Dubai Multi Commodities Centre

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Dubai Multi Commodities Centre
DMCC logo.jpg
Founded 2002
Headquarters Dubai, UAE
Key People David Rutledge, CEO; Ahmed Bin Sulayem, executive chairman; Ian MacDonald, executive director gold and precious metals; Jean van der Donckt, special advisor diamond banking; Tilak Doshi, special advisor energy
Website http://www.dmcc.ae/

The Dubai Multi Commodities Centre (DMCC) was formed in 2002 to establish the infrastructure for expanding commodities trading in Dubai, part of the emirate's efforts to create a global financial services hub. It is owned by the Dubai government.

Its projects include the development of the Dubai Gold & Commodities Exchange, which launched in November 2005 and lists contracts on precious metals, steel, fuel oil and currencies.

The DMCC has also spearhead the expansion of diamond and tea trading in Dubai - it operates the Dubai Diamond Exchange and the Dubai Tea Trading Centre, and has announced plans to target the carbon trading and plastics trading, as well as explore opportunities for pulse trading[1].

In March 2013 DMCC announced the launch of a sharia-compliant commodity trading platform which Islamic banks in the Gulf can use to manage their short-term fund flows. The Tradeflow platform developed by the DMCC allows trading of warehouse receipts, which represent ownership of commodities stored at warehouses.[2] Because the warehouse receipts are based on actual trading of physical assets, the platform would allow the banks to comply with Islamic finance. The DMCC has operated a conventional trading platform for commodity receipts for years; the Islamic platform now being launched tracks the ownership of commodities in a way that gives assurance that a "true sale" of commodities is occurring. That assurance is necessary for Islamic banks to enter into murabaha contracts with each other to place their surplus funds.

History

The DMCC announced plans in June 2007 to develop a carbon trading scheme with EcoSecurities [3]

It also created the Dubai Pearl Exchange.

References

  1. Press Release. DMCC.
  2. DMCC launching Islamic commodity trading platform. Arabianbusiness.com.
  3. Press Release. DMCC.