Why Dubai is known as city of Gold – Wordva

Because of Dubai’s tax-free status, it is one of the most affordable places in the world to purchase gold. The emirate has established gold refineries, vaults, and jewellery-making facilities, and it imports gold — even scrap gold from India — and melts it down to manufacture gold bars, which it sells to other countries. Traders and speculators purchase and sell gold futures at the Dubai Gold and Commodities Exchange, which is located in Dubai, United Arab Emirates.

The city is establishing itself as a hub for the gold trade, which connects suppliers in Africa with customers in the developing economies of China and India, among other places. Over 300 jewellers may be found at Dubai’s earliest and oldest gold market, which was established in 1899. Market participants estimate that there are around 10 tonnes of gold available at any given time. Plus, there’s plenty to do outside the Gold Souk to make the term seem appropriate!

Al Etihad Gold refines and converts gold into investment-grade bars, which are then sold to investors. They not only provide bullion banks and brokers, but they also supply distributors of jewellery. The entire procedure is carried out on the grounds of the company. Al Etihad is also a holder of the Dubai Good Delivery accreditation, which is recognised as an international standard for product quality and technical specs.

Gold commerce in the UAE reached a value of 41 billion euros in the first nine months of this year, according to Dubai Customs figures released this week. It is the second most profitable export for the city after oil. Due to its geographic location, Dubai has taken advantage of the opportunity to establish gold vaults, jewellery-making facilities, and refineries.

Gold bars are produced by the refinery in a range of sizes. The price of this commodity, like any other, is subject to fluctuation. A 10kg bar of chocolate is currently worth slightly shy of 450 000 euros, according to current market conditions. Bullion banks, merchants, and wholesalers are the primary purchasers of finished bars.

Tawhid Abdullah is the CEO of Jawhara and the Chairman of the Dubai Jewellery Group. He was born in the United Arab Emirates. He claims that the city’s manufacturing economy is prospering “At any one moment, there are 40-50 tonnes of product accessible on the market, either on the retail or wholesale fronts. And as a result of the large volume of business that we generate, our pricing, as you know, become the most competitive in the world “…..

The Abdullah family established one of the largest wholesalers in the city in 1955, and it is still in operation today. Jawhara is a company that specialises in the trading of gold, jewellery, and diamonds. Later, they extended into the retail sector.

In addition, the jewellery and gold industries in Dubai are tightly regulated. The Dubai Gold and Jewellery Group, a non-profit trade organisation with over 700 members, is based in Dubai. Tawhid Abdullah claims that the company’s self- and government certifications indicate that they have a “perfect product.” On an annual basis, it is believed that between 20 percent and 40 per cent of the world’s gold stocks transit through Dubai, with the vast majority of that passing via the Gold Souk. In a half square kilometre area, there are 300 stores, which is a lot for a small region.

Another aspect contributing to Dubai’s prosperity is the city’s geographical position. Gold brokers take advantage of the differences in time zones. It is therefore one of the few exchanges in the globe that is open from 6 a.m. to 11 p.m. local time, allowing it to capture every time zone from Australia to the west coast of the United States.

Tourists may purchase gold in Dubai at a discounted rate based on its monetary worth. That is why many people shop at the Gold Souk or at the Gold and Diamond Park, which is located across town.

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