Where does Dubai’s gold come from? A look at key source countries

Dubai: When you think of Dubai’s glittering gold markets, what comes to mind? The gleaming jewellery, the luxurious allure, the steady flow of precious metals through one of the world’s most sophisticated trading hubs. But behind Dubai’s golden shine lies a complex web of global connections. So, where does all that gold come from?

Dubai, one of the largest gold trading hubs in the world, doesn’t have gold mines of its own. Instead, it sources its gold from an impressive range of countries, many of which are key players in the global gold market. Let’s take a look at the key countries that fuel Dubai’s gold supply.

Africa, particularly West Africa, plays a central role in Dubai’s gold trade. In 2023, African nations like Mali, Ghana, Guinea, Sudan, and South Africa were major suppliers of gold to the UAE. Why Africa? The continent is home to some of the world’s largest gold reserves, and mining is a key industry in several countries.

Mali and Ghana are particularly notable, with gold mining operations that have been growing rapidly over the past few years. The UAE has developed strong trade relationships with these countries, making it easier to import gold directly from the continent. Dubai’s role as a trading hub makes it the perfect gateway for this gold to be re-exported to key markets like India and China, where demand for gold remains high.

Another significant source of gold for Dubai comes from Turkey. While Turkey may not have the same level of mining output as African nations, it serves as a crucial player in the global gold supply chain. Turkey is a major refiner and transit point for gold shipments from Central Asia and Africa, and Dubai’s gold market is a key destination for these precious metals. In 2023, the UAE imported a substantial amount of gold from Turkey, solidifying its importance in Dubai’s gold trade.

Though Switzerland is not a major gold-producing country, it holds a critical role in the global gold trade. Known for its refining capabilities, Switzerland is home to some of the world’s most prestigious gold refineries, which process gold from all over the world. Much of the gold that enters Dubai from Switzerland has been refined into its purest form, ready to be traded, sold, and used in everything from jewellery to high-tech industries.

In recent years, Russia has become an increasingly important player in Dubai’s gold market. After facing sanctions from Western nations, Russia’s gold exports have found new markets, with the UAE emerging as a key destination. This shift has been particularly noticeable in the aftermath of geopolitical tensions, with Russia diversifying its gold trading partners. Dubai, with its strategic location and well-established trade infrastructure, has stepped in to facilitate the movement of Russian gold.

Dubai’s geographical location makes it a crucial link between Africa, Asia, and the Middle East. Serving as the "New Silk Route," Dubai is strategically positioned at the crossroads of two of the world’s largest gold-consuming markets—India and China—while being close to some of the biggest gold-producing countries in Africa. This location has helped Dubai become a central hub in the gold supply chain, with vast logistics infrastructure supporting the flow of gold from mines to consumers.

Dubai's status as the world’s second-largest gold trading hub, leapfrogging the United Kingdom in 2023, underscores its growing significance. With world-class logistics, including Emirates Airlines and DP World, Dubai is perfectly poised to remain at the centre of this global trade.

The UAE’s rise to become the second-largest gold trading hub in 2024 is no small feat. It comes at a time when geopolitical shifts, such as the war in Ukraine and Western sanctions, have forced countries to rethink their gold policies. In particular, Dubai is benefitting from a new gold corridor emerging across Asia, where the demand for gold is surging, and central banks are accumulating reserves at an unprecedented rate.

Ahmed Bin Sulayem, CEO of the Dubai Multi Commodities Centre (DMCC), had pointed out that the surge in gold trading reflects historic changes in the global gold market. With countries looking to diversify their reserves and reduce dependence on the US dollar, gold’s appeal as a store of value has never been greater. And Dubai is well-placed to capture this growing demand.

Dubai’s gold trade is a dynamic and ever-changing landscape. From African nations to Russia, Turkey, and Switzerland, the emirate’s position as a global gold hub is powered by its ability to connect gold-producing nations with some of the world’s largest consumers. As geopolitical shifts continue to reshape the precious metals market, Dubai’s strategic role in the gold trade will only become more significant, reinforcing its status as a central player in the global gold economy.

Dubai’s gold market isn’t just a reflection of its wealth; it’s a testament to its pivotal role in global trade, bringing gold from the four corners of the earth to one of the world’s most iconic trading hubs.