With a long-established market for gold bullion and jewelery, Dubai increased gold imports 15% to 140 tonnes during the first quarter over the same period of the previous year.
Meanwhile, Dubai exported 116 tonnes of gold in the first quarter of this year. Switzerland and India were the top exporters to the emirate in the quarter, while Pakistan and India were the leading importers from Dubai.
Fueled by strong demand from the Arab world and India, the value of the gold market in Dubai rose nearly 5% to $7.4 billion in January to March compared with the first quarter of last year. Total gold trade through Dubai hit a record $29 billion in 2008, an increase of 53% compared to $19 billion a year earlier.
According to a report by the World Gold Council last month, gold investment in the Middle East jumped 38% in 2008 compared with 2007’s fourth quarter. Saudi Arabia saw a massive 300% jump in investment demand, Egypt 67% and other Gulf countries registered a 2% increase.
While UAE gold jewelery sales increased by 17% in 2008 to exceed $3.7 billion compared with $3.1 billion in 2007, total gold demand in the Middle East was up 1% in the fourth quarter of 2008 compared with 2007.
– luke
