As of 2024, the UAE ranks second globally in per capita consumer demand for gold jewellery, with 5.07 grams, trailing only Hong Kong's 5.12 grams. Despite a decline in consumption in the initial two quarters of 2024, the UAE maintains its position as the world's fifth-largest market for gold jewellery. This high demand is attributed to the nation's high GDP per capita, the cultural importance of gold, tax-free shopping, robust tourism and retail sectors, and gold's status as a secure investment, according to recent research by the World Gold Council. These elements, coupled with aggressive marketing and accessibility, significantly boost gold consumption.
The UAE's annual gold jewellery demand stands at nearly 40 tonnes, tying with Russia and followed by Saudi Arabia at the 7th position. The World Gold Council reports a decrease in demand from 10.3 tonnes in Q4 2023 to 9.6 tonnes in Q1 2024 and further to 9.2 tonnes in Q2 2024. Data from the WGC indicates a 13% year-on-year drop in gold jewellery demand to 9.2 tonnes during April-June 2024, compared to 10.6 tonnes in the same period the previous year. Andrew Naylor, head of Middle East and public policy at the World Gold Council, cites high global gold prices as the primary factor behind this decline.
Gold, with an estimated market cap of $15.8 trillion, has experienced a nearly 20% increase in value over the past year. Other nations with high per capita consumer demand for gold include Switzerland (4.06 grams), 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). The research also reveals that the United States holds the largest gold reserves globally, amounting to 8,133 tonnes valued at $507 billion. India has shown the most increased interest in gold reserves, with 29,300 Google searches for 'gold reserves' as of February 2024.
The gold bar and coin sector sees greater demand in China than anywhere else. This strong investment demand naturally propels the popularity of gold bars and coins, reaching 280 tonnes. China surpassed India in 2023 to become the world's top consumer of gold jewellery, with a demand of 630 tonnes, a 10% year-on-year increase. India follows with jewellery demand totaling 562 tonnes in 2023. India also ranks among the top ten nations with the highest gold reserves, holding approximately 804 tonnes worth $50 billion.
