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The late Ruler of Dubai and Vice President and Prime Minister of the UAE, HH Sheikh Maktoum Bin Rashid Al Maktoum, whose death was announced by the Ruler’s Court on Wednesday, 4 January 2006, is credited with boosting the retail gold trade in the Emirate. The gold trade is currently valued at more than USD $ 1.5 billion of which nearly USD 408 million is in diamond jewellery alone, according to officials of the Dubai Metals & Commodities centre (DMCC) quoted in the local press.
Dubai is ranked as one of the most vibrant, dynamic and responsive markets in the world for the watch and jewellery trade and luxury goods at large. Demand for gold jewellery has been registering a year-on-year growth of 13 % per annum.
Overall jewellery demand in the Middle East grew 11 % while retail investment rose 38 %, both in tonnage terms. These industry indicators reiterate the important role Dubai plays in the diamond, gold and jewellery sectors in the Middle East. Dubai, the fastest growing gold centre in the world, currently imports more than 500 tonnes of gold annually, most of which is exported to countries beyond the region, notably to India which is the world’s largest gold consumer. Despite the high prices of gold which has crossed the USD $ 500 an ounce threshold, the highest in 20 years, Dubai’s total jewellery trade continues to grow at an impressive rate.
Both gold and jewellery have a special place in the history of Dubai, which boasts 650 retail outlets—the densest concentration of jewellery shops anywhere in the world.
Dubai may import 23 % more gold next year, depending on prices after their surge to 24-year highs above USD $ 530 an ounce, according to an industry official. “If prices stabilize or even lower a bit, there would be a big increase in gold imports,” observed Colin Griffith, Executive Director, DMCC.