960423

Haj season to boost

gold demand in

Saudi Arabia

DUBAI: Gold demand in Saudi Arabia will be boosted by the annual haj season which is being performed by up two million Moslems this month, gold traders and analysts in Saudi Arabia said on Tuesday. The pilgrimage to the two holiest shrines in the Islamic world at Mecca and Medina draws in approximately one million visitors from about 100 countries close to the major Saudi gold centres of Jeddah and Riyadh. "We see a lot of interest, especially from Egyptians and east African countries, for bangles," a trader in Saudi said. Bullion and jewellery demand could increase gold demand to between 20 and 25 tonnes a month because of the haj season, up from typical monthly sales of around 15 tonnes, an analyst at the World Gold Council (WGC) in the kingdom said. There are 3,000 gold and jewellery retail outlets in the kingdom and Saudi nationals are one of the largest per capita buyers of gold in the world. Low labour costs and limited restrictions on the import and export of gold make the kingdom one of the most attractive centres in the Middle East in buy gold. Gold demand in the kingdom was 193.1 tonnes in 1995, according to the WGC. Most of the bullion imported into Saudi Arabia is from Switzerland while jewellery comes mostly from Hong Kong, Singapore and Italy, traders said. The haj is one of the five pillars of Islam and each Moslem who can afford it should perform it at least.-Reuter