UAE gold forecast to grow by 3.7% annually through 2030

UAE gold forecast to grow by 3.7% annually through 2030

The UAE’s precious metals market, including gold, jewellery, gold bars and silver, which was valued at AED8.52 billion in 2020, is expected to reach a value of AED13.21 billion ($3.6 billion) by the end of the decade. This projected increase is predicated on a forecast compound annual growth rate of 3.7% through 2030.

Bas Kooijman, CEO and Asset Manager of DHF Capital SA, explains the factors that are propelling the country’s upward trajectory.

Kooijman explained: “The strength of gold, as an asset, is unparalleled and a key reason why savvy investors ensure that they diversify at least 5-10% of their portfolio with it. With the right partner, investors can rest assured that their gold is purchased and stored in a safe but accessible place - enabling liquidity at all times. Over time, gold automatically increases in value but not in quantity; meaning solely investing in gold doesn't ‘beat the market’ but not having it prevents you from being able to hedge during high inflation times or market crashes.”

The UAE leads the Middle East in gold consumption and the country’s jewellery sector has played a starring role in this achievement. Last year, consumers across the nation purchased a collective 46.9 tonnes of gold;