The UAE has the world’s second-highest consumer demand for gold jewellery per capita at 5.07 grams, after Hong Kong, which has a per capita consumer demand of 5.12 grams, the highest in the world as of 2024.
The UAE, which remains the world’s fifth-largest market in terms of gold jewellery demand despite falling consumption level in the first two quarters of 2024, has high consumer demand for gold “due to its high GDP per capita, the cultural significance of gold, tax-free shopping, strong tourism, and retail sectors, and gold’s status as a secure investment,” new research by the World Gold Council showed.
“These factors, combined with aggressive marketing and accessibility, drive significant gold consumption,” it said.
With an annual gold jewellery demand of nearly 40 tonnes, the UAE shares the rank with Russia, followed by Saudi Arabia in the 7th position. According to the World Gold Council, gold jewellery demand in the UAE dropped from 10.3 tonnes in the fourth quarter of 2023 to 9.6 tonnes in the first quarter of 2024 and 9.2 tonnes in the second quarter.
WGC data showed that gold jewellery demand in the UAE plunged 13 per cent year-on-year to 9.2 tonnes during the April-June 2024 period, compared to 10.6 tonnes during the same quarter last year. The main factor behind the drop in jewellery demand is the high global gold prices, which are reflected in the local market, according to Andrew Naylor, head of Middle East and public policy at the World Gold Council.
The research note said with an estimated market cap of $15.8 trillion, gold has seen an almost 20 per cent increase in value compared to last year.
Other countries with the highest per capita consumer demand for gold include Switzerland in the third place at 4.06 grams, followed by 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).
Other findings in the research show that the United States tops the list as the world’s biggest gold nation with 8,133 tonnes in gold reserves, equating to $507 billion in monetary value.
India has the most increased interest in gold reserves, with 29,300 Google searches for the term ‘gold reserves’ as of February 2024.
The gold bar and coin sector is in more demand in China than in any other nation. The strong investment demand for gold has naturally led to the popularity of gold bars and coins in the country, resulting in 280 tonnes.
China, which replaced India as the world’s top consumer of gold jewellery in 2023, has the highest demand for gold jewellery with 630 tonnes, a 10 per cent year-on-year increase in 2023. India takes second place with jewellery demand totalling 562 tonnes in 2023. India also ranks in the top ten nations with the highest gold reserves in the world with approximately 804 tonnes of gold worth a value of $50 billion.