Bin Touq: UAE accounts for 11 per cent of global gold trade .. We are sparing no effort to develop governance of gold trade according to best international standards

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Following the adoption of 4 new initiatives to strengthen the country’s position as a global hub for gold trade

H.E. Abdulla Bin Touq Al Marri, UAE Minister of Economy

Abu Dhabi: H.E. Abdulla Bin Touq Al Marri, UAE Minister of Economy, said that driven by the support and directives of its wise leadership, the UAE holds a leading global position as a vital hub for gold and precious metals trade. The country today accounts for 11 per cent of the total global gold exports, which highlights the UAE government’s strategic approach to developing the gold trade sector in accordance with best international practices, which will further strengthen the country’s leadership and competitiveness in this vital sector.

H.E. pointed out to the importance of the establishment of the Ministerial Development Council headed by H.H. Sheikh Mansour bin Zayed Al Nahyan, Deputy Prime Minister and Minister of Presidential Affairs, a new policy for the gold sector, which aims to develop the governance of gold trade in the country to be in line with the best international standards followed in this regard. The policy comprises four major initiatives: establishing the UAE’s standard for good gold delivery, development of a federal platform for gold trade, establishing a committee for the UAE bullion market, and building a database for companies and individuals involved in gold trade.

H.E. Bin Touq added: “The new policy for the gold sector, which was adopted by the Ministerial Development Council and developed by the Ministry of Economy in partnership with several concerned entities, foremost among which is the Ministry of Foreign Affairs and International Cooperation, the Securities and Commodities Authority, the Federal Customs Authority and the Dubai Multi Commodities Center, Dubai Exports, represents an important milestone in the UAE’s efforts towards establishing a stable environment for gold trading in the country. The policy will enhance the UAE’s position as a leading hub in the global gold and precious metal trading landscape, in addition to maximizing the sector’s contribution to increasing the non-oil GDP and driving the national economic growth.”

H.E. further explained that the UAE today has several advantages that positions it as an influential global player in gold trade, including its strategic location, the business environment that encourages investments and doing business, advanced infrastructure, and its adherence to international best practices in the field of gold trade and circulation. H.E. the Minister pointed out that the implementation of the four specific initiatives within the UAE’s new gold policy will bring about a positive transformation by adding more value to gold trading activities and the local gold sector, while also enhancing the UAE’s global competitiveness in this area.

Meanwhile, H.E. Dr. Thani bin Ahmed Al Zeyoudi, Minister of State for Foreign Trade, stated that the UAE represents a leading and attractive destination in the international gold and precious metals trading landscape. He said that gold trade accounts for more than 29 per cent of the total national non-oil exports and that it has a major share in the country’s foreign trade activities.

H.E. added: “Despite the challenges imposed by the pandemic on global trade activities, the UAE’s gold trading contributed to an increase in Emirati exports by 6 per cent during the period from January to August 2020 compared to the same period in 2019. During the months of July and August 2020, the gold exports’ growth in terms of value and quantity reached 84 per cent and 38 per cent respectively compared to the same two months of the year 2019.”

H.E. Al Zeyoudi reiterated that the development of legislation and regulations governing trade and supporting the business and investment activities in this vital sector along with the launch of the four initiatives within the framework of the country’s new gold policy, are considered crucial towards enhancing the competitiveness of this product. These measures will ensure that the UAE has the highest quality gold standard and will generate opportunities for investments in the gold and precious metals sector, thereby enhancing its role among the key economic diversification pillars.

Dr. Obaid Saif Hamad Al Zaabi, CEO of Securities and Commodities Authority, emphasized that the initiatives of the Ministerial Development Council, headed by H.H. Sheikh Mansour bin Zayed Al Nahyan, Deputy Prime Minister and Minister of Presidential Affairs, regarding the establishment of an Emirati gold standard and a federal platform for trading, fall in line with the government’s strategic approach towards enhancing the UAE’s global economic position, with the aim to join the list of fastest growing trade hubs globally. 

H.E. Al Zaabi stated that this forms part of the country’s strategy aimed at diversifying the non-oil economy, considering that the gold and precious metals sector is one of the key sectors supporting the economic diversification efforts. This will be achieved by taking advantage of several factors, foremost of which is the UAE’s unique strategic location connecting producing countries, major manufacturing centers and the largest consumer markets in the world. In addition, the UAE’s strengths in terms of trade centers that adopt the highest international standards in terms of the management of commercial operations, circulation, mediation, and governance, enhance its role in supporting international trade in various commodities. Besides, the country has state-of-the-art digital infrastructure and advanced legislative environment. Al Zaabi pointed out that all these factors will support the country’s position as a global hub for gold and precious metal trade.

“Guided by the vision of UAE’s wise leadership and its commitment to an ambitious economic diversification agenda, the UAE has become a leading global precious metals trade hub. The UAE Federal Gold Policy will further expand and elevate the precious metals trade within the country, while also strengthening its ties with stakeholders across the international gold trading network. DMCC commends the UAE Government’s efforts on this important initiative and looks forward to working with all connected entities in implementing the bold, innovative and comprehensive enhancements that have been announced,” said Ahmed Bin Sulayem, Executive Chairman and Chief Executive Officer, Dubai Multi Commodities Centre (DMCC).

During its session held under the chairmanship of His Highness Sheikh Mansour bin Zayed Al Nahyan, Deputy Prime Minister and Minister of Presidential Affairs, on December 6, 2020, the Ministerial Development Council adopted 4 new initiatives aimed at strengthening the UAE’s position as a global hub for gold trade. These include the establishment of the UAE standard for delivery of gold, development of a federal platform for gold trade, establishing a committee for the UAE bullion market, and building a database for companies and individuals trading gold.