April 07--Dubai has reinforced its position as the global gold and precious metal trade hub as the value of physical gold traded through Dubai surged to $75 billion with volumes accounting for 40 per cent of the total world trade in 2013, Ahmed bin Sulayem, Executive Chairman of Dubai Multi Commodities Centre (DMCC), said on Sunday.
"Dubai has quickly emerged as the leading global hub for the precious metals trade. As a result of DMCC's continuous efforts to realise the vision of His Highness Shaikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, the emirate has risen as the destination for global precious metals trading," Sulayem said in his keynote address at the Third Dubai Precious Metals Conference which opened on Sunday.
In 2013, almost 40 per cent of the world's physical gold trade came through Dubai and the value of total gold traded through Dubai grew to $75 billion, compared to $6 billion in 2003, and $70 billion in 2012.
Dubai also saw an annual trade volume increase of 73 per cent accounting for 2,250 tonnes of gold, Sulayem said.
"This market has proven to be resilient under all conditions; even on a year where total global demand fell by 15 per cent, Dubai gained from near-record consumption demand growth. These figures represent a significant shift in the balance of global demand flows with Dubai positioned as one of the global market leaders," the DMCC chief said at the conference, which opened in the presence of Maryam Buti Al Suwaidi, Deputy CEO, Securities and Commodities Authority.
Meanwhile, the Dubai Gold and Commodities Exchange (DGCX) plans to introduce a spot gold contract this June as part of its growth as a top trading centre for the precious metal, it's chief executive Gary Anderson said. "The DGCX is in the final stages of finalising contract specifications," a spokesman quoted Anderson at the conference.
The contract is expected to be for one kilogramme (32 troy ounces) of 0.995 purity gold, the spokesman added. The DGCX already trades gold futures.
Dubai's thriving jewellery trade and its fast expanding gold refining industry along with DMCC and DGCX have been instrumental in positioning city as the world's previous metals hub. The conference, which brought together over precious metal experts and traders from across the world, was being hosted by DMCC in association with Foretell.
The theme for this year's DPMC "Engaging with Africa", was central to keynotes on day one as expected, where key topics were discussed through a series of presentations and panel debates from renowned local, regional and international industry experts.
The third edition of the DPMC brought together over 475 delegates, an increase of 44 per cent compared with 2012, and 19 exhibitors from 31 countries including conference title sponsor for the third consecutive year Standard Bank. Speakers highlighted Dubai's progressive environment to do business, with strong physical and financial infrastructure and a legal framework to protect the interests of investors to ensure people can trade with confidence.
The latest trading figures disclosed by the DMCC also highlighted Dubai's growing reputation as the global bullion centre, ideally located between the producing and consuming nations.
"The DPMC is now firmly established as the annual global conference for the precious metals industry, clearly demonstrated by the number of delegates here that regard this as a key annual conference to attend for the industry. This is the third year Standard Bank is sponsoring the DPMC and we are proud to be apart of such an important event," said Alison Burns, Head of Precious Metals (Mena) Standard Bank.
Copyright 2014 - Khaleej Times, Dubai, United Arab Emirates