UAE gold sales up by 21 pc
Monday, 19 November 2007
DUBAI, Nov 18 (PTI): Retail gold sales in the UAE increased by 21 per cent in the third quarter of this year compared to the same period of 2006 with jewellery demand remaining strong despite the steep rises in prices.
Releasing the third quarter figures in Dubai Saturday, the Dubai office of World Gold Council said sales figures in the UAE increased from Dhs2 billion in the third quarter of 2006 to Dhs2.5 billion in the third quarter of 2007.
"Gold's safe haven and hedging characteristics have been a major attraction to investors during this period of instability, greater inflationary fears and a falling dollar," Moaz Barakat, Managing Director of the WGC in the Middle East, Turkey and Pakistan, said in a statement.
UAE gold consumption in terms of tonnage increased from 23.9 tonnes in Q3 of 2006 to 26.3 tonnes in the same period of 2007 contributing to a 10 per cent increase.
Demand remained strong throughout the Middle East increasing by 19 per cent in Saudi Arabia, 15 per cent in Egypt and 3 per cent in other Gulf countries combined. The strong economies in the Arabian Peninsula and a recovering economy in Egypt, together with the favourable price environment for jewellery buying in the first two months of the quarter, easily outweighed the negative impact of the price rise in September.
The WGC's report revealed that jewellery demand was strong through the quarter, and despite the steep rises in prices which had an impact on key markets, jewellery demand rose in tonnage
and value terms.
A combination of strong economies with rising wealth, favourable price trends for most of the quarter and increased promotional spending, notably by the jewellery trade, were the main factors underlying a 13 per cent increase in consumer demand to 93.2 tonnes in the region as a whole compared to a year earlier (jewellery up 14 per cent, and net retail investment up 9 per cent).
The UAE continued to enjoy a booming economy. The Summer Surprises festival was again a success and the number of tourists once again increased sharply, all helping to increase the jewellery demand by 11 per cent and total consumer demand by 10 per cent.
The reduction in customs duty on imported jewellery from 12 per cent to 5 per cent which took effect in March is helping to improve the range of products on offer. Recovery continued in Egypt with jewellery demand 15 per cent higher than a year earlier.
The third quarter jewellery demand was the highest since 2002 in tonnage terms. The country enjoyed a good tourist season during the summer with a number of tourists diverted to Egypt from their normal vacation in Lebanon due to the ongoing political tensions there.
Releasing the third quarter figures in Dubai Saturday, the Dubai office of World Gold Council said sales figures in the UAE increased from Dhs2 billion in the third quarter of 2006 to Dhs2.5 billion in the third quarter of 2007.
"Gold's safe haven and hedging characteristics have been a major attraction to investors during this period of instability, greater inflationary fears and a falling dollar," Moaz Barakat, Managing Director of the WGC in the Middle East, Turkey and Pakistan, said in a statement.
UAE gold consumption in terms of tonnage increased from 23.9 tonnes in Q3 of 2006 to 26.3 tonnes in the same period of 2007 contributing to a 10 per cent increase.
Demand remained strong throughout the Middle East increasing by 19 per cent in Saudi Arabia, 15 per cent in Egypt and 3 per cent in other Gulf countries combined. The strong economies in the Arabian Peninsula and a recovering economy in Egypt, together with the favourable price environment for jewellery buying in the first two months of the quarter, easily outweighed the negative impact of the price rise in September.
The WGC's report revealed that jewellery demand was strong through the quarter, and despite the steep rises in prices which had an impact on key markets, jewellery demand rose in tonnage
and value terms.
A combination of strong economies with rising wealth, favourable price trends for most of the quarter and increased promotional spending, notably by the jewellery trade, were the main factors underlying a 13 per cent increase in consumer demand to 93.2 tonnes in the region as a whole compared to a year earlier (jewellery up 14 per cent, and net retail investment up 9 per cent).
The UAE continued to enjoy a booming economy. The Summer Surprises festival was again a success and the number of tourists once again increased sharply, all helping to increase the jewellery demand by 11 per cent and total consumer demand by 10 per cent.
The reduction in customs duty on imported jewellery from 12 per cent to 5 per cent which took effect in March is helping to improve the range of products on offer. Recovery continued in Egypt with jewellery demand 15 per cent higher than a year earlier.
The third quarter jewellery demand was the highest since 2002 in tonnage terms. The country enjoyed a good tourist season during the summer with a number of tourists diverted to Egypt from their normal vacation in Lebanon due to the ongoing political tensions there.