Damascus, March 24 (SANA) – Escalating tensions in the Gulf amid the ongoing regional war are increasingly impacting trade in gold, silver, and other precious metals, extending economic disruptions beyond oil and gas and raising risks for major trading hubs, particularly Dubai.
The sector relies heavily on fast air transport, free ports, refining hubs, and re-export networks, making it highly vulnerable to disruptions in aviation and maritime routes.
According to Bloomberg, flight suspensions to and from the UAE have significantly disrupted shipments of gold and silver through Dubai, forcing some traders to sell at discounts of $10 to $30 per ounce compared to London prices. Data from FlightRadar24 shows thousands of global flights have been affected since the escalation began, directly impacting precious metals transport, which typically depends on passenger aircraft due to high value-to-weight ratios.
The Gulf has emerged as a key global center for precious metals trade, led by the UAE. The Dubai Multi Commodities Centre reported that the UAE’s external trade in gold and precious metals reached $170 billion in 2024, up 27% year-on-year, making Dubai the world’s second-largest gold trading hub after Switzerland.
Gold and jewelry account for more than half of the UAE’s non-oil trade, with gold alone representing 48.6% and jewelry 4.6%. Across the Gulf, exports of precious stones and metals reached approximately $80 billion in 2024, with the UAE dominating exports at $76.1 billion.
Saudi Arabia is expanding its role in the metals sector as part of economic diversification, signing investment agreements worth $9.32 billion in 2024, while Qatar has invested around $180 million in critical minerals and rare earth projects to strengthen its position in clean energy supply chains.
The developments come amid continued Iranian missile and drone attacks targeting several countries in the region, causing casualties and damage to infrastructure as the US-Israeli-Iranian war intensifies.
Kh.A
