UAE exports first shipment of gold conforming to the UAE Good Delivery Standard to India International Bullion Exchange

H.E. Al Zeyoudi: The UAE is strengthening its position as a global gold trading hub, and the deal is one of the outcomes of UAE-India CEPA

The Emirates Gold Bullion Committee, which oversees the organization and development of the country's national gold policy and strives to raise the competitiveness of the UAE’s exports of this strategic commodity, announced that the first shipment of gold conforming to the UAE Good Delivery Standard has been sent to the International Bullion Exchange of India (IIBX). The standard guarantees quality and reliable technical specifications for gold refining and production, which enhances the confidence of global markets in the country’s gold exports, as the UAE is known as a leading global exporter of gold.

H.E. Dr. Thani bin Ahmed Al Zeyoudi, Minister of State for Foreign Trade and Chairman of the Emirates Bullion Committee, said: “The deal is an important step and an added value to the UAE Good Delivery Standard for gold that will help strengthen the country’s position as a dynamic global gold trading hub. It is one of the outcomes of the comprehensive economic partnership (CEPA) that the UAE established with India this year. The UAE's active participation in global gold trading will enable the country’s refineries and other national companies to gain reliable and authentic access to global markets, while continuing to adhere to best practices and international standards.”

The shipment comprises 100 kilograms of gold from the Emirates Gold refinery to IIBX and comes after the shipment export contract was listed on the international investment market. It is the first such listing of an export contract on an international stock exchange that meets the UAE’s requirements of the gold delivery standard.

The value of the deal, which was listed on the IIBX, amounted to nearly USD 4 million, and the deal is set to contribute to increasing the demand of Indian gold companies and jewelries for gold exports from the UAE. It reflects their high levels of confidence in the efficiency of the UAE Standard for Good Delivery of Gold, under the UAE-India CEPA framework. The CEPA was signed in the first half of this year, unlocking an array of opportunities and incentives that will boost trade exchange between the two countries.

Anto Joseph, CEO of the Emirates Gold refinery, said: "We are proud to see this deal materialize as it enhances global confidence in the UAE's gold exports. It sends out an optimistic message to investors in this key sector in the UAE and India, and the partnership with the IIBX deepens channels of collaboration, encouraging more such deals in the future. We will continue working towards enhancing our contribution to boosting UAE’s exports in the next stage.”

He added: "The CEPA between the UAE and India has opened up growth opportunities and promotes trade exchanges and sectoral exports between the two countries. The UAE wise leadership’s vision for the development of the gold sector in accordance with the UAE standard for good delivery of gold is set to achieve global successes for its exports of this strategic product."

Meanwhile, Ashok Gautam, Managing Director and CEO of IIBX, said: “Several indicators show that the CEPA signed by the governments of the UAE and India has already had a significant impact on facilitating the import of UAE gold bullion according to good delivery standard of gold from the UAE to India. It is set to enhance the role of the IIBX in the next stage as an enabler and a gateway for trading and importing UAE gold bullion in India and the region. IIBX is committed to providing a set of contracts and products to promote the right environment for gold bullion trade.”

The UAE announced a federal policy for the gold sector, aimed at developing and governing the trade and circulation of gold in the country in line with highest international standards followed in this regard. It is designed to strengthen the position of the UAE as a leading global gold trading hub. The policy boasts four initiatives, foremost of which is the establishment of the UAE Standard for Good Delivery for gold, which is a set of rules that define the physical properties and the technical specifications of gold, including the certification of gold refining facilities based on responsible sourcing of gold. Other initiatives include the development of a federal platform for gold trading, establishing a special committee for the UAE bullion market, and building of a database for companies and individuals trading in gold.