Dubai gold trade increases 12% in first half 2009 to $14.69bn

In the first six months of 2009, a total of 300 tonnes of gold was imported into Dubai, an increase of 13% compared to 265 tonnes in the same period of 2008. In the first half of 2009, gold exports from Dubai reached 213 tonnes, up 19% from 179 tonnes in 2008. Gold price averaged $922 per ounce during the first half of 2009, up from $910 per ounce during the same period in 2008.

In the second quarter of 2009, gold trade grew by 21% to reach $7.2bn from $6.01bn in the same period in 2008. During this quarter, Dubai imported 160 tonnes of gold, 12% more compared to 143 tonnes during the same period in 2008. Dubai exported 97 tonnes of gold in the second quarter of 2009, 52% more as compared to 64 tonnes during the same period in 2008.

In terms of trading partners, India, Switzerland and Iran were top importers from Dubai, while India, Malaysia and Switzerland were top exporters to Dubai.

Dr. David Rutledge, Chief Executive Officer of DMCC, said:

"Dubai continues to live up to its reputation as the 'City of Gold', as it is one of the few hubs in the world that maintains a healthy growth in gold trade. No doubt the market witnessed some volatility in gold prices and was compounded by lower retail sales of gold jewellery, however, the overall investment appeal of gold remained strong throughout the first half of this year."

Harendra Kailath, Director for Gold & Precious Metals, DMCC, said: "Prices were mainly on the higher end of the range, in turn boosting export volumes. The metal also ranked high on the list of traders' inflation-hedging priorities. Given these trends, we believe the outlook for gold trade is positive for rest of the year. DMCC has engaged in continuous dialogue with the industry at initiatives such as the DMCC Gold Convention 2009, Asia Gold Focus 2009 and others, exploring avenues for growing trade opportunities in gold."