The Dubai Multi Commodity Centre (DMCC) was created, as a strategic initiative of the Dubai government, to establish a commodity market place in Dubai, by providing the industry-specific market infrastructure and comprehensive facilities for the gold & precious metals, diamonds & colored stones, energy and other commodities industries.
Standard & Poor’s, the world’s foremost provider of independent credit ratings has rated DMCC as ‘A’. DMCC functions as a free zone authority offering many financial incentives to the investors like 100% business ownership, a guaranteed 50 year tax holiday and freehold property options
The objectives of DMCC are creation of a dedicated market place in Dubai and increase the value and volume of commodities traded through the region. DMCC also facilitates an integrated value chain of its key segments. DMCC creates highly customized and market specific infrastructure for its core segments. Constant innovation of new products and services is a hallmark of DMCC.
The commodities market in DMCC handles gold and precious metals, gems, energy, plastics, petrochemicals, steel, base metals, tea and cotton.
Dubai is known as the “City of Gold” and has gained prominence as a leading global business hub in the Middle East. Dubai has been making significant contributions to the global gold and commodities market.
DMCC strives to create a level playing field for all participants by introducing transparent and fair rules for day to day business operations. DMCC has also achieved the integration of the complete value chain for trading and distribution of gold and commodities in the U.A.E.
To facilitate the growth and development of the gold and commodities industry, DMCC introduced the Global Multi Commodities Receipt (GMR), an innovative tool of accessing trade financing.
GMR functions as an electronic warehouse and vault receipt system, providing the members with real-time access to the various commodities. The commodities are classified into raw, semi-finished or finished products.
These must be stored in a DMCC approved storage facility for that respective commodity. An approved storage facility operator or collateral manager can issue a GMR once he receives a deposit by a trader/business entity. GMRs are negotiable instruments and can be transferred to another trader. They can also be pledged and endorsed by way of security in order to obtain financing.
A participating financier may request the testing of the commodity that is the subject of the GMR. This request will be closed only after the tester is completely happy. The GMR system provides a secure electronic platform for conducting their trade finance activities. All activities undertaken on the GMR system will attract DMCC legal framework.
The Global Multi Commodity Receipt product suite consists of the Dubai Commodity Receipt (DCR), the International Commodity Receipt (ICR) and the Dubai Gold Receipt (DGR).
The DCR covers storage of goods within the UAE and the ICR covers goods stored in selected global locations.
DMCC supports excellent business environment and promotes local growth by implementation of international standards. DMCC is a free zone authority offering invaluable business incentives to their investors which include 100% business ownership, a guaranteed 50-year tax holiday and custom-built infrastructure available on a freehold or leasehold option.
DMCC is a one stop shop facility for processing of all documentation including immigration, registration and licensing; during the set up phase of any new company.