Gold imports to the emirate of Dubai increased in 2005 despite an overall rise in the price of gold, the highest in over a quarter of a century. According to the Dubai Metals and Commodities Centre (DMCC), Dubai imported 522 tons of gold in 2005, up from 502 tons in 2004.
Furthermore, a staggering one in every eight tons of gold supplied worldwide makes its way to Dubai, said a recent report by GSMS, an independent report by a London-based precious metal consultancy.
Local gold sales within Dubai rose to 115 tons in 2005, including imports and exports for gold bars, scrap and jewelry, according to the report quoted in Gulf Daily News.
Colin Griffith, executive director-gold & precious metals, DMCC confirmed the report, saying: "Dubai is known as the City of Gold, and these statistics support that."
"The rising price has been driven by investors who look at gold as a secure asset class, rather than by end users, despite a steady growth in consumer demand from China and India," he added.
"Demand from the Middle East has also witnessed an average annual increase of five to 10 per cent, backed by high regional liquidity and the security of gold as a stable asset in uncertain times," he added.
Griffith went on to say that: "The establishment of the DMCC has gone a long way towards streamlining and making the local markets more transparent and thereby growing the volume of gold trade through Dubai. We estimate that the current volume of 522 tonnes will continue to increase in 2006. A significant percentage of this growing volume is also expected to be undertaken by companies under the umbrella of DMCC."
Dubai's top trading partners for gold remain the United States, the UK, Saudi Arabia, India, Switzerland, Malaysia, Singapore and South Africa.
© 2006 Mena Report (www.menareport.com )