The fastest-growing of the seven United Arab Emirates, Dubai has sprouted up like magic from the desert sands in the last decade. The skyline bristles with cranes (a quarter of the world’s construction cranes are said to be operating here) and the population is fast approaching 1.5 million.

Reliable sunshine brings tourists year-round to this fantastical city on the Persian Gulf. Hotel lobbies are filled with a mix of cultures: Sunburned British and German tourists in tank tops pass by sheikhs in sunglasses and crisp dishdashas, accompanied by women swathed in black abayas.

Shopping here ranges from high-end malls (with many of the same upscale stores you find in Europe and North America) to lower-end souks—but these markets are a far cry from the warren of cramped, chaotic alleys in a more traditional Middle Eastern city like Cairo. (Surprisingly, many souk stalls have even added air-conditioning.)

Since Dubai has no real downtown, you’ll have to take a cab or hotel shuttle bus to reach most of these spots. Serious shoppers should try to hold out till the next Dubai Shopping Festival, a monthlong cavalcade of irresistible deals that starts in late January. Meanwhile, here’s a sampling of what’s out there.

SOUK MADINAT JUMEIRAH
This is a good place to get started. Okay, it’s not a real souk—it’s a strategic move by the sprawling Madinat Jumeirah resort to ensure that guests need never leave the grounds (especially since the resort also has a beach and 45 restaurants and bars). The market—which is air-conditioned—consists of a series of sandstone-floored, shop-lined hallways, their high ceilings decorated with carved wooden arches. Some stores carry conventional goods (framed photographs, sunglasses), but you’ll also find souvenir stalls selling brass camels, embroidered cushions and belly-dancer costumes. A rug store (Persian Carpet House & Antiques; Shop 3 & 4) carries beautiful Turkish stained-glass lanterns. You’re intended to get lost in the market’s layout, but you can chart your course by the number of times you’ve passed the Starbucks (or, failing that, Cinnabon—no kidding!).

MALL OF THE EMIRATES
Dubai’s biggest mall, for now. Come here for high-end U.K. department stores, like Harvey Nichols and Debenhams, and for the massive French supermarket, Carrefour, where you can stock up on delicious chocolate-covered dates for the folks back home. Carrefour even has a mini spice market where you can fill your own bags with cardamom pods and cumin seeds, or just check the prices so you know how hard to bargain when you hit the old city’s real spice market later on. The biggest draw here is Ski Dubai, whose five indoor ski runs have man-made snow (replenished nightly), real lifts, and a Tyrolean-style café overlooking the action on the slopes.

GOLD & DIAMOND PARK
To say it lacks atmosphere is an understatement. In this well-chilled, marble-floored mall, whose 90 shops sell only high-end jewelry, you could be almost anywhere in the world. But you’re not just anywhere, you’re in Dubai—and that means gold prices can be surprisingly low, due to high sales volume, low import duties and no tax. Don’t be afraid to bargain, even here. But before you venture out, check in the paper or online at dubaicityofgold.com for the day’s fixed price for gold. Most of the gold jewelry is 18- or 22-carat and sold by weight; you shouldn’t pay more than the daily rate unless the workmanship is especially intricate. Locals recommend Cara Jewellers (Shop 24/57) for its good selection and fine craftsmanship: Bring in a favorite ring or bracelet, or just a photo, and they’ll have a copy made in a day or two.

THE BOULEVARD, JUMEIRAH - EMIRATES TOWERS
Essentially, it’s just a high-end mall, but the scale is friendly (about 50 shops) and it’s convenient to guests of the soaring Emirates Towers. Check out Boutique 1 for its well-edited selection of designer goods, arranged in individual boutiques so you won’t feel overwhelmed (except, perhaps, by the prices). Another must-see: Ajmal Eternal, where exotic, musky Arabic perfumes are blended and sold in exquisite crystal flagons.

SPICE SOUK
Venture into Deira, the “real” Dubai, to see two fragrant blocks of spice stalls, where barrels full of spices from Iran (frankincense, myrrh, cardamom, cumin, saffron, oregano) await buyers. Most stalls carry similar products. If you’re determined to buy (and why not—they make good souvenirs) walk the alley and settle on a merchant. He’ll invite you into his stall—air-conditioned!— and begin the hard sell. If bargaining makes you nervous, think of what you’d pay for a two-ounce jar of the same spice back home (or what it costs in Carrefour, in the Mall of the Emirates), and work toward that figure in your haggling. To optimize your spice-shopping expedition, ask the cab driver to drop you on the far side of “the Creek” and take an abra, or water taxi, across the inlet to the souk. It’s a rare chance to experience Old Dubai, of which precious few traces remain.

GOLD SOUK
A short walk from the spice souk, you pass under a wooden arch whose sign reads “Dubai City of Gold” and enter a market of some 300 shops displaying gold, silver and diamond jewelry, including sleek contemporary pieces. As at the spice souk, there are plenty of tourists, and the merchants wear white shirts and ties, but you’ll see some Arabs in robes and veils. There are great deals to be had if you spot something that suits your fancy, so keep your bargaining skills honed.

How to Haggle
For Dubai’s merchants, bargaining is part of the purchase price. While it generally won’t work in the malls, it’s almost de rigueur at any stall or market. The first price suggested is usually outrageously inflated. To counter, offer half of that—or, if you’re bold, a third. Then slowly work up from there. If you get stuck, suggest the vendor throw in a small item to make up the difference. Or just walk away, ruefully shaking your head—and see if he follows.