Demand for gold jewellery in the UAE plummeted to a 20-year low last year, bucking the global trend, despite an uptick in sales in December before the introduction of VAT in January, the World Gold Council (WGC) said.
Jewellery demand in the UAE fell for the fourth consecutive year to 42.8 tonnes, down 2 per cent from 43.4 tonnes in 2016, the trade body said on Tuesday, without citing a reason for the decline. In the fourth quarter, demand rose 16 per cent to 10.6 tonnes from a year-earlier period amid a rush to buy bullion before the implementation of the 5 per cent VAT rate.
Overall Middle East demand fell 1 per cent to 190.7 tonnes in 2017 from 193 tonnes, despite the rebound in the fourth quarter.
"Gold demand in the UAE and GCC more broadly has been affected by the slowdown in regional economies in line with the slump in oil prices," said Edward Bell, a commodities analyst at Emirates NBD. "There is an overt relationship between the decline in oil prices and gold demand locally. The introduction of VAT in the UAE may act as another barrier to gold demand in the short term."
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Demand in the UAE has dropped amid an increase in living costs and declining tourist revenues, the WGC said in its third quarter report. The body said demand for jewellery was likely to dip after VAT is introduced.
Gold prices are up 2 per cent so far this year as bullion is regarded as a haven asset class amid the economic and political upheaval affecting many regions. Gold increased 13 per cent in 2017, its best year since 2010, despite rising interest rates, an equity market bull run and robust global growth.
Rising interest rates usually dampen demand for gold because non-interest bearing investments such as the yellow metal appear less attractive. A weak dollar buoys trade in gold.
In Egypt, jewellery demand fell by 14 per cent to 22 tonnes, affected by a weak local currency, which has lost around half of its value since it was floated in late 2016.
In Saudi Arabia, the biggest market for gold in the Middle East in 2017, jewellery demand fell 8 per cent to 45.7 tonnes.
Kuwait’s jewellery demand rose 4 per cent to 13 tonnes.
Demand for bars and coins in the Middle East doubled in 2017 to 40.5 tonnes, but is “a shadow of itself”, the council said. Between 2007 and 2016, average demand was around 70 tonnes.
Globally, gold jewellery demand rose 4 per cent to 2,135.5 tonnes amid a pick-up in US, China and India. It was the first year of growth since 2013.
COMPANY PROFILE
Name: HyperSpace
Started: 2020
Founders: Alexander Heller, Rama Allen and Desi Gonzalez
Based: Dubai, UAE
Sector: Entertainment
Number of staff: 210
Investment raised: $75 million from investors including Galaxy Interactive, Riyadh Season, Sega Ventures and Apis Venture Partners
Business Insights
- As per the document, there are six filing options, including choosing to report on a realisation basis and transitional rules for pre-tax period gains or losses.
- SMEs with revenue below Dh3 million per annum can opt for transitional relief until 2026, treating them as having no taxable income.
- Larger entities have specific provisions for asset and liability movements, business restructuring, and handling foreign permanent establishments.
TRAINING FOR TOKYO
A typical week's training for Sebastian, who is competing at the ITU Abu Dhabi World Triathlon on March 8-9:
- Four swim sessions (14km)
- Three bike sessions (200km)
- Four run sessions (45km)
- Two strength and conditioning session (two hours)
- One session therapy session at DISC Dubai
- Two-three hours of stretching and self-maintenance of the body
ITU Abu Dhabi World Triathlon
For more information go to www.abudhabi.triathlon.org.
MATCH INFO
Arsenal 1 (Aubameyang 12’) Liverpool 1 (Minamino 73’)
Arsenal win 5-4 on penalties
Man of the Match: Ainsley Maitland-Niles (Arsenal)
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Company%20Profile
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Business Insights
- Canada and Mexico are significant energy suppliers to the US, providing the majority of oil and natural gas imports
- The introduction of tariffs could hinder the US's clean energy initiatives by raising input costs for materials like nickel
- US domestic suppliers might benefit from higher prices, but overall oil consumption is expected to decrease due to elevated costs
Three ways to limit your social media use
Clinical psychologist, Dr Saliha Afridi at The Lighthouse Arabia suggests three easy things you can do every day to cut back on the time you spend online.
1. Put the social media app in a folder on the second or third screen of your phone so it has to remain a conscious decision to open, rather than something your fingers gravitate towards without consideration.
2. Schedule a time to use social media instead of consistently throughout the day. I recommend setting aside certain times of the day or week when you upload pictures or share information.
3. Take a mental snapshot rather than a photo on your phone. Instead of sharing it with your social world, try to absorb the moment, connect with your feeling, experience the moment with all five of your senses. You will have a memory of that moment more vividly and for far longer than if you take a picture of it.
Dhadak
Director: Shashank Khaitan
Starring: Janhvi Kapoor, Ishaan Khattar, Ashutosh Rana
Stars: 3
Killing of Qassem Suleimani
Overview
What: The Arab Women’s Sports Tournament is a biennial multisport event exclusively for Arab women athletes.
When: From Sunday, February 2, to Wednesday, February 12.
Where: At 13 different centres across Sharjah.
Disciplines: Athletics, archery, basketball, fencing, Karate, table tennis, shooting (rifle and pistol), show jumping and volleyball.
Participating countries: Algeria, Bahrain, Comoros, Egypt, Iraq, Jordan, Kuwait, Lebanon, Libya, Morocco, Oman, Palestine, Saudi Arabia, Sudan, Syria, Tunisia, Qatar and UAE.
The specs
Engine: 1.5-litre turbo
Power: 181hp
Torque: 230Nm
Transmission: 6-speed automatic
Starting price: Dh79,000
On sale: Now
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Electoral College Victory
Trump has so far secured 295 Electoral College votes, according to the Associated Press, exceeding the 270 needed to win. Only Nevada and Arizona remain to be called, and both swing states are leaning Republican. Trump swept all five remaining swing states, North Carolina, Georgia, Pennsylvania, Michigan and Wisconsin, sealing his path to victory and giving him a strong mandate.
Popular Vote Tally
The count is ongoing, but Trump currently leads with nearly 51 per cent of the popular vote to Harris’s 47.6 per cent. Trump has over 72.2 million votes, while Harris trails with approximately 67.4 million.
Company%20Profile
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