SPM operations in UAE mark new era

DUBAI - The beginning of Swiss Precious Metals (SPM) operations in the UAE marks a new era in Dubai's drive towards an international gold and financial market. This operation facilitates investments by those, who are keen to invest in gold to fulfil their investment needs through a Dubai-based entity, a senior official from the World Gold Council (WGC) said yesterday.

By A Staff Reporter

Published: Sun 18 Jan 2004, 10:09 PM

Last updated: Mon 6 Nov 2023, 11:49 AM

Speaking at a gala dinner to mark the licensing of SPM operations in the UAE, Moaz Barakat, managing director, Middle East, Turkey and Pakistan, WGC, said that the positioning of Dubai as a City of Gold was primarily done to promote Dubai worldwide as an ideal destination when it comes to gold or gold jewellery.

It is probably the only country in the world known for its unique selling points in gold jewellery due to the wide range of gold jewellery designs and products, proper karatage, absence of tax and thus competitive pricing and active and vibrant trade, he said, adding that all these factors have contributed to positioning Dubai as the hub for both gold bullion and jewellery.

James Cross, chairman of SPM, said that anyone, who invested in gold last year did very well because the price went up by 16 per cent over the year. He said, however: "But the big question is what might we anticipate for 2004? I expect that four big issues will dominate the gold world in the coming 12 months. These topics are: what will happen to the US currency, the dollar; what will happen concerning the renewal of the European Gold Agreement; what will happen to the hedging operations of gold mining companies; and what will happen to physical demand in the Indian market."