Financial Daily from THE HINDU group of publications
Friday, Sep 09, 2005
Industry & Economy
India emerges as Dubai's top trading partner in gold, diamonds
Abu Dhabi , Sept. 8
INDIA has emerged as Dubai's leading trade partner in gold and diamonds, accounting for 42 per cent of the Emirate's direct trade in precious and semi-precious stones and metals in 2004.
The growth resulted in India overtaking the US and Iran to emerge as the second largest overall supplier of goods to Dubai after China.
According to figures disclosed by the Dubai Chamber of Commerce and Industry (DCCI), the value of Dubai's direct trade with India ( in semi-precious and precious stones and metals) accounted for 42 per cent of Dubai's total direct trade of the above products in 2004.
In terms of trade flow, India supplied 31 per cent of Dubai's imports of the product group, 59 per cent of re-exports and 86 per cent of exports, according to the DCCI's Economic Bulletin.
Thirty per cent of the imports from India are non-industrial diamonds that have been worked but unmounted/ unset, while 11 per cent are jewellery articles.
Non-monetary gold ingots account for 56 per cent of Dubai's total re-exports and 67 per cent of exports to India. Mainly due to the increased trade of gold and diamonds, India is a very strong second to China as Dubai's top supplier of imported goods.
It closes the gap to only 708 million dirhams, while overtaking the US as a top export destination and Iran as a top re-export destination, the bulletin said.
Since 2000, Dubai's imports and re-exports of semi-precious and precious stones and metals had been steadily growing, with peak rates in 2001 and in 2004.
In 2004, the product group accounted for nearly a third (33 per cent) of the total increase in imports and more than half of exports and re-exports (53 per cent and 54 per cent, respectively).
Dubai's overall trade in 2004 surged to a record total value of 216 billion dirhams, 41 per cent higher than the previous year's 153 billion dirhams, mainly due to a 40 per cent rise in trade in the semi-precious and precious stones and metal sector, the bulletin said.
Next to India, Dubai's second largest trading partner in the product group is Switzerland (15 per cent), while other major suppliers are Malaysia (6 per cent) and the UK and Belgium (5 per cent each).
Other major re-export destinations are Belgium (7 per cent), Pakistan (7 per cent) and Hong Kong (5 per cent). Major export markets include Singapore (3 per cent), Iraq (2 per cent) and Saudi Arabia (1 per cent).
The establishment of Dubai Diamond Exchange and the widening operations of the Dubai Metals and Commodities Centre are expected to further boost the role of Dubai as the hub for the international trade of gold and diamonds.
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