For years, the UAE has been thumbing its nose at the West, rejecting their demands and defying their orders. The man behind it all, the enigmatic MBZ, has become a symbol of anti-western rhetoric, shattering the expectations of Western powers at every turn. And now, in a move that could only be described as a slap in the face, the UAE has set its sights on gold.
But not just any gold – Russia’s gold. The UAE, known for its cunning and strategic prowess, has carefully orchestrated a plan to take up Russian gold while the world watches in disbelief.
UAE’s record gold purchase
As per the UAE’s official statistics, between February 24, 2022, and March 3, 2023, the UAE imported a mind-boggling 75.7 tonnes of Russian gold worth an astronomical $4.3 billion.
This audacious gold-buying spree serves as a bold declaration of the UAE’s intentions. They yearn to break free from the shackles of the US dollar, to chart their course, and what better way to do it than with the luster of gold?
The UAE dirham (AED), the country’s currency, is linked to the US dollar. As a result, the dirham maintains a fixed exchange rate with the dollar and is linked to the value of the U.S. dollar. However, given the course of events, President Biden, who is used to Arabic humiliation, must undoubtedly be feeling the strain of this golden nightmare.
The pro-Russia turn
The UAE, once an ally, has transformed into a formidable adversary, openly defying Western orders, cozying up to Russia, and now snatching their precious gold right from under their noses.
Bilateral trade between Russia and the UAE saw significant growth in 2022, reaching a record $9 billion. Russian exports, particularly agricultural products, and precious metals played a significant role in this increase. Additionally, the UAE imported discounted oil and oil products from Russia, contributing to the overall export volume.
Parallel imports from the UAE to Russia have also grown substantially, with electronic items and spare parts, microchips, and civilian drones being the leading categories. However, more than that, the UAE is also joining Russia’s call for ending the dollar’s hegemony.
The foreign exchange and remittance companies in the UAE are already busy making plans for how to outfit themselves with new technology and business alliances independent of the dollar.
Moreover, the UAE and India are reportedly in discussions to use rupees to trade non-oil commodities. These developments are seen as efforts to move away from the dollar.
Make no mistake, the UAE’s audacious gold heist is the catalyst for a wider de-dollarization movement.
The stage is set for a dramatic showdown, where the UAE plays the Middle Eastern protagonist, defying conventions and challenging the status quo. They are ready to walk the tightrope of uncertainty and bring the world along for the thrilling trip because they have their sights set on a future free from the supremacy of the US dollar.
The Middle East is anyway kicking the US out of its sands. And now, these developments have taken shape. Biden must be shaking in his boots as the UAE’s gold shopping spree could mean a golden nightmare for the American dollar.