16 Dec 2011
(MENAFN) World Gold Council (WGC) said that during the third quarter, demand for gold and jewelry dropped 28 percent in the Middle East to 38.5 tons, reported Arab News.
The WGC added that in the period, global gold jewelry market shrank by 10 percent at 465.6 tons; however, demand was 5 percent less than the quarterly average since the fourth quarter in 2008 when it was 490 tons.
It also said that demand in Saudi, the UAE and other Arab Gulf countries fell between 20 percent and 24 percent, adding that since Indian expatriates slashed their demand for 22-carat jewelry, demand in the UAE declined 24 percent year-on-year.
It is worth noting that the main market that witnessed a huge drop in demand for gold was Egypt, with demand plunging by 43 percent to 8.8 tons, due to the Arab Spring, which affected the country’s tourism sector, foreign investments and disposable income.
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