EuroGold Opens Dubai Base to Win Over Buyers Wary of Uganda’s Gold Trade

Some foreign gold buyers have paid for shipments that never reached them. That concern is central to EuroGold Refinery’s decision to open its main office in Dubai, according to Red Pepper. Founder and owner Benard Feni says customers wanted a presence there before doing business with African suppliers. The company’s answer is an office in Business Bay and a plan to let buyers collect their gold in Dubai rather than rely on delivery elsewhere.

The opening comes against a difficult backdrop for Uganda’s gold industry. Red Pepper reports that fraudulent deals, missing consignments and forged export documents have left overseas investors with heavy losses. Buyers from Asia, Europe and the Middle East have been caught up in scams involving middlemen. Some cases involved millions of dollars paid for gold that did not exist or went missing during shipment, the outlet reported.

A different route from supplier to buyer

Under the arrangement described by Feni, gold will move directly from EuroGold’s Uganda operation to its Dubai operation. Clients will then be able to take physical delivery in Dubai. That puts the company’s new office at the centre of its response to customers’ concerns about whether purchased gold will actually arrive. Feni said complaints about failed deliveries were among the reasons for establishing the Dubai presence.

Payments are another part of the plan. Feni said some customers prefer to pay in Dubai, after which EuroGold purchases and processes the gold before shipping it there. He presented that sequence as a way to protect the parties involved. Red Pepper also reported interest from international companies in working with EuroGold on payments and procurement—the process of buying supplies—but did not identify those firms or describe any completed agreements.

Feni linked the choice of Dubai to the checks that investors associate with businesses operating there. He said large buyers targeting Africa often favour companies with Dubai offices because of due diligence, meaning checks on a business and its transactions. His comments describe the confidence EuroGold hopes to build, rather than evidence that the new route has eliminated the risks buyers face.

“Our clients wanted us here,” EuroGold founder Benard Feni said.

Trust remains the central challenge

Feni also said the Dubai operation had ministry backing, its documentation was complete and it was operating. The report did not identify the ministry or provide details of the documentation. Those assurances came from Feni as he outlined the company’s effort to offer buyers a more secure way to purchase, transport and store gold amid the fraud concerns surrounding Uganda’s trade.

Dubai is now designated as EuroGold’s main office, according to the report. Feni thanked Sheikh Ahmed Muhammed and Hugo Patricio of Light Moon Group Dubai for helping establish the offices. He also said plans were underway to expand into China and Hong Kong. Those proposed moves, alongside the development of the Uganda-to-Dubai delivery arrangement and potential payment partnerships, are the next steps to watch.