Dubai: The Dubai Multi Commodities Centre (DMCC), the largest free zone in the UAE and one of the world’s leading commodity hubs, on Monday announced that it registered 1,027 member companies in the first six months of 2014.
This number represents a 30 per cent increase compared to the first half of 2013, bringing the total number of companies operating at the DMCC Free Zone to more than 8,865.
“[The] DMCC continues to attract members at an unprecedented rate and we are proud of the ever increasing contribution to Dubai’s overall economy. By driving foreign direct investment we will ensure Dubai remains the regional and international trade and tourism hub,” said Ahmad Bin Sulayem, Executive Chairman of the DMCC.
DMCC recently announced a major expansion with the building of the ‘Burj 2020 District’ with the world’s tallest commercial tower, ‘Burj 2020’ as its centre piece. In addition, the DMCC is also bringing to market a 14-floor ‘glass box’ style building, ‘One JLT’, which is due for completion in 2015.
While today 70 per cent of the DMCC’s free zone members are SMEs, it is also home to multi-nationals such as American Express, Diamdel (DeBeers), Glencore Xstrata, Harley Davidson, Louis Dreyfus, LVMH, Nutricia Danone and Rio Tinto Alcan.
“At DMCC we are passionate about creating a sustainable and optimal international environment for trade and enterprise. Everything we do has a longer term strategic view in order for DMCC to stay relevant now and in the future,” said Gautam Sashittal, chief executive officer of the DMCC.
Commodities and financial services
The free zone reported strong growth in commodities trading in the first half. The value of gold passing through Dubai in 2013 increased to $75 billion (Dh275.4 billion), from $ 70 billion in 2012, making it the global bullion hub with 40 per cent of the world’s physical gold now passing through the emirate.
In the first five months of the year, trade volumes of rough diamonds increased by 13 per cent to 63 million carats. The Dubai Diamond Exchange (DDE), a DMCC platform, hosted the first tender of Zimbabwe rough diamonds held in Dubai in March. The DDE hosted a further 11 diamond tenders featuring polished and rough diamonds to date (30 June).
TheDMCC Tea Centre reported a record quantity of 20 million kilograms throughput, facilitation and value-addition services in the first half, compared to the same period in 2013 where only 7.5 million kilograms were reported.
New trade finance mechanisms now allow growers from around the world to take advantage of the option of collateralisation of their stocks for working capital.
The Dubai Gold and Commodities Exchange (DGCX), the commodities and financial derivatives exchange traded 5.75 million contracts, valued at $172 billion this year.
Continuing its efforts to support Islamic finance in the commodities space, DMCC Tradeflow, the online exchange for physical commodities in the UAE, handled over 900 Commodity Murabaha transactions with a total value of over $200 million during the first six months of 2014.
