Dubai Q4 Gold Trade Rises Sharply in Value and Volume

Dubai’s position as a key gold trading center is strengthening. In 2007, a total of 559 tons of gold was imported into the emirate, up 14 percent from 489 tons in 2006. Exports increased marginally to 287 tons compared to 274 tons the year before. The gold price averaged $696 per ounce in 2007, up from $604 per ounce in 2006.

Especially strong trading was noted in the fourth quarter, growing 34 percent to nearly $5 billion from $3.74 billion in the fourth quarter of 2006.

Dubai's top trading partners for gold are India, Switzerland, Malaysia, Australia, South Africa, Italy, the UK, Turkey, the U.S. and Saudi Arabia.

In 2006, Dubai's gold trade was estimated at $14.75 billion, up from $10.73 billion in 2005.

“Historically, gold has always been seen as a source of lasting value, and this is particularly true of the countries in the Middle East and the Indian subcontinent,” said DMCC executive chairman, Ahmed bin Sualyem.

“Ongoing investor demand from across the world and global concerns about currency and inflation underline the nature of gold as a safe investment,” added Ian MacDonald, executive director of DMCC’s Gold & Precious Metals.

The DMCC, a strategic government initiative rated 'A' by Standard & Poor's, integrates the refining, manufacturing and trading of gold in Dubai, as well as introducing the trading of other precious metals such as platinum, palladium and silver. DMCC is facilitating the development and expansion of the regional precious metals market.