RIYADH, 14 August — Saudi Arabia has reported a rise in gold demand, which exceeded 228 tons in 2001, making the Kingdom a top world market in terms of consumption, according to a report released by the World Gold Council (WGC).
This represents three percent annual growth in demand in Saudi Arabia whereas demand for the yellow metal increased by seven percent in the UAE. “In Saudi Arabia, the final quarter demand rose strongly to 58.8 tons, which is 16 percent higher than a year earlier,” said the WGC report,
adding that the demand, however, followed an erratic pattern in the first three quarters of the year. There was also a swing to investment in gold in the Kingdom as in the rest of the Gulf region, said the report.
Referring to the growth of local gold market, the report said the market has shown upward trends in terms of consumption. A substantial number of nearly seven million foreigners working in Saudi Arabia have been traditional buyers of gold. Also, a survey conducted by the Riyadh-based Saudi Gold Factory reveals that on average a Saudi lady possesses one kilogram of gold, which can be considered one of the main indicators of the booming gold business in the Kingdom.
There are more than 40 modern jewelry factories and workshops operating in the Kingdom besides 32,000 jewelry shops. This is in addition to thousands of cosmetics and fashion outlets, which sell gold jewelries . The Saudi gold market has been expanding with a steady growth in population.
