Saudi Arabia’s gold sales rose almost 17 % in volume and 30 % in value in 2007 over corresponding 2006 figures as the economy of the world’s largest oil exporter expanded, according to the World Gold Council (WGC). Egypt was the best performer in the Middle East in 2007 where the market saw a 20 % increase in volume and almost 35 % increase in value. 2007 demand in the UAE increased by almost 12 % in volume and 20 % in value from the year before. The UAE’s retail gold consumption in terms of tonnage increased 10 % to 85.5 tonnes during the first three quarters of 2007 compared with 78 tonnes for the same period in 2006.
Meanwhile, high gold prices are unlikely to affect sales values in 2008 according to industry officials. The outlook remains buoyant and industry watchers expect value in gold sales to rise due to high prices even if there is a marginal drop in volume.