India’s gold duty hike to benefit GCC markets

People from the subcontinent view gold as an ideal investment.
Updated 14 July 2019

India’s gold duty hike to benefit GCC markets

Buying gold from the GCC countries, Singapore and Malaysia will now be cheaper when compared to buying gold from India, according to Malabar Group Executive Director Abdul Salam KP. Here’s why:
•The additional import duty for gold announced in India’s Union Budget 2019 will hurt the domestic gold and jewelry market and promote illegal gold trade, which is detrimental to the economy.
•While the new duty structure affects the Indian jewelry industry negatively, jewelry business in the neighboring markets will benefit because of this duty hike.
•Even the most popular designs of India will be much cheaper in the UAE, other GCC states, Singapore and Malaysia.
•Earlier these markets depended on imports from India, whereas now most of these markets have developed their own manufacturing facilities. As such, jewelry manufacturing is a growing industry in these markets.
•With the revised duty structure, customers, especially from India, can benefit from a price difference of more than Rs.400 ($6) per gram on gold purchases from the GCC countries. This will definitely encourage bulk buyers, especially for wedding-related purchases, to visit Dubai or any of the other markets.

HIGHLIGHT

With the revised duty structure, customers, especially from India, can benefit from a price difference of more than Rs.400 ($6) per gram on gold purchases from the GCC countries.

•The current price difference is mostly on account of 12.5 percent custom duty, in addition to 3 to 4 percent of other taxes. Whereas in the GCC countries, gold bullion is zero-rated, and the GST charged in many countries is refunded to tourists, thus amounting to practically no duty or tax on the purchases made by them.
•The increase in import duty from 10 to 12.5 percent will also affect the import of jewelry from different parts of the world into India. This will affect availability of internationally designed and manufactured jewelry. Customers will therefore find a much larger array of designs and jewelry in the GCC, Singapore and Malaysia markets.
•People from the subcontinent view gold as an ideal investment. As it has a high market liquidity, it can be easily sold without having to alter the price. In addition, it is a movable asset whose value does not witness depreciation with uncertain economies.


Ras Al-Khaimah to host Mideast’s first ‘business Oscars’

Updated 16 September 2019

Ras Al-Khaimah to host Mideast’s first ‘business Oscars’

The Stevie Awards, known widely as the “business Oscars,” has reached an agreement for a strategic partnership with Ras Al-Khaimah Chamber of Commerce and Industry (RAK Chamber) for the first annual Middle East Stevie Awards to be held in Ras Al-Khaimah in February 2020.
The Middle East Stevie Awards will recognize innovation in the workplace from across 17 MENA countries and the awards program and gala prize-giving ceremony will be held in Ras Al-Khaimah for the first three years and at least every other year thereafter. The announcement was accompanied by a call from Stevie Awards for entries for the inaugural edition.
“Hosting the inaugural edition of the Middle East Stevie Awards here in Ras Al-Khaimah is a significant accomplishment, and another noteworthy milestone to add to the emirate’s successful track record, continuing on the same path of progress that has been taking place across all sectors, in line with the directives of our wise leadership,” said Mohamed Ali Al-Nuaimi, chairman of RAK Chamber.
“I was extremely gratified when the RAK Chamber approached us about partnering with them on a new Stevie Awards program for the Middle East and North Africa,” said Michael Gallagher, founder and executive chairman of the Stevie Awards. “We have recognized the achievements of executives, entrepreneurs, and organizations across the region for many years in our other programs. The time is right for the region to have its own Stevie’s program. We are excited to launch the Middle East Stevie Awards, and look forward to the first gathering of Stevie Award winners in the program in Ras Al-Khaimah in February.”