ABU DHABI 15 December 2020: The UAE accounts for 11 percent of the total global gold exports, according to Abdulla Bin Touq Al Marri, UAE Minister of Economy.
He pointed out to a new policy for the gold sector, which aims to develop the governance of gold trade in the country to be in line with the best international standards. The policy comprises four major initiatives:
- Establishing the UAE’s standard for good gold delivery,
- Development of a federal platform for gold trade,
- Establishing a committee for the UAE bullion market, and
- Building a database for companies and individuals involved in gold trade
During its session under the chairmanship of His Highness Sheikh Mansour bin Zayed Al Nahyan, Deputy Prime Minister and Minister of Presidential Affairs, on December 6, 2020, the Ministerial Development Council adopted 4 new initiatives aimed at strengthening the UAE’s position as a global hub for gold trade, said official news agency Wam.
Bin Touq added: “The new policy for the gold sector…represents an important milestone in the UAE’s efforts towards establishing a stable environment for gold trading in the country. The policy will enhance the UAE’s position as a leading hub in the global gold and precious metal trading landscape, in addition to maximizing the sector’s contribution to increasing the non-oil GDP and driving the national economic growth.”
He further explained that the UAE today has several advantages that positions it as an influential global player in gold trade, including its strategic location, the business environment that encourages investments and doing business, advanced infrastructure, and its adherence to international best practices in the field of gold trade and circulation. the Minister pointed out that the implementation of the four specific initiatives within the UAE’s new gold policy will bring about a positive transformation by adding more value to gold trading activities and the local gold sector, while also enhancing the UAE’s global competitiveness in this area.
Meanwhile, Dr. Thani bin Ahmed Al Zeyoudi, Minister of State for Foreign Trade, stated that the UAE represents a leading and attractive destination in the international gold and precious metals trading landscape. He said that gold trade accounts for more than 29 per cent of the total national non-oil exports and that it has a major share in the country’s foreign trade activities.
He added: “Despite the challenges imposed by the pandemic on global trade activities, the UAE’s gold trading contributed to an increase in Emirati exports by 6 per cent during the period from January to August 2020 compared to the same period in 2019. During the months of July and August 2020, the gold exports’ growth in terms of value and quantity reached 84 per cent and 38 per cent respectively compared to the same two months of the year 2019.”
Al Zeyoudi reiterated that the development of legislation and regulations governing trade and supporting the business and investment activities in this vital sector along with the launch of the four initiatives within the framework of the country’s new gold policy, are considered crucial towards enhancing the competitiveness of this product. These measures will ensure that the UAE has the highest quality gold standard and will generate opportunities for investments in the gold and precious metals sector, thereby enhancing its role among the key economic diversification pillars.