Gold and jewellery trade in the UAE has received a major fillip with the UAE Cabinet approving a proposal to introduce a more centralised platform for trading and tracking gold imports and exports in line with international standards.
Under the new initiative, the UAE will have a uniform good delivery standard instead of the Dubai Good Delivery Standard, an international benchmark for quality and technical specification in the production of gold and silver.
Tawhid Abdullah, chairman of the Dubai Gold & Jewellery Group, said it would have far-reaching positive implications on gold trade.
"The new platform for trading and tracking exports and imports will help enhance the reputation of the UAE as a global hub for gold and jewellery trade. We are very happy at the proactive move as this has been a long-standing request by the trade group," he said.
He said the trading and clearing platform would act like a bourse, and help in bringing increased transparency and competitiveness to the industry.
Joy Alukkas, chairman of the Joyalukkas jewellery chain, said the new initiative would help jewellery trade reinforce its international reputation for quality and technical specification and help further streamline the sector.
"We are delighted with the new policy aimed at enhancing the competitiveness of the UAE in the gold markets regionally and globally while helping to maintain its position as a global hub for gold trading," he said.
Abdullah said the new policy, designed to develop mechanisms to maximise the benefit of the gold and jewellery trade, would transform the UAE from a regional hub to one of the global producing countries and leading designers.
Articulated around three main pillars - governance, sustainability and innovation - the new policy contains 10 strategic programmes and initiatives, which support the country's position and competitiveness, an official statement from Wam said.
"The main strategic programmes include the governance of the gold sector at the federal and local levels, the establishment of a federal platform for gold trading and tracking its sources, international marketing of the gold sector, the use of technology in the production of gold and the establishment of the UAE's international gold standard in addition to the promotion of conventions related to this sector," it said.
The new policy will develop tools and initiatives that stimulate growth in order to facilitate doing business and bring added value to this vital sector. This will help boost the knowledge-based economy and contribute to increasing non-oil GDP, strengthening UAE's domestic industry sector and the other supporting fields.
The UAE accounts for about 14 per cent of the world's gold trade, especially in the bullion trade. Dubai, in particular, is rising through the ranks as a purchase and investment destination. The gold trade in the UAE is one of the most important economic sectors accounting for 20 per cent of the country's total non-oil exports.
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