They threatened that they would not return the valuables unless she paid them Dh 20,000 (nearly USD 5,500) within 15 days.
Colonel Ojeil Ali Abdullah Al Junaibi, Director of the Western Region Police Directorate, said the seven gang members had face masks when they were intercepted.
Knives of different sizes, a large bat, two iron rods, plastic ropes, different currencies, phones, watches, electronic devices, gold and silver rings and necklaces were found in their possession, he said.
"The gang was busted because of the alacrity with which the officers responded after the woman reported the incident and their precision in collecting information," Al Junaibi said.