Saudi, U.A.E. VAT Tax May Squeeze Gold Jewelry Demand Even More
- World Gold Council gives outlook on local gold jewelry demand
- Iran shows gains in jewelry, gold bar and coin demand
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Gold jewelry demand in Saudi Arabia and the United Arab Emirates is “likely to falter” after rising briefly in the next few weeks before the countries impose a value added tax in January, the World Gold Council said.
Weak oil prices and rising costs caused gold jewelry demand in Saudi Arabia to slump 9 percent in the third quarter from a year earlier while the U.A.E. showed a 10 percent decline, the producer-funded World Gold Council said Thursday in a report. Saudi Arabia’s demand was 9.8 metric tons while the U.A.E. consumed 7 tons, the council said. Overall Middle East gold jewelry demand dropped 4 percent to 40.9 tons, the lowest since at least 2014, the report showed.