DUBAI — Emirates NBD, the leading bank in the region, on Thursday announced the launch of its ‘Gold Business’,which will offer a comprehensive range of specialised gold products and services to all market segments in the UAE, providing retail and business customers with a one-stop shop approach to investing in gold. The bank also unveiled the Emirates NBD Gold Certificate (GC), the initial product offering from its Gold Business portfolio, which allows customers to invest in the gold market through any of the 110 Emirates NBD branches nationwide.
The innovative product, which is the first of its kind to be launched in the GCC, offers clients a “Gold Certificate” issued in lieu of physical gold at international market rates prevailing at the time of purchase. “The demand for gold has risen enormously both on a regional and global level as a result of the recent period of economic uncertainty. Recent dramatic price increases prove that investor appetite continues to remain high, particularly in this region where gold is considered as a preferred store of value,” Jamal bin Ghalaita, Group Deputy Chief Executive Officer, Emirates NBD, said.
The gold will be spot purchased on behalf of clients as gold bullion in denominations of 0.5kg and its multiples. It will then be stored by the bank through its appointed security firm, The Transguard Group, the Middle East’s leading security services provider. Emirates NBD customers can redeem the value of their gold investment at any time, either before or at the end of the maturity period, which can be up to a maximum of 60 months. Investors have the option to redeem the value of their investment in the form of credit to their account or gold bullion at prevailing market rates at the time of redemption. “Many residents in the UAE currently prefer to save their accumulated earnings in the form of gold, as it is traditionally considered a relatively safe investment option against fluctuations in global currencies,” Bin Ghalaita said, adding: “The multicultural population in this region also have a cultural tendency to purchase gold as a popular gift choice to mark important festive and family occasions.”
Asif Lakhany, Head of International and New Ventures, said: “The launch of Emirates NBD’s Gold Business is in line with our commitment to customers to continuously strive to develop relevant products and services for them. Over 25 per cent of the annual global gold production is transacted through the UAE markets, and we have developed the Gold Business to serve the needs of our existing and prospective customers. Over time we will look to extend this expertise across other precious metals and commodities.”
Syed Saqib, Head of Gold Business, Emirates NBD, said, “Emirates NBD recognises the appeal of gold as an investment. The launch of ‘Gold Certificate’ from Emirates NBD provides customers with the potential benefits of gold as a hedge, while removing the expense and security worries of associated physical storage.”
Emirates NBD senior officials also announced the launch of gold services for industry traders and suppliers of gold. This includes the provision of physical gold as well as the working capital required by companies and suppliers in the gold and jewellery trade. “This region has long-benefited from thriving trade in gold and jewellery and we understand the needs of traders, retailers and wholesalers,” said Saqib – Khaleejtimes
