Gold Prices in Oman 2024 – Trends, Market Insights & Investment

Gold prices remained stable in the final trading days of 2024, marking the best annual performance in over a decade. In 2024, gold experienced a significant surge, reaching its highest price of $2,531 per ounce.

Gold Market in Oman: Key Data Insights

Increase in Central Bank Reserves: Oman’s Central Bank increased its gold reserves to 2.36 metric tons in the first quarter of the year 2024 as part of its efforts to diversify assets and hedge against economic fluctuations. [Source]

Rise in Gold Imports: Gold imports in Oman rose by 41% during the first five months of the year, reflecting higher demand as a value-preserving asset. [Source]

Domestic Price Increase: Gold prices in Oman increased by 26.6% in 2024, directly impacting local market purchase costs. [Source]

Gold as a Sharia-Compliant Investment: Gold remains a preferred investment for Omani investors due to its compliance with Islamic financial principles.

Oman’s proximity to Dubai, a major gold trading hub, contributes to competitive pricing and stable access. The increase in central bank reserves and local demand is expected to sustain the gold market’s upward trend in Oman.

In the coming years, gold will continue to be a safe-haven investment for wealth protection and Islamic finance-compliant investment strategies among Omani investors.

Gold Price Symbol in Omani Forex Markets – XAU/OMR

Track Oman’s gold price live – XAU/OMR Gold is traded globally under the symbol XAU, against the US Dollar (XAU/USD) and the Omani Rial (XAU/OMR). Live price tracking is available on financial platforms such as Investing.com.

24-Carat Gold Price Per Gram in Oman

The year 2024 was marked by significant fluctuations in the gold market in Oman, driven by global monetary policies, inflation, and increased demand for gold as a secure asset. In Oman, gold holds both economic and cultural significance, being an integral part of traditional ceremonies and celebrations.

The chart below illustrates the price trend of 24-carat gold per gram in Oman throughout 2024, highlighting key points: [Source]

• Start of the year: OMR 25.6 per gram (January 1, 2024)
• Lowest price: OMR 24.6 per gram (February 14, 2024)
• Highest price: OMR 34.4 per gram (October 30, 2024)
• End of the year: OMR 32.4 per gram (December 31, 2024)

Final Gold Price Calculation in Oman (Key Pricing Factors)

Like many other countries, three key factors influence the final price of gold in Oman:

1. Value-Added Tax (VAT):
   • Implemented in April 2021, Oman applies a 5% VAT on most goods and services, including gold. This directly affects the final retail price. [Source]
2. Jewelry Making Charges:
   • The crafting and manufacturing costs of gold jewelry depend on the complexity of the design and craftsmanship, impacting the overall price.
3. Retail Markup:
   • Retailers add a profit margin to the gold price, which varies based on store policies and the type of gold products sold.

These factors, combined with the intrinsic gold value, determine the final gold price in Oman, requiring careful consideration before making a purchase.

Decline in Gold Sales in Oman Amid Rising Prices

The continuous rise in gold prices throughout 2024 significantly impacted gold sales in Oman, leading to a decline in transactions. Geopolitical factors, financial market fluctuations, VAT implementation, unlicensed gold workshops, and speculative market activities were among the primary drivers behind the price surge and reduced consumer demand.

The price surge even affected wedding season sales, traditionally a peak period for gold purchases. According to recent reports, gold sales in Oman declined by 30% in recent months, with many customers shifting to silver and gold-plated jewelry as alternatives.

Gold Import & Export Statistics in Oman

Gold Imports:

• Oman’s gold imports increased by 41% in the first five months of 2024, reaching a value of OMR 176.6 million ($458 million) compared to OMR 125.1 million ($324 million) in 2023.
• The total imported gold weight reached 8,443 kg, a 48.8% increase compared to 5,675 kg in 2023.

Top Gold Exporters to Oman:

• UAE: OMR 170.4 million ($442 million)
• Hong Kong: OMR 3.17 million ($8.2 million)
• Turkey: OMR 1.42 million ($3.7 million)
• Bahrain: OMR 680,688 ($1.7 million)
• Russia: OMR 314,625 ($818,000)

Oman’s gold exports decreased by 23%, totaling OMR 14.7 million ($38 million) in 2024, down from OMR 18.9 million ($49 million) in 2023.

Exported gold weight declined to 510 kg, compared to 924 kg in 2023.

Top Gold Importers from Oman:

• USA: OMR 7.23 million ($18.8 million)
• UAE: OMR 8.00 million ($20.8 million)
• Hong Kong: OMR 603,488 ($1.56 million)
• India: OMR 475,584 ($1.23 million)
• Bahrain: OMR 203,601 ($526,000)

Re-Export of Gold from Oman

Re-exporting gold refers to the process where Oman imports gold from countries like UAE, Hong Kong, or Turkey, and then exports it to Iran, Turkey, or the USA.

Top Destinations for Omani Re-Exports:

• Iran: OMR 41.59 million ($108 million)
• Turkey: OMR 3.83 million ($9.9 million)
• UAE: OMR 3.35 million ($8.7 million)
• USA: OMR 3.18 million ($8.2 million)
• India: OMR 723,374 ($1.88 million)

Oman’s Gold Trading Laws & Regulations

1. Gold Purity Standards:
   • Gold sold in Oman must meet strict purity regulations, ensuring fair trade.
2. Retailer Licensing:
   • Jewelry vendors must obtain licenses from the Ministry of Commerce, Industry, and Investment Promotion (MOCIIP).
3. Import & Export Laws:
   • Customs regulations require accurate declaration of gold value and weight.
4. VAT on Gold:
   • A 5% VAT applies to most gold purchases, with exceptions for investment-grade gold.
5. Anti-Money Laundering (AML) Compliance:
   • Vendors must verify customer identities and report suspicious transactions.
6. Consumer Rights Protection:
   • Customers have rights to fair pricing and authenticity verification when purchasing gold.

The Omani gold market operates under a well-regulated framework, ensuring quality, transparency, and security in transactions. Understanding these regulations helps consumers and businesses make informed decisions when dealing in gold.