Overall, apart from abundant hydrocarbon reserves, the Gold and Jewellery trade attributes to 20 % of the region’s non-oil exports.
According to the State News Agency WAM, UAE’s cabinet has now gone ahead and approved a brand-new policy to bolster UAE’s overall position as the world hub for the Gold and Jewellery trade the previous Sunday.
“This policy is designed as well integrated so as in order to develop mechanisms as well as initiatives to maximizing benefits of the Gold and Jewellery trade, thereby transforming UAE from just a native hub to one of the global producing countries and leading designers,” the statement stated.
The State News Agency WAM also noted: “This will thus ensure in maintaining the overall stability as well as the prosperity of the UAE’s Gold trade, as well as raising the overall competitiveness as well maintaining the leading position of the tertiary as a vital global hub”.
According to the statement, it was noted that “The utilization of technology for the production of precious metals and the establishment of a UAE international Gold standard forms a pivotal part under the new programme”.
“The policy will also support and build tools as well as initiatives to stimulate the growth for facilitating business performance as well as in bringing additional value to this business sector. It will also strengthen the knowledge-based economy as well as contribute to increasing non-oil GDP, strengthening UAE’s domestic industry sector, and the other supporting fields.”
The gold and jewellery trade across the UAE is one of the pivotal economic sectors that contributes 20% of the region’s total non-oil exports.
During the first half of 2019, the whole worth of gold, diamonds and jewellery listed through Dubai totalled Dh180 billion, a rise of three percent year-on-year, the Dubai Media workplace stated earlier this month.
The gold and diamonds trade has been traditionally vital for Dubai, with around 800 outlets settled chiefly round the city’s Gold Souk in Deira. The industrial business has conjointly been growing in Dubai in recent years; however, it suffered a setback as early in 2018 once a 5% VAT rate was introduced across the country.
A reverse charge mechanism was introduced in May last year, exempting the industrial trade of precious metals and diamonds. Although gold jewellery continues to be subject to VAT, it’s refundable on purchases created by tourists. Gold costs climbed higher than the $1,500 mark to six-year highs in August as investors involved regarding the state of the worldwide economy wanted shelter assets. On Sunday, gold was trading at $1,489 per ounce, with rates in Dubai at Dh180.50 per gram of 24-carat gold.