(MENAFN- Mid-East Info) * The Ministry of Finance announced that the responsibility of reporting VAT when trading precious metals and jewellery will shift from businesses to buyers
* The UAE passed the UK in 2023 to become the second-largest Gold trading hub globally
* gold prices hit all-time highs in 2024 and are set to maintain momentum, potentially trading at around $3,000 by the end of 2025
* Silver could be perceived as a sleeper asset in 2025 as AI spurs global innovation
Dubai, UAE – 15 January 2025: The UAE's Ministry of Finance (MoF) announced a new VAT law for the country's precious metals sector this past weekend. Bas Kooijman, CEO and Asset Manager at DHF Capital, breaks down the ramifications of this development for vendors and consumers. According to the MoF, businesses supplying such goods will no longer need to charge or collect VAT, while the responsibility of calculating and declaring VAT will shift to buyers1.
Bas explained:“The new law enables businesses to streamline operations by reducing the potential for error and clearly outlining roles for all parties. It simultaneously boosts investor confidence as buyers can avoid upfront VAT payments and lengthy wait times for refunds, offering more control and potentially improving their cash flow. This is a significant step in the right direction as the UAE seeks to maintain its world-class position as a global trading hub for precious metals.”
While industry experts have largely predicted global commodity prices to fall in 2025, certain assets are forecasted to see higher prices. Gold is a notable asset in this domain and will likely see an uptick in investment over the coming months after recording several all-time highs in 20242. This momentum could lead to gold trading at around $3,000 per troy ounce before the year's end3.
These projections align with the findings from a recently released DMCC report, which has positioned the UAE favourably. The country surpassed the UK in 20234 to become the second-largest gold hub worldwide; the UAE's stature as one of the most important hubs for gold training holds steady, and this trajectory is all but guaranteed to continue in the years ahead.
“Advising my clients to view compound interest as the 'eighth wonder of the world,' I've always been a proponent of diversifying one's portfolio via multiple assets and gold remains a core component of this strategy. However, amidst the ongoing rise of AI and its various use cases in the industrial sector – such as the production of automobiles, solar panels, and even military applications – silver5 could also be a notable asset to invest in during upcoming months and is worth keeping an eye on,” Bas added.
With precious metal allocation being a key part of Bas' investment strategy, his Alpha and Gamma funds prioritize this approach6 and have provided strong returns to several HNWIs and UHNWIs both locally and abroad. Investors who partnered with Bas five years ago have witnessed a minimum average ROI of 110%, effectively more than doubling their initial investment and seeing sixty-plus consecutive months of positive returns in the past year.
-ENDS-
About Bas Kooijman:
Bas Kooijman is the CEO and Asset Manager of DHF Capital S.A, a securitisation firm for financial services which he co-founded in 2020. Entrepreneurial from a young age, Bas has worked in the technology industry, building a telecom company, and later Brokerteam, a wholesale telecom company. In 2015, he sold the latter and transitioned into finance. Over the past seven years, Bas' expertise as a professional trader has built wealth for countless individuals and companies. In his pursuit of making wealth creation more accessible and affordable for all, he has also become a published author of“Trading and Investing” to accelerate this vision.
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