EDITOR NOTE: With the oil market down and out, more or less, the United Arab Emirates is looking to enhance its position as a global hub for gold trade, recently establishing the UAE Good Delivery Standard to regulate the quality of gold production and international gold transactions. Gold accounts for nearly a third of the country’s foreign exports, making it a major revenue engine. As oil demand plunges, the demand for gold remains high as uncertainty amid the pandemic is causing investors across the globe to seek safety in anticipation of a much deeper economic disaster.
Abu Dhabi: The UAE government is keen to strengthen the non-oil sectors by encouraging innovation, updating legislation and regulatory frameworks, and encouraging sectors with high added value in a way that advances business environment and enhance the country's competitiveness, confirmed Ministerial Development Council, which was chaired by Sheikh Mansour bin Zayed Al Nahyan, Deputy Prime Minister and Minister of Presidential Affairs.
During the meeting held on Sunday in Qasr Al Watan in Abu Dhabi, the Ministerial Development Council discussed the necessary means to ensure further growth in the gold sector, which already accounts for 29 per cent of the total non-oil foreign trade exports of the country.
The Council has considered the introduction of the UAE Good Delivery Standard, which will be regarded as the benchmark for quality and technical specification for the production of gold. It contains a set of rules describing the physical characteristics of gold used in settlement in the wholesale. The UAE Good Delivery Standard will also provide standards for creditworthiness, operational competency and appropriate production procedures, ensuring the manufacturing of high-quality gold.
The Council also considered establishing a specialised committee to supervise the UAE bullion market, along with a federal platform for gold trading and tracking, and a comprehensive database for all key players in the sector.
The initiatives come as a part of a larger policy designed to enhance the UAE’s position as a global hub for gold trading and to ensure the best governance, sustainability and innovation practices.
The Council addressed ways to increase the volume of imports and re-exports of agricultural and livestock consignments and to ensure the application of the best agricultural and veterinary quarantine. This includes raising technical efficiency and improve skills to deal with agricultural and livestock and developing agricultural and veterinary quarantine capacities in the states of exports.
Originally posted on Gulf News