The Dubai Metals and Commodities Centre yesterday announced the new Dubai Good Delivery standard for the gold industry, officials said.
"Adopting internationally recognised standards is a step in Dubai Metals and Commodities Centre's [DMCC] continuous work to position Dubai's gold market effectively within the global industry," said Ahmad Bin Sulayem, DMCC chief operating officer.
This announcement is expected to demonstrate the industry's commitment to strengthening Dubai's position as the region's leading gold centre, officials said.
Aimed at improving the tradeability and distribution of small gold bars, the standard fully complements the London Good Delivery standard which internationally governs large 400 ounce bars.
In order to be included in DMCC's Dubai Good Delivery list, refineries will now be required to maintain strict standards of creditworthiness, financial strength, operational competency and superior production procedures, officials said.
Additionally, the small gold bars produced by these refiners will have to meet certain specifications concerning weight, fineness, appearance and marks.
Benchmarking the regional gold trade against international standards is an ambitious move, and is expected to further enhance investor confidence in the region's markets, said Colin Griffith, executive director, gold and precious metals, DMCC.
Griffith spoke during the third City of Gold Conference.
The initiative will also boost the credibility of approved local refineries, indirectly creating extra trade finance activities, Griffith said.
