The Gold Souk of Dubai is one of the most celebrated attractions, not just for the locals there, but also for every tourist visiting Dubai. Located in the commercial business district of the country, in Deira, it is one of the most traditional markets of Dubai with over 380 retailers, predominantly jewellery traders.
But what’s new on the cards for Dubai’s Gold Souk is a makeover spree, without disturbing its original value. In other words, right next to the existing Deira Gold Souk, the new extension is coming up, stretching from the Shindaga Tunnel to the edge of Hyatt Regency.
It plans to open for business in the second quarter of 2020. The work has already been approved for tenders worth Dh 3.5 billion and is due to be completed by the fourth quarter of 2019.
What’s New and Interesting
An extension to the old one; 100 out of the 295 new retailers plan to open their operations at the Deira Gold Souk under the first phase of a wider development by mid-2020. There are 36 plots that have been developed, from the Hyatt Regency Hotel to the Shindaga Tunnel. The lease rates begin from Dh 700 per square foot.
From the Developer’s Desk
Where the developers aim to preserve the ancient character and culture of this lively trading set up, the new expansion is surely going to represent a heightened shopping experience for both the traders as well as the shoppers. Keeping the distinct heritage of the area in mind, the new addition would open new doors to modern commerce.
Claiming to be Dubai’s next big gold and jewellery destination, the rental terms for the newly extended area involves deep research and proper checks conducted by Issam Galadari, the CEO of Ithra, Dubai, who has laid down the terms and conditions, keeping in mind the interests of one and all.
To ease things for the traders, he went ahead and abolished the ‘key money’ system for this new extension, which involves paying off a flat lump sum amount to the landlord by the tenants.
Bye-Bye Old Ways
For decades now, the system of paying the ‘key money’ has dominated the Gold Souk market. During peak demands for space, this amount would sum up to as high as Dh 5 million to Dh 6 million. But the latest deals have seen that this practice becomes obsolete.
Even in the Old Souk, the current prevalent rates are Dh 1 million for a single store in a prominent spot. Contrary to this, there are certain areas here where rents have not changed over the years and still stand as low as Dh 11,000 yearly.
The current extended area of the Gold Souk, however, has the possibility of attracting a new league of gold buyers amidst an updated and more refined retail environment.
Reviving the Old to Merge with the New
Last but not least, the new extension to the Old Gold Souk is not just restricted to adding new retail outlets to it, but it also focuses on the refurbishment of the existing shops there. Hence, the idea is to showcase the entire Gold souk area, both old and new, as a single attractive entity, which would remain on the top of the wish lists of every visitor coming to Dubai.
So hold your breath as you await the opening of this grand Extension by the second quarter of 2020.