Business | Markets
China among major gold suppliers to UAE
China emerged a major supplier of gold jewellery to the UAE last year on the back of its lower labour cost amid high prices of the yellow metal.
- By Shakir Husain, Staff Reporter
- Published: 01:39 February 2, 2008
Dubai: China emerged a major supplier of gold jewellery to the UAE last year on the back of its lower labour cost amid high prices of the yellow metal.
Tawhid Abdullah, managing director of Dubai Gold and Jewellery Group (DGJG), said China is now ranked number three among exporters of gold ornaments to the UAE, behind Italy and India.
"China is the new star among suppliers. This was a big development last year," he told Gulf News.
He said the other top suppliers in the local gold market are Malaysia, Indonesia, Singapore, Saudi Arabia, Singapore, Lebanon and Turkey.
Dubai, one of the top gold trading centres, also has a sizeable manufacturing segment of its own but its output is mostly locally consumed. "We are international traders and we are not competing with major manufacturers. We do about 160 tonnes locally, which is half of Turkey's jewellery production and one-fourth of India's production," Abdullah said.
DGJG puts Dubai's total gold consumption close to 250 tonnes of jewellery and 250 tonnes of bullion.
Related Links
D.V. Pathy, a DGJG board member, said China has used its low manufacturing cost advantage to boost exports to the UAE in the past two years.
"China makes everything, and now it has also become a major jewellery supplier. Many people from outside have set up factories there," he said, adding that in the past few years Hong Kong's diamond traders have moved their manufacturing activities to the mainland.
He believes China's rise in the business will have an impact on the market share of other countries.
More from Markets
More from Business
Business Editor's choice
-
‘Wrong Way' Krugman
The source of our economic malfunction lies with government-mandated bank regulations
-
Greek exit could make Eurozone stronger
Departure will show limits of bailouts and allow remaining members to act much more like a unit
-
UAE upholds values of free trade
Recently released statistics confirm an established fact, namely that of the UAE embracing the free trade principle in general and imports in particular
