The UAE's first gold coin, which was unveiled last year, will finally be
available for distribution by the end of this month, the Dubai Multi-Commodities
Authority (DMCC) told Gulf News.
Like the Canadian Maple Leaf, Australian Nugget or South African Kruggerand,
the gold coin will be the symbol of pride and recognition of the UAE's
achievements. It will bear the portrait of President His Highness Shaikh Khalifa
Bin Zayed Al Nahyan on one side, and on the other the Burj Khalifa, the world's
tallest tower.
The first of its kind in the Arab world, the coin was conceived to meet the
demand by investors seeking access to gold, to protect their wealth against the
ongoing global economic uncertainty.
Given the UAE's huge appetite for the yellow metal and the rising demand from
global investors, the coin is expected to capture a sizeable portion of the
market both locally and abroad.
"The coin will fill a gap in the global market for investment grade gold
bullion coins, sales of which have been increasing on the back of volatility in
financial markets and the increasing importance of gold as a distinct asset
class," DMCC executive chairman Ahmad Bin Sulayem told Gulf News.
"The proximity of the Indian market and its confidence in gold and jewellery
from the UAE will further drive sales of these coins. In addition, the coins
will serve as exclusive UAE souvenirs," he added.
The DMCC will market the coin through traditional channels as well as through
banks and other financial institutions.
Since the launch of the coin's prototype in August last year, Bin Sulayem
said they have received "an overwhelming response from consumers and potential
partners alike."
Demand up
The latest World Gold Council report noted an increased demand for gold
bullion in the UAE.
Consumption of gold bars and coins jumped 19 per cent from 10.5 tonnes in
2010 to 12.5 tonnes last year.
Spending on bars and coins likewise grew from $411 million (Dh1.50 billion)
to $630 million in the same period.
The DMCC earlier revealed plans to make the gold bullion coin as the first
legal tender in the UAE and the Middle East as a whole. While the coin will be
widely distributed in the UAE, the international distribution points have yet to
be finalised.
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