The UAE, which accounts for more than 25 per cent of the global gold trade, is all set to become the most integrated global gold marketplace, according to speakers at the Global Gold Convention 2022.
Addressing delegates from more than 100 countries, Humaid Ben Salem, chairman of International Chamber of Commerce (ICC UAE) and secretary-general of Federation of UAE Chambers of Commerce and Industry, said the gold industry is vital to the UAE economy and the country is all set to become the most integrated marketplace.
“”The UAE is truly making this happen by providing all support to the global gold industry players, investors and traders as part of its non-oil sector diversification programme. This Convention has succeeded in bringing all stakeholders in a single platform which helps in connecting to the world and facilitating investments, joint venture deals, collaborations and regulatory measures,” Salem said in his keynote address.
According to official data, gold trade accounts for more than 29 per cent of the UAE’s total national non-oil exports and that it has a major share in the country's foreign trade activities. As one of the world’s largest gold trading hubs, between 20 and 40 per cent of the global gold stocks pass through Dubai every year, bullion experts said at the gold convention organised by IBMC.
Over the past two decades, the UAE has emerged as a global gold trading hub, ranking as the sixth-largest exporter of the yellow metal in the world with a 5.04 per cent of total global exports of $305 billion.
Gold topped the list of commodities making up Dubai’s 2020 external trade at $58 billion, followed by telecoms $41.65 billion and diamonds $17.42 billion. The county’s annual exports of gold are valued at $15.4 billion, diamonds at $10.2 billion and gold jewellery at $12.2 billion.
In gold imports, the UAE claims the world’s fourth-largest rank with a value of $27.3 billion. As a leading export product, gold is a significant commodity for the UAE, representing 6.36 per cent of its total exports.
The overwhelming response from global organisations from five continents and over 50 countries shows the confidence level of the international community in the UAE’s strength to lead as a global gold trade hub
In a special industry address, Jeffrey Rhodes, founder and managing consultant of Rhodes Precious Metals Consultancy DMCC, said the gold industry is at the cross-roads in view of the extreme volatility, interest rate changes that directly impact gold investments, highest inflation rates in key markets that influence investor perception and regulatory measures.
Sajith Kumar PK, managing director and CEO, IBMC Financial Professionals Group, said the overwhelming response from global organisations from 100 countries shows the confidence level of the international community in the UAE’s strength to lead as a global gold trade hub.
“We are happy that we could bring gold industry stakeholders from five continents in a single platform with the objective of making the UAE the integrated global gold marketplace. It is heartening to note that they have pledged their support and commitment to increase investments, trade and related activities to make the Integrated Marketplace a vibrant one.”
At the convention, several leading company representatives and experts discussed global industry practices in the light of the recent regulatory measures announced by the UAE and other countries. The participants said growth of the industry depends on how the stakeholders follow best industry practices that will win the trust of investors, transparency and regulated transactions.
A session on ‘Investments and business opportunities in gold industry’, observed that despite the high volatility in gold prices, gold remains the most attractive investment avenue. Investment opportunities in mines, refineries, trading and jewellery sectors were also discussed.
IBMC has signed MoUs with Ghana, Saudi Arabia, the UK and Papua New Guinea for facilitating investments. IBMC has also unveiled its new strategies and solutions for gold business and investments and signed several MoUs.
Last year’s record earnings are 50 per cent higher than the previous annual record set more than a decade ago
Markets expect the Fed to adopt a 25-basis-point hike at the end of a two-day meeting Wednesday
The discussion highlighted the need for cross-industry collaboration
Keeping in view the importance of the free zones, special rules have been introduced in the corporate tax law of the UAE