By-laws for DMCC's diamond exchange ready

The Dubai Metals and Commodities Centre (DMCC) has submitted its application to the World Federation of Diamond Bourses (WFDB) for membership of the Dubai Diamond Exchange.

Tawfique Abdullah, CEO of DMCC, said the centre has already finalised the by-laws for the diamond bourse to be set up as part of DMCC.

The first phase of the exchange is expected to be ready by the first half of next year. The diamond exchange will be located alongside the gold and commodity bourses at DMCC.

Abdullah said since WFDB takes a long time between two meetings, it is difficult to predict when the diamond exchange will gain membership in the federation.

Tawfique also said that an Abu Dhabi-based investor group will set up the fourth gold refinery in the DMCC. Already three refineries have been announced by three different groups — Al Ghurair Giga Gold refinery, ARY Group and Emirates Gold group, which together will be able to refine between 300 and 500 tonnes of gold annually.

All three are being built at an annual capacity of around 100 tonnes per year, each with provisions for expansion.

Currently, a 50-tonne capacity gold refinery, run by the ARY Group, is meeting the country's refining needs. According to officials of DMCC, the entire 300 hectares of land in the first phase of the Dubai Metals and Commodities Centre has already been sold out.

The DMCC, which has concluded its first phase with a couple of refinery projects, has sold off unique jewellery manufacturing units in the complex as part of the second phase. The third phase, to be ready by 2005, will focus on trading in which official exchanges for bullion, commodities and diamonds will be set up.

The DMCC was established last April to offer complete services to those organisations involved in gold trading. It will have physical trading facilities, storage hallmarking and assaying as well as packaging and delivery facilities available on site.