29 December, 2020
UAE to Emerge As a Global Hub for Gold
The UAE bullion market may soon be governed by a special committee, appointed by the Council of Ministers, to establish UAE as a strong hub for Gold.
UAE accounts for 11% of the total Global gold exports, according to Abdulla Bin Touq Al Marri, UAE Minister of Economy. Gold accounts for 29% of the non-oil exports in addition to having a prime place in driving national economic growth.
In this context, the Ministerial Council, headed by His Highness Sheikh Mansour bin Zayed Al Nahyan, Deputy Prime Minister and Minister of Presidential Affairs, recently met to formulate a gold policy for UAE.
The policy would ensure that the gold trade governance in UAE is in line with the global standards. The policy also comprises 4 key initiatives – building a database for all entities (individual or companies) involved in gold trade, the establishment of a special committee for UAE bullion, development of a federal platform for gold trade and finally the establishment of a UAE standard for good gold delivery.
Good gold delivery standards include a set of rules for the physical characteristics of gold used in the wholesale settlement.
The end objective is to establish UAE as a stable and formidable economy for gold trading. This effort is also expected to provide the impetus to non-oil contribution to the growth and development of the UAE economy. For the period of Jan – Aug 2020, and in comparison to 2019, Gold trade contributed to a year-on-year increase of 6% in the total exports.
UAE Government is keen to boost the non-oil sector through updating of legislation and regulatory frameworks, while also encouraging innovation. The establishment of UAE as a global hub is expected to fall in line with this aspect of the UAE Vision for economic growth.