«Dubai Gold Group»: New companies enter the sector
Sales of gold markets in Dubai are similar to the periods before “Covid-19”
Dubai markets currently includes more than 800 gold traders.
Tawhid Abdullah: “The new extension of the gold market made it the largest global gathering of gold trading companies in one location.”
The Chairman of the Board of Directors of the Dubai Gold and Jewelery Group, Tawheed Abdullah, said that sales of the gold and jewelry markets in Dubai recorded gradual growth rates since the beginning of the first half of this year, until they finally reached levels similar to the periods before the “Covid-19” pandemic during 2019 .
He added to "Emirates Today" that the recovery in gold market sales since the beginning of this year was supported by several factors, most notably the positive effects of the "Expo 2020 Dubai" exhibition, the activity of tourist groups, as well as the recovery of demand rates and the purchasing power of a large number of dealers, and the high The activity of the business sector and events in Dubai, which reflected positively on the gold trade sector.
He revealed that the first half of 2022 recorded a growth in sales of between 10 and 15% compared to the same period in 2021, expecting the growth to continue during the current year.
Abdullah pointed out that the local markets witnessed changes, most notably the diversity of the models offered, influenced by the "Expo", as traders were keen to bring new models and designs to meet the needs of the categories of visitors to the exhibition from different countries of the world.
Abdullah stated that the demand for gold bullion has declined during the recent period compared to demand rates during 2020 and 2021, when the markets witnessed greater rates of bullion acquisition affected by the repercussions of the “Covid-19” pandemic, pointing to the presence of demand, at lower rates for bullion of medium weight categories.
Abdullah revealed that the gold markets in Dubai witnessed, during the recent period, the attraction of new companies in the gold trading sector, especially in light of the opening of the new extension project for the gold market, which made the gold market in Dubai the largest gathering in the world of gold trading companies in one location.
He stressed that the new extension of the gold market in the Deira region will be a supportive factor to attract more foreign investments in the gold and jewelry sector during the coming period.
He pointed out that between 20 and 40% of the gold stock in the world passes through Dubai every year, with the emirate's important geographical location and the availability of ingredients that made Dubai an important center for trade and re-export of gold products, especially with the availability of gold vaults and jewelry-making facilities.
He said that the Dubai market currently includes more than 800 traders, while there are usually between 40 and 50 tons of gold in the local markets, in the front of retail stores, or in wholesale stores.
The Chairman of the Board of Directors of the Dubai Gold and Jewelery Group added that gold represents 20% of the total non-oil exports to the UAE, while the number of workers in the precious metals, diamonds and jewelry sector is estimated at 65,000 people, making the UAE a distinguished regional center in the supply of jewelry.
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