BUSINESS BLOG

24_DMCC_to_Expand_its_Coffee_and_Tea DMCC to Expand its Coffee and Tea Centres with Target to Triple Output and Boost Dubai Trade

In: DMCC FREEZONE
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  • DMCC commodity centres to be significantly expanded in line with increasing market demand and Dubai’s strategic diversification

  • Capacity increase to boost international trade through Dubai and support the nation’s growing speciality coffee scene

  • Announcement made during Dubai FDI tour of DMCC’s state-of-the-art facilities to boost collaboration on trade

  • DMCC reveals ambition to transform Dubai into a global trade hub for cacao, chillies, spices, peppers, black pepper, cardamom and other agro commodities

  • Announcement highlights DMCC’s growth plan, investment strategy and contribution to Dubai’s non-oil economy

  • Images of the day available here

DMCC – the world’s flagship Free Zone and Government of Dubai Authority on commodities trade and enterprise – announced plans today to expand its state-of-the-art DMCC Tea Centre and DMCC Coffee Centre and its intention to triple output, increase services and boost capacity. The announcement follows increasing demand from commodity traders to use DMCC facilities to connect with regional and international markets to gain competitive advantage.

DMCC plans to replicate the successful business model behind its tea and coffee operation by building a new infrastructure and logistics centre in JAFZA to attract, facilitate and promote the trade of cacao, pepper, chillies and spices, with the flexibly to expand to other agro commodities including cardamom, nutmeg, cinnamon, cumin, cloves, ginger, sesame seeds and cashew nuts.

Last month, His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of UAE, and Ruler of Dubai, visited the DMCC Tea Centre and DMCC Coffee Centre.

The expansion announcement was made today during a tour of both facilities by a senior Dubai FDI delegation, headed by His Excellency Fahad Al Gergawi, Chief Executive Officer, Dubai FDI, and Mr Khalid Al Boom, Deputy Chief Executive Officer, Dubai FDI. Also in attendance was Ahmad Al Haddad, Chief Operating Officer, Parks & Zones - DP World, UAE Region. 

Ahmed Bin Sulayem, Executive Chairman and Chief Executive Officer, DMCC, said: “Under the guidance of His Highness Sheikh Mohammed Bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, DMCC is fast becoming the global hub for the tea and coffee industry. Our ambitious plans to triple our capacity in the near future are strategically anchored in Dubai’s drive and ability to facilitate world trade. Situated at the crossroads of the world, Dubai is perfectly placed to grow its market share for commodity trading, and the import and export of coffee, tea and a whole range of other commodities. To support this ambition, DMCC has developed a solid eco-system of infrastructure and best-in-class services that together, will encourage more businesses to base their operations at DMCC.”

“Together with Dubai FDI, our efforts are focused on promoting the commercial appeal of Dubai to leading global businesses and SMEs from around the world. By driving commodity trade through Dubai, DMCC is also positively impacting vital sectors of the city’s economy including logistics, cargo volumes and aviation. As a result, we are supporting the government’s economic diversification plans while simultaneously contributing 10% to Dubai’s GDP,” he added.

His Excellency Fahad Al Gergawi, Chief Executive Office, Dubai FDI, commented: “The DMCC Tea and Coffee Centres are truly unique facilities that are testament to Dubai’s unparalleled trade infrastructure and their alignment with the city’s vision. It is such projects that maintain the Emirate’s position as a destination of choice for businesses and foreign direct investment, in turn contributing to the progression and acceleration of Dubai’s diversification agenda. We look forward to working even more closely with DMCC over the coming period to showcase the trade, growth and partnership opportunities Dubai brings to those seeking success.”

The DMCC Tea Centre was opened in 2005 to boost global tea trade through the emirate, and has facilitated the trade of over 320 million kilos since inception. Building on the success of the operation, the DMCC Coffee Centre launched in 2019 – the first-of-its-kind facility in the Middle East – with the view to transform Dubai into a new global hub for the coffee trade.

The DMCC Coffee Centre supports the coffee industry from crop to cup and caters to farmers, exporters, traders, roasters and retailers alike. It offers world-class infrastructure and services for green bean storage, processing, roasting, packing and delivery of coffee to precise specifications. With a view towards training and supporting baristas and local coffee shops, the Centre’s Premier Training Campus, which is Specialty Coffee Association (SCA) certified, offers professional courses in areas such as grading, green and sensory analysis, barista and brewing and sample/commercial roasting techniques.

Maria Pavani, Tres Marias Coffee Company DMCC, an independent coffee company with operations at the DMCC Coffee Centre, added: “Our decision to choose the DMCC Coffee Centre as a base for our operations in the region was an obvious one. The services and infrastructure on offer are world-class and the connectivity to our target markets is ideal – as a result our business is flourishing. In our view, this expansion makes sense and will no doubt attract more companies to the facility while also raising awareness of Dubai’s ability to cater to the specialty coffee industry.”

Arjun Katyal, McLeod Russel Middle East DMCC, added: “The DMCC's expansion plans are incredibly exciting, and represent a huge boost to Dubai's status as a leading global trade hub. We have been a DMCC Tea Centre member since 2011, and have seen, first-hand, the expertise, experience and vision that has shaped the success of this facility. McLeod Russel Middle East DMCC has its sights set on continued growth, and we will continue to engage new markets and reach a wider customer base than ever before. The DMCC Tea Centre has an important role to play in our success story, and we congratulate them on their latest announcement."

DMCC is currently in advanced talks to host another International Pepper Conclave as it looks to drive the pepper trade through the emirate. The Dubai Gold and Commodities Exchange (DGCX), a subsidiary of DMCC, is in discussion with its members and the wider trading community on the potential listing of a Black Pepper Futures contract – further updates to follow.

Despite an overall softer business climate, it was revealed that 805 new companies joined DMCC in the first half of 2020, with a noticeable uptick in the months of May and June. DMCC also recently announced the extension of its Business Support Package, its largest ever commercial incentive, until 31 August 2020. This followed the positive market reaction from the Dubai business community to the original package launched in April 2020.

Additional information on the expansion project will be announced in due course, and further information on the DMCC Coffee Centre and DMCC Tea Centre can be found online at http://dmcc.ae/coffee and here http://dmcc.ae/tea.