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The World Gold Council Regional Middle East Office in Dubai released its quarterly gold demand trends report, which reflects record figures for Q3-2008. UAE gold sales increased by 56 % in Q3-2008 to reach USD $ 1.178 billion compared to USD $ 767.0 million for the same period in 2007. The same positive sales value increase was recorded in Saudi Arabia where gold sales (by value) increased by 51.0 %, in the remainder of the GCC countries by 42.0 % and 33.0 % in Egypt.
The comparative table below demonstrates the total gold consumption in tonnage & sales value terms:
A)
| Consumption (Tonnes) | Q3-2007 | Q3-2008 | % Change |
| UAE | 26.7 | 32.7 | +22 % |
| Saudi Arabia | 34.7 | 40.9 | +18 % |
| Egypt | 21.4 | 22.2 | +4.0 % |
| Other GCC | 11.1 | 12.3 | +11.0% |
| Total: | 93.9 | 108.1 | +15.12% |
B)
| Sales Value (USD $ million) | Q3-2007 | Q3-2008 | % Change |
| UAE | 756.4 | 1183.47 | +56% |
| Saudi Arabia | 983.03 | 1480.25 | +51 |
| Egypt | 606.25 | 803.46 | +33% |
| Other GCC | 314.45 | 445.16 | +42% |
| Total | 2660.13 | 3912.34 | +47% |
Jewellery demand in the Middle East, which accounts for more than 90 % of total consumer off-take in the region, rebounded in Q3-2008 after a softer Q2-2008 that was negatively affected by both high gold prices and price volatility. The UAE and Saudi Arabia were the main drivers of jewellery demand in Q3 in the region with both countries recording growth rates of more than 50 % in dollar terms. “Buyers who pulled back in Q2 due to price concerns returned to the market in Q3 due to the festive season,” said Lama Al Saheb, Head of Marketing & PR, Middle East for the World Gold Council. “Looking forward, gold’s safe haven appeal should continue, given the uncertainty that surrounds the global economy,” she added.