Duba:
In the last decade, Dubai has emerged as a leading international commercial and financial centre. It has become the third largest re-export centre in the world. The strategic location of Dubai, the open and liberalised policies of the Dubai government, state-of-the-art infrastructure and easy access to large and growing regional markets are just a few of the many factors which have ignited Dubai’s growth.
Dubai developed the concept of on-shore, special economic zones with the creation of ‘Free Zones’ for financial services, media, technology organisations and more. These special zones provide industry-specific, world-class infrastructure with 100% business ownership, no barrier on capital and profits repatriation, no foreign exchange control and an extended tax holiday.
A pro-business environment with an outstanding record of political stability and one of the fastest growing economies has made Dubai an extremely attractive location for global businesses. Dubai has become a regional base for most Fortune 500 companies (with all top 10 having a sizeable presence) due to a ccess to an economy of USD 1.5 trillion in terms of GDP for the Middle East, Asia, Indian sub-continent and Africa, as well as close proximity to the developed European markets. In addition, with a mature spot trading market in place for gold and other commodities, commodities derivatives are the logical next step.
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Conversion : 1 troy ounce = 31.1034768 grams
Source: Dubai Gold & Commodities Exchange
Dubai has historically been an international hub for the physical trade of not only gold, but also many other commodities and so the establishment of the Dubai Gold & Commodities Exchange (DGCX) was the next logical step for the region and the local economy. DGCX commenced trading in November 2005 as the regions first commodity derivatives exchange and has become today, the leading derivatives exchange in the Middle East , providing the right products, at the right price and the right time.
DGCX is an initiative of the Dubai Multi Commodities Centre (DMCC), Financial Technologies (India) Limited and the Multi Commodity Exchange of India Limited (MCX). The Management team of DGCX comprises senior personnel from the commodities, securities and financial services industries bringing a wealth of experience and expertise to ensure the success of DGCX.
DGCX offers the unique advantage of being located in the Middle East, one of the world’s largest areas of financial liquidity.
Dubai is one of the world’s fastest growing business centres, with over 400 international institutions from around the globe and US $160 billion high net worth investment business. It is also the world’s third largest re-exporter and grew on average by over 13.4% per year between 2000 and 2005.
Dubai offers a strong, stable government and a balanced, world class regulatory framework. With a zero tax environment and free trade zones offering 100% ownership, it has become the entry point for much of the Middle East’s liquidity and trade activity.
Benefits of Trading on DGCX
Our range of futures contracts offers participants of the physical commodities markets, such as producers, manufacturers and end users, with a sophisticated means of hedging their price risk exposure. Such price risk management has previously been unavailable to producers in the Middle East. In addition, DGCX offers trading opportunities to financial communities and investment houses in both the Middle East and around the globe who wish to access the growing asset class of commodity and currency derivatives.
- Guaranteed settlement and reduced counterparty risk provided by Dubai Commodities Clearing Corporation (DCCC), a subsidiary 100% owned by DGCX
- The advantage of transacting and clearing business within the UAE and thus the local taxation and regulatory regimes
- A simple fee structure - one fee for all participants. All participants also pay the same margin, whether commercial or non-commercial entities
- An opening to both regional and international liquidity pools
- Robust risk management and surveillance systems
- Uninterrupted trading hours from 8:30am – 11:30pm (GMT +4)
- Regulated by the Emirates Securities & Commodities Authority (ESCA)
