Dubai’s gold and bullion industry is poised to maintain its current annual growth rate of about 18 per cent thanks to firm backing from financing institutions and wealth funds, said a senior official.

Anan Fakhreddin, the Dubai Gold & Jewellery Group (DGJG) chairman was speaking at a major industry event which was attended by 450 delegates from the global gold and bullion trade, leading global jewellers, analysts and bankers.

The 'Dubai City of Gold Conference' was organised by DGJG under the patronage of Sheikh Ahmed Bin Saeed Al Maktoum and inaugurated by Sami Al Qamzi, director general, Department of Economic Development.

Fakhreddin pointed out that Dubai was geographically and strategically well positioned to serve several markets that had a combined population of 3.5 billion and consumes approximately 2500 tonnes of gold annually.

Six of the world’s top gold consuming nations, India, China, the GCC, Turkey, Vietnam and Russia are located within six hours flight time of Dubai, account for 67 per cent of world gold consumption, he noted.

Growing availability of financing and investments from the sovereign wealth funds, implementation of the OECD’s due diligence guidance on conflict gold and simpler transaction agreements are the new developments that will propel the industry further.

Ahmed Bin Sulayem, executive chairman of DMCC said: “Today’s conference highlighted that Gold has been a shining example of how Dubai fosters trade. DMCC is committed to help protect and further the growth of the Dubai gold trade.'

'Given our experience with the Kimberley Process for diamonds, we have taken the lead in raising awareness of and are actively involved in the drafting of the OECD’s guidelines on responsible supply chain management of gold from conflict-affected and high-risk areas.'

'DMCC will develop a practical approach to implementing the OECD’s due diligence guidance on conflict gold and hosted a workshop which was attended by a range of leading gold market participants to further discuss the OECD’s guidance on gold,' Bin Sulayem added.

Gerhard Schubert, head of Precious Metals, Emirates NBD said: 'The banking sector has supported the growth of the UAE gold and bullion trade and is incorporating new technological advances.'

'Credit for jewellery financing, especially inventory financing through RFID tagging of jewellery, needs to be added to banks’ current activities such as providing working capital through gold loans, stand-by letters of credit and guarantees,' he noted.

'We also encourage steps to eliminate red tape that limits trading and complicates transaction agreements such as netting and offset,' Schubert added.

“Like many other events organized by the DGJG, this conference has played a pivotal role in facilitating the transfer of knowledge and global best practices in the entire region,' said Fakhreddin.

'As such, events like this will enable industry players to draw on world class strategies and tactics to further develop the local and regional gold and jewellery industries,' he added.-TradeArabia News Service