Ahmed Bin Sulayem, Chief Executive Officer – Executive Director of Dubai Multi Commodities Center, said: The digitization of gold and other precious metals is becoming more and more important day by day due to the ease of trading digital assets. This is why we are entering this field aggressively and at an increasing pace.
He added: We strategically invest in such technologies and expand our network by establishing partnerships that support this strategic direction. We live in a fast-changing world where forward-thinking cities, businesses, and even countries are embracing asset-backed cryptography as a more secure and transparent way of commerce.
And Bin Sulayem said in press statements on the sidelines of the 10th session of the ‘Dubai Precious Metals Conference’ recently organized by the center: Today, a new generation of people born in the digital age are finding new ways to invest and leverage technology to make work more effectively, which will eventually lead to outdated systems that need to adapt or fall behind.
Bin Sulayem explained: The downtown cryptocurrency center has seen continued and large interest since its launch in mid-2021, with around 14% of new company registrations joining this year 2022 specializing in cryptocurrencies. The Crypto Center houses around 40% of all companies operating in the sector in the UAE.
- The “new generation” takes its toll on the digitization of the gold trade
The Executive Director of the Dubai Multi Commodities Center said: Under the leadership of the Ministry of Economy and the Emirates Gold Board, the UAE is committed to addressing some of the most pervasive challenges in the gold sector, including efforts to remove illegal minerals from the value chain and prevent money laundering and terrorist financing.
The DMCC’s operational guidelines have been in effect for members since 2012 and follow due diligence guidelines issued by the Organization for Economic Co-operation and Development. This directive has been in place for 10 years and has played an important role in ensuring the delivery of refineries of the approved brand for delivery to the Dubai market.
Bin Sulayem said, “The Emirati efforts for good implementation of the unified national standard for quality and transparency specifications for gold traders and refiners in the country are very large. This is one of the clearest steps forward to ensure transparency of the gold trade throughout the Emirates is a key element in shaping the Center’s commitment to remain a neutral entity whose only commitment is to our community and the broader long-term vision of making Dubai the hub of the global gold ecosystem, linking sources of mineral supply to key demand markets around it.
Ibn Sulayem indicated that a new gold refinery has been joined by one of the core investor members, to be added to the list of 4 refineries invested in the core. Bin Sulayem said: Dubai is the largest center for gold in the Middle East, accounting for almost 25% of global trade. Some may not realize that gold is the UAE’s second largest export after crude oil. We trade more in gold than in refined oil and diamonds.
But what made Dubai a modern center for the gold trade? The launch of the Sharia compliant gold sukuk in 2002 by Standard Bank – London and Dubai Islamic Bank. Where the sukuk raised about 200 million dollars and financed the construction of the “Dubai Multi Commodities Center” towers, famous for gold, silver and diamonds. This is part of the exciting new partnerships and products we have launched which is the second edition of UAE Gold Coins.
- Successes and challenges
Despite the uncertainty in global markets, the first half of 2022 saw a record high for the center across multiple industries as the number of affiliated companies to the center increased to over 21,000 companies and this achievement was one of the major factors behind our awarded the title of global free zone for the year 2022 by the Financial Times fDi for the eighth consecutive year.
And through “Dubai Diamond Exchange” and working in this industry, we managed to deal and exchange $20 billion worth of diamonds in 6 months and as a result, UAE has now become the first center for the world’s rough diamond trade and are on their way to jointly occupying the number one spot for polished rough diamonds.
As for the effects of rising inflation and interest rates globally; It is important to look for safe havens for investments, 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. Regarding the UAE’s acquisition of the Kimberley Process, represented by the Dubai Multi Commodities Centre; 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 stressed that during his assumption of the Kimberley presidency in 2024, he indicated that the proposed plans to follow up on this matter are to continue what countries that have previously presided over the process, such as Russia, Botswana and Zimbabwe, they have built and implemented solutions more related to “blockchain” technologies to establish global trust and the ability to sell diamonds.
Bin Sulayem explained: We focus most of our interests in the coming period on the diamond trade in the CAR, as it needs more support due to the overlapping of various external conditions. As well as the East African country, which faces many complications in diamond trading, while gold trading and trading is smoother and easier. There are also countries that face some problems in the diamond trade, such as strict control and slowness of the system due to the existence of the illegal diamond trade. He pointed out that the high trust in the global diamond trade after Kimberley has become more secure and highly transparent.
- ‘Uptown’ Launches ‘Fully Booked’ Slogan
And in regards to the completion and delivery of construction of the Center’s Uptown Tower; 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 strong demand for office space for rent, as booking rates have reached 100 % and the waiting list is long.
He added: “The American Institute of Gemological Sciences, which is the world’s leading reference in the field of diamonds, colored stones and pearls, has, through its affiliated unit, the GIA Laboratory, leased space to create a new laboratory for gemological sciences in the tower, and is considered a charitable institution.” A non-profit corporation with a leadership 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 across two floors of the 340-meter-high tower on a nine-year lease.
The tower will also partner with luxury hotel brand ‘SO’, of ‘Accor Hotels’ to launch its first hotel in the Middle East, in the ‘Uptown Dubai’ area of downtown. It will include 188 hotel rooms in addition to 215 residential units.
