UAE Sees 28% Growth in Gold Reserves
The UAE's gold reserves have experienced a significant increase of 28% in 2024, a result of the global economic situation and rising investor interest in gold. By the end of the third quarter, the gold reserves reached a value of 23.2 billion dirhams (6.3 billion dollars), marking a monthly growth of 5.3%.
Growth from End of 2023 to the Third Quarter of 2024
Since the beginning of the year, the growth has been 28%, with gold reserves rising by 5 billion dirhams from the end-2023 level of 18.2 billion dirhams. This data comes from the central bank's monthly statistical report for September, published by the UAE state news agency, WAM.
Investor Interest and the Global Gold Market
Andrew Naylor, the head of the Middle East and Public Policy at the World Gold Council, emphasized in October that interest in gold in Western markets was driven by significant investments in gold-backed exchange-traded funds. These funds serve as an important indicator of investor sentiment.
The State of the Banking Sector in the UAE
The net international reserves of the UAE banking sector also moved at a significant level, reaching 1.32 trillion dirhams by the end of September 2024, compared to 1.31 trillion dirhams in August. In the first nine months of the year:
Cash withdrawals value: 151.9 billion dirhams
Cash deposits to the central bank: 140.8 billion dirhams
Growth in Deposits
Deposit growth has also been remarkable. The value of demand deposits increased by 3% to reach 1.1 trillion dirhams by the end of September, while savings deposits amounted to 304.5 billion dirhams.
Gold as a Safe Haven
Gold remains a popular investment option during times of global uncertainty, as inflation, geopolitical risks, and currency devaluation all encourage investors to choose it as a safe haven. The UAE's central bank is increasing its reserves in line with this trend, contributing to the country's financial stability and long-term economic growth.
Conclusion
The dynamic growth of the UAE's gold reserves not only reflects the demand for the international gold market but also showcases the flexibility of the country's financial system and strengthening investor confidence. Gold, as a strategic asset, continues to play an important role in the UAE's economic plans, while the robust growth of the banking sector supports the country's stability.
