Ahmed Bin Sulayem, Chief Executive Officer – Executive Director of the Dubai Multi Commodities Center, said: The digitization of gold and other precious metals is becoming more important day by day due to the ease of trading digital assets. This is why we are aggressively entering this field and at an increasing pace.
He added: We invest strategically in such technologies and expand our network by establishing partnerships that support this strategic direction. We live in a rapidly changing world where forward-thinking cities, companies and even countries are embracing asset-backed crypto as a safer and more transparent system of commerce.
And Bin Sulayem said in press statements on the sidelines of the tenth session of the “Dubai Precious Metals Conference”, which was recently organized by the center: Today, a new generation of people who were born in the digital age find new ways to invest and take advantage of technology to make it work more effectively, which will eventually lead to To outdated systems either have to adapt or get left behind.
Bin Sulayem explained: The center’s cryptocurrency center has witnessed continuous and great interest since its launch in mid-2021, with about 14% of new company registrations joining this year 2022 that specialize in cryptocurrencies. The Crypto Center is home to about 40% of all companies operating in the field within the UAE.
- The “new generation” imposes itself in digitizing the gold trade
The Executive Director of the Dubai Multi Commodities Center said: Under the guidance of the Ministry of Economy and the Emirates Gold Bullion Committee, the UAE is committed to addressing some of the most pervasive challenges in the gold industry, including efforts to remove illegal minerals from the value chain and prevent money laundering. and terrorist financing.
DMCC’s operational guidelines have been in place for members since 2012 and follow the due diligence guidelines issued by the Organization for Economic Co-operation and Development. This directive has been in effect for 10 years now and has played a major role in ensuring the delivery of the approved brand refineries for delivery to the market in Dubai.
Bin Sulayem said: The Emirati efforts for good delivery of the unified national standard for quality and transparency specifications for gold dealers and refineries in the country are very large. This is one of the clearest steps forward in ensuring the transparency of gold trade throughout the Emirates. It is a key element in shaping the Centre’s commitment to remain a neutral entity whose sole commitment is to our community and the larger long-term vision of making Dubai the hub of the global gold ecosystem, linking sources of mining supply to key demand markets around it.
Ibn Sulayem indicated that a new gold refinery was joined by one of the center’s investing members, to be added to the list of 4 refineries invested in the center. Bin Sulayem said: Dubai is the largest center for gold in the Middle East, accounting for nearly 25% of global trade. Some may not realize that gold is the second largest export of the United Arab Emirates after crude oil. We trade more in gold than we trade in refined oil and diamonds.
But what made Dubai’s position as a modern center for the gold trade? The launch of Sharia-compliant gold sukuk in 2002 by Standard Bank – London and Dubai Islamic Bank. Where the sukuk raised about $ 200 million and financed the construction of the “Dubai Multi Commodities Center” towers, which are famous for gold, silver and diamonds. This is very much part of the exciting new partnerships and products that we have launched which is the second edition of the UAE Gold Bullion Coins.
- Achievements and challenges
Despite the uncertainty in the global markets, the first half of 2022 witnessed a record breaking for the center in several sectors, as the number of companies affiliated with the center increased to more than 21 thousand companies, and this achievement was one of the main factors behind our obtaining the title of the global free zone. for the year 2022 by the Financial Times fDi for the eighth year in a row.
And through the “Dubai Diamond Exchange” and work in this sector, we succeeded in dealing and trading in diamonds worth $ 20 billion in 6 months, and as a result, the United Arab Emirates has now become the first center for trading rough diamonds in the world and is on its way to occupy the first place for polished rough diamonds together.
With regard to the effects of rising inflation and interest rates globally; It is important to search for safe investment havens, and as confirmed by the experts gathered on the sidelines of the “Dubai Precious Metals” conference, gold; It is an important and safe investment in light of global fluctuations, currency fluctuations, interest rates, and others. With regard to the UAE taking over the Kimberley Process, represented by the Dubai Multi Commodities Center; Bin Sulayem said: The Kimberley Process Certification Scheme is a joint initiative between government, industry and civil society to stem the flow of conflict diamonds at its roots.
The UAE, as part of its efforts to align its trade with international standards and to protect the legitimate diamond industry, became a member of the Kimberley Process in 2002, as the Kimberley System for issuing certificates of origin was implemented in the country in 2003 by the Ministry of Economy, making the UAE the first Arab country to introduce this process and to be the Dubai Commodities Center Authority. The only entry and exit point for rough diamonds in the state.
Ibn Sulayem pointed out that during his assumption of the Kimberley presidency in 2024, he indicated that the plans put forward to follow it up in this regard are to continue what the countries that previously chaired the process, such as Russia, Botswana and Zimbabwe, have accomplished, and to implement solutions that are more related to “blockchain” technologies in order to establish global trust. And the possibility of selling diamonds.
Bin Sulayem explained: We focus most of our interests in the coming period on the diamond trade in the Central African Republic, as it needs more support due to the overlapping of various external conditions in it. As well as the East African country, which faces many complications in the diamond trade, while gold trading and trade is smoother and easier. There are also countries that face some problems in the diamond trade, such as severe control and the slowness of the system, given the existence of illegal trade in diamonds. He stressed that the high confidence in the global diamond trade after Kimberley has become more secure and highly transparent.
- “Uptown” raises the slogan “Completely booked”
And regarding the completion and handover of the construction of the Uptown Tower of the Center; Ibn Sulayem said: The finishing of the offices has been completed, while the hotel and residential floors will be completed at the end of the first quarter of 2023, and there is a high demand for renting offices, as the reservation rates have reached 100% and the waiting list is large.
He added, “The American Institute of Gemological Sciences, which is the world’s first reference in the field of diamonds, colored stones, and pearls, has, through its affiliated unit, the GIA Laboratory, leased space to establish a new laboratory for gemological sciences in the tower, and it is considered a beneficial institution.” A not-for-profit company with a leading position as the preeminent source of knowledge, standards and education in the field of gemstones and jewelry.
The institute’s new laboratory, scheduled to open in mid-2023, will occupy approximately 41,000 square feet spread over two floors of the 340-meter-tall tower under a nine-year lease.
The tower will also cooperate with the luxury hotel brand, “SO”, from “Accor Hotels”, in order to launch its first hotel in the Middle East, in the “Uptown Dubai” area of the center. It will include 188 hotel rooms in addition to 215 housing units.