RIYADH: Saudi Arabia s gold sales rose 18 percent to 40.9 tons in the third quarter as the precious metal became a refuge in the world finance crisis, the World Gold Council said on Sunday.
Sales rose in the United Arab Emirates by 22 percent to 32.7 tons and in Egypt by four percent to 22.2 tons, a report by the industry-funded group sent to Reuters said.
The increase reached 15 percent in the Middle East due to the world financial crisis and local marketing, the statement said. Saudi Arabia and UAE were the main drivers of jewelry demand in quarter three in the region with both countries recording growth rates of more than 50 percent in dollar terms.
Sales also rose in terms of value, by 51 percent in Saudi Arabia to $1.5 billion, by 56 percent in the UAE to $1.2 billion and by 33 percent in Egypt to $804 million.
The coming hajj pilgrimage season would fuel further demand, said Bisher Diab, the WGC Saudi consultant and manager.
Future outlook for gold demand in the region anticipates an increase in demand in gold jewelry and retail investment – gold coins and bars – especially with the approach of the hajj and end-of-year seasons, the statement quoted him as saying.
In the second quarter, purchases of gold jewelry and investment in Saudi Arabia fell by 15.5 percent on high and volatile bullion prices.
