Dubai set to handle 39% of international gold business
While the past 10 years has seen an exodus of gold from the West to the East, principal centers for refining and clearing the metal remain firmly based in the West, with Switzerland refining almost 70% of all gold.
Dubai has plans to challenge this Western domination through refining capacity expansion and developments in it’s exchange based trading.
The country is already building one of the world’s largest gold refineries near Dubai (the $60 million refinery being constructed by Kaloti Precious Metals in), and the Dubai Gold and Commodities Exchange have announced plans to introduce a spot gold contract this June.
Gold imports and exports handled by Dubai shot up to $75 billion in 2014 from $6 billion in 2003 – with almost 40 percent of the world’s physical gold trade passing through the country last year.
Analysts acknowledge Dubai’s proximity to the gold-hungry east also would put it in a strong position to challenge European dominance.
Full story at Reuters
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