The shine of Dubai refuses to tone down despite the global economic crisis. Long known as an Emirate that knows how to get things done and on a scale that nations never dreamt before – this tiny Emirate is now launching its first gold coin. The prototype 24-carat, five-ounce coin, minted in Switzerland, is adorned with the face of President Sheikh Khalifa, President of the UAE, on one side, and an image of the Burj Khalifa on the other.
The coin which has been launched by a Dubai free zone is hoped to become legal tender. Historically, the South African krugerrand, which was first minted in 1969 to promote South African gold and became so popular that by 1980 it accounted for 90 per cent of the gold coin market. Obviously the Sheikhs have something similar in mind for this gold coin.
The Dubai Multi Commodities Centre Authority (DMCC) is holding talks with the Central Bank to designate the coin, worth more than Dh30,000 (US$8,167) at current prices, as the first gold bullion legal tender in the Middle East.
“The innovative gold bullion coin was conceived to satisfy the demands from investors seeking access to gold as protection against the ongoing global economic uncertainty,” said Ahmed bin Sulayem, the executive chairman of DMCC.