Dubai Multi Commodities Centre’s continuous growth sets the stage for major expansion

  • 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.”

Commodities Update

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.

Dubai Multi Commodities Centre’s Ahmed Bin Sulayem announces plans to build the world’s tallest commercial tower

  • World’s tallest commercial tower part of 107,000 sq/m business park expansion plan
  • DMCC financially sound confirms investment banking firm Berenson

Dubai, UAE; 2 July 2013: The Dubai Multi Commodities Centre (‘DMCC’), the Government Authority dedicated to establishing Dubai as the global gateway for commodity trade, announced today its plans to build the tallest commercial tower in the world as part of its expansion plans designed specifically for large multi-nationals.

Ahmed Bin Sulayem, Executive Chairman of DMCC, said:

“When we announced the plans to build Almas Tower in 2002, the Middle East’s tallest commercial tower and DMCC’s headquarters, the entire office space across 63 floors sold out to DMCC end users, mostly in the diamond business, in just a few hours.

The world’s tallest commercial tower and the DMCC Business Park are the next natural steps to ensure we continue to welcome companies to the free zone as demand grows – particularly large regional corporations and multi-nationals – in the near future. The initiative is designed to further strengthen Dubai’s position as the global hub for commodities trade and enterprise.

Over the past four years DMCC has attracted more than 4,000 new companies to the Free Zone – 90% of which are new to Dubai. In 2013 we have accelerated this growth, with an average of 200 new companies joining DMCC every single month.  This increased demand further demonstrates not only the confidence in DMCC and Dubai, but also underlines the need for new commercial space.

Currently in the concept design phase, the DMCC Business Park and the world’s tallest commercial tower will cater to large corporations and multi-nationals that require significant floor space to buy or rent. The Business Park will comprise of 107,000 square metres of premium commercial and retail space.

Islam Zughayer, Managing Director and Head of Berenson MENA, an investment banking firm with offices in New York, Dubai and Kuwait, said:

DMCC has not had any external debt for several years. Prudent fiscal management and focussed leadership have allowed DMCC to maintain a healthy balance sheet that can support a project of this magnitude. Given DMCC’s track record and substantial experience with commercial towers, we believe DMCC is perfectly positioned to deliver this project successfully.”

Today, almost 7,000 members from start-ups to multi-nationals operate from the DMCC Free Zone.  To confirm its confidence in the Free Zone’s future growth, DMCC made a public commitment in early 2011 that it would reach 7,200 member companies by the end of 2013, a target that is expected to be reached in the very near future.

In addition to its outstanding growth record and projections, DMCC holds a strong historical financial track record. In 2005, DMCC launched a ground breaking gold Sukuk, raising US$ 200 million to help finance the construction of its commercial towers. At the time, the Sukuk was assigned an “A” long-term and “A-1” short-term rating by Standard & Poor’s Rating Services and was oversubscribed. The Sukuk allowed investors to receive payment denominated in gold bullion as an alternative to US dollars. Despite the onset of the global financial crisis, the Sukuk was repaid fully and on time.

With 65 mixed-use commercial and residential towers and over 180 retail outlets in operation, there are currently over 65,000 people working and living within the development. On average, DMCC welcomes over 200 companies per month to its Free Zone, more than 6 companies per day – over 90% of which are new to Dubai.

Visit http://www.dmcc.ae for further information.

Ahmed Bin Sulayem receives Horwath Mak Award for Government Personality of the Year

Dubai, UAE; 13 June 2013: Ahmed Bin Sulayem, Executive Chairman of the Dubai Multi Commodities Centre (‘DMCC’), a Government of Dubai authority, has won the inaugural Howarth Mak ‘Government Personality of the Year’ Award.

Horwath Mak, part of the Crowe Horwarth Group, is a global network of over 150 independent accounting and advisory services firms with 15 offices in Dubai. The Dubai awards ceremony recognises the outstanding work by individuals across the UAE’s public and private sectors.

The ‘Government Personality of the Year’ award was presented to Ahmed Bin Sulayem for his role in the expansion of the global commodities sector; his commitment towards establishing Dubai as the global gateway to trade; DMCC’s contribution to Dubai’s economy through the over 6,700 companies operating from its free zone; his efforts in developing Dubai’s Islamic Finance sector through pioneering products and services; and his social and philanthropic work focused on society, culture and heritage.

Ahmed Bin Sulayem, Executive Chairman of DMCC, said:

“It’s an honour to be recognised for DMCC’s success and accomplishments over the past decade. It is a tribute to the commitment and efforts we have made to establish Dubai as the global gateway for trade. Of course, none of these achievements would have been possible without the vision and foresight of our leader, HH Sheikh Mohammed Bin Rashid Al Maktoum, UAE Vice President, Prime Minister and Ruler of Dubai, who realised that Dubai had the right ingredients and strength to transform into a world-class trading hub at an unrivalled pace.

The commodity sector has huge potential for innovation and we will continue to drive new initiatives to ensure that DMCC and Dubai remains one of the world’s most significant commodity centres.”

To date, there are over 6,700 companies operating from DMCC, 90% of which are new to Dubai. Furthermore, Dubai saw a record-breaking US$ 70 billion in gold traded during 2012 and together, as a result of DMCC’s efforts, gold and diamonds make up the top two imported and exported non-oil commodities in Dubai. In addition, Dubai is one of the world’s top three diamond trading centres.

Dubai Multi Commodities Centre and Euler Hermes sign Memorandum of Understanding

DUBAI – 2 June 2013The Dubai Multi Commodities Centre (‘DMCC’), a Government of Dubai Authority and Euler Hermes, the world’s leading provider of trade-related insurance solutions, have signed a memorandum of understanding (‘MoU’) to enhance mutual cooperation.

The signing ceremony was attended by Ahmed Bin Sulayem, Executive Chairman, DMCC, and a Euler Hermes delegation led by Massimo Falcioni, CEO, Euler Hermes GCC.

Ahmed Bin Sulayem, Executive Chairman, DMCC, said: “With over 6,600 companies currently operating from the JLT Free Zone, it is essential that we offer our members the most appropriate products and services they require in order to succeed. Today’s MoU between DMCC and Euler Hermes marks our commitment to the ever-growing international business community in Jumeirah Lakes Tower (JLT) whilst highlighting Dubai’s strength as a global hub for trade and enterprise”.

The MoU follows a meeting between Ahmed Bin Sulayem, Executive Chairman, DMCC and Wilfried Verstraete, Chairman of the Euler Hermes Group Management Board, during Mr Verstraete’s recent visit to Dubai. Euler Hermes representatives were also given a tour DMCC’s headquarters, Almas Tower, the tallest commercial tower in the Middle East, based in JLT.

Wilfried Verstraete said: “Euler Hermes has over 100 years of experience in corporate client support and we look forward to sharing our expertise with DMCC’s diverse member base. We are certain that the MoU will be mutually beneficial, as it will enhance the range of services offered at the JLT Service Centre, and enable Euler Hermes to grow its presence in this dynamic region”.

Businesses worldwide are seeking markets in which they can expand, access new customers, and conduct their day-to-day operations in a secure, transparent and modern environment. DMCC provides this infrastructure and over 200 new companies choose to establish operations in JLT every month – more than six companies per day – over 90% of which are new to Dubai.

“Under the terms of the MoU, Euler Hermes will be able to offer all existing and potential DMCC members credit insurance products and services through the JLT Service Centre in Almas Tower, JLT, to safely develop their domestic and export trade,” said Massimo Falcioni.

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