Dubai Multi Commodities Centre (DMCC) has said the gold trade through Dubai reached $13.07 billion in the first half of 2008, an increase of 48 per cent from $8.84 billion during the same period in 2007.

In the first six months of 2008, a total of 265 tonnes of gold was imported into Dubai. During the same period, gold exports from Dubai reached 179 tonnes, an increase of 26 per cent from 142 tonnes in 2007.

The gold price averaged $910 per ounce during the first half of 2008, up from $650 per ounce during the same period in 2007.

In the second quarter of 2008, gold trade grew by 26 per cent to reach $6.01 billion from $4.764 billion in the same period in 2007.

In the second quarter of 2008, Dubai imported 143 tonnes and exported 64 tonnes of gold. In terms of trading partners, India, Switzerland and Canada were top importers from Dubai, while India, Malaysia and Switzerland were top exporters to Dubai.

Ian MacDonald, executive director for Gold & Precious Metals, DMCC, said: ’Demand for gold has been resilient to global market conditions. Despite high volatility in prices, gold trade through Dubai continued to surge, reiterating the emirate’s prominence as a global centre for gold and precious metals.

’The sharp rise in prices seen earlier this year has been a prime driver in improving export volumes, and has boosted the role of gold as an inflation-hedging instrument. Given the current bullish sentiment of investors and gold’s ’safe haven’ status, the outlook for gold trade is promising in the remaining months of 2008,’ he added.

He also said that the region will witness more initiatives in a shift towards gold exchange traded funds (ETF).

Earlier this year, DMCC in association with the World Gold Council launched the Sharia-compliant gold shares, the first dollar-priced security of its kind, to be listed on the Dubai International Financial Exchange (DIFX).-Reuters