Figures released by the Dubai Multi Commodities Centre (DMCC) on Monday show that total gold traded through Dubai hit a record $29 billion in 2008, an increase of 53 percent compared to the previous year.For the 12 months ending December 31, 2008, a total of 674 tonnes of gold was imported into Dubai, up 21 percent compared to 559 tonnes in 2007. During the same period, gold exports from Dubai reached 371 tonnes, an increase of 29 percent compared to 287 tonnes in the previous year.
More than 100 countries served as gold import partners into Dubai in 2008, led by the United Kingdom and India. During the same period, Dubai exported gold to a record 64 nations, with India and Switzerland topping the list of export partners.
Dr. David Rutledge, Chief Executive Officer, DMCC, said: “Gold prices surged to an all-time record high during the first quarter of 2008 leading to a significant inflow of gold scrap into Dubai for refining. The subsequent slowdown in prices during the last quarter of the year led to a major increase in bullion imports into Dubai, showing that the emirate has become a market for all seasons.”
According to additional data released on Monday, the total value of the gold traded through Dubai in the second half of 2008 reached 15.99 billion dollars, up 57 percent compared to 10.16 billion dollars during the corresponding period in 2007 and up 22 percent compared to 13.07 billion dollars in the first six months of 2008. This upward movement clearly shows Dubai’s resilience and adaptability to global trends, said Dr. Rutledge.
“The positive figures for 2008, demonstrate the emirate’s increasingly important role as a centre for the regional and global gold trade,” he added. “Despite expected extremely challenging international financial conditions this year, Dubai remains well positioned to sustain its performance.
Dr. Rutledge also added that “individuals, regional governments and investment funds have historically demonstrated a strong appetite for gold as a safe haven during periods of instability. We anticipate that imports into Dubai, destined for refining and re-export, will continue to perform solidly in 2009, while export levels will also be healthy, driven by investment-led demand in major consuming markets such as India.”
Subscribe to Arabian Business' newsletter to receive the latest breaking news and business stories in Dubai,the UAE and the GCC straight to your inbox.