Breaches of industrial is behind the withdrawal of the World Gold Council from Saudi Arabia


Sources independent of the gold trade for new reasons may be behind the suspension of the World Gold Council for its activities in the Saudi market, in the forefront of the discovery of the World Council flaws and violations of the standards of global manufacturing in the gold and jewelry in the Kingdom and placed under the category of “production systems”, such as adding Zarcn (glass ) to the gold, and other related weights or potential fraud.

The newspaper “economic” from these sources as saying that one of the issues discussed by the World Council with a number of manufacturers addressed the issue of adding glass to metal, with the dependence on light weights, where the Board considers that this is contrary to what is happening globally, demanding manufacturers changesradical in this regard, as well as distribution systems and the question of the tax.
The source added: “Manufacturers have assured the Council the time that these operations are done in a cultural context of the nature of consumers in the Kingdom, and it is appropriate not to meet the demands of consumers who prefer certain colors-ins and which are made using” Zarcn “any glass, and that the issue of tax in Saudi Arabia, which depends Zakat is one of the lowest in the world after that fell from 12 per cent to 5 per cent. ”

The objections discussed by the World Gold Council by Aram Shishmanian, chief executive, a Briton of Iranian origin, with a number of local manufacturers by the stoppage of its activities in full, is a question of popular markets for gold and scattered in all Saudi cities, which are likely to be a good place to manipulate this trade and not subject to international standards.

The response of the traders then that those markets are also part of the culture of the community and who is dealing with gold like any other commodity, that is not necessarily to be in the shops specialized, high-quality and modern markets, revealing that it is not necessarily to pursue the Saudi market, Western methods in the marketing of the precious metal .

For its part, avoided Stephanie mackerel, media spokesman of the World Gold Council, stressed that information, sufficient to confirm the news of the withdrawal.

Mackerel and confirmed that the World Gold Council has a long history in supporting the gold industry in the Middle East and in the Kingdom, and it will continue to recognize the value and importance of the gold market is Saudi Arabia in cooperation with its partners in the Kingdom.

She added, “We reviewed our strategy earlier this year, despite our belief in the great opportunities in the Kingdom, but we can not deploy the necessary resources in all regions of the world we decided to reallocate the resources that we have in the UK to focus on other markets.

And ended the media spokesman for the World Gold Council, emphasizing that their office was closed in Saudi Arabia at the end of March / March of this year, and no longer have any other activity in the country since then.

This comes after the entire block a number of Saudi investors led by a group of leading merchants and manufacturers of gold and members of the National Committee of gold moved and continue to challenge the decision of the World Gold Council, based in London to suspend its activities in Saudi Arabia.

Informed sources close to the World Gold Council, that the new CEO of the Council and which was based on the decision to withdraw from the Saudi market to decline in demand locally and the growth of activity in other markets head and large, first and foremost a market of India and China, is illogical and unacceptable to both the Saudi and the Middle East in In general, there are moves that took place and will be by senior traders and manufacturers in the UK to address this resolution, including correspondences with the Chairman of the World Gold Council.

The source added, “has secret meetings in New York and in Canada and the correspondences between merchants Saudis and senior officials in the management of the World Gold Council’s objection to the decision of the Executive Chairman of the Board, which they described Balchksa and contrary to the promises made Shishmanian, but that so far has not resulted from these meetings produced positive results.”

The gold market Arabia consists of about six thousand a shop selling jewelry retail, and approximately 250 manufacturing workshop, including 30 with large equipment, and about $ 700 a repair shop. The gold market is Saudi Arabia a great deal of retail, where manufacturing activity is dominated by a limited number of manufacturers, factories led comes on and an outstanding good and praying.

Consumption increased Arabia of gold in 2008 by 17 per cent in dollar terms, exceeding the barrier of 16.5 billion riyals, compared to 13.8 billion riyals in 2007, and in turn decreased the total demand in terms of weight in the last year by 4 per cent to 122.4tonnes. Order of the Kingdom also fell in the fourth quarter of 2008 to rank seventh in the world in terms of demand for jewelry, gold, falling with the rise in prices over the past two years to levels less than that.