April 10, 2018

World’s Trading Community Descends On Dubai For 7th Dubai Precious Metals Conference By DMCC

DMCC, the world’s leading Free Zone for commodities trade and enterprise, recently held the 7th edition of its industry-leading annual Dubai Precious Metals Conference (DPMC), with more than 300 participants listening as speakers and panellists from the precious metals sector discussed issues and opportunities critical to the future of the worldwide trade, at The Westin Hotel, Habtoor City, Business Bay.

Following the opening speech by DMCC CEO Gautam Sashittal, the conference keynote speech was delivered by Lord Dr Hastings of Scarisbrick CBE, Global Head of Citizenship, KPMG.

Lord Dr Hastings said: “If you want to build a sustainable future, then having values and operating ethically and transparently is critical. You can sign declarations on sustainability but actually creating sustainable development is another step. It is about building a decent and dignified future for the people you serve. The challenge is not about what the metals are worth, but what we give back to the communities, and the freedom and dignity we provide for them.”

Participants immediately moved on to the first panel of the day on ‘The Evolution and Impact of Taxation on Gold’. Panellist Chandu Siroya Vice Chairman, DGLG, said: “We are seeing many effects from the impact of 5% VAT after the first three months. A lot of companies didn’t sell for the first 20 days after the VAT came in, and only later got back to selling. The unique structure of Dubai where 85% of gold jewellery is for export, means it is creating uncertainty. We also saw that around 20 offices became available for rent in the gold souk. Unfortunately, the market is down significantly, both at the wholesale and retail levels.”

The next panel debate focussed on Responsible Sourcing – Expectations and Reality, with panel moderator Ajay Mathur, Director – Precious Metals, DMCC.

Speaking remotely to the audience via video link, Tyler Gillard, Manager of Sector Projects, Responsible Business Conduct Unit, Investment Division at OECD said: “The Dubai Precious Metals Conference is one of the key events in the year for us at OECD. We have worked closely with DMCC, and the gold industry, since 2011 on implementation of responsible sourcing. Investors as well as banks are increasingly expecting to see evidence of responsible sourcing before doing any business with clients. Consumers are demanding it. So essentially, now responsible sourcing is no longer an option, it is a commercial requirement.”

The panel on ‘Bullion Banking: The Road Ahead’ was moderated by Jeffrey Rhodes, Principal Consultant, RAKGOLD, who introduced the topic by telling conference delegates: “I am very optimistic about the future of bullion banking in Dubai and I expect the market to grow substantially. Dubai is the epicentre of the world physical gold trade, but one of the challenges facing the UAE market is the lack of Western bullion banking activity. This is a constraint on the business and why the evolution of a local bullion banking sector will help remove any barriers to trade.”

Insights into the ‘Role & Future of Global Exchanges’ was the next leading topic on the agenda, with moderator: Somasundram PR, Managing Director-India, World Gold Council, giving his views before inviting panellists to answer questions and give their views.