In early 2025, UAE high-net-worth investors dramatically reduced their cash allocations—down to just about 13%, the lowest globally and well under the 20% world average. Instead, many are reallocating funds into gold, citing rising prices and market uncertainty as key motivators.
According to HSBC’s Affluent Investor Report, about 57% of affluent UAE investors plan to increase their gold exposure—nearly 40% are also considering tokenized gold products.
Why Gold? It’s All About Stability and Strategy
Several factors are making gold more appealing:
Record‑breaking gold prices in early 2025 have made gold a go-to safe haven, especially amid inflation and geopolitical turbulence. In the UAE, local prices have surged, with 22K gold trading around Dh368–Dh380 per gram.
Demand for traditional gold jewellery has dropped—falling around 13–14% in 2024–Q2 2025—while purchases of bars and coins jumped by roughly 25% year-on-year to 4.1 tonnes in Q2 2025.
Young investors, particularly millennials and Gen Z expats, are increasingly attracted to gold not only for cultural reasons but also as an effective portfolio diversifier. These groups favor digital and jewellery-free investment routes.
The Central Bank of the UAE has expanded its gold holdings—reportedly holding over 70 tonnes by late 2024—to diversify reserves and reduce reliance on the U.S. dollar.
UAE-based investors are even crossing borders; a landmark deal saw an Emirati firm purchase a significant stake in gold mines in Mali—a bold sign of expanding gold-related investment strategies.
