Dubai Multi Commodities Centre

The Dubai Multi Commodities Centre is a free zone authority for the JLT 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 commodity market place in Dubai. As of June 2013, it had over 6,800 registered members including both commodities and other businesses.

Quick facts: Type , Industry, ...
DMCC comprises modern infrastructure, free-hold property and 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.

Jumeirah Lakes Towers Free Zone
JLT Free Zone 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 is 1 hours and 15 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; JLT Free Zone 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 March 2013, 65 towers were fully operational. The development currently encompass approximately 180,000 sq/m of commercial, residential and retail space. There are currently over 65,000 people living and working in JLT Free Zone.[2]

JLT Free Zone Services
JLT Free Zone is one of the fastest growing free zones in the UAE.[3] It is seeing strong demand from companies and registered a record 2,033 companies in 2012; a rise of 50% over 2011.[4] In the first half of 2013, DMCC registered 1,270 new member companies, 30% more than the same period the previous year.[5] 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.

Commodity Services

Aerial View of JLT Free Zone
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 DMCC Tradeflow and the Dubai Good Delivery Standard for Gold.

The four 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, the Visions of Dubai commemorative gold coin, the UAE gold bullion coins and Dubai Gold Advisory Group.[6][7]

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. 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] In November 2011, the DDE reported a record total trading of 206.1 million carats in first half 2011 in Dubai, a 35% increase on the 131 million carats traded in H1 2010; with values increasing to $25.3 billion from $16.3 billion.[8]

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.[9]

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.[10]

Financial Services
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.

DMCC Tradeflow: An electronic system that brings together all parties involved in inventory based financing. Through the platform, owners of goods stored in rated warehouses in the UAE can request warehouse keepers to issue “Tradeflow Warrants” which represent the ownership of their goods. These warrants can be used by the owners to pledge beneficial ownership or transfer title of the stored goods to financiers as collateral in return for working capital.[11]

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.

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.

JLT Property Services
Almas Tower, the headquarters of DMCC Free Zone, 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, Jumeirah Lakes Towers Free Zone and Dubai Pearl Exchange in addition to gold and diamond vaults and the Almas Conference Centre.

In July 2013, Ahmed Bin Sulayem, the Executive Chairman of DMCC, announced plans to construct the tallest commercial tower in the world as part of its expansion plans. Currently in the concept design phase, the DMCC Business Park and the world's tallest commercial tower will cater to large corporations and multinationals that require significant floor space to buy or rent. The business park will comprise 107,000 square metres of premium commercial and retail space.

In November 2010, DMCC launched a Commercial Sales and Leasing Consultancy as well as a website (property.dmcc.ae) dedicated to assisting customers find freehold or leasehold commercial and retail space within JLT Free Zone. The new online portal, which is the UAE's first Free Zone online commercial property portal, provides existing and potential member companies a fast and convenient way to find the most suitable space for their businesses. The DMCC Commercial Property Sales and Leasing division is also available to provide further help by offering property consultancy services to both sub-developers and to individual clients and investors, offering them advice on the wide choice of available property to lease or buy in JLT Free Zone.[12][13]