Fire in Dubai, the vault inside the Al Almas Tower and gold certificates

Almas BuildingWhen I was in Qatar last year, I had the chance to fly over to Dubai to have a look around before returning to Japan but decided not to go at the last minute. The number of buildings under construction in Qatar as well as in Dubai were mind boggling. The building that went up in flames in Dubai on December 31, 2015 was the Almas Tower, which not only is where the Address Hotel is, but other important companies related to gold as we shall see. In the previous post, I had followed the story that gold was actually stolen out of Dubai in some type of elaborate scheme. I no longer think that is the case. I suspect the paper certificates were stolen, better yet, destroyed in that fire. There was no gold to steal in the first place.

News related to contraband gold reveals that gold is being secret flown out of different countries for unknown destinations. It goes on all the time, like in 2011 when four people were arrested including one American for illegally transporting gold out of the Congo. Allegations are that gold has been transshipped out of Dubai related to the company Gold A.E. DMCC which is a subsidiary according to news reports of Gold Holdings Ltd. And Gold Holdings Ltd in turn is owned by SBK Business Holdings. This is the main reason for “holding companies”: to mask the real owners. The son and advisor to the ruler of Abu Dhabi, Sheik Sultan bin khalifah Al Nahyan, apparently owns SBK Business Holdings.

Gold.A.E. had a “new” management team installed and they admitted that “after many months of ‘inquiries’, they had discovered that not only had the ‘old’ management, led by the now former CEO of Gold A.E., Mohammad Abu Alhaj disappeared”, but that “all the money – and gold – held at Gold.A.E., which once again was primarily a ‘trading’ front for the “Turkish-Dubai-Iran gold smuggling triangle, had been stolen.” So, I’m digging out links to this Mohammand Abu Alhaj and discovered some type of lawsuit in a Small Claims Tribunal filed in Dubai in June, 2015. Wondering what this is about because it is against the ruler of Dubai, Sheik Sultan Khalifa Sultan Al Nehayan. Are they trying to distance themselves from each other by filing this claim? I think Zero Hedge is a CIA fake website with their own agenda and they ran the story that physical gold was stolen. I don’t think physical gold was stolen now that I have had a couple of days to look at a lot of material and then going over the news again very carefully.

The Almas Building in the Jumeirah Lakes Towers complex is a “landmark building in Dubai built to cater to the specific needs of the precious gems industry.” This 63-storey tower is the focal point of Jumeirah Lakes Towers (JLT), the Dubai Multi Commodities Centre (DMCC) free zone. The tower “houses the corporate offices of DMCC, Dubai’s diamond and pearl exchanges, a shopping mall, fitness centre and conference facilities.” DMCC (The Dubai Multi Commodities Centre) is a free zone authority for the JLT Free Zone under DMCC. It was established in 2002 as a “strategic initiative of the government of Dubai with a mandate to provide the physical, market and financial infrastructure required to set up a commodity market place in Dubai”. As of June 2013, it had over 6,800 registered members including both commodities and other businesses. What should be noted is that in all the news reports about the fire, there was no mention of the name of this building other than the Address Hotel omitting what else was located in this enormous building.

Gold

Until about 10 years ago, the Gold Souk was the primary justification for Dubai’s nickname ‘City of Gold’. Today, it earns the title because approximately 1,200 tonnes of gold trades through Dubai, one-quarter of the global gold demand. This global journey for Dubai began when DMCC was established to enhance commodity trade flows through the Emirate. Examples of innovation since then include the Dubai Gold and Commodities Exchange (DGCX), DMCC Tradeflow, a trade finance product; regional gold options trading; a Shariah-compliant hedge fund product; and the Dubai Good Delivery Standard, the only international standard for 1kg gold bars of .995 purity. DMCC serves the entire gold value chain, from trading to refining to investing.

Ahmed Bin Sulayem, is the Executive Chairman of Dubai Multi Commodities Centre (DMCC), of the diamond and gold trade who has been at DMCC since 2001 and is behind making DMCC a major gold trading hub in the region. Think Ahmed Bin Sulayem would possible know a thing or two about physical gold being moved in and out of Dubai? Or better yet since I don’t think physical gold was stolen. Does Ahmed Bin Sulayem know why the 63-story high building in JLT was torched?

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