Dubai, which has solidified its position as the world’s best destination for gold and diamond jewellery as well as bullion trade, is in need of a new gold hub, that could cater to a wider consumer base amongst UAE residents and tourists, many of whom visit Dubai to buy gold and diamond jewellery for social occasions including festive shopping and weddings.

The value of the jewellery market is expected to increase from about US$270 billion in 2022 to over US$330 billion by 2026, according to Statista, a global market intelligence provider.

In 2024, Dubai's gold demand reached previously unseen levels, with the combination of record gold prices and volumes resulting in a Q4 value of US$111 billion and an annual value of US$382 billion, the highest ever, a recent report said, citing statistics released by World Gold Council.

“There was a 300 percent increase in gold trade flow in Dubai from 2023 to 2024, reflecting the city's growing appetite for gold,” said the report.

As of 2024, the UAE ranked second globally in per capita consumer demand for gold jewellery, with 5.07 grams, trailing only Hong Kong's 5.12 grams. Gold prices ranged between $1,812 and $2,142 in 2023, but as of 2024, prices reached as high as $2,700, marking a bullish trend with substantial yearly growth.

“Despite a decline in consumption in the initial two quarters of 2024, the UAE maintains its position as the world's fifth-largest market for gold jewellery. This high demand is attributed to the nation's high GDP per capita, the cultural importance of gold, tax-free shopping, robust tourism and retail sectors, and gold's status as a secure investment,” according to recent research by the World Gold Council.

“These elements, coupled with aggressive marketing and accessibility, significantly boost gold consumption.”

The UAE's annual gold jewellery demand stands at nearly 40 tonnes, tying with Russia and followed by Saudi Arabia at the 7th position.

Historically, the age-old Dubai Gold Souq has been catering to the growing needs of jewellery and has been serving the residents and tourists very well. However, the increase in demand for gold and diamond jewellery in the Middle East, Africa, South and Central Asia, the City of Gold now needs a new Gold Hub.

Mr. Sulaiman TM, Chairman of Unique World Group, says, “In addition to the increase in population and increased buying power of consumers, we anticipate an increase in demand for gold and diamond jewellery in the coming years that necessitates the development of a second Gold and Lifestyle Hub in Bur Dubai, where residents and tourists could shop jewellery at their convenience.

“Following a series of discussions with the leading gold and diamond jewellery retailers, we have seen the demand for such a new Gold Hub and I am glad to announce that such a new Gold Hub will see the daylight soon.”

Gold, with an estimated market cap of $15.8 trillion, has experienced a nearly 20 percent increase in value over the past year. Other nations with high per capita consumer demand for gold include Switzerland (4.06 grams), Kuwait (3.95 grams), Turkey (2.34 grams), Singapore (2.21 grams), Saudi Arabia (1.59 grams), Australia (0.90 grams), Iran (0.83 grams), and the US (0.74 grams). The research also reveals that the United States holds the largest gold reserves globally, amounting to 8,133 tonnes valued at $507 billion.

The gold bar and coin sector sees greater demand in China than anywhere else. This strong investment demand naturally propels the popularity of gold bars and coins, reaching 280 tonnes. China surpassed India in 2023 to become the world's top consumer of gold jewellery, with a demand of 630 tonnes, a 10 percent year-on-year increase. India follows with jewellery demand totaling 562 tonnes in 2023. India also ranks among the top ten nations with the highest gold reserves, holding approximately 804 tonnes worth $50 billion.

Mr. Mohammed Suhaib, Managing Director of Unique World Group, says, the new Gold Destination will help jewellery sales to accelerate further.

“As the population of Dubai and UAE increases rapidly – to cross 3.8 million in Dubai and 10.8 million in the UAE – we see the creation of a new Gold and Lifestyle Hub an important step in facilitating this industry to grow further,” Mohammed Suhaib said.

“In addition to the population growth, a jump in annual tourist inflow – many of whom have gold and diamond in their shopping list – will require a new Gold and Lifestyle Hub that will help shoppers to hunt for new and trendy collection.”

Unique World Group is a Dubai-based diversified business conglomerate with interests in Business Centre, Education and Real Estate sectors, and is currently embarking on a new more diversified growth trajectory.

Unique World Group, established by Mr. Sulaiman TM, a non-resident Indian serial entrepreneur from Kerala state, has demonstrated leadership in all the areas that he had ventured in – in the UAE. Over the last 27 years, the group has grown from strength to strength with a vision to continuously grow and expand, leveraging the power of digitalisation and innovation.

In more than a quarter of a century, the group helped thousands of new businesses with business advisory services, trade licenses, office facilities and a bouquet of business enabling services to help them establish in the UAE.

The company actively seeks new opportunities and partnerships, aiming to improve, evolve, and establish itself as an industry leader in the Business Centre, Education, and Real Estate sectors. He and Muhammed Suhaib, the scion of the family, are now getting ready to embark on a new journey that will add greater value to Dubai’s economy.

Established in 1998, Unique World Group currently manages a portfolio of five business centres, educational institutions and a number of real estate assets in the UAE with a team of more than 100 professionals working day and night to expand the group’s business into new economic sectors.

Over the last 27 years, the Group has evolved from a small business into a formidable corporate entity, mirroring Dubai’s remarkable economic success. Through its business, the group has impacted more than 500,000 businesses with a substantial number of satisfied clients.

Courtesy: Zawya