Dubai is a global trade, transport and finance hub that offers foreign businesses a gateway of opportunity into the Middle East, Asia, Africa and Europe. It sits at a strategic geographic crossroads, connecting East and West, North and South, providing a natural bridge between producers, manufacturers and consumers that is supported by an extensive aviation and logistics network. Throughout its history, Dubai has been an international hub for physical trade of gold and several other commodities, and the city’s pro-business regulatory environment, coupled with world-class infrastructure and technology has made it one of the top commodity trading hubs in the world today.
According to the recent Future of Trade 2020 report from Dubai Multi Commodities Centre (DMCC), the UAE as a whole ranks among the top three global commodity trading hubs. The Commodity Trade Index (CTI) ranks key global trading hubs based on 10 indicators across the three key areas of commodity endowments, institutional factors, and locational and trading partners. The UAE ranked in second place in the 2020 Index behind only the United States, receiving the top score for commodity endowment factors (74 percent) well ahead the other global trading hubs, due to its oil exports and natural resource rents as a share of GDP. The country came in fifth place for institutional factors (70 percent) and sixth place for locational and trading partner factors.
Top commodity exports of the UAE are crude petroleum, refined petroleum, gold, diamonds, petroleum gas, jewelry, broadcasting equipment, cars, raw aluminum, and rolled tobacco. Gold is the UAE’s leading non-oil export product and it is the 6th largest gold exporter in the world. The country is the 5th largest diamond exporting country, the 2nd largest exporter of aluminum and copper wire, and the largest exporter of rolled tobacco. Top commodity imports include gold, refined petroleum, diamonds, crude petroleum, refined copper, broadcasting equipment, jewelry, cars, gas turbines, and computers.
Dubai Multi Commodities Centre (DMCC)
DMCC has become one of the fastest growing Free Zones in Dubai with more than 17,000 companies in a number of sectors including commodities such as gold, diamonds, base metals, agriculture, spices, and tea and coffee. The Free Zone enhances the appeal of Dubai’s strategic location by offering world-class market infrastructure, facilities and a business-friendly environment that sit alongside a robust regulatory framework. DMCC’s member companies have unparalleled access to the key commodities markets and a world of trading opportunities across all industry sectors.
Dubai Gold & Commodities Exchange (DGCX)
First of its kind in the MENA region, the Dubai Gold & Commodities Exchange (DGCX) was launched in November 2005 as a subsidiary of Dubai Multi Commodities Centre (DMCC) and is responsible for regulating the price of gold and other commodities in the UAE. Starting as the first commodity derivatives exchange in the Middle East, it is now one of the leading derivatives exchanges in the region. It was established by the Government of Dubai with a mandate to strengthen the city’s commodities and foreign exchange market by helping to manage risk and diversify investment opportunities in the region. DGCX is a form of financial and commodities derivatives exchange that is responsible for supporting physical, financial and market infrastructure, and is regulated by the Securities and Commodities Authority in the UAE.