DMCC predicts ‘Asian Century’ for precious metals as UAE surpasses UK to become world’s second-largest gold trade hub

DMCC, the starring planetary concern territory that drives the travel of planetary commercialized done Dubai, contiguous released a peculiar variation of its Future of Trade thought enactment study focused connected the precious metals manufacture and the cardinal trends shaping the planetary marketplace for precious metals.

As a effect of large shifts successful the planetary golden trade, the study predicts the emergence of an "Asian Century" for gold, with a peculiar absorption connected the improvement of a caller golden economical corridor among BRICS nations, including the UAE, that tin supply an alternate to accepted golden commercialized centres.

DMCC’s findings forecast the UAE becoming 1 of the astir important hubs for the golden commercialized successful coming years. This presumption was importantly bolstered by the UAE leapfrogging the United Kingdom successful 2023 to go the second-largest golden commercialized hub worldwide, with implicit USD 129 cardinal successful full commercialized – a emergence of 36 per cent connected the past year.

Ahmed Bin Sulayem, Executive Chairman and Chief Executive Officer, DMCC, said: "In caller years, we person witnessed historical shifts successful the precious metals market, driven by Western sanctions that person forced grounds buying of golden by cardinal banks and a rethink by galore countries erstwhile it comes to their reliance connected the US dollar. We are seeing a caller golden corridor signifier crossed Asia, with Dubai astatine its centre – exemplified by the UAE’s emergence to go the world’s second-largest golden trading hub past year. Our latest Future of Trade study underscores Dubai's pivotal relation successful this transformation, arsenic we fortify its presumption arsenic the world’s starring precious metals hub, pull cardinal manufacture players and enactment our members to unlock caller maturation opportunities.”

Feryal Ahmadi, Chief Operating Officer, DMCC, said: “Our latest Future of Trade study connected precious metals is simply a captious assets for each stakeholders progressive successful the manufacture and sets the country perfectly for the 12th variation of our Dubai Precious Metals Conference. As the study highlights, this is simply a clip of accidental and challenge, and arsenic the golden manufacture navigates its spot successful a rapidly evolving landscape, we look guardant to moving with our members and partners arsenic we proceed to physique the world’s premier ecosystem for the planetary precious metals commercialized from Dubai.”

The report, titled "Trade, Technology and Markets successful Transition," provides cardinal insights into the existent authorities of the planetary golden and metallic markets. The study highlights that geopolitical challenges including sanctions against Russia person shaken the planetary fiscal economy, prompting countries worldwide to reconsider their reliance connected the US dollar and the information of their golden holdings. As a result, cardinal banks worldwide person ramped up their golden purchasing activities and repatriated US-stored bullion to diversify distant from the dollar, with immoderate adjacent utilizing golden successful lieu of the US dollar successful commercialized transactions. This displacement is driving golden prices to unprecedented levels, creating a ripple effect crossed the planetary economy.

In effect to these challenges, the UAE is emerging arsenic a cardinal subordinate successful the planetary precious metals market, leveraging its strategical location, robust regulatory framework, and precocious infrastructure to span East and West and reshape the golden trade. The study besides explores the increasing value of technological innovation wrong the precious metals market. From AI-driven exploration and autonomous mining techniques to blockchain-based tracking systems and integer golden concern products, exertion is playing a important relation successful reshaping however golden is sourced, traded and invested in.

The Future of Trade study outlines a fig of important recommendations for governments and businesses to assistance thrust the improvement of the manufacture and signifier the adjacent signifier of its growth:

Enhance Transparency and Regulation: Governments, exchanges and refineries should fortify golden provenance measures and guarantee much transparency, with the UAE’s exemplary of transferring oversight to authorities bodies serving arsenic an illustration for stricter regularisation and accountability.

Facilitate Trade Liberalisation: Lower tariffs and region customs barriers to combat smuggling, heighten liquidity and amended terms discovery. Expanding commercialized agreements, similar the UAE-India CEPA, and pursuing bilateral agreements volition guarantee smoother, much transparent trade.

Support Formalising ASGM: Rather than banning ASGM gold, targeted finance, grooming and entree to ceremonial markets should beryllium provided to amended safety, biology standards and economical improvement portion curbing smuggling.

Invest successful AI and Technology: Miners should put successful AI and precocious technologies to trim costs, amended accumulation and heighten ESG standards. Leveraging exertion tin besides assistance artisanal miners destruct mercury use.

Boost Digital Innovation and Access for Emerging Markets: Investment companies and fintechs should make integer products that alteration small-scale and young investors successful emerging markets to entree golden trading, expanding marketplace participation.

Establish Global Standards for Digital and Blockchain Solutions: Industry participants should collaborate to make planetary standards for integer golden products and blockchain systems to amended transparency, destruct pricing inconsistencies and trim reliance connected derivative products.

The study sets the signifier for the upcoming Dubai Precious Metals Conference (DPMC), 1 of the astir important events successful the planetary golden and precious metals industry. The league volition bring unneurotic influential concern leaders, authorities representatives, manufacture experts and different main stakeholders to sermon the aboriginal of the precious metals landscape.

This peculiar variation of DMCC’s Future of Trade study follows the September merchandise of different peculiar variation focused connected diamonds and precious stones, some of which physique connected the insights of DMCC’s broad biennial flagship study launched successful May, outlining the superior drivers shaping planetary commercialized implicit the coming decade. Collectively, the 2024 Future of Trade study bid has been downloaded and viewed implicit 1.9 cardinal times.

To entree the afloat peculiar variation study by DMCC, delight visit: https://www.futureoftrade.com/

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