DUBAI - The retail gold sales increased from Dh1.22 billion to Dh1.47 billion in the second quarter of 2004 compared to the same period of 2003 which is an increase of 21 per cent, as announced by the World Gold Council regional office in Dubai.
Along with the sales, the gold consumption in terms of tonnage also increased by more than 9 per cent from 24.3 tonnes in 2003 to 26.4 tonnes in 2004, while retail investment (bullions coins and bars) consumption also increased by 8 per cent from 1.4 tonnes in 2003 to 1.5 tonnes in 2004, according to World Gold Council's report.
Moaz Barakt, managing director of WGC for the Middle East, Turkey and Pakistan, said: "Many factors have led to the improved performance in the second quarter of 2004. The UAE also benefited from the 27 per cent increase in the number of tourists. The Dubai Duty Free gold shop alone experienced a 47 per cent increase in the value of gold sales in the first half of 2004 compared to the first half of 2003. Another factor is the global, political and economic concerns that have increased retail investment purchases. The investment in gold as a financial asset has increased in-line with the global trend. Gold provides a security against inflation and is an excellent risk diversifier asset. Early indications for Q3 throughout the region are for further strong growth. ''
In the Gulf and UAE, the gold market remains healthy and growing and gold sales in Saudi Arabia increased by 23 per cent while Kuwait witnessed a better increase of 28 per cent.
In Bahrain, gold sales increased by 20 per cent, in Oman it increased by 18 per cent and in Qatar it increased by 5 per cent.
The increase in sales in the Gulf demonstrates the high affinity to consumers towards gold and gold jewellery.
BY A STAFF REPORTER
© Khaleej Times 2004
