UAE gold forecasted to grow by 3.6% annually through 2030

UAE gold forecasted to grow by 3.6% annually through 2030

Dubai, UAE: The UAE’s precious metals market, including gold, jewellery, gold bars and silver, was valued at AED 8.52 billion in 2020 and it is expected to reach a value of AED 13.21 billion by the end of the decade; this projected increase is predicated on a forecasted compound annual growth rate of 3.66% through 2030. Bas Kooijman, CEO and Asset Manager of DHF Capital S.A., explains the factors that are propelling the country’s upward trajectory.

Bas 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