Quotes: US MENA   Enter Symbol: NewsLetter: Search: advanced

Levy difference 'diverts gold trade to Dubai'  Join our daily free Newsletter

MENAFN - Arab News - 15/02/2014

No. of Ratings : 0
Add to Mixx!


 


(MENAFN -Arab News) Disparity in customs duties on imported gold works has diverted gold trade from Saudi Arabia to Dubai despite the existence of a unified GCC customs duties system, a key jewel expert in Jeddah told local media.

In Saudi Arabia, gold traders have to pay 5 percent of the value of gold works imported into the Kingdom whereas traders in Dubai are paying 0.5 percent of that value on the ground that Dubai is a wholesale and re-export market, former head of gold and jewelry committee at Jeddah Chamber of Commerce and Industry (JCCI) Jamil Farsi said.

Earlier, wholesale gold traders from Sudan, Egypt, Libya, Morocco and other countries used to purchase gold from Saudi markets. Naturally, gold traders abstained from buying gold from the Saudi market and opted to Dubai due to increased excise duties in Saudi markets, he said.

This unfair competition has gravely hit gold trade in the Kingdom and shifted gold trade center from Saudi Arabia to Dubai, he noted.

The jewel expert counted a number of reasons, which contributed to the shift of gold trade to Dubai, including ease of visa procedures and non-existence of intermediaries in Dubai where (Indian) traders used to showcase products in Dubai markets, which brought positive results for the business there.

He said India had earlier invited Saudi traders to purchase gold from the country instead of Dubai, which could have minimized fees of brokers and automatically led to price reductions.

India has weighed Saudi Arabia as the most important and biggest gold market globally, he said.

For his part, former member of gold and jewelry committee at JCCI Mohamed Azouz said certain obstacles, including visa formalities, existing in Saudi markets had either compelled traders to go to Dubai or fully stopped business in the market.

If the concerned authorities did not find appropriate solutions to difficulties facing the Kingdom's gold industry, the industry would be vulnerable to “disappear,” Azouz warned.


 






  MENA News Headlines


 
Click to Apply






Google

 
 

Middle East North Africa - Financial Network

MENAFN News Market Data Countries Tools Section  
 

Middle East North Africa - Financial Network
Arabic MENAFN

Main News
News By Industry
News By Country
Marketwatch News
UPI News
Comtex News

IPO News
Islamic Finance News
Private Equity News

How-To Guides
Technology Section

Travel Section

Search News

Market Indices
Quotes & Charts

Global Indices
Arab Indices

US Markets Details

Commodoties

Oil & Energy

Currencies Cross Rates
Currencies Updates
Currency Converter

USA Stocks
Arab Stocks
 

Algeria 
Bahrain 
Egypt 
Iraq
Jordan 
Kuwait 
Lebanon
Morocco 
Oman 
Palestine
Qatar 
Saudi Arabia 
Syria
Tunisia 
UAE 
Yemen

Weather
Investment Game
Economic Calendar
Financial Glossary

My MENAFN
Portfolio Tracker

Voting

Financial Calculators

RSS Feeds [XML]

Corporate Monitor

Events

Real Estate
Submit Your Property

Arab Research
Buy a Research

Press Releases
Submit your PR

Join Newsletters


 
© 2000 menafn.com All Rights Reserved.  Terms of Service | Privacy Policy | Contact Us | Advertise | About MENAFN | Career Opportunities | Feedback | Help