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Gold glistens for investors as stocks slump across the world
Dubai remains the hub of precious metal trading in the Middle East, exporting 86% to India.
- By Cleofe Maceda, Staff Reporter
- Published: 23:36 December 1, 2008
- Buyers feast their eyes on jewellery at the Gold Souq in Dubai.
- Image Credit: Atiq-ur-Rehman/Gulf News
Dubai: While the financial crisis continues to rock economies across the globe, Dubai has once again shown that it is indeed the haven of gold in the Middle East as the sector remains resilient.
According to statistics obtained from the Dubai Export Development Corporation (EDC), the value of gold exported from Dubai in the first six months of 2008 hit a whopping Dh10.6 billion, an increase of 101 per cent over the same period last year.
Experts said that the financial crisis has driven investors to turn to the precious metal, as it is traditionally known to be a safe haven for assets. In March this year, gold prices peaked at $103.80 an ounce, said to be the highest in more than two decades.
"The growth of Dubai exports from gold has increased rapidly, positioning Dubai as the capital and haven of gold in the Middle East. The exports of Ingots of gold have increased during this year's first quarter as traders and investors move to gold as a safe sector to invest," EDC said in its report.
Among Dubai's markets overseas, India emerged as a formidable destination for gold, recording over Dh9 billion or 79 per cent of Dubai's global precious metals exports in 2007 alone. India's precious metals purchases also accounted for 86 per cent of Dubai's exports.
Following India is Switzerland, which amassed precious metals worth over Dh625 million.
Kuwait came third, logging Dh163 million. Not far behind is Saudi Arabia, which received more than Dh105 million worth of precious metals from Dubai, while Lebanon purchased Dh59 million, Turkey Dh52 million, Bahrain Dh48 million, Egypt Dh43 million and Canada Dh36 million.
In a previous interview, ARY economic adviser Rolf Schneebeli said that as gold retains its lustre as a safe haven for wealth during the crisis, demand for the precious metal on the investment level is likely to rise.
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