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The United Arab Emirates leads the Middle East in gold sales, with demand for yellow jewelery in Dubai and other emirates surging by double digits last year to nearly 50 tonnes.
According to the latest data released by the World Gold Council (WGC), from January to December 2022, consumers snapped up a total of 46.9 tons of gold jewelry in the UAE, an increase of 38% compared to the same period in 2021.
The UAE’s 2022 gold consumption is the highest in the Middle East, surpassing the needs of Saudi Arabia (37.9t), Egypt (33.6t) and Kuwait (14.7t).
Jewelry demand in the UAE also surpassed that of other Middle Eastern countries, with a total demand of 27.5 tonnes.
Regional demand
Gold demand across the Middle East rose 15% year-on-year to 190.4t, higher than the Americas (187.8t), Europe (70.6t) and other Asian countries, except for key markets such as Greater China (598.3t) and India (600.4t).
“Sizable gains in the UAE and Saudi Arabia were the main contributors to the region’s performance. But momentum slowed in the fourth quarter, mainly due to high and rising gold prices,” the World Gold Council said.
The UAE has a large number of expatriates from India, which is considered to be one of the largest gold consumers in the world. It is also a favorite destination for gold shoppers from other countries.
Global Demand Trends
Jewelry remained popular in the UAE, while overall global consumption fell slightly, by 3% to 2,086 tonnes, mainly due to higher prices in Q4 2022.
In 2022, total annual gold demand excluding over-the-counter transactions will be the same as in 2011, increasing by 18% to 4,741 tons. Investment demand rose 10% to 1,107t, while demand for bars and coins rose 2% to 1,217t.
Central banks were also in high demand last year, buying a total of 1,126 tonnes of gold last year, the highest level in 55 years.
Gold prices rose last year to reach $2,000 an ounce by February 2022 as Russia waged war on Ukraine. A few months later, the price fell more than 20% on the back of aggressive monetary policy by the Federal Reserve and a strong dollar.
However, prices have been on an upward trend since October 31, 2022, and reached above $1,924 an ounce in late January, up from $1,639 an ounce about three months ago.
(Reporting by Cleofe Maceda; Editing by Seban Scaria)
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