In 2024, the UAE, particularly Dubai, continues to be a pivotal player in global gold supply chains. As a major gold refining hub, the UAE has built a reputation for processing raw gold into high-purity bullion that is traded globally. This article examines the UAE’s role in the gold supply chain today and how recent developments are shaping the industry.
The UAE as a Refining Hub
The UAE is home to some of the largest and most advanced gold refineries in the world, such as Emirates Gold and Al Etihad Gold. These refineries have the capacity to process tons of gold annually, refining raw material from Africa, South America, and Central Asia into pure gold bullion.
In 2024, the UAE has expanded its refining capacity, upgrading technology to process even more gold. As African nations such as Ghana, Sudan, and Mali continue to extract more gold from their mines, the UAE is one of the first destinations for this raw material. This has positioned the country as a critical link in the global gold supply chain.
Challenges in Sourcing and Ethical Mining
However, the UAE’s central role in gold refining also brings scrutiny. In recent years, concerns have been raised about the ethical sourcing of gold, particularly from African countries, where informal mining operations are rife. These concerns revolve around the environmental damage and human rights violations associated with certain mining practices.
To counter these challenges, the UAE has implemented stricter regulations in 2024. Refineries are now required to conduct thorough due diligence on their suppliers and adhere to the UAE’s Responsible Gold Standards, introduced in 2021. This is aimed at ensuring that gold refined in the UAE meets global ethical and environmental standards.
Supply Chain Disruptions and Gold Prices
Global gold supply chains have faced significant disruptions over the past few years due to the COVID-19 pandemic and ongoing geopolitical tensions. However, the UAE’s strategic location as a global logistics hub has helped it minimize these disruptions. With advanced infrastructure and access to major shipping routes, Dubai and Abu Dhabi have continued to facilitate smooth trade flows of gold and other precious metals.
As of October 2024, gold prices in Dubai are reflective of global trends, hovering around $1,850 per ounce. Supply chain stability in the UAE has ensured that its refineries and trading hubs remain competitive in the global market, attracting both producers and investors from around the world.
