Dubai Jewellery
Dubai has historically been an international hub for the physical trade of not only gold, but also many other commodities. In the late afternoon and in the evening, the streets around the Gold Souk fill themselves with people coming from all over the world. A colorful variety of Pakistanis, Indians, Arabs, Africans, Europeans, Americans and other nationalities.
    The oldest precious metal known to man, gold’s gleaming texture caught his attention in the earliest of times. No one can quite determine the date of mankind’s first encounter, and consequent obsession, with the fascinating metal. The making of jewellery from gold can be traced into history some five to six thousand years ago. Chains, rings, earrings, and all sorts of charms have been part of divine and royal life enhancement.
   Today, nearly half of the world's gold is kept by governments and central banks. All countries still regard it as a medium of international payment. The presence of gold has indeed made a remarkable impact on the human psyche.
   Dubai has the reputation of being the City of Gold and rightly so. A trip to the Gold Souk will demonstrate this. If you have not been, it truly is a marvel to see hundreds of golds shops all together, selling this age old investment. The city of Dubai has become popular for the superiority of the gold that can be found here. The marvellous metal has been one of the emirate’s earliest objects of trade. Clearly the gold trading hub of the Middle East and India region today, Dubai started out as a historical focal point on the international gold trading routes. Ever since, the emirate has been building up to its present image, earning popularity for its quality products and for the shrewdness in its re-export activity to regional markets. It is one of the biggest physical re-distributors of gold, and the fastest developing gold centre in the world. Every year Dubai imports on an average three hundred tons of gold.
   The quality of Dubai's gold is famous, as is the impressive variety of stylish designs. Another reason for Dubai's successful gold industry is the free trade environment, which makes Dubai probably the cheapest place in the world to buy jewellery.
   Gold prices are the same everywhere in the world (in different currencies of course) the difference lies in the purity and the making charges different shops charge.
People prefer buying gold in Middle east/dubai beacause of the purity. If they sell you 22kt then that is what it is going to be nothing less nothing more... that is not the case in Pakistan though... please talk to the shopkeeper to show you the stamp each and every piece of jewellery sold in dubai goes to a central place to get stamped.

Reference: http://www.dubai.com.pk/dubai-jewellery/