The gold industry is vital to the UAE economy and the country is poised to become the most integrated market
Gold trade accounts for more than 29% of the UAE’s total non-oil domestic exports and represents a significant portion of the country’s foreign trade activities.
The UAE, which accounts for more than 25% of global gold trade, is poised to become the world’s most integrated gold market, according to speakers at the Global Gold Convention 2022.
Addressing delegates from over 100 countries, Humaid Ben Salem, President of the International Chamber of Commerce (ICC UAE) and Secretary General of the UAE Federation of Chambers of Commerce and Industry, said the industry of Gold is vital to the UAE economy and the country is all poised to become the most integrated market.
“”The UAE is truly achieving this by providing full support to global gold industry players, investors and traders under its non-oil sector diversification program. This convention has succeeded in bringing together all stakeholders on a single platform that helps connect to the world and facilitate investments, joint venture agreements, collaborations and regulatory actions,” Salem said in his keynote address. opening.
According to official data, gold trade accounts for more than 29% of the UAE’s total non-oil domestic exports and accounts for a significant portion of the country’s foreign trade activities. As one of the world’s largest gold trading hubs, between 20 and 40 percent of the world’s gold stocks pass through Dubai each year, bullion experts told the gold convention by IBMC.
Over the past two decades, the UAE has emerged as a global gold trading hub, ranking as the world’s sixth largest gold exporter with 5.04% of total global exports of $305 billion. .
Gold tops the list of commodities making up Dubai’s foreign trade in 2020 with $58 billion, followed by telecommunications with $41.65 billion and diamonds with $17.42 billion. The county’s annual gold exports are valued at $15.4 billion, diamonds at $10.2 billion, and gold jewelry at $12.2 billion.
In gold imports, the UAE claims fourth place in the world with a value of $27.3 billion. As the main export product, gold is an important commodity for the UAE, accounting for 6.36% of its total exports.
The overwhelming response from global organizations from five continents and more than 50 countries shows the international community’s level of confidence in the strength of the UAE to lead as a global gold trading hub.
In a special industry address, Jeffrey Rhodes, founder and management consultant of Rhodes Precious Metals Consultancy DMCC, said the gold industry is at a crossroads given the extreme volatility, changes interest rates which have a direct impact on investments in gold, higher inflation rates in key markets which influence investor perception and regulatory measures.
Sajith Kumar PK, Managing Director and CEO of IBMC Financial Professionals Group, said the overwhelming response from global organizations from 100 countries shows the international community’s level of confidence in the UAE’s strength to lead as a global financial hub. gold trade.
“We are pleased to have been able to bring together gold industry players from five continents on one platform with the aim of making the UAE the integrated global gold market. It is heartening to note that they pledged their support and commitment to increase investment, trade and related activities to make the integrated market a vibrant one.
At the convention, several leading company representatives and experts discussed global industry practices in light of recent regulatory measures announced by the UAE and other countries. Participants said industry growth depends on how stakeholders follow industry best practices that will earn investor confidence, transparency and regulated transactions.
A session on “Investments and Business Opportunities in the Gold Industry” observed that despite high volatility in gold prices, gold remains the most attractive investment route. Investment opportunities in the mining, refinery, trading and jewelry sectors were also discussed.
IBMC has signed MoUs with Ghana, Saudi Arabia, UK and Papua New Guinea to facilitate investments. IBMC also unveiled its new strategies and solutions for gold trading and investments and signed several memorandums of understanding.