The Central Bank of the UAE (CBUAE) has announced a substantial 25.9% increase in its gold reserves, totaling Dh28.93 billion ($7.9 billion) in the first five months of 2025. This surge reflects the nation’s strategic shift towards diversifying its financial assets amid ongoing global economic uncertainty.
In May, the CBUAE reported a modest monthly increase of 0.49%, raising its gold holdings from Dh28.65 billion at the end of April to Dh28.79 billion. This consistent accumulation signals a deliberate move by the central bank to reduce reliance on traditional reserve currencies, such as the US dollar.
Economists believe that bolstering gold reserves enhances financial stability and provides strategic security for the UAE, the second-largest economy in the Arab world. As inflation and currency volatility continue to pose risks, gold's role as a reliable hedge has become increasingly vital.
This trend aligns with broader market movements, as investors globally seek safe havens amid geopolitical tensions and uncertain monetary policies. The UAE's proactive approach to increasing its gold reserves is a response to these challenges, reflecting a commitment to maintaining economic resilience. For more insights on related developments, see previous reports on how the region's gold trade is impacting its economy.
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