Dubai plays more active role in gold investment market

As international gold prices continue to hit record highs, Dubai, a pivotal hub for global gold trade in the United Arab Emirates (UAE), has seen a significant surge in activity within its gold investment market.

In terms of investment channels, Dubai has provided a variety of choices for investors, ranging from opening gold bank accounts and investing in financial products to purchasing gold bars and coins directly.

A report from the Dubai Gold and Commodities Exchange shows that, in the first six months of this year, its contract trading volume of spot gold reached nearly 47 million U.S. dollars, up 200 percent year over year, with an average daily turnover increase of 30 percent.

"I believe the biggest advantage for investors holding physical gold is the greater sense of security it provides. However, it also comes with the inconvenience of storage. The situation is different when it comes to digital transactions using financial instruments. Nowadays, many local and international companies in Dubai offer platforms for this purpose. These platforms have the advantages of high liquidity, ease of trading, and no need for storage. Additionally, investors can make purchases with relatively small amounts," said Mohamed Hashad, head of Research and Development with Noor Capital.

UAE is now using its strategic location to become a key participant in the global precious metal market, dedicating itself to connecting the East and the West while opening up a new economic corridor of gold toward the Asian market

Dubai has a close connection with India, which is one of the major gold consumption markets worldwide.

India's tariff on gold imported from the UAE is 5 percent, which is lower than the tariffs imposed on gold imported from other countries. This has significantly boosted the gold trade between the two countries. In the fiscal year of 2024-2025, India purchased 160 tons of gold from the UAE.

"India is an important partner in the development of Dubai's gold market. There are many factors that keep India at the forefront of gold consumption, with the most significant being India's cultural traditions," said Hashad.

China's outstanding aggregate social financing -- the total amount of financing to the real economy -- reached 442.12 trillion yuan (about 63.4 trillion U.S. dollars) as of the end of 2025, up 8.3 percent year on year, central bank data showed on Thursday.

The country's aggregate social financing stood at 35.6 trillion yuan (about 5.1 trillion U.S. dollars) in 2025, up by 3.34 trillion yuan (about 479 billion U.S. dollars) from the year 2024, said the People's Bank of China (PBOC), the country's central bank.

According to the data, the M2, a broad measure of money supply that covers cash in circulation and all deposits, increased 8.5 percent year on year to 340.29 trillion yuan (about 48.8 trillion U.S. dollars) as of the end of December.

In addition, outstanding yuan loans stood at 271.91 trillion yuan (about 39 trillion U.S. dollars) at the end of 2025, up 6.4 percent year on year.