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Buyer Guide

Understanding making charges, a UAE buyer's guide

The making charge is the second number every jeweller quotes. Here is how it is calculated, what a fair figure looks like in 2026, and the three questions to ask before you sign the receipt.

Last updated 2026-03-30 09:00

The making charge is the second number every jeweller quotes. Here is how it is calculated, what a fair figure looks like in 2026, and the three questions to ask before you sign the receipt.

Goldsmith hands on detailing of a 22K bangle in a Dubai jewellery workshop.

The making charge, sometimes called the "wastage" or "labour", is what a jeweller adds to the metal price to cover design, manufacturing, polishing and stone setting. It is the single largest variable in a UAE jewellery quote.

Two models, one number

Jewellers in the UAE quote making charges in one of two ways:

  1. Per gram, a flat AED figure for every gram of metal in the piece. Common for plain bangle and chain work. Typical 2026 range: AED 5 to 15 per gram for machine work, AED 20 to 40 for hand finished pieces.
  2. Percentage, a percentage of the metal value. Common for sets and stone mounted pieces. Typical 2026 range: 6 to 12% for 22K bangle work, 10 to 18% for designer collections, 25 to 45% for handcrafted couture and large stone settings.

The percentage model moves with the gold rate; the per gram model does not. When gold rallies, the per gram model becomes more favourable to the buyer; when gold drops, the percentage model does.

What a fair charge looks like in 2026

For a standard 22K bangle weighing 20 to 30 grams, a fair making charge at a Deira counter sits at AED 8 to 12 per gram (about 4 to 6% of metal value at AED 285/g). At a mall designer counter expect 8 to 12% on the same piece. Bespoke or hand finished pieces will run higher, that is craft labour, not a markup.

Watch for: charges quoted as a single combined "rate" that bundles metal and making. Always ask for them separately on the receipt, both for transparency and because VAT applies differently.

VAT, simply

UAE VAT on gold is structured to keep the metal itself competitive. Investment grade gold (24K bars and certain coins) is zero rated. Jewellery's metal portion is also exempt; the 5% VAT applies only on the making charge. So on a 30 gram 22K piece at AED 285/g with a 10% making charge, the VAT line is calculated on the AED 855 making charge, not on the AED 8,550 metal value. That keeps the headline tax small. Source: UAE Federal Tax Authority (zero rating of investment gold under Cabinet Decision No. 46 of 2020).

Three questions before you sign

  1. Is the making charge per gram or a percentage? Get the number both ways so you can compare.
  2. What does it cover? Polishing, plating, rhodium finish, basic stone setting, make sure they are inside the price.
  3. What is the buy back policy on this making charge? Reputable UAE jewellers refund 90 to 95% of the metal value on resale, but most absorb the making charge. Know that going in.

One last note

Making charges are negotiable in Deira and at independent counters; they are usually fixed at mall chains. If you are shopping the souk, asking is part of the etiquette, and you will almost always land 1 to 2 percentage points below the opening quote.

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