DUBAI PRECIOUS METALS
CONFERENCE 2021

Ahmed Bin Sulayem, Executive Chairman and CEO, DMCC

TBC

Global outlook, market conditions and opportunities for precious metals in the recovery

According to the "Precious Metals Market: Global Industry Trends, Share, Size, Growth, Opportunity and Forecast 2020-2025" report, the global precious metals market exhibited moderate growth from 2014 to 2019. The COVID-19 pandemic then sparked volatility in markets across the globe. Supply chains were disrupted, operations of several manufacturing units were halted, which in turn led to inventory shortages. On the other hand, investments in precious metals have increased to survive the rapidly changing market conditions. Looking forward, the market is expected to exhibit moderate growth in the next five years.

According to the World Gold Council’s new annual outlook on the commodity, gold investment will likely remain well supported while gold consumption could benefit from economic recovery in 2021. A predicted upswing in demand from investors and consumers will likely add to gold in 2021, prompting prices rise to $2,300, as the global economy returns to growth post-pandemic.

• How has the global precious metals market performed so far and how will it perform in the coming years?

What has been the impact of COVID-19 on the global precious metals market?

• What opportunities are precious metals businesses seeing right now, and how can they take hold of them?
• How will producers keep up with increased demand? How will different supply-demand dynamics impact the industry?
  Is this increased demand a sign of a new precious metal super cycle?

Is it Possible to Disrupt the Precious Metals Industry with Blockchain Technology?

Blockchain technology can be used throughout the precious metal value chain and has the potential to revolutionize how gold and other precious metals are mined, manufactured and delivered. Distributed ledger technologies can play a central role in the entire life cycle of gold, which includes industries and processes such as mining, legal, regulatory, financial, manufacturing and retail. The decentralization offered by such ledgers guarantees complete transparency across the supply chain, whilst also presenting a great increase in efficiencies that significantly reduce costs.

With precious metals being used more widely in industrial applications, namely technology such as smartphones, entertainment systems and electric cars, tracking metals across the supply chain has become increasingly more important to businesses and consumers. It is therefore an area that the precious metal industry needs to not only take seriously, but fully embrace.

The gold and precious metals industry has a lot to benefit from the widespread adoption of distributed ledger technologies, from increased transparency that bolsters consumer and regulator confidence in the industry, to cost-savings brought on by enhancing efficiencies, as well as safer and more accessible trading through tokenized metals.

• What will it take to fully implement blockchain across the precious metal supply chain? What are the challenges with blockchain adoption in the industry?

The Changing Landscape in the Precious Metals Industry – Locally and Globally

In December 2020, the Ministerial Development Council adopted four new initiatives aimed at strengthening the UAE’s position as a global hub for gold trade. Specifically, the new policy includes the establishment of a UAE international standard for good gold delivery and the development of a federal platform for gold trading. With gold trading responsible for 29% of the UAE’ non-oil exports, it is no wonder that the authorities have worked very hard to implement policies aimed at positioning this part of the commodities trade firmly.

In April 2021, the Emirates Gold Bullion Committee reviewed plans to launch the federal gold trading platform. The platform is especially indicative of the government’s goal of incorporating technology into gold production since tracking the gold’s origin seeks to boost the transparency in the Emirati commodity exchange markets for gold. As trust is pivotal for the gold market, the creation of an Emirati trust standard will prove crucial for the industry’s future.

• This section will focus on the new rules and regulations in the UAE and globally and will have three presentations delivered followed up by a Q&A:
  • EU implementation of conflicts minerals regulation
  • Basil 3 implementation and its impact on the PM industry
  • What to expect is a presentation on the changing regulations in the UAE - What changes are to come? What are the updates?
• Each speaker will have a 10-12 minute presentation slot followed by a 10 min Q&A

How ESG impacts the bottom line in the Precious Metals Industry

ESG issues are increasingly impacting businesses across all sectors – and they are not new to the metals and mining sectors, as they have always been under close scrutiny. But 2020 has set a new bar for what stakeholders expect from the industry– consumers and investors alike are looking much more closely at provenance and production methods, as well as the environmental and social impact of what they invest in or buy.

• How are precious metals businesses impacted by the increased focus on ESG?
• What ESG issues will face the most scrutiny from investors and regulators?
• What ESG factors in the industry pose the most risk, and which present opportunities to take hold of?
• The demand for clean energy is driving higher demand for precious metals, what are the repercussions of this?