With Dubai’s 22K gold rate holding firm at a peak of Dh383 per gram, leading banks across the UAE are intensifying efforts to attract retail customers to open gold investment accounts. Their message is clear: invest in “pure” gold and capitalize on the continued upward price trend.
Banks view this as a competitive move to capture funds that might otherwise go toward purchasing gold jewellery. According to banking sources, more traditional retail account holders are now adding gold investment accounts after witnessing gold’s strong performance this year.
Gold prices have surged by over 6% in the past month and nearly 50% over the last year as of mid-June.
Avoiding Making Charges with Gold Accounts
One of the major selling points for gold accounts is the avoidance of jewellery making charges, which can add a few dirhams per gram and reduce overall investment value. This cost factor is prompting many investors to consider direct gold investments.
Gold accounts, whether offered by banks or trading platforms, provide a convenient way to invest without the extra costs associated with jewellery. Emirates NBD, for example, encourages customers to “start small” with a minimum investment of Dh500 and to regularly top up their accounts, allowing investors to watch their gold holdings grow.
RAKBank offers a “save in grams” account that enables investors to build gold savings gradually without committing a large sum upfront.
Growing Popularity of Gold Among Investors
While gold investment products are not new, banks are now placing greater emphasis on promoting these offerings to retail clients. Analysts note that banks leverage their existing customer base to encourage gold accounts, especially among investors who prefer familiar institutions over newer trading platforms.
A market analyst commented, “You have standalone trading platforms popular with younger investors, but banks have the advantage of existing trusted relationships to grow gold account adoption. Ultimately, it’s about encouraging more investors to turn to gold.”
Rising Investor Interest Amid Geopolitical and Economic Factors
A new wave of investors in the UAE is turning to gold as part of a broader financial diversification strategy. The increasing political uncertainties worldwide and fragmentation in financial markets have fueled demand not only for gold but also for assets like bitcoin.
Despite persistently high U.S. yields, the traditional inverse relationship between safe-haven asset prices and yields appears to be shifting, prompting more consumers to seek gold investments.
On a per capita basis, UAE consumers lead globally in gold purchases — a trend reflected in the high customer engagement reported by platforms like IG MENA.
Conclusion
As gold prices climb to record levels, UAE banks are stepping up their promotion of gold investment accounts as a cost-effective and accessible alternative to jewellery. This strategy aims to attract a wider range of retail investors eager to benefit from gold’s safe-haven appeal and long-term growth potential.
