The stable demand for gold in Saudi Arabia is being showcased at the 4th Saudi International Jewelry and Watches Show which opened here Tuesday at the Dhahran International Exhibition Center. With the price of gold still around $42 per gram, which is forecast to rally to $48 per gram toward the end of the year, demand has remained strong, according to managers of gold companies participating in the show. About 100 local, regional and international companies, the majority of them gold producers and sellers, are taking part in the four-day exhibition, which is dedicated solely to providing the jewelry and watches industry with an opportunity to buy, sell, and keep abreast of the trends in the gold and jewelry market. Saudi Arabia is the largest market for gold in the region, which is estimated to be around SR11 billion ($2.9 billion) with annual consumption of around 200 tons of the yellow metal. Local demand for gold increased by 13 percent in 2008, shored up by purchases from locals and expatriate workers, according to gold sellers. In the GCC countries, gold consumption is around 350 tons per year. In the Arab World, demand for gold is rising, reaching over 700 tons annually, compared to the worldwide consumption of around 4,000 tons per year. Although Saudi Arabia is not yet a major gold producer, it is the largest market in the region. The Kingdom produces only six tons of gold per year; the rest of the annual consumption is imported. A vibrant local market for the precious metal, which has more than 6,000 retail gold and jewelry stores, employing more than 21,000 workers, and around 375 regulated factories, is the key to the success of the Saudi gold market.
