Dubai, Jan. 26th, 2008 (WAM) - The total gold trade through Dubai reached $19.03 bn in 2007, an increase of 29% from 2006, according to a statement by Dubai Multi Commodities Centre (DMCC).
In 2006, Dubai's gold trade was estimated at $14.75 bn, up from $10.73 bn in 2005. A total of 559 tonnes of gold was imported into Dubai in 2007, up by 14% from 489 tonnes in 2006. Exports from Dubai increased marginally to 287 tonnes compared to 274 tonnes in 2006. Gold price averaged $696 per ounce in 2007, up from $604 per ounce in 2006. In the fourth quarter of 2007, gold trade grew by 34% to nearly $5bn from $3.74bn in the same period in 2006. In the fourth quarter of 2007, Dubai imported 107 tonnes and exported 77 tonnes of gold. Dubai's top trading partners for gold are India, Switzerland, Malaysia, Australia, South Africa, Italy, the UK, Turkey, USA and Saudi Arabia, while the geographical reach of the business extended to 101 countries. "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 Ahmed bin Sualyem, Executive Chairman, DMCC. "Dubai remains an important global centre for the gold trade with the emirate registering year on year growth during the last five years. This is clear evidence of the confidence that the trade has in the strong economic policies of the Government of Dubai." "Ongoing investor demand from across the world and global concerns about currency and inflation underline the nature of gold as a safe investment," said Ian MacDonald, Executive Director for Gold & Precious Metals, DMCC. "Dubai's gold trade has also benefited considerably from the tight supply and strong demand fundamentals of the metal. Despite consistently rising prices, there has been almost 30% increase in the emirate's gold trade in 2007. We look forward to further growing the volumes and strengthening Dubai's role as an important hub for the international gold trade."The Dubai Multi Commodities Centre, 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. DMCC is working with partners, regionally and internationally, to promote the highest global standards in product and service development, while encouraging greater transparency to the benefit of all market participants. DMCC's planned market infrastructure, including free zone status, secure vault facilities, purpose built refineries and workshops and assay facilities, will strengthen Dubai's position as the leading regional centre for gold and precious metals.Copyright Emirates News Agency (WAM) 2008.
