The Dubai Multi Commodities Centre (DMCC), Dubai’s authority on trade, enterprise and commodities, signed major trade deals with the Shanghai Gold Exchange, the Agricultural Bank of China, and Mega Capital and Yunnan State Farms Province.
The agreements were inked during the Dubai Week in China, held from October 27 to 29 in Shanghai.
DMCC’s event attracted over 130 senior government officials, business leaders and financial institutions including Abdulla Al Saleh, undersecretary of the UAE Ministry of Economy for Foreign Trade and Industry Affairs; Consul General of UAE in Shanghai Ibrahim Al Mansouri; Jiao Jinpu, chairman of the Shanghai Gold Exchange; Gautam Sashittal, CEO of DMCC; Matthew Pang, managing director of Mega Capital; and Zhonghua Chi, general manager of Yunnan State Farms Group.
Sashittal commented, “The DMCC partnership agreements are evidence of the deep links between China and Dubai, and the growing role the Dubai trade has in bringing our worlds closer. China is Dubai’s number one trading partner. The relationships that we have cemented here with the Shanghai Gold Exchange, Agricultural Bank of China, Mega Capital and Yunnan State Farms Group will further underpin the role that DMCC is playing in boosting the commodities trade along the West to East corridor, connecting directly into China’s Belt and Road Initiative.”
The Dubai Gold and Commodities Exchange (DGCX) announced the first yuan-denominated gold future product to be offered outside of China, obtaining a license from the Shanghai Gold Exchange to list Shanghai Gold Futures in Dubai using the Shanghai Gold Benchmark Price.
The DGCX also announced that Agricultural Bank of China has become the first market maker for the Shanghai Gold Futures contract to be listed on its exchange.
DMCC signed an agreement with Mega Capital Halal (MCH), a Hong Kong-based holding company, to import coffee annually from China’s Yunnan State Farms Group to Dubai for world distribution.
DMCC also launched the latest in a series of reports on “The Future of Trade,” hosting a roundtable discussion to discuss the ways that trade is changing the world.
The report focused heavily on the potential for digitalisation to impact trade, stating that as many as 350 million businesses would begin exporting goods for the first time if they were to adopt an end-to-end digital strategy.