Chamber launches three business groups to boost gold industry

Dubai Chamber of Commerce, one of the three chambers operating under Dubai Chambers, has launched three business groups for the gold sector.

The Gold Manufacturers, Gold Bullion & Refinery Group as well as the Gold Designers Business Groups will serve as a platform for members to advocate for policy changes beneficial to Dubai’s gold industry and drive the competitiveness of the market.

For over a century, Dubai’s Souks have been the destination of choice for traders looking for pearls and gold and since then, the emirate has sustained its status as the ‘City of Gold’. Dubai trade in the gold market has increased considerably in recent years. At a CAGR of 15% between 2017 to 2021, the total trade of gold went from $43.4 billion to $75 billion.

The three new gold sector-specific business groups will play a fundamental role in sustaining the promising growth of the industry, ensuring it continues to thrive and add significant value to the economy.

Gold remains an attractive asset for many reasons. According to the World Gold Council, over the past decade, jewellery has made up 44% of annual average gold demand. Gold production has become geographically diverse with bar and coin demand surging in Europe after the Global Financial Crisis. Central Banks have become net buyers of gold as it has outperformed other assets such as bonds, commodities and the US dollar in the last three decades.

Dubai has become a major destination for trade and investment in gold. Imports grew from $29.2 billion in 2017 to $48.7 billion in 2021 (14% CAGR), while total exports rose from $14.2 billion in 2017 to $26.3 billion in 2021 (17% CAGR). Dubai’s Gold Souk in Deira is home to more than 300 retailers and Dubai Multi Commodities Centre free zone serves the entire gold value chain, from research and refining to trading and investing.

The three new business groups bring the chamber closer to its aim of establishing 100 business groups by the end of March. Business groups are imperative in ensuring representation of all the business and economic sectors in Dubai. The groups facilitate a two-way dialogue between government entities and the private sector, a key component in addressing policy matters and enhancing the competitiveness of Dubai’s economy.Dubai Chamber of Commerce, one of the three chambers operating under Dubai Chambers, has recently unveiled the establishment of six real estate sector-specific business groups.

The new groups focus on companies operating within the real estate sector, including real estate developers, real estate valuation, real estate leasing, facility management, interior decoration / interior design services and engineering consultants.

The Business Groups are platforms for constructive dialogue between stakeholders in the private and public sectors, helping companies within the real estate field tap into new opportunities, tackle industry-level challenges and address policy matters that impact this thriving market. Commenting on the launch of the new real estate business groups, Mohammad Ali Rashed Lootah, President & CEO of Dubai Chambers, said: “The real estate sector continues to be one of the vital levers for Dubai’s economy and a major contributor to Dubai’s GDP, with a share of more than 9 per cent in the first nine months of 2022 and a year-on-year growth rate of 2.5 per cent in the same period.” “With the emirate’s positive economic outlook for 2023, we know the real estate sector will remain strong due to substantial end-user demand and investor confidence in Dubai’s property market. In addition, by leveraging Dubai’s Economic Agenda ‘D33’, we anticipate enormous opportunities for residential and infrastructure construction to continue to support the emirate’s economy while investment and spending for office, industrial, tourism and retail properties will grow even more.