Gold sparks 6% spike in UAE exports

The UAE, which accounts for 11 per cent of the global gold trade, saw the yellow metal boosting its exports by six per cent in the first eight months of 2020 despite the challenges posed by the pandemic on global trade activities.

Abdulla bin Touq Al Marri, UAE Minister of Economy, said the recent introduction of the UAE Good Delivery Standard and other initiatives will further strengthen the country’s leadership and competitiveness in this vital sector.

The minister said the new policy for the gold sector, which aims to develop the governance of gold trade in the country to be in line with the best international standards followed in this regard, comprises four major initiatives. “These include the setting up of a standard for good gold delivery, the development of a federal platform for gold trade, establishing a committee for the UAE bullion market, and building a database for companies and individuals involved in gold trade.”

The implementation of these four specific initiatives will bring about a positive transformation by adding more value to gold trading activities and the local gold sector, while also enhancing the UAE’s global competitiveness in this area, said Al Marri.

Dr. Thani bin Ahmed Al Zeyoudi, Minister of State for Foreign Trade, said gold trade accounts for more than 29 per cent of the total national non-oil exports.

“During the July-August period, the growth of gold exports in terms of value and quantity reached 84 per cent and 38 per cent respectively compared to the same two months of the year 2019,” said the minister.

Al Zeyoudi said the recent measures to streamline the gold trade would ensure that the UAE has “the highest quality gold standard and will generate opportunities for investments in the gold and precious metals sector, thereby enhancing its role among the key economic diversification pillars.”

Dr. Obaid Saif Hamad Al Zaabi, CEO of Securities and Commodities Authority, the establishment of an Emirati gold standard and a federal platform for trading, fall in line with the government's strategic approach towards enhancing the UAE’s global economic position, with the aim to join the list of fastest-growing trade hubs globally.

Al Zaabi said the new gold policy forms part of the country's strategy aimed at diversifying the non-oil economy, given that the gold and precious metals sector is one of the key sectors supporting the economic diversification efforts.

— issacjohn@khaleejtimes.com