UAE's oldest-running refiner Emirates Gold gets new owner
Takeover by ADGM-based Bright East gets Emirates Gold back into ‘UAE Good Delivery List'
Dubai: One of the UAE’s biggest gold refiners, Emirates Gold, has been bought by Bright East Holding 1, which is an ADGM (Abu Dhabi Global Market) licensed entity that operates in the venture capital and private equity space.
Bright East's takeover of Emirates Gold adds to its reach in the metals and commodities space. The value of the deal has not been disclosed. The DMCC-based Emirates Gold is into refining and minting of coins and bars. Its operations also cover smelting and assaying (which is to do with determining the quality of gold).
Just as important, Emirates Gold has been reinstated in the UAE’s ‘Good Delivery List’, which will be decisive in the company’s future expansion plans and access to international markets as a supplier of gold. It was in mid 2023 that the refiner was omitted from the List.
A new CEO, Abhijit Shah, has also taken over the mantle at the refiner. “With the support of Bright East Holding 1 and our restored position on the UAE’s Good Delivery List, we are positioned to lead the market through innovation and excellence,” said Shah. “This transformation will allow us to set new standards and expand our offerings, delivering unparalleled value to our clients worldwide.”
New direction
Emirates Gold will proceed with a ‘renewed strategic direction’. The new ownership and re-entry into UAE Good Delivery List will bring about greater ‘operational stability’. Plus, of course, help the company ‘reconnect with legacy clients’.
The immediate push will be to expand the company’s regional and global presence.
While the UAE has always been know as a gold trading and retail hub, the market also has a fairly robust gold refining capacity through entities such as Al Etihad Gold Refinery DMCC, Sam Precious Metals and Emirates Gold DMCC.
What being part of Good Delivery List means
The UAE Good Delivery List is specifically framed for the gold sector, and those who have been approved are expected to maintain high transparency in their sourcing of bullion and other operational processes.
The UAE Good Delivery ‘covers quality and technical specifications of refineries and gold production facilities in the UAE’.
“The standard strengthen UAE’s position as a global gold, jewellery and bullion trade hub, enhance the competitiveness of the products from UAE gold refineries and gold sector participants,” it adds.
Plus, the standard facilitates ‘access of UAE refineries and other UAE gold sector participants to global markets by adopting best international practices, strengthen governance and regulation of the UAE gold sector’.
This is why Emirates Gold’s reinstatement comes across as a big plus in the company’s future plans.
The company has been in operations for over 30 years and has been one of the biggest refiners in the region.
“Under new ownership, the company is poised to reach new heights, strengthening its position as a leader in the global precious metals sector,” it said in a statement.
“Key priorities include enhancing smelting and refining capacities, forging strategic industry partnerships and upholding stringent compliance policies and procedures, ensuring the highest industry standards are met across all operations.”
Expansion moves
Emirates Gold recently adopted ‘3D pro fibre laser technology’ to enable customization and faster production times. There was also the installation of a high-capacity platinum furnace capable of reaching temperatures up to 2600°c.
There were also value adds to the existing coin minting and laser engraving capabilities, which will’ enable Emirates Gold to significantly boost output while delivering high-quality, innovative products and premium coins and bars with intricate details and unmatched precision’.