Gold trade through Dubai reached US$14.75 billion in 2006, an increase of 37 per cent from 2005, according to a statement by the Dubai Multi Commodities Centre (DMCC). In 2005, Dubai’s gold trade was estimated at US$10.73 billion, up marginally from US$10.17 billion in 2004.
A total of 489 tonnes of gold was imported into Dubai in 2006, while exports from Dubai increased by 23 per cent to 274 tonnes. In line with global trends, there was a minor decrease in imports in 2006, which touched 522 tonnes in 2005. Dubai’s top trading partners for gold are India, Switzerland, the UK, Malaysia and the GCC states, but the geographical reach of business has certainly expanded.
Ahmed Bin Sulayem, Chief Operating Officer at DMCC, said: “Despite consistently high prices, the significant growth in the value of gold imported and exported through Dubai in 2006 reinforces the Emirate’s traditional role as the gold centre of the region. The figures compare very well against other global gold centres, particularly in Europe where higher gold prices resulted in significantly lower demand in 2006.”
He continued: “It is also worth noting that a large percentage of Dubai’s gold trade is conducted by companies operating under the DMCC umbrella.”
“Gold trade through Dubai remained remarkably steady throughout the year, touching US$3.58 billion, US$4.06 billion, US$3.37 billion and US$3.74 billion respectively for the four quarters of 2006,” said Colin Griffith, Executive Director for Gold at DMCC, commenting on the release of the data received by DMCC from the Statistics Department of Dubai World.
“Gold prices, which averaged US$604 per ounce in 2006, have rallied in the last few years, backed by strong investor sentiment,” said Griffith. “The significant amount of gold trade through Dubai, while prices are at historical highs, fully reflects the good service and excellent pricing in the ‘City of Gold.’”
He added: “Several factors are expected to impact the prices of gold this year, including fluctuations in the US economy, the price of oil, and social and political unrest around the globe. We expect the market to remain extremely volatile as a result. But as Dubai becomes an important destination for gold refining and manufacturing, the gold trade through the Emirate will be impacted positively. In addition to being the ‘Golden Gateway to India,’ the level of trading in gold on the Dubai Gold & Commodities Exchange continues to increase year on year.”