Statements from Ajay Salia, Head of Precious Metals and Diamond

Statements from Ajay Salia, Head of Precious Metals and Diamond at National Bank of Fujairah

Dubai, 8 January, 2019:Commenting on the sidelines of the UAE Africa Gold Convention hosted by the Dubai Gold and Commodities Exchange (DGCX) and IBMC Financial Professionals Group (IBMC), Ajay Salia, Head of Precious Metals and Diamond at National Bank of Fujairah, said: “The global jewellery industry is going through challenging times due to geopolitical tensions, lack of bullion banks due toreturn on capital (ROC)and lower risk-adjusted return on risk-adjusted capital (RARORAC), as well as global trade war and sanctions. In the UAE, sentiment has slowly settled, and we have consistently seen improvement in trade volumes. This positive momentum goes back to the efforts undertaken by DMCC and DGJG with FTA and the respective government authorities to exempt B2B jewellers from VAT.With the VAT refund for tourists coming into effect in November 2018, we have seen the retail trade pick up locally. In addition, central bank gold-buying has been high in Q3 2018 on the back of rebalancing of central bank reserves and disinvestments from US dollar assets.

Locally, the UAE sits at the crossroad between Asia and Africa which gives it a strategic edge from an investment and trade hub perspective. Boasting robust infrastructure, the UAE presents African stakeholders within the gold supply chain with a conducive business environment built on ethics, governance, and compliance. As such, the UAE Africa Gold convention is an important platform to position the UAE as an attractive business hub for companies across the African continent.

Looking ahead, one of the key opportunities lies in tapping the whole new market for investment grade products in the Islamic segment which emerged on the back of the Shariah standard on gold; this will continue growing in 2019.Against this backdrop, NBF maintains its position as one of the leading bullion banks in the UAE with a commitment to support the industry to achieve its full potential. Banking on its unmatched expertise, NBF went to structure the first Shariah-compliant bullion financing for Malabar gold which paves the way for others in the industry.”

Courtesy: The Retail Jeweller News Service[/vc_column_text][/vc_column][/vc_row][vc_row][vc_column][vc_single_image image=”5207″ img_size=”full” alignment=”center”][/vc_column][/vc_row]