MECCA: Economic hardships brought about by Arab Spring uprisings have taken a toll on jewellery retail trade in Saudi Arabia's Muslim holy city of Macca, slashing gold sales by more than half compared to the same period last year, retailers said.
Visitors from Arab countries traditionally buy jewellery during the annual Muslim haj pilgrimage, often taking home necklaces, rings and bracelets to loved ones.
Figures were not immediately available on the value of gold sales, but traders say the haj season is traditionally the busiest for dozens of shops just outside the Macca, whose windows glitter with bracelets, necklaces, rings, earrings, lockets and chains.
Residents say up to 2 million pilgrims from outside Saudi Arabia usually spend the first few days looking for gifts and souvenirs to take home before the haj rituals start.
While restaurants and food stalls near the Macca remain busy, gold stores remained empty, with shopkeepers looking bored, flicking through magazines and playing with mobile phones.
"Gold sales have really taken a hit, I would say the market is down by more than 50 percent compared to the last haj season," Mohammed al-Himms, store manager at MS jewelry outside Macca told Reuters.
About 40 percent of his business was with Egyptian pilgrims, who had for long been some of his main customers, he said, adding, "But now because they have been affected by the Arab Spring they don't have any extra money to spend on gold."
Bullion prices in the Mecca retail markets this year are around 160 riyals ($43.8) per gram compared to around 200 riyals last year.
On the world market, spot gold was down 1.5 percent at $1,266.80 on Friday, having earlier fallen as much as 1.8 percent to its lowest since July 10 at $1,262.14 an ounce.
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