The Dubai Metals and Commodities Centre (the DMCC) is a Dubai Govt. initiative to support and develop the specific needs of the regions Gold & Precious Metals, Diamonds & Coloured Stones and Commodities markets.

Dubai is part of the United Arab Emirates (UAE), a federation of seven independent states located in the southeastern corner of the Arabian Peninsula, in the Middle East... the UAE boasts one of the highest standards of living in the world.

The UAE’s proven oil reserves make up almost 10% of the world’s total... estimated natural gas reserves amount to about 3% of the world’s total. Proven oil reserves amount to approximately 100 billion barrels of oil and about 5.7 trillion cu m (about 200 trillion cu ft) of natural gas. At present rates of production—760 million barrels of oil per year—the UAE’s oil will last for more than 100 years. Its gas will last for more than 200 years.

Dubai is also known as being one of the most "Westernized" area's in the Middle East... it is known for the free trade in commodities and business... and it's "capitalist ways" with it's Govts' progressive, pro-business attitude and a highly developed commitment to the private sector.

The Dubai Metals and Commodities Centre, initially launched in 2002 is nearly ready to begin trading... with trading scheduled to commence sometime during Nov. 2005... the objectives of DMCC include:

● Creation of a dedicated commodities market place in Dubai
● Increase the value and volume of commodities traded in and through the region
● Facilitation and integration of the entire value chain of its key segments
● Broaden the local market horizon e.g. Refining – Manufacturing – Trade
● Create industry specific market infrastructure for its core segments, innovate new products and services
● Provide a supportive business environment through purpose-built infrastructure
● Promote regional industry growth
● Enhance local industry through implementation of international standards.

The DMCC will be offering market participants of the commodities industry invaluable support services & business incentives, including:

● 100% business ownership
● A guaranteed 50-year tax holiday on personal and income taxes
● Purpose-built infrastructure available on a freehold or leasehold option
● A one stop shop facility for processing of all documentation including immigration, registration and licensing.

The DMCC is currently being developed upon a 200-hectare (494 acre) development... and will be anchored by 3 main buildings, the the Almas Tower, the AU Tower, and the Ag Tower...

The DMCC will also be offering a key Free Trade Zone & Security status... including;

● A Regulated environment of  no foreign exchange controls or barriers to entry No restrictions on capital repatriation.
● World class security systems Single Window Clearances (incl. Licensing, Immigration, etc)
● Preferential freight rates and Guaranteed 50 year tax holiday on personal and income taxes
 

Throughout history, Dubai has played a significant role in the global Gold market... in just the first 6 months of 2005, Dubai imported approx. 284,000 KG  of Gold... and has imported an average of approx. 415,000 KG of Gold per year into the country over the past 4 years... the DMCC hopes to build upon that history by integrating the refining, manufacturing and trading of gold on a larger scale... thus strengthening Dubai's position as a leading regional centre for precious metals with new facilities that include:

● High tech, secure vault facilities
● Assaying facilities
● Settlement
● Package delivery
● Shipment facilities
● Preferential rates - bullion freight
● A purpose-built Jewellery and Gemplex to facilitate the manufacture of precious metal jewellery
● A commercial tower to house wholesale, trading and banking operations.

The DMCC claims it will create a level playing field for all it's participants in the Gold industry by introducing transparent and fair rules for business conduct.... the introduction of a Code of Conduct for the supervision of the bullion enterprises within the Centre will help ensure that participants abide by the highest international standards.

LOOKING FORWARD: Currently, with Oil prices moderating slightly... and with the UAE being flush with Oil profits from the surge in Crude Oil over the past 2 years... the timing of the DMCC's opening for trading next month could hardly come at a better time for Gold Investors... this bullishness will be compounded by recent developments in the Gold market that relate to India and China.... you see, India & China are the largest global consumers of Gold... India is currently the largest... and with the economies of China and India modernizing rapidly, their citizens have been empowered financially... Chinese and Indian citizens, for various reasons, have tended to invest a much higher percentage of their savings into Gold than North Americans... and the DMCC seems to have seen this trend as evidenced by their recent formation of a joint-venture with Multi Commodity Exchange of India Limited (MCX) and Financial Technologies India Ltd (FTIL)... as demand for Gold in India alone is running at approx. 42% above 2004 levels.