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2024/11
Dubai Rises as the World’s Second-Largest Gold Trading Hub, Paving the Way for the “Golden Asian Century”
As the global gold market shifts its focus eastward, Dubai and the UAE are leveraging their unique geopolitical position and policy flexibility to become a critical gold trade hub connecting East and West. A recent report by the Dubai Multi Commodities Centre (DMCC) outlines a promising vision for the gold market, heralding the arrival of the “Golden Asian Century.”
Amid surging gold demand in Asian markets, the UAE—especially Dubai—has surpassed London to become the world’s second-largest gold trading and processing hub, trailing only Switzerland.
Ahmed Bin Sulayem, Executive Chairman of DMCC, remarked, “In recent years, sanctions imposed by Western countries have driven historic shifts in the precious metals market, prompting central banks to purchase record amounts of gold and reconsider their reliance on the US dollar.”
He further noted, “We are witnessing the formation of a new gold corridor spanning Asia, with Dubai at its core. The UAE becoming the world’s second-largest gold trading center last year is a prime example.”
A Booming Gold Trade
This optimism comes as the UAE’s gold trade sees substantial growth. DMCC’s report highlights that in 2024, the value of gold flowing through Dubai reached $129 billion, a 36% increase compared to the previous year.
UAE Surpasses London
The UAE has now overtaken London to become the second-largest gold trading center globally.
The report emphasizes, “Geopolitical challenges, including sanctions on Russia, have disrupted the global financial economy, prompting countries to reconsider their reliance on the US dollar and the security of their gold reserves.”
In response, central banks have ramped up gold purchases and repatriated gold stored in the United States to diversify away from the dollar. Some central banks have even started using gold for trade transactions instead of the dollar. This paradigm shift has driven gold prices to unprecedented levels, creating ripple effects across the global economy.
Strengthening the Future of Gold Markets
As gold plays an increasingly pivotal role in the global economy, the DMCC report also provides key recommendations for shaping the market’s future growth. These include enhancing transparency and regulation in gold markets, supporting digital innovation, and improving access for emerging markets.
Dubai’s strategic positioning and forward-thinking policies position it as a cornerstone in the evolving gold market landscape, cementing its role in the “Golden Asian Century.”
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