Dubai and China 'Keen to Strengthen Gold Ties'
Source: World Gold Council (7/27/09)
"Chinese gold and jewelry companies increasingly see Dubai as a global benchmark."
Dr. David Rutledge, chief executive officer of the government-backed Dubai Multi Commodity Centre (DMCC), said the event had highlighted a number of potential benefits from increased cooperation.
He added that China, which was the largest producer and second biggest consumer of gold in 2008, could be a key market for the emirate as jewelry manufacturers in the People's Republic have expressed a desire to work with Dubai-based companies.
"Chinese gold and jewelry companies increasingly see Dubai as a global benchmark," he said.
Dr. Rutledge noted that firms in the emirate could benefit from having access to a cost-effective manufacturing base for jewelry, a "one-stop shop" for imports, customs clearance and secure transportation and an emerging consumer market. Personal gold consumption rose by 8% in China during 2008.
DMCC director for gold Harendra Kailath said several Chinese refineries have already expressed an interest in securing the Dubai Good Delivery standard, which aims to provide quality assurance for small gold bars.
The DMCC was established by the Dubai government to provide the emirate with a dedicated commodities market.