MUMBAI: India’s gold consumption is likely to drop to its lowest in eight years in 2017, hit by government moves to make bullion trading more transparent and by faltering demand from some rural areas, the World Gold Council (WGC) said on Thursday.
Evidence of weaker appetite in a country where gold is used in everything from investment to wedding gifts could drag on global prices that have been hovering near their highest in three weeks. India is the word’s second largest consumer of gold behind China.
Indian demand is likely to be around 650 tons in 2017, compared to a 10-year average of 845 tons, Somasundaram PR, Managing Director of WGC’s India operations, said. Demand was 666.1 tons in 2016.
“In the September quarter, the newly introduced Goods and Services Tax (GST) and anti-money laundering legislation around jewelry retail transactions deterred gold buyers,” he said.
As part of a new nationwide sales tax regime introduced in July, the GST on gold jumped to 3 percent from 1.2 percent previously.
Indian authorities in September tightened anti-money laundering rules for jewelers, although the new regulations have since been temporarily shelved.
The nation’s gold demand in the July-September quarter dropped 24 percent from a year ago to 145.9 tons, the WGC said in a report published on Thursday.
In the October-December quarter, demand will be more “robust than the September quarter” as Indians brace for the wedding season and festivals such as Diwali, when buying bullion is considered auspicious, Somasundaram said.
Two-thirds of India’s gold demand comes from rural areas, where jewelry is a traditional store of wealth.
But monsoon rains did not fall evenly around the country this year, hitting incomes in some farming areas, said the WGC, adding that “this could have a knock-on effect on jewelry demand in these areas over coming quarters.”
Industry officials previously said India’s gold imports in the last quarter of 2017 could drop by a fourth from a year ago as investors seek better returns from riskier assets like equities.
India gold demand to hit lowest in 8 years in 2017, WGC says
India gold demand to hit lowest in 8 years in 2017, WGC says
Sustainability Forum Middle East spotlights Saudi role in driving climate finance deployment
MANAMA: Saudi Arabia’s growing influence over sustainable finance and climate-aligned investment was a central theme at the Sustainability Forum Middle East, as regional banks, investors, and policymakers signaled a shift from climate pledges to market execution.
The fourth edition of the forum, held in Bahrain under the theme “Advancing Alignment, Innovation, and Implementation for Energy and Climate Transformation,” brought together more than 500 participants and over 50 speakers from government, finance, energy, and industry.
While the agenda covered climate diplomacy and national strategies, the dominant conversations this year centered on capital deployment, bankability, technology, and the commercial realities of the energy transition.
Saudi Arabia’s role in shaping that transition was repeatedly highlighted, particularly through its efforts to structure green finance instruments, integrate sustainability into Vision 2030 programs, and scale renewable energy ambitions. Global banks at the forum pointed to the kingdom as a key driver of demand for credible sustainable finance frameworks in the Gulf.
“Saudi Arabia has demonstrated clear leadership through Vision 2030 and its green financing frameworks,” Lina Osman, managing director and head of sustainable finance for the Middle East, Africa and Pakistan at Standard Chartered, told Arab News.
“The Public Investment Fund’s green bond issuance is a clear demonstration of the value of the opportunity that is available in Saudi Arabia and how Saudi Arabia is seizing that opportunity,” she added.
Osman also noted that Saudi Arabia’s target of sourcing 50 percent of its electricity from renewables represents a “true demonstration of leadership in sustainability,” adding that financing instruments will need to evolve to serve those ambitions.
She said the bank has been customizing sustainable finance structures for Gulf Cooperation Council clients as the market becomes more sophisticated and sector-specific.
Organizations at the forum said the region has moved beyond ESG signaling and into discussions about return profiles, risk pricing, and revenue impact.
“Financial institutions are now focused on how sustainability generates value — reducing costs, building resilience, and boosting revenue. Previously, it was mostly window dressing,” said Ian McCallum, chief sustainability officer at Bank ABC.
Speaking to Arab News, he added that Saudi Arabia is playing a “significant role in shaping the direction of sustainable finance by continuing to strengthen ESG regulatory and disclosure requirements.”
Speakers from private markets and venture capital also pointed to Saudi Arabia as an emerging market for climate technologies that are moving from pilot phase to commercialization.
Investors highlighted carbon removal, energy optimization, and AI-enabled climate solutions as areas where the Kingdom’s scaling capacity and demand for industrial decarbonization make deployment feasible.
Beyond finance, the forum examined how the GCC can accelerate industrial decarbonization through AI integration, carbon capture, supply chain reform, and the expansion of renewables.
Panels explored how sovereign strategies and industrial policy are aligning across the region, with Saudi Arabia’s energy transition goals seen as an anchor for cross-border capital flows.
The event saw memorandums of understanding and multi-sector partnerships intended to translate national ambitions into deployable projects.
Organizers said the agreements reflect a shift toward implementation, positioning the Gulf as a market where climate action is increasingly tied to competitiveness, industrial growth, and long-term economic resilience.
