Dubai Gold Trade Surges in 2008

Dubai’s gold trade rose to a record $29 billion in 2008, increasing 53 percent year-over-year, the Dubai Multi Commodities Centre (DMCC) announced Monday.

A total of 674 tons of gold were imported into Dubai during the year, up 21 percent compared to 559 tons imported in 2007.

Gold exports from Dubai reached 371 tons, an increase of 29 percent compared to 287 tons exported in the previous year.

The United Kingdom and India were Dubai’s main sources of gold, joined by some 100 additional countries that shipped gold to Dubai in 2008.

Leading destinations for Dubai’s exports were India and Switzerland, trailed by another 62 countries.

“Gold prices surged to an all-time record high during the first quarter of 2008 leading to a significant inflow of gold scrap into Dubai for refining,” DMCC CEO Dr. David Rutledge said. “The subsequent slowdown in prices during the last quarter of the year led to a major increase in bullion imports into Dubai, showing that the emirate has become a market for all seasons.”

According to additional data released today, the total value of the gold traded through Dubai in the second half of 2008 reached $15.99 billion, up 57 percent compared to $10.16 billion during the corresponding period in 2007 and up 22 percent compared to $13.07 billion in the first six months of 2008.

“The positive figures for 2008, demonstrate the emirate’s increasingly important role as a centre for the regional and global gold trade,” Rutledge added.