Gold Demand in Saudi Arabia Sees 5% Increase in Q1 2024

According to the World Gold Council, the demand for gold bars and coins in Saudi Arabia has increased by approximately 5% year-over-year in the first quarter of 2024, reaching 3.8 tonnes. This represents a rise from the 3.6 tonnes recorded in the previous quarter.

In Saudi Arabia, the demand for gold bars and precious metals surged 16% last year, reaching 14.1 tonnes. However, in the Middle East as a whole, the demand for gold bars and coins decreased by 15% year-over-year, reaching 25.6 tonnes in the first quarter of 2024, compared to a high level in the same quarter of 2023.

Regional Examples

Egypt

The improvement in Egypt's economic situation has reduced the need for investors to seek refuge in gold. With an International Monetary Fund financing program and exchange rate liberalization, local gold prices decreased in the first quarter, leading to a 36% drop in demand for gold bars and coins, reaching only five tonnes.

Turkey

The demand for investment in gold bars and coins remained high in Turkey, reaching 44 tonnes in the first quarter of the year, a 50% increase from the previous quarter despite a significant rise in local prices. However, on a year-over-year basis, demand decreased by 12% compared to the record level recorded in the same quarter last year.