Gold Trading Booming in Dubai
Source: Commodity Online (7/18/11)
"Dubai has emerged as the world's biggest trading center for the yellow metal."
Gold trading is booming in Dubai, the largest city in the Middle East. According to a new study, Dubai has emerged as the world's biggest trading center for the yellow metal.
The study, conducted by the Dubai Multi-Commodity Centre (DMCC) for the Dubai Chamber of Commerce and Industry said that Dubai today represents 16% of the global gold trading volumes.
Dubai, the most active city in the United Arab Emirates (UAE), saw gold trading volumes increase by a record 18% in 2010 to $41.3 billion. It said Dubai has around 1,100 jewellery companies active in the gold trade, including seven gold and precious metal manufacturing companies, three Gold refineries and four gold and precious metal testing labs.
The DMCC study said that gold futures traded through the Dubai Gold and Commodities Exchange (DGCX) hit healthy volumes in May 2011 and the number of contracts increased 39% year-on-year to 60,638.
The study said that in 2010, the UAE's most important export markets for raw and semi-manufactured gold were Malaysia, Turkey and Nepal.
Switzerland, the United Kingdom and Singapore were also among the UAE's major export markets for gold jewelry.
Malaysia, Turkey and Bahrain were among the fastest growing export markets with compound annual growth rates in the 2006-2010 period of 89%, 63% and 20% respectively.