World Gold Council to shut UAE office as part of review

Council official says office will close next week, will continue to promote retail sector through DSF
World Gold Council to shut UAE office as part of review
The World Gold Council (WGC) will shut its office in the UAE next week. (Getty Images)
By Reuters
Wed 23 Mar 2011 08:26 PM

The World Gold Council (WGC)

will shut its office in the UAE next week due to a

strategic review of their operations, it said on Wednesday.

"We recently carried out a strategic review of our

operations and whilst there are significant opportunities in the

UAE, we do not currently have the appropriate critical mass

there to maximise them, nor can we deploy the necessary

resource," said the statement.

"As such, we have decided to reallocate our resource in the

UAE," it added. The office will close on 31 March.

The WGC took part in promoting the retail sector through the

Dubai Shopping Festival and said it would continue to honour

such initiatives, the statement said.

Some analysts believed that the UAE government and retailers

were not cooperative in giving the WGC enough data for their

reports; others site a slowdown in Dubai's gold business.

"I think they decided to shutdown because they are having

problems collecting date from traders and the government," said

Pradeep Unni, senior analyst and trader at Richcomm Global

Services in Dubai.

Labelled the city of gold, Dubai's retail business in recent

months has taken a hit as gold prices rose above consumers'

reach, due to unrest in the region.

"Business has been hit so badly here I think the WGC is

looking for somewhere a bit more active," said a Dubai-based

gold trader who declined to be named.

On Wednesday, Spot gold hit a session high of

$1,440.90, its highest since March 7 when it scored a record

peak of $1,444.40 an ounce.

For all the latest retail news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.

Subscribe to our Newsletter

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.