Updated Oct 17, 2022 01:36

Gold Market in the United Arab Emirates

Market Overview
Please note: Annual data for 2022 are preliminary and subject to revision
In , after two years of decline, there was growth in the gold market in the United Arab Emirates, when its value increased by % to $. Overall, consumption saw a prominent expansion. Over the period under review, the market reached the peak level at $ in 2018; however, from 2019 to , consumption failed to regain momentum.

In value terms, gold production fell to $ in estimated in export price. In general, production, however, showed buoyant growth. The growth pace was the most rapid in 2016 when the production volume increased by % against the previous year. Gold production peaked at $ in , and then shrank in the following year.


Consumption
Please note: Annual data for 2022 are preliminary and subject to revision
In , consumption of gold increased by % to tons, rising for the second consecutive year after two years of decline. Overall, consumption posted a notable increase. Gold consumption peaked at tons in 2018; however, from 2019 to , consumption remained at a lower figure.

The revenue of the gold market in the United Arab Emirates rose markedly to $ in , surging by % against the previous year. This figure reflects the total revenues of producers and importers (excluding logistics costs, retail marketing costs, and retailers' margins, which will be included in the final consumer price). Over the period under review, consumption continues to indicate a strong expansion. Over the period under review, the market hit record highs at $ in 2018; however, from 2019 to , consumption stood at a somewhat lower figure.


Market Forecast
Please note: Annual data for 2022 are preliminary and subject to revision
Driven by increasing demand for gold in the United Arab Emirates, the market is expected to continue an upward consumption trend over the next eight-year period. Market performance is forecast to accelerate, expanding with an anticipated CAGR of +% for the period from to , which is projected to bring the market volume to tons by the end of .

In value terms, the market is forecast to increase with an anticipated CAGR of +% for the period from to , which is projected to bring the market value to $ (in nominal prices) by the end of .


Market Structure
Please note: Annual data for 2022 are preliminary and subject to revision
In , the share of imports in total consumption accounted for % in value terms and % in physical terms. The share of imports decreased moderately (- percentage point) over the period under review.


Trade Balance
Please note: Annual data for 2022 are preliminary and subject to revision
The United Arab Emirates remains a net exporter of gold; in physical and value terms, exports consistently exceeded imports from 2007 to . In , there was a significant trade surplus of tons, which was equal to $. This tangible trade surplus reflects the fact that the market remains buoyed by domestic production, and the industry is highly incorporated into the global market, which is likely to continue in the medium term.