UAE gold forecasted to grow by 3.6% annually through 2030

Dubai, UAE – The UAE’s precious metals market, which includes gold, jewelry, gold bars, and silver, is expected to reach a value of AED 13.21 billion ($3.59 billion) by the end of the decade. This projection is based on a forecasted compound annual growth rate of 3.66 percent through 2030. Bas Kooijman, CEO and Asset Manager of DHF Capital S.A.said. 

According to Bas Kooijman, the strength of gold as an asset is unparalleled, making it a crucial component for savvy investors looking to diversify their portfolios. He recommends allocating at least 5-10 percent of one’s portfolio to gold, as it provides liquidity and acts as a hedge against high inflation and market crashes. While gold does not guarantee outperforming the market, it offers stability and protection during uncertain times.

The UAE leads the Middle East in gold consumption, with the country’s jewelry sector playing a significant role in this achievement. In 2022, consumers in the country purchased a combined 46.9 tonnes of gold, representing a 38 percent increase from the previous year. 

The Indian community residing in the UAE has been instrumental in driving the region’s gold industry due to its strong historical ties to the precious metal. Gold is considered a safe investment by many Indians, and they continue to purchase and hold it for wealth preservation.

The presence of approximately 2.80 million Indians in the UAE, comprising over 27 percent of the population, highlights their substantial purchasing power. With around 7.6 million Indians living in the Middle East as a whole, the region’s gold sector has experienced a 150 percent year-over-year demand increase, surpassing Europe and the Americas. This growth in demand, coupled with gold’s established status as a long-term commodity and store of value, contributes to the projected growth of the UAE’s precious metals market.

Gold’s appeal lies in its ability to maintain value regardless of digitalization or global economic turmoil. While modern assets like cryptocurrencies have emerged, gold retains its status as a reliable investment due to its historical significance and lack of depreciation. 

In 2021 alone, the total trade of gold in the UAE amounted to AED 275.25 billion ($75 billion), reaffirming its enduring popularity.