Dubai 'is an emerging gold trading hub'

Dubai is fast becoming one of the world's leading hubs for gold trading, it has been suggested.Malcolm Wall Morris, chief executive officer of Dubai Multi Commodities Centre, highlighted why the emirate's reputation is growing so rapidly in the commodities sector."There's no doubt the geographical location of Dubai has [been] an important factor," he told the Associated Press.With the city lying in the Middle East, it is easy for traders and investors from major markets like China and India to do business with people from Africa and other parts of the world.Incredibly, Dubai now accounts for around 29 per cent of the global gold markets, according to industry website bullionstreet.Up to $41 billion (AED 150.5 billion) worth of gold was traded in the city last year, which was a huge rise on 2003, when sales totalled just $6 billion.The emirate's tax system also works in its favour, as Dubai has become one of the cheapest places for individuals to buy the precious metal.Its thriving ports have also helped the UAE to overtake other nations in the gold sector.Unsurprisingly, Dubai's gold-making facilities have improved considerably in recent years, with new refineries and vaults being set up across the region. This has made it easier for the emirate to import cheap metal from India before melting it down to create gold bars.The city has built a reputation as a playground for the rich and famous, with wealthy visitors flying in on a daily basis.With this in mind, it is no shock to see so many upmarket jewellery retailers setting up new stores in more exclusive parts of Dubai.In fact, there are around 600 shops selling gold items and half of these can be found in the amazing gold souk.As the gold markets continue to grow and the real estate sector goes from strength to strength, these are certainly very exciting times for foreign investors who are looking to secure lucrative assets in the UAE.