Gold Jewelry Demand Seen at 20-Year Low in United Arab Emirates

Photographer: Luke MacGregor/Bloomberg

Gold jewelry demand in the United Arab Emirates sank to a 20-year low last year, the fourth consecutive annual decline, the World Gold Council said.

Purchases fell 2 percent to 42.8 tons last year, the producer-funded council said Tuesday in an emailed report. The drop occurred even after fourth-quarter demand gained 16 percent as consumers rushed to buy to beat a 5 percent Value Added Tax that was imposed in January, it said.

The U.A.E. and Saudi Arabia, the world’s biggest oil exporter, have been squeezed by a fall in crude prices over the past several years. U.A.E. per capita consumer gold demand dropped from 8.7 grams in 2013 to 4.8 grams in 2017 while Brent crude tumbled over the same period from $108.70 a barrel on average to $54.75, according to data compiled by the council and Bloomberg.

Losing Luster

U.A.E. gold demand falling for 4 years

Source: World Gold Council

Note: Consumer demand per capita