Their legitimate trade was hit in 1998 when the Indian Government relaxed regulations to allow imports directly from other markets, particularly Europe. But Dubai traders are now perfectly placed to export illegally, having done so for years before India legalised gold imports in 1991. Some of the traders have said Dubai is back in business. It is almost impossible to stop smuggling. These people are very innovative.
Gold is relatively easy to smuggle.
The government defended its decision to increase duty to 9.5 per cent from 6.5 per cent. The pace of gold imports into the country has been such that it may constitute a significant draw on the foreign exchange balance of the country. The hotel, under construction next to The Jumeirah Beach Hotel in Dubai, is due to open by the end of 1999. Burj Al Arab will stand at 321 metres when completed. It will house 202 luxury duplex suites, the smallest of which will measure a colossal 169 square metres.