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Tuesday, 12th July 2005 (7402 views)

Gold fabrication is expected to explode in the UAE after reports of a major leap in jewellery offtake.<br/><br/>The local gold fabrication industry accounts for approximately 30 per cent of UAE's annual jewellery demand which totals around 250 tonnes.<br/><br/>And with jewellery demand in the UAE poised for annual growth 12-15 per cent growth, local production is preparing for a 25 per cent jump to 75 tonnes this year.<br/><br/>According to Tawhid Abdullah, chairman of Dubai Gold & Jewellery Group, this spurt in growth can be attributed to increasing demand driven by a cash-surplus economy, a steady increase in tourism and general population growth.<br/><br/>"There is a real need for increased local output supported by an established production base given the continued buoyancy forecast for the jewellery trade in the coming years," he said.<br/><br/>Local gold fabrication accounts for only 25-30 per cent of the UAE jewellery market, with the rest being met by imports.<br/><br/>At its peak of its gold trade in 1997, Dubai was believed to have imported 660 tons of gold bullion and to have re-exported around 600 tons, with a market value in the region of US$ 6.5 billion.<br/><img alt="track" src="http://feeds.directnews.org.uk/feedtrack/dn.gif?feedid=196&itemid=15004166"/>

 

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