second with total gold demand of 10.86 tonnes, comprising 5.16 tonnes of jewelry and 5.70 tonnes of bars and coins, making it the only market among the four where investment demand exceeded jewelry consumption.

Marsad Al Dahab noted that this trend reflects the unique characteristics of the Egyptian market, where economic volatility and elevated inflation have reinforced gold's role as a preferred store of value and inflation hedge, driving stronger demand for investment products relative to jewelry.

The United Arab Emirates ranked third with total demand of 8.72 tonnes, including 4.73 tonnes of jewelry and 3.99 tonnes of bars and coins, supported by its position as a global hub for the gold and jewelry trade, in addition to strong demand from residents and international visitors.

Kuwait recorded total demand of 3.62 tonnes, consisting of 1.83 tonnes of jewelry and 1.78 tonnes of bars and coins, reflecting a well-balanced market between consumer and investment demand.

Compared with the first quarter of 2025, total purchases across the four markets declined from 44.96 tonnes to 41 tonnes in Q1 2026, representing an annual decrease of approximately 8.8%.

The decline was primarily driven by weaker jewelry demand, which fell from 31.30 tonnes to 24.43 tonnes, a decline of nearly 22%, as record-high global gold prices significantly increased the cost of purchasing finished jewelry after fabrication charges.

By contrast, demand for gold bars and coins increased from 13.66 tonnes to 16.57 tonnes, posting annual growth of approximately 21.3%, highlighting a continued shift from decorative gold products toward investment-oriented purchases.

Saudi Arabia remained the largest Arab market in terms of total demand, while Egypt led the four markets in investment demand for gold bars and coins with 5.70 tonnes, ahead of Saudi Arabia (5.10 tonnes), the UAE (3.99 tonnes), and Kuwait (1.78 tonnes).

Investment products accounted for approximately 52.5% of Egypt's total gold demand, compared with 49.3% in Kuwait, 45.7% in the UAE, and 28.7% in Saudi Arabia, illustrating the differing demand structures across Arab markets.

Annual World Gold Council data also reveal significant differences in per capita gold consumption. The United Arab Emirates ranked first with an average of 3.99 grams per person annually, followed by Kuwait at 3.34 grams, Saudi Arabia at 1.71 grams, and Egypt at 0.41 grams per capita.

Marsad Al Dahab noted that the higher per capita consumption in the UAE and Kuwait reflects not only stronger purchasing power but also relatively smaller populations, vibrant jewelry retail sectors, thriving tourism, and sustained demand from expatriate communities.

The data further indicate a structural shift in consumer behavior across Arab markets over the past two years. Gold is increasingly serving a dual purpose as both an ornamental asset and a long-term store of value, with investment demand continuing to strengthen amid persistent economic uncertainty, volatile interest rate expectations, and ongoing geopolitical risks.

Marsad Al Dahab concluded that Arab gold demand has proven remarkably resilient despite elevated price levels. Rather than exiting the market, consumers have gradually reallocated spending toward investment products, a trend expected to continue as long as global gold prices remain historically high and macroeconomic uncertainty persists.