UAE Set to Become Major Gold Hub in Future

Dubai Multi Commodities Centre (DMCC), the leading international business district that drives the flow of global trade through Dubai, on Monday forecast that the UAE is set to become one of the most important hubs for the gold trade in coming years.

Releasing a special edition of its Future of Trade thought leadership report, DMCC focused on the precious metals industry and the key trends shaping the global market for precious metals.

The report entitled “Trade, Technology and Markets in Transition,” said that as a result of major shifts in the global gold trade, the report predicts the rise of an ‘Asian Century’ for gold, with a particular focus on the development of a new gold economic corridor among BRICS nations, including the UAE, that can provide an alternative to traditional gold trade centres.

DMCC’s position was significantly bolstered by the UAE leapfrogging the UK in 2023 to become the second-largest gold trade hub worldwide, with over $129 billion in total trade – a rise of 36% on the past year.

Historic Shifts

DMCC’s Executive Chairman and CEO Ahmed Bin Sulayem said that in recent years, they have   witnessed historic shifts in the precious metals market, driven by Western sanctions that have forced record buying of gold by central banks and a rethink by many countries when it came to their reliance on the US dollar.

He said that they were seeing a new gold corridor form across Asia, with Dubai at its centre – exemplified by the UAE’s rise to become the world’s second-largest gold trading hub last year.

“Our latest Future of Trade report underscores Dubai’s pivotal role in this transformation, as we strengthen its position as the world’s leading precious metals hub, attract key industry players and support our members to unlock new growth opportunities,” he said.

DMCC’s COO Feryal Ahmadi said that their latest Future of Trade report on precious metals has been a vital resource for all stakeholders involved in the industry and sets the scene perfectly for the 12^th edition of DMCC’s Dubai Precious Metals Conference.

“As the report highlights, this is a time of opportunity and challenge, and as the gold industry navigates its place in a rapidly evolving landscape, we look forward to working with our members and partners as we continue to build the world’s premier ecosystem for the global precious metals trade from Dubai,” he added.

Key Insights

The report provides key insights into the current state of the global gold and silver markets. The report highlights that geopolitical challenges including sanctions against Russia have shaken the global financial economy, prompting countries worldwide to reconsider their reliance on the US dollar and the safety of their gold holdings.

As a result, central banks worldwide have ramped up their gold purchasing activities and repatriated US-stored bullion to diversify away from the dollar, with some even using gold in lieu of the US dollar in trade transactions.

This shift was driving gold prices to unprecedented levels, creating a ripple effect across the global economy.

In response to these challenges, the UAE is emerging as a key player in the global precious metals market, leveraging its strategic location, robust regulatory framework, and advanced infrastructure to bridge East and West and reshape the gold trade.

The report also explores the growing importance of technological innovation within the precious metals market.

From AI-driven exploration and autonomous mining techniques to blockchain-based tracking systems and digital gold investment products, technology was playing a crucial role in reshaping how gold is sourced, traded and invested in.

The Future of Trade report outlines a number of important recommendations for governments and businesses to help drive the evolution of the industry and shape the next phase of its growth.