Key Gold Trading Hub Feared to be the Major Destination of Smuggled African Gold

SEATTLE (Scrap Monster): Illegal gold mining and smuggling has been rampant in African countries. Much of these gold lands in the United Arab Emirates, especially in Dubai- the major gold trading hub of the world.

The United Nations (UN) along with other NGOs have been constantly raising questions about the apparent role played by Dubai in facilitating the trade of the yellow metal from suspicious sources in African countries. Incidentally, the UN trade data for 2020 points to discrepancy of around $4 billion between UAE’s declared gold imports from Africa and the export claims by African countries. Surprisingly, UN and other agencies allege that 95% of gold produced in east and central African countries end up in Dubai.

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However, the UAE authorities denied any involvement in illegal trade practices, saying that the allegations were creations of rival trading centers and institutions. Ahmed bin Sulayem, Head of Dubai’s Commodities Exchange claimed that Dubai has better track record than other major cities.

In addition, UAE plans to introduce a publicly accessible system to monitor imports and exports of gold, which in turn would make the trade more transparent. Also, all gold refineries in the country would be required to conduct audits to ensure that the bullion deliveries are responsibly sourced.