How UAE growing role in gold production and refining is boosting jobs, economy
Dubai is becoming a world-class gold melting and refining center and there are already plans to expand the UAE’s infrastructure of gold and silver refineries. It is a move to solidify the country’s economic framework and place it higher on the world stage.
Leading market observers attributed the rise of the UAE in the world’s precious metals market to various reasons, including geographical advantage, advanced infrastructure and effective regulation. All these factors are opening the trade channels between Eastern and Western markets and making the UAE a key player in the global gold market.
In a recent edition of the Future of Trade report, they called out some of the changes that are impacting global gold trade and pointed towards an "Asian Century" for gold. The report also forecasts a new gold economic corridor among BRICS countries including the UAE as a possible alternative to conventional gold trading centres.
This move will restructure the world gold market and continue to position the UAE as a regional centre of the precious metals sector.
"UAE is setting up a number of "Good Delivery Refineries"," Shamlal Ahamed, managing director of International Operations at Malabar Gold & Diamonds, told me. This is "continuing to build on the country’s economic foundation and international credibility", he says.
As he also wrote: "With the global demand for gold bars increasing, the UAE will see explosive development of refinery infrastructure to allow the country to meet the growing international demand and consolidate its position as a world-leader in the gold trade.
Creating jobs in the community
Since Dubai is a global jewellery hub, it’s an obvious candidate for more gold smelting and refining. According to insiders, this backward integration is a sensible continuation of building the city’s position in the global gold market.
Chairman of the Dubai Jewellery Group Tawhid Abdulla pointed out that the emirate’s ascendance across the gold supply chain is being appreciated. "Emirate is leading in gold supply chain. Three UAE Good Delivery refineries backing the industry and local jewellery manufacturing getting better in recent years, we are adding more jobs and providing much needed value to the emirate economy".
Industry also said that this growth will also provide local jobs.
Rahul Sagar, founder and vice president of DIAN, and director at the Shantilal Group, emphasised how Dubai’s trusted refineries, with state-of-the-art technology, are a great boon for jewellers. "With these refineries, you have ease and speed, better quality control, cheaper costs and faster turnaround times," he said. "As well as, the development of smelting and refining operations brings in employment in its own right and makes Dubai the gold and jewellery leader", he added.
Technology making inroads
And the technology was slowing invading design and production, experts said as well.
"The industry has always been about crafts and traditional methods, but now it is more apparent how these technologies can facilitate efficiency, transparency, and innovation," Abdulla continued.
It’s not just design, Sagar said, and the way that 3D printing has radically changed the manufacturing and design. "It has changed manufacturing so we as manufacturers can make complex designs with unprecedented accuracy and efficiency. We are using this technology because it helps us serve B2B clients and end consumers, as we can prototype and create custom designs fast," Sagar added.
Although UAE’s gold industry grows, the country’s retailers still make efforts to keep the ethical standards of supply high. Most UAE retail stores don’t tolerate any unethical source and they procure their gold from verified suppliers.
"We source from LBMA (London Bullion Market Association) refiners, licensed traders, international bullion banks and UAE Good Delivery Refiners. Every metal transaction is made via the official banking channels only and we never form a partnership with vendors offering steep discounts without reliable proof of metal source," said Ahamed.
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