| Type | Free Economic Authority (Government-owned) |
|---|---|
| Industry | Commodities Trade and Real Estate Property |
| Founded | 2002 |
| Headquarters | Almas Tower, Dubai, United Arab Emirates |
| Key people | Ahmed Sultan Bin Sulayem, Executive Chairman |
| Employees | 200+ |
| Parent | Dubai Ports World |
| Website | www.dmcc.ae |
The Dubai Multi Commodities Centre is the free zone authority for the Jumeirah Lake Towers free zone. It was established in 2002 as a strategic initiative of the Government of Dubai with a mandate to provide the physical, market and financial infrastructure required to set up a commodities market place in Dubai. As of 1 July 2011 it had over 3,300 registered members including both commodities and other businesses.
DMCC comprises of modern infrastructure, free-hold property, trade networking platforms as well as industry including secure vaults and purpose-built storage facilities. The Centre attracts key players throughout the entire value chain of a wide range of commodities sectors, together with relevant support industries such as finance, logistics and insurance. Ahmed Bin Sulayem, is the Executive Chairman of DMCC.
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DMCC is a Government of Dubai free zone Authority dedicated to enhancing commodity trade flows through Dubai. DMCC offers a unique value proposition that incorporates a fit-for-purpose regulatory environment, state of the art infrastructure and innovative products and services.
Jumeirah Lakes Towers is one of the largest free zone developments in Dubai. The 200-hectare mixed-use free zone, comprises both freehold and leasing options. The development is grouped into clusters each comprising three tower blocks around four large lakes which are filled with sea water pumped from the Gulf.
The JLT free zone is situated in the heart of new Dubai and only 45 minutes away from Abu Dhabi. Located in Dubai’s logistics Corridor and on the main arterial Sheikh Zayed Road, it is also served by two Metro stations; Jumeirah Lakes Towers and Dubai Marina. Both Dubai International Airport and the New Maktoum International Airport can be reached within 30 minutes.[1]
The JLT free zone fulfills DMCC’s mandate to increase the flow of trade and around the Emirate by providing the physical infrastructure for businesses covering a wide range of commercial activities. It has been designed as a free zone, freehold community and offers all related services to its growing population.
As of the 1 July 2011, 60 towers were fully operational and a further six towers were in the final stages of completion. The development currently encompass approximately 180,000 sq/m of commercial, residential and retail space and will eventually house some 140,000 residents.
JLT is the fastest growing free zone in the UAE.[2] It is seeing strong demand from companies and in the first six months of 2011 registered over 100 companies per month; a rise of 65% over the same period in 2010.[3] DMCC has made significant changes to the process for registration and licensing including a simplified e-application process, availability of longer-term licenses and improved client relationship management.
DMCC is the only international commodity centre in the region. It supports commodity trading across certain commodity groups through purpose-built infrastructure including the Diamond and Pearl Exchanges, innovative products and value-added services such as GMR and the Dubai Good Delivery Standard for Gold.
The five main commodity groups are:
Gold: historically, Dubai has played a significant role in the global gold market and is now a bullion centre of international significance. DMCC has integrated the refining, manufacturing and trading of gold and precious metals through a variety of products and services in Dubai. These include the Dubai Good Delivery, DMCC Vault, visions of Dubai commemorative gold coin, and Dubai Gold Advisory Group.
Diamonds: the Dubai Diamond Exchange(DDE) was established in 2004 to facilitate the development of the diamond and colored gems market, to establish logistical efficiencies and provide a secure trading environment.[4] DDE allows manufacturers, traders, and other key entities in the diamond value chain to effectively operate from a transparent, secure and sophisticated platform. During 2010, the volume of diamonds traded reached a record 286.7 million carats, up 50 per cent on 2009.[5]
Pearls: the Dubai Pearl Exchange (DPE) provides facilities for traders in pearls; and services include sales rooms, customs duty facilitation, gem analysis centre, vaults, market information and dedicated events like the World Pearl Forum. Early 2011, DPE held the first pearl auctions outside of the Far East.[6]
Tea: the Dubai Tea Trading Centre (DTTC) is a 24,000 sq/m facility located close to the Dubai Ports (JAFZA). It offers a business centre, temperature controlled storage, blending solutions, packaging, professional advisory and tea tasting services for international tea producers and buyers.[7]
Cotton: Dubai Cotton Centre (DCC) is the cotton re-export facilitation arm of DMCC. Launched in 2008, DCC’s primary purpose is to consolidate the Emirate’s position as a key link in the global cotton supply chain between Central Asia, particularly Uzbekistan,[8] and the cotton consuming economies in the wider Asian market.
DMCC offers investors sophisticated financial products and has formed various strategic joint ventures to achieve this. These include:
Dubai Commodity Asset Management (DCAM): Established to develop and seed commodity-linked investment products for distribution in the UAE and other markets.
Dubai Shariah Asset Management (DSAM): A joint venture between DCAM and Shariah Capital Inc. (‘Shariah Capital’), a US-based Shariah-compliant financial adviser and consultant. The DSAM Kauthar Commodity Fund comprises four single strategy commodity–based funds that invest exclusively in Shariah-compliant long/short equity hedge funds. The four strategies are: The DSAM Kauthar Gold Fund; the DSAM Kauthar Energy Fund; the DSAM Kauthar Natural Resources Fund and; the DSAM Kauthar Global Resources & Mining Fund.[9]
In addition, DMCC offers trade finance solutions through its Global Multi Commodity Receipt (GMR). GMR is a standardised ‘secure’ trade and commodity financing tool (benefits financiers) and gives access to liquidity from Banks by pledge of inventory (benefits traders). The system allows online trade finance facilitation.
DMCC also offers the Dubai Gold Securities product. This provides investors with secure, low-cost access to owning gold bullion without the additional costs normally associated with insuring, storing and transacting in physical gold. It is listed on Nasdaq Dubai.
The Dubai Gold & Commodities Exchange (DGCX), a DMCC joint venture initiative set up in November 2005, is a major commodity and currency derivatives exchange in the Middle East, with electronic trading accessible from anywhere in the world. It has adopted the DGR system for effecting the physical settlements of gold and silver against a futures contract position.
Almas Tower, the headquarters of DMCC, was completed in mid-2008 and is the tallest commercial tower in the Middle East with 63 floors. Almas Tower was purpose-built to support commodities trade. It houses DMCC’s corporate offices, the Dubai Diamond Exchange and Dubai Pearl Exchange in addition to gold and diamond vaults]and the Almas Conference Centre.