Dr. Alhammadi Law Firm outlined the legal framework for Safe Keeping Receipts in gold deals on Jan. 15, 2025, highlighting both their utility as collateral instruments and associated risks of forgery and regulatory hurdles. The Dubai-based practice, which also offers ancillary escrow services, urged parties to seek professional verification and contract review to protect against potential losses. This comes as the UAE gold market expanded, with the Dubai Gold and Commodities Exchange recording a 30 percent increase in traded volumes for 2025 to $46.96 billion.
According to an article published on the firm’s goldescrow.ae website, a Safe Keeping Receipt is a document issued by a bank or secure storage facility confirming that gold or other assets are held in safekeeping. The receipt allows ownership to be represented and used as collateral without physical transfer of the bullion. Dr. Alhammadi Law Firm noted that SKRs help establish trust between buyers and sellers in high-value transactions while simplifying financing arrangements.
The firm reported that SKRs deliver several practical advantages in the gold sector. They provide a credible verification of asset existence and support collateralized lending arrangements. Such features have made the instruments common in deals where physical movement of gold would add unnecessary logistical costs and security exposures.
Legal challenges frequently arise with SKR usage, the article stated. Authenticity and fraud risks can lead to significant financial losses when forged documents enter circulation. Ownership disputes often result in extended litigation, regulatory compliance demands vary across UAE and international rules, and poorly drafted contracts create ambiguities that complicate enforcement.
Dr. Mohamed Alhammadi Advocates & Legal Consultants Office, operating as Dr. Alhammadi Law Firm in Dubai and Abu Dhabi, offers multiple services to address these concerns. The firm assists with drafting and reviewing agreements to minimize dispute potential. It conducts legal verification of SKRs, supplies regulatory guidance for local and cross-border deals, and facilitates escrow accounts in AED, USD, EUR and other currencies as an ancillary function to its legal practice.
The firm emphasized that specialized legal support is essential to avoid fraud, disputes and regulatory penalties in SKR-based gold transactions. Its tailored approach has built a reputation for precision in handling the financial and compliance elements of such deals. The article positioned the practice as a key partner for businesses and individuals navigating these instruments.
Dubai Gold and Commodities Exchange data for 2025 places total contract value at $46.96 billion after a 30 percent volume increase, with gold futures rising more than 600 percent year on year. The exchange’s performance reinforces the UAE’s status as a major global bullion trading hub where secure documentation like SKRs plays a growing role. Industry analyses from custodial specialists recommend limiting SKR issuance to licensed providers to reduce exposure to unregulated arrangements.
