Dubai’s meteoric rise as a global gold powerhouse

Dubai has secured its place as the world’s second-largest gold trading hub, despite having no domestic production and limited historical ties to the industry. 

Its ascent reflects a mix of strategic geography, infrastructure investment and the city’s ability to position itself as a neutral, friction-free marketplace in an increasingly fragmented global economy.

Africa remains the dominant source of Dubai’s gold imports. In 2023, countries including Mali, Ghana, Guinea, Sudan and South Africa supplied the bulk of shipments to the UAE. Many of these states rely heavily on mining to support government revenues and export earnings.

Mali and Ghana, in particular, have expanded production rapidly, feeding a growing trade route into the Gulf. Dubai’s commercial ties with West Africa have deepened alongside investment in logistics and banking channels, allowing the emirate to act as a highly efficient conduit between African producers and Asian consumers.

Large quantities of African gold are re-exported to India and China, reflecting the gravitational pull of these two markets, which consistently account for the world’s highest levels of jewellery and bullion demand.

Turkey and Switzerland: Refining Capacity and Transit Links

Turkey plays an increasingly important role in the supply chain, not as a major producer of gold but as a refining and transit centre. Flows from Central Asia and Africa often pass through Turkish refineries before being routed to Dubai. 

The country’s geographic position — and its longstanding role as a bridge between Europe, Asia and the Middle East — strengthens its relevance to the UAE’s trading network.

Switzerland, meanwhile, remains the cornerstone of global refining. Swiss facilities produce some of the purest gold available on the market, much of it destined for investment-grade bullion or high-end jewellery. 

Refined Swiss gold is a staple in Dubai’s commercial sector, valued for its quality and traceability. The relationship between Swiss refiners and Dubai’s trading houses forms one of the more stable links in the global bullion supply chain.

Russia: Redirected Flows in a Sanctions Era

Russia has emerged as a growing supplier of gold to Dubai, largely as a consequence of Western sanctions following the Ukraine conflict. With access to European and North American markets restricted, Russian exporters have increasingly turned to the Middle East.

Dubai’s neutrality, and its ability to operate outside Western financial restrictions, has made the UAE an attractive outlet for Russian bullion. The shift underscores how geopolitical realignments are reshaping global trade routes, elevating Dubai’s importance at a time when traditional markets are undergoing structural change.

Why Dubai? A Convergence of Infrastructure, Policy and Geography

Dubai’s rise has been neither accidental nor purely opportunistic. The emirate has spent two decades developing world-class logistics capacity, including ports operated by DP World and one of the world’s busiest air cargo networks via Emirates. 

Combined with the regulatory role of the Dubai Multi Commodities Centre (DMCC), the city has built an ecosystem designed to facilitate high-volume commodities trading with minimal friction.

In 2023, Dubai overtook the United Kingdom to become the second-largest global hub for gold trade , a symbolic shift that reflects a broader rebalancing of economic influence away from traditional Western centres.

Dubai’s expansion coincides with a period of heightened demand for gold from Asian central banks. Many have been increasing reserves amid concerns over currency volatility, geopolitical risk and long-term exposure to the US dollar. The result is a steady rise in bullion flows across Asia, with Dubai positioned as a natural waypoint.

According to DMCC chief executive Ahmed Bin Sulayem, recent surges in gold trading reflect “historic changes” in the structure of global markets. 

As reserve managers and investors seek insulation from geopolitical uncertainty, the appeal of gold — and of Dubai as a trading centre — continues to grow.

The emirate’s role as a neutral, well-connected hub places it at the centre of a new gold corridor stretching from African mines to Asian vaults. 

Whether this position strengthens further will depend on how the global financial system evolves, but for now, Dubai’s influence in the bullion trade is unmistakably entrenched.