RIYADH, 14 August — The demand for gold in the Saudi market rose by nine percent during second quarter of this year compared to the same period last year, according to the latest statistics issued by the World Gold Council (WGC).
The report stated that the positive decisions taken by the government, including cuts in customs duties and the move allowing Umrah pilgrims to visit the Kingdom throughout the year, had contributed to a flourishing market.
The WGC also said that the gold festival in the Western Province, organized by the gold and jewelry committee of the Jeddah Chamber of Commerce and Industry, had also helped sales to reach 60.5 tons during the period.
The remarkable increase in sales in the second quarter of this year is particularly noteworthy, as demand had risen by only two percent during the first quarter. The WGC estimated total gold sales in the Kingdom last year to be 124 tons.
On sales in the Gulf region as a whole, the WGC reported that Bahrain, Qatar, Kuwait, Oman and the United Arab Emirates set new records in gold consumption during the second quarter of the year, as sales stood at 45.6 tons, registering an eight percent rise compared to last year.
The WGC also reported that gold sales in the UAE rose by 13 percent during the second quarter to reach 27.5 tons while it increased by five percent in Kuwait, 11 percent in Oman, four percent in Bahrain and 15 percent in Qatar.
The WGC attributed the increase in gold sales throughout the Middle East in the second quarter to growing oil prices, which boosted the GCC economies and the purchasing power of their citizens. Sales in the Middle East soared by 10 percent, reaching a total of 139.7 tons in the second quarter of the year.
“The rise in sales also reflected the success of marketing campaigns in the region,” the report said, referring to the gold festivals in Jeddah and Dubai.
Gold sales in other international markets maintained their previous levels during the first half of this year as total global sales reached 1,601 tons, registering a one percent rise compared to last year. In the first quarter the sales were up by six percent, but they dwindled to three percent in the second quarter.
