The Arab countries have a wide range of wealth and natural resources. Some Arab countries have vast oil and gas reserves, whereas others invest in gold as a stable currency. For centuries, gold has held a special place in Middle Eastern societies as a symbol of economic power and a safe store of value. As part of efforts to diversify their assets and protect themselves against market fluctuations, several Arab nations have significantly increased their gold reserves in recent decades.
Saudi Arabia’s Gold Reserves:
As the region’s largest economy, Saudi Arabia also holds the region’s largest gold reserves. With over 323 metric tons of gold, the ultra-conservative Kingdom ranks among the top 20 gold-holding nations worldwide. SAMA (Saudi Arabian Monetary Authority), the central bank of the country, holds most of these gold reserves. During the last 10-15 years, Saudi Arabia has steadily built up its gold stockpile through domestic production, which accounted for about 12 tons in 2022, and international purchases. As a portfolio diversifier, gold is a valuable alternative revenue stream to oil exports, Saudi Arabia’s principal source of revenue. Besides protecting against global economic instability, it also protects against long-term depreciation of major reserve currencies. It appears Saudi Arabia will continue to increase its gold reserves in the years ahead in an attempt to insulate its substantial sovereign wealth funds.
United Arab Emirates Gold Reserves:
As of 2022, the United Arab Emirates holds around 60 metric tons of gold. Despite not being one of the largest gold holders in the world, the UAE’s gold reserves are significant for the region. Since 2010, the UAE’s central bank has more than doubled its gold holdings. As a reserve asset for the UAE economy, gold provides protection against potential global currency market instability. UAE is one of the largest reexporters of gold in the world as well as an international trade and financial hub. The city of Dubai has become a global hub for gold trading, refining, jewelry manufacturing, and sales.
Qatar Gold Reserves:
According to the latest available data, Qatar has around 30 metric tons of gold reserves. In spite of Qatar’s small population of under 3 million people, its gold stockpile is substantial compared to some neighbors. As part of a strategy to diversify Qatar’s assets beyond its natural gas and oil exports, the central bank has recently increased its gold holdings. Gold is also likely to be a significant investment and position in Qatar’s sovereign wealth fund. It provides a hedge against potential currency devaluations and market fluctuations.
Kuwait Gold Reserves:
According to the World Gold Council, Kuwait is a member of OPEC and a major oil exporter with gold reserves of around 79 metric tons. Kuwait’s Central Bank has held these gold assets for decades, which contribute to portfolio diversification and asset stabilization during times of economic turmoil or conflict. While Kuwait’s gold reserves have increased modestly over the past few years, they remain dwarfed by those of larger Arab economies like Saudi Arabia. The Kuwaiti sovereign wealth fund and foreign currency reserves are backed by gold, which represents an important component of its investments. Gold rates in Kuwait are also cheap, making Kuwait one of the cheapest countries to buy gold.
Bahrain Gold Reserves:
The World Gold Council reports that Bahrain has accumulated gold reserves of around 4.7 metric tons despite having relatively limited oil wealth compared to its Gulf neighbors. The Bahraini central bank holds these gold holdings, which provide the country with a reserve asset and market hedge. Even though Bahrain’s gold stockpile is modest in size, it has grown over the past decade as it has built a more diversified portfolio of assets beyond its declining oil exports. Bahrain’s sovereign wealth fund also invests in gold.
Oman Gold Reserves:
Data from 2022 indicate that the Sultanate of Oman has relatively limited gold reserves, around 3 metric tons. Historically, Oman has not prioritized gold as a major component of its sovereign wealth fund and reserve assets as one of the smaller oil-producing Gulf states. While other Gulf nations have begun gradually increasing their gold reserves, the country has signaled an intention to gradually increase its gold reserves as a portfolio diversification measure. Going forward, Oman’s central bank is likely to be the country’s main institutional accumulator of gold as it seeks to reduce its dependence on hydrocarbon exports.