A $60 million gold refinery is to be built on the outskirts of Dubai, once completed it will be one of the world’s largest refineries.

Demand for gold continues to increase in the fast growing economies in the east, however, key industry activities such as refining and clearing take place in Europe and North America.

The Dubai Gold and Commodities Exchange believes the construction of the refinery and the introduction of a spot gold price in June this year will make Dubai a world class centre for physical gold refining and clearing.

According to the Dubai Multi Commodities Centre, 40% of the world’s physical gold passed though Dubai last year.