Dubai is fast becoming one of the largest hubs for gold related activity, announcing today at a Precious Metals Conference that the value of gold traded through Dubai in 2012 was $70 billion compared to just $6 billion back in 2003. Those figures mean that over 20% of the world’gold imports/exports pass through the United Arab Emirates. This ambition to become a global player for gold has been a goal a decade in the making with Sheikh Mohammed bin Rashid predicting back in 2002 that the UAE would capture over 50% share of the global gold trade sometime in the future.
A glimpse of the Dubai gold souk – where hundreds of shops wield gold jewellery and bullion.
The Dubai Gold Souk is a bazaar where up to 10 tons of gold can be found at any times with hundreds of shops selling bullion and jewelry. On the manufacturing side a whole tower has been dedicated to precious metals in the Jumeirah Lakes Towers free zone. Kaloti, one of the biggest gold refiners in the region, expects to tripple its production capacity to meet the booming demand. Dubai is also situated in a prime position geographically to provide for the seemingly infinite demand of the Indian market and the growing demand of the poorly supplied African market – with the emergence of more bullion banks expected. We’ve reported in the past how Turkey is able to still engage with Iran in trade despite sanctions, with gold bullion from Turkey passing Dubai and finally finding its way to Iran.
Given all the drama surrounding all the gold supposedly kept by the Fed in the United States and the conspiracy theories emerging out of the London Bullion Market Association – Dubai could very well achieve its goal of .