Significant increase in gold sales during DSS 2007 - DGJG

Stressing that the "launch of the festival industry has marked a turning point" in the history of Dubai, Abdullah said that DSS has put the pep back into summer, effectively contributing to turning the lean summer of the past into one characterised by robust commercial activity. A leading figure in the gold and jewellery industry in Dubai, Tawheed Abdullah gave his view of the DSS 2007 and elaborated its role in shaping the gold industry in the shopping magnet of the Gulf.

Abdullah began by commenting on the initiatives by the government to involve the private sector in view of the massive development programmes being implemented throughout Dubai. "We can safely say that Dubai has granted all companies working in the Emirate free promotion campaigns. Instead of having to spend millions of dirhams in promotion efforts, these companies find their names best promoted by Dubai through innumerable development projects launched by the government in all fields, including tourism, hospitality, real estate, and retail sectors. Such expansion plans have prompted these companies to accelerate efforts in developing their businesses," he said.

Revealing the volume of gold sales achieved by the gold industry in DSS 2007, he said,

"Total sales logged a 25 per cent increase over the same period last year. And during the first two quarters of this year the gold industry recorded a 32 per cent and a 34 per cent increase respectively over the same period last year."

While the industry has witnessed buoyant sales this year, Abdullah says that the gold and jewellery sector in UAE does have its share of challenges. "Challenges are not confined merely to the UAE market, but rather faced by all international gold markets. Modern technology, including the spread of the Internet, is attracting a large percentage of our current and prospective clientele. Cyber cafes and their related activities are causing youths to spend 30 to 40 per cent of their income, which means a significant loss in youth consumer spending owing to the fact that the youth account for 60 per cent of any society and hence represent a considerable category of our customers."

In view of the challenges and the need to better promote the gold and jewellery industry, Tawheed said several initiatives were being launched. "We launched the 'Dubai Initiative' during the third Dubai - City of Gold Conference. The initiative was meant to attract young people through the latest fashion trends in the gold industry. This has entailed great efforts on our part to modernize our designs so that they can appeal to the largest possible number of clientele. The initiative has triggered a wake-up call for all concerned within the gold industry. They have realized that they must keep abreast with the latest developments in our field and work for modernizing their designs and techniques as well as their promotion efforts. They have got heedful of the threats posed by the growing world demand on other competing consumer products, including cell phones and lap tops that deplete a large part of consumer savings."

Asked as to how far the private and the public sectors could cooperate to implement the Dubai Strategic Plan 2015 for the common good of the trade and tourist movements in the country, Tawheed Abdullah said, "It goes without saying that Dubai has succeeded in setting a model to be copied for a successful partnership binding the private and the public sector. Contrary to the case in any other country where you find the private sector seeking to effect a partnership with the public sector, the public sector in Dubai always takes the initiative in approaching the private sector for partnership. This happens out of a firm belief on the part of the government in the colossal role the private sector can play in enhancing the development process in the country."

He elaborated on the subject by citing an example of Damas that he said was working with a large number of public and private companies to contribute to many development projects. "At Damas, we have for many years been working with a large number of public and private companies, with our contribution to many state projects and initiative being appreciated by all concerned. Our contributions are not confined to business activities merely, but they extend to include social fields. We allocate a total of AED 14 million of our annual budget to social activities, with our board of directors annually increasing this contribution by 20 per cent. Besides, we also support projects in areas of health, education, sports, and residential units in cooperation with Sheikh Mohammed bin Rashid Humanitarian and Charity Foundation."