UAE To Emerge As The World’s Integrated Global Gold Marketplace: UAE accumulates more than 25% of the global gold trade, and that is why it is all set to become the most integrated global marketplace, as per the speakers at the Global Gold Convention 2022.
Humaid Ben Salem, chairman of the International Chamber of Commerce (ICC UAE) and secretary general of the Federation of UAE Chambers of Commerce and Industry, conveyed to the delegates from more than 100 countries that the gold industry is essential to the UAE economy and the country is all set to become an integrated marketplace.
Further adding to his keynote, he said, ” The UAE is making this happen by providing all support to the global gold industry investors and traders as part of its non-oil sector diversification program. This Convention has successfully brought all stakeholders into a single platform that helps connect to the world and promotes investments, joint venture deals, and collaborating regulatory measures.
According to the official data, gold trade accumulates more than 29 per cent of the UAE’s total national non-oil exports and has shared a share in the country’s foreign trade activities.
Bullion experts at the gold convention stated that UAE is one of the world’s largest gold trading junctions, 20 to 40 per cent of the global gold sticks pass through Dubai annually.
Over the past two decades, UAE has emerged as a global gold trading junction, ranking as the sixth largest exporter of yellow metal globally, with 5.04 per cent of total exports of $305 billion.
As a leading export product, gold is a vital commodity for the UAE, comprising 6.36 of total exports. Apart from this, the import of gold holds the world’s fourth-largest rank, with a net value of $27.3 billion.
The ranking gold in the list of commodities comprises Dubai’s 2020 external trade at $58 billion, followed by telecoms at $41.65 billion and diamonds at $17.42 billion.
The annual export of gold is valued at $15.4 billion, diamonds at $10.2 million, and gold jewellery at $12.2 billion.
Apart from this, the overwhelming response from global organizations from five continents and 50 countries shows the confidence level of the international community in UAE’s stability for leading as the worldwide gold trade junction.
Jeffery Rhodes, founder and managing consultant of Rhodes Precious Metals Consultancy DMCC, stated, ” The gold industry is at the crossroads given the extreme volatility and interest rate changes that directly influence gold investments, highest inflation rates in the key markets which impact investor perception and regulatory measures.”
Sajith Kumar PK, managing director, and CEO, of IBMC Financial Professionals Group, also stated, ” We are happy to bring gold stakeholders from five continents on a single platform to make UAE the integrated global gold marketplace. It is overwhelming that they have pledged their support and commitment to increasing investments, trade, and other related activities to make Dubai the Integrated Marketplace vibrant. ”
At the Convention, several leading company representatives and experts discussed global industry practices taking into consideration the regulatory measures announced by UAE and other countries. The participants said that the growth of the industry depends on how the stakeholders follow best industry practices, which will, in turn, win investors’ trust, following transparency and regulating future transactions.
Also, a session on ‘Investment and business opportunities in the gold Industry’ followed that gold remains the most attractive investment despite the high manageability of gold prices. Aside from this, investment opportunities in mines, refineries, and trading and jewellery sectors were also taken into account.
MoUs with Ghana, Saudi Arabia, the UK, and Papua New Guinea are signed for facilitating investments regarding new strategies and solutions for gold business and assets.
Conclusion:
The production of gold, its import and export, has increased tremendously in the past few years, which is why Dubai is set to become the world’s integrated global gold marketplace. With the help of overwhelming responses from other countries and continents, Dubai’s marketplace will be seen prospering with gold.
