Dubai Chamber of Commerce, one of the three chambers operating under Dubai Chambers, has launched three business groups for the gold sector.
The Gold Manufacturers, Gold Bullion & Refinery Group as well as the Gold Designers Business Groups will serve as a platform for members to advocate for policy changes beneficial to Dubai’s gold industry and drive the competitiveness of the market.
For over a century, Dubai’s Souks have been the destination of choice for traders looking for pearls and gold and since then, the emirate has sustained its status as the ‘City of Gold’. Dubai trade in the gold market has increased considerably in recent years. At a CAGR of 15% between 2017 to 2021, the total trade of gold went from US$43.4 billion to US$75 billion.
The three new gold sector-specific business groups will play a fundamental role in sustaining the promising growth of the industry, ensuring it continues to thrive and add significant value to the economy.
Gold remains an attractive asset for many reasons. According to the World Gold Council, over the past decade, jewelry has made up 44% of annual average gold demand. Gold production has become geographically diverse with bar and coin demand surging in Europe after the Global Financial Crisis. Central Banks have become net buyers of gold as it has outperformed other assets such as bonds, commodities and the US dollar in the last three decades.
Dubai has become a major destination for trade and investment in gold. Imports grew from US$29.2 billion in 2017 to US$48.7 billion in 2021 (14% CAGR), while total exports rose from US$14.2 billion in 2017 to US$26.3 billion in 2021 (17% CAGR). Dubai’s Gold Souk in Deira is home to more than 300 retailers and Dubai Multi Commodities Centre free zone serves the entire gold value chain, from research and refining to trading and investing.
The three new business groups bring the chamber closer to its aim of establishing 100 business groups by the end of March. Business groups are imperative in ensuring representation of all the business and economic sectors in Dubai. The groups facilitate a two-way dialogue between government entities and the private sector, a key component in addressing policy matters and enhancing the competitiveness of Dubai’s economy.