- DMCC business park expansion project to feature the world’s tallest commercial tower
- 1,270 new companies in the first half of 2013, bringing total to 6,890
Dubai, UAE; 9 July 2013: The Dubai Multi Commodities Centre Authority (‘DMCC’), the Government Authority dedicated to establishing Dubai as the global gateway for commodity trade, today announced that it registered 1,270 new member companies in the first 6 months of 2013. A record-breaking 260 companies joined DMCC’s Free Zone in April alone, bringing the total number of companies operating at DMCC to over 6,890, a 30% increase compared to the same period in 2012.
DMCC’s Free Zone, the fastest growing and soon to be the largest in the UAE, is firmly set to meet its commitment made in early 2011 to be home to over 7,200 companies by the end of 2013.
In just 11 years, DMCC’s members and thriving trading community has contributed between US$ 9-12 billion towards Dubai’s GDP and continues to demonstrate its strength with major organisations joining the Free Zone in H1 2013 such as General Mills, United Arab Bank, Medcare Hospital and the Moscow University for Industry and Finance, Landmark International Hotels and Noor Islamic Bank.
This continued growth, the increased demand for commercial space combined with DMCC’s significant GDP contribution, are some of many reasons why its Executive Chairman, Ahmed Bin Sulayem, recently announced that DMCC is to build the world’s tallest commercial tower as part of its expansion plans of a 107,000 square metre business park. Currently in concept design phase, the DMCC business park and world’s tallest commercial tower will offer premium commercial and retail space for lease and sale, to accommodate demand from large corporations and multi-nationals.
Commenting at a media briefing hosted at Almas Tower (DMCC’s headquarter and the Middle East’s tallest commercial tower) this morning, Ahmed Bin Sulayem, Executive Chairman, DMCC, said:
“The first 6 months of 2013 further demonstrate DMCC’s strength and commitment to establishing Dubai as the global hub for commodities trade and enterprise. With an average of 200 new companies joining DMCC every single month, 95% of which are new to Dubai, DMCC will be largest Free Zone in the UAE before the year end.
Our new expansion plans, including the DMCC business park and the world’s tallest commercial tower, are the next natural steps to ensure we continue to welcome companies to the free zone as demand grows – particularly from large regional corporations and multi-nationals – as we remain focussed on making a material contribution to Dubai’s economy.”
Commodity trading in Dubai has continued to cement the Emirate’s position as the global trading hub. In the first half of the year, trade volumes of rough diamonds increased by 10% to 66 million carats, and the value increased by 5% to US$ 6.2 billion compared to the same period last year. A total of 32.4 million carats were imported in the first half of the year at a value of US$ 2.5 billion, a 9% and 7% increase over the same period in 2012. In addition, total exports in carats grew by 12% to 34 million carats and by 3% to US$ 3.7 billion, compared to the same period in 2012.
In March 2013, DMCC and the Dubai Diamond Exchange (‘DDE’) hosted the inaugural Dubai Diamond Conference, themed ‘Dubai – The New Silk Route’, attended by over 500 guests representing key industry participants from diamond centres and diamond producers around the world including Africa, Antwerp, London, New York and India. During the event, Ahmed Bin Sulayem challenged longstanding traditions by declaring Peter Meeus, Chairman of the Board of Directors of the DDE, as the first nominee for President of the World Diamond Council (‘WDC’) from a non-Western member country.
The value of gold passing through Dubai in 2012 increased to US$ 70 billion from US$ 56 billion in 2011, making it the global bullion hub with over 25% of the world’s physical gold passing through the Emirate.
DMCC have been at the forefront of issuing and implementing guidelines in conjunction with the OECD and other international bodies to promote responsible supply chain management for gold and other precious metals. Initiatives have included a 5-step DMCC Practical Guidance, the development of a Review protocol as well as the appointment of a panel of international auditors to review compliance.
DMCC’s Dubai Tea Trading Centre (‘DTTC’) provided warehouse facilities for of 5.76 million kg of tea during the first half of 2013 – an increase of 80% over H1 2012. As a result of DTTC’s efforts, the UAE is now the largest re-exporter of tea in the world, with a 60% market share.
In the first six months of 2013, DMCC continued to support a broad spectrum of commodity industries through major local and international events, sponsorships, partnerships and speaking opportunities such as hosting the second Dubai Precious Metals conference in April; opening the 3rd Annual Middle East Islamic Finance and Investment Conference in April; opening the inaugural Pepper Conclave Conference in June; acting as headline sponsor for the 2013 CICILS conference in Singapore; hosting the annual DMCC London Dinner with several UK parliamentarians; sponsoring sessions at the British IOD (Institute of Directors); speaking at The Assocham 6th International India Gold Summit in New Dehli and establishing the Dubai Food Trade Group. The Dubai Diamond Exchange (‘DDE’) hosted a record 10 diamond auctions to date, featuring rough diamonds from West Africa, Tanzania, Congo, Zimbabwe and Russia.The Dubai Pearl Exchange (‘DPE’) partnered with RAK pearls to host the first commercial tender of UAE pearls, and hosted private pearl exhibitions with Paspaley and Atlas South Sea Pearls.
The Dubai Gold and Commodity Exchange (‘DGCX’) continued to see exponential growth with H1 2013 volumes of 7.7 million contracts, an increase of 101% over the previous year and an underlying value of US$ 269 billion. Average daily volume (ADV) in the first half of the year stood at 61,731 contracts, a 107% increase year-on-year. The exchange was also named ‘Best Global Commodities Exchange’ in 2013 by the Global Banking & Finance Review in June 2013.
Earlier this year DMCC Tradeflow, the online exchange for physical commodities in the UAE, enhanced its offering by launching Commodity Murabaha. Continuing its efforts to support Islamic finance in the commodities space, DMCC Tradeflow, completed its inaugural Commodity Murabaha transaction in April between Noor Islamic Bank and Commercial Bank of Dubai using assets from Ducab and ENOC. DMCC Tradeflow is committed to supporting the vision of HH Sheikh Mohammed Bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai to create Dubai as the world’s capital for Islamic economy.
Free Zone Infrastructure Update
DMCC continues to expand its mixed-use Free Zone and freehold community. The RTA recently confirmed that it has completed 75% of the final phase of the JLT road network and announced conclusion of the remaining works by the end of the year.
With 65 mixed-use commercial and residential towers and over 200 retail outlets in operation, there are currently over 65,000 people working and living within Jumeirah Lakes Towers. The transformation of one of its lakes into a 55,000 square metre community park is also due to be completed by the end of this year.