Dubai's gold trade glitters despite recession

Dubai: The current global financial crisis did not hamper the gold and diamond trade in Dubai, which has recorded double-digit growth over the last nine months, a top official said.

"The gold and diamond trade through Dubai is growing at a much faster pace, despite the difficult global financial situation," Ahmad Bin Sulayem, executive chairman of DMCC, told Gulf News on Thursday.

"The Europeans are looking at Dubai's gold and commodities market, shying away from the United States, where the current financial meltdown has brought the asset values down," he said.

"Besides, despite the trouble in the West, the Middle East and Asian markets are still continuing growth which makes them attractive for investment. We anticipate continued growth in Dubai's gold, diamond and commodities business."

The value of gold trade through Dubai has reached Dh77 billion during the first nine months of 2008, despite the global financial crisis, according to the latest statistics by Dubai Multi-Commodities Centre (DMCC) made available to Gulf News.

Total imports reached 469 tonnes while export of bullion from Dubai were 275 tonnes.

Dubai's gold imports were up 44 per cent while exports were up 51 per cent during the third quarter of 2008, compared to the second quarter.

The value of gold trade during the third quarter itself reached $8 billion. However, compared to the last year's third quarter, gold import grew 18 per cent, while export jumped 42 per cent.

DMCC is the government facility created to reinforce Dubai's position as the region's gold, jewellery, diamond hub and attract further investment.

DMCC, which was created in 2002, to structure the emirate's growing gold and diamond trade, recently moved to its new headquarters, the 63-storeyed Almas Tower, where a number of Dubai's bullion traders are relocating.

DMCC has 1,300 companies registered with it. The entity, which has established a number of trading platform, including a commodities trading platform, has began handing over office blocks to its tenants.

India remains Dubai's top gold export destination with 124 tonnes, followed by Switzerland importing 67 tonnes from Dubai.

Within a short span, DMCC has managed to restructure the emirate's commodities business by putting laws and regulations. In addition, the coloured stones market in the region is set to expand.