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.
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