The gold jewellery sales in the UAE has increased by 17 per cent in 2008 to cross Dh13.7 billion ($3.72 billion) when compared to Dh11.4 billion ($2.9 billion) during the previous year, according to the World Gold Council (WGC).

The WGC has confirmed that the regional market remained healthy when compared to global markets.

While jewellery accounts for 90 per cent of total consumer demand, net retail investment witnessed strong growth of 38 per cent in the last quarter of 2008 compared to the same period of the previous year, said a top council official.

Anan Fakhreddin, WGC managing director, Middle East and Turkey, elaborating on the council’s vital role said, 'The impact of marketing and promotional gold jewellery campaigns is more important now than ever.'

'The continuous efforts that the World Gold Council and its partners from the gold trade in several countries in the region are essential in order to maintain a healthy gold market environment in the coming period,' he added.

'It is normal to see a shift from the jewellery sector to the retail investment sector as it proves consumer’s high affinity to gold and their recognition of its store of value,' Fakhreddin opined.

By end of 2008 and first quarter of 2009, consumers’ excess demand was towards coins and bars in addition to jewellery with relatively low production costs, he added.-TradeArabia News Service