The total gold trade through Dubai reached $19.03 billion in 2007, a 29 percent increase from $14.75 billion estimate in 2006, according to a statement by Dubai Multi Commodities Centre.
A total of 559 tons of gold was imported into Dubai in 2007, up 14 percent from 489 tons in 2006. Exports from Dubai increased marginally to 287 tons, compared to 274 tons in 2006. Gold price averaged $696 per ounce in 2007, up from $604 per ounce in 2006.
In the fourth quarter of 2007, gold trade grew by 34 percent to nearly $5 billion. During the same period, Dubai imported 107 tons of gold and exported 77 tons.
Dubai’s top trading partners for gold are India, Switzerland, Malaysia, Australia, South Africa, Italy, the U.K., Turkey, U.S., and Saudi Arabia, while the geographical reach of the business extended to 101 countries.
“Historically, gold has always been seen as a source of lasting value, and this is particularly true of the countries in the Middle East and the Indian subcontinent,” said Ahmed bin Sualyem, executive chairman, DMCC. “Dubai remains an important global center for the gold trade with the emirate registering year on year growth during the last five years. This is clear evidence of the confidence that the trade has in the strong economic policies of the Government of Dubai.”
“Ongoing investor demand from across the world and global concerns about currency and inflation underline the nature of gold as a safe investment,” added Ian MacDonald, executive director for Gold & Precious Metals, DMCC. “Dubai’s gold trade has also benefited considerably from the tight supply and strong demand fundamentals of the metal.”