As production shifts to Dubai and Egypt, industry veterans warn of a mass exodus and the closure of hundreds of workshops in Istanbul’s premier gold hub.
The Turkish jewelry industry, traditionally a global powerhouse in gold manufacturing and design, is facing one of its most challenging periods in recent history. The combination of record-high global gold prices and domestic regulatory constraints has dealt a severe blow to the sector, leading to a sharp decline in consumer demand and a significant contraction in production.
At the heart of this crisis is Kuyumcukent, Türkiye’s largest gold trading and manufacturing complex. Once a bustling center of craftsmanship, the hub is now witnessing a troubling trend of shuttered doors and quiet workshops. According to industry experts and former administrators, the sector has contracted nationwide, with Kuyumcukent alone estimated to have emptied by 20 percent.
The Quota Catalyst: Why Exporters are Leaving The primary turning point for the industry was the gold import quota introduced in August 2023. While designed to manage the current account deficit, the quota triggered an unintended consequence: a loss of price competitiveness for Turkish exporters. With the cost of raw gold in Türkiye rising above international market rates due to the quota, overseas customers have begun sourcing their jewelry elsewhere.
Veteran jeweler and former Kuyumcukent administrator Habib Kocabaşoğlu highlights a growing trend of relocation. Numerous workshops have closed their Istanbul operations to move to markets where their clients are now based—most notably Dubai and Egypt.
“Some of the departing operators are foreign investors who arrived in Türkiye a decade ago,” Kocabaşoğlu noted. “They brought capital, learned the local craft, and are now transplanting that expertise to rival markets abroad.”
A Looming Wave of Closures in 2026 The outlook for the first quarter of 2026 remains bleak. Reports from within Kuyumcukent suggest that the exodus is far from over. As of January 2026, an estimated 300 additional workshops are reportedly preparing to file for closure or suspension of activities.
For the domestically focused firms, the situation is equally dire. As gold prices reach levels that deter the average consumer, jewelry has shifted from a common gift and investment to an unattainable luxury for many. This slump in local demand, coupled with rising overhead costs, has left small-scale artisans with no choice but to downsize or exit the trade entirely.
Industry Call for Action The Turkish jewelry sector is now at a crossroads. Industry leaders are calling for a revision of the import quota system to allow manufacturers to access raw materials at global prices. Without such intervention, there are fears that Türkiye may lose its competitive edge in jewelry design and craftsmanship—a legacy built over centuries—to emerging hubs in the Middle East.
Citations & References
- Kuyumcukent Management Reports: Internal data on workshop occupancy and closure applications (January 2026).
- Habib Kocabaşoğlu Statement: Public assessment on the migration of gold manufacturing to Egypt and Dubai.
- Turkish Ministry of Treasury and Finance: Documentation on the August 2023 Gold Import Quota and its impact on the jewelry sector.
- Bloomberg HT / Economy News: Reports on the rising “gold premium” in the Turkish domestic market compared to international spot prices.
