Abu Dhabi is joining Dubai in setting up a gold laboratory to activate the jewellery trade and prevent any fraud, officials said yesterday.

A committee grouping representatives from the Abu Dhabi Municipality, the Food and Environment Control Centre (FECC) and the Abu Dhabi Chamber of Commerce and Industry, has been set up to oversee the implementation of the project.

Sheikh Mohammed bin Butti Al Hamed, the Ruler's Representative in the Western region and Chairman of the Municipality and Town Planning Department, issued a decision creating the "Committee for the laboratory of hallmarking precious metals."

According to Al Asema magazine, the municipality's mouthpiece, municipal officials have completed a study on setting up the project, taking into consideration the gold market, demand and supply in the UAE, mainly in Abu Dhabi, where the laboratory will be based.

"This project will produce positive results for the national economy and protect consumers against fraud and forgeries," said Amin Mohammed Yousuf, FECC's director.

He said the gold trade was thriving in Dubai, given the presence of a jewellery laboratory and the city's distinguished commercial status in the heart of a vast consumer area.

"The establishment of such a laboratory in Abu Dhabi will largely activate trading in gold and other precious metals," he said.