Dubai setting up gold exchange in one week

still looking for confirmation from what i heard from a guy over at monex... but here's this

UAE. Dubai Group, an investment company managing more than US$40 billion on behalf of Dubai's ruler, plans to buy as much as an 18% stake in gold miner Citigold Corporation, its first investment in Australia.

The stake in Citigold will be bought by Dubai Group company Dubai Ventures Group, and "the capital injection is expected to add significant strength to its production capabilities and thereby boost gold production in the future,'' Dubai Group said in an e-mailed statement today.

Dubai Group did not disclose the value of the stake, although the shareholding is worth US$27.2 million at the current market price, according to Bloomberg calculations.

Dubai Group, which includes seven units with interests spanning asset management, conventional and Islamic banking, private equity and insurance, was set up as part of Sheikh Mohammed Bin Rashid Al-Maktoum's plan to diversify Dubai's economy.

Dubai Ventures Group's investments to date include a 10% stake in Hong Kong's Sun Hung Kai Financial and a 5% holding in India's Bharat Hotels.

The planned stake purchase "reflects our long-term view on gold'' and our expectations of improved returns from Citigold's plans to increase production to 250,000 ounces a year by 2011, Abdulhakeem Kamkar, Dubai Ventures' Group CEO said in the statement today. The stake will also enable Dubai Ventures to tap into a "lucrative niche segment'' which the two companies are looking to exploit.

Citigold, also listed on the Dubai International Financial Exchange (DIFX), has an estimated 10 million ounces in ore deposits and produces gold from Australia's goldfield at Charters Towers in North Eastern Australia, the company said in the statement.

thanks for the article

The golden rule for the financial future may well be he who has the gold makes the rules-look at arab gold reserves they've been hoarding for a rainy day for 30 years.

did they say what currency the contracts would be denominated in?

ARABS USE shell companies ALSO. AND have been buying in Australia..opec member state bought out a family owned Minerial company for 11 or 12 Billion 5 months ago.VERY VALUABLE MINEREAL PRODUCED IN AUSTRALIA..MUSLIMS ARE STILL RACING TO MAJORITY CHRISTIAN COUNTRIES....ASK YOUR SELF WHY?..MUSLIMS WILL DEMAND MANY SEPARATIST ENCLAVES AS TIME GOES ON. THESE ARE MUSLIM GOALS FOR THE FUTURE IN ALL HOST NATIONS..ALREADY HAPPENED IN HOST GLOBAL NATIONSALONG WITH SEPARATIST CIVIL COURTS WITH FUTURE GOALS OF FUTURE SEPARATIST CRIMINAL COURTS AND SEPARATE GOVERMENT....

why not they already call it "the golden city"