UAE reinforces rank as ‘a trusted global gold trade hub’

The UAE has reinforced its position as a trusted and sought-after global gold trade hub, with the introduction of secured e-marketplace trade flow platforms and Good Delivery Standard for bullion, precious metals experts said at a gold convention in Dubai.

“Secured, compliant and more transparent eMarket trade flow platforms with advanced protection system are lifting the UAE to global standards and attracting gold industry stakeholders to the UAE,” speakers at the Global Gold Convention said.

The UAE market is already witnessing more international transactions with the availability of more liberalized protection tools such as trade credit insurance, factoring and financing terms, they pointed out. A recent move by the government to launch the UAE Good Delivery Standard further enhanced the country’s status as a safe and secure gold trading hub.

According to official data, the UAE represents a leading and attractive destination in the international gold and precious metals trading landscape. Gold trade accounts for more than 29 per cent of the total national non-oil exports and 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 world’s largest hybrid gold convention organised by IBMC.

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. Dubai’s gold & jewellery sector has been growing despite the global impact of Covid-19. In the first quarter, the sector recorded a 20 per cent growth in trade value to Dh111.5 billion, trade data shows.

Sheikh Khalid bin Ahmed Al Hamed, chairman of IBMC UAE, said that the Global Gold Convention 2021 is dedicated to the 50th National Day Celebration of UAE. “The overwhelming response from global organizations 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.”

"The world gold market patterns are facing an unprecedented wave of change with a shift in demand to new markets, regulatory change, new types of participants and innovation and technology. By hosting the Global Gold Convention, the largest hybrid gold convention in the world, we bring together trusted industry participants to discuss the challenges and utilize the opportunities of UAE as the trusted Gold Trade-Flow partner globally," said Humaid Ben Salem, secretary-general of the Chambers and chairman of ICC UAE.

"On this occasion of celebrating 50th National day of UAE and hosting Expo 2020, the UAE is showcasing its strength and leadership in all aspects of Global Trade connecting the world,” he added.

Sajith Kumar PK, managing director and CEO of IBMC, said that the UAE has already positioned itself as a trusted gold trade-flow partner globally by facilitating networking of international players. “This convention is a testimony to the UAE economy’s resilience power and adaptability in the wake of the pandemic with innovative solutions with pro-active steps in the global gold industry.”

He said that IBMC UAE has introduced a secured gold trade-flow platform with compliance, trade credit Insurance and factoring protections through its SME Economy eMarkeplace Trade Flow Platform. The secured trade-flow platform and services have been extended to more than 50 countries.

The convention also provided participants opportunities to explore and utilize innovative and secured products and service opportunities from the gold industry. At a special session on the gold jewellery trade, Italian participants presented the opportunities offered by Italy to the gold jewellery business.

issacjohn@khaleejtimes.com