DUBAI GOLD TRADE THRIVES
For over a century, traders have traveled to Dubai's Souks in search of spices, pearls and gold. With such a strong trade, Dubai became known as the 'City of Gold'.
In a report by Euronews, it cited that in the first nine months of 2020, gold trade in the country was valued at 41 billion euros, according to Dubai Customs. It is the city’s most lucrative export after oil. Dubai has capitalized on its geographical position by setting up gold vaults, jewelry-making facilities and refineries.
At Al Etihad Gold, they refine and convert gold into investment-grade bars. They supply bullion banks and traders, but also jewelry wholesalers. The whole process is carried out on the premises.
Al Etihad also holds the Dubai Good Delivery accreditation which is an international benchmark for quality and technical specifications.
The co-owner of Al Etihad Gold Refinery, Salah Khalaf, says he sees gold remaining a popular purchase from a jewelry and investment perspective. He actively encourages people "only to invest in gold".
"I see the whole circle is completed here in this city, especially the infrastructure and the stability and the security", he adds.
The refinery makes gold bars in a variety of sizes. Like any commodity, its price can change. At current market rates, a 10kg bar is worth just shy of 450 000 euros. Finished bars are sold to bullion banks, traders and wholesalers.
One of the biggest wholesalers in the city was set up by the Abdullah family in 1955. At Jawhara, they specialize in trading gold, jewelry and diamonds. They later expanded into retail.
Tawhid Abdullah is the CEO of Jawhara and the Chairman of the Dubai Jewellery Group. He says the industry in the city is thriving, "at any point of time, there are 40-50 tons available on the market, either on the retail front or on the wholesale. And due to the big numbers that we turn over, our prices, you know, become the world's most competitive prices".