Dubai: Country and Foreign Investment
Dubai Gold and Commodities Exchange (DGCX)
The DGCX opened for trading on 22nd November 2005, the first international commodity derivatives market in the Middle East. DGCX offers a range of commodities including gold futures and contracts on fuel oil, silver and steel. The state-of the-art electronic trading platform is accessible from anywhere in the world.
The exchange is established within the Dubai Metals and Commodities Centre (DMCC), which is a strategic initiative of the Dubai government created to establish a commodity market place in Dubai. The DMCC is also a free zone authority offering 100% business ownership, a guaranteed 50 year tax holiday and freehold property options.
The DGCX is regulated by Emirates Securities and Commodities Authority. Alongside the DGCX is the Dubai Mercantile Exchange (DME), created in 2005. This does not compete with the DGCX as it focuses on trading in energy, particularly crude oil futures.
In February 2013, the DME announced the passing of a significant trading milestone, with a total of 4 million contracts (equivalent to 4 billion barrels) traded on the Exchange since its opening. This milestone came just 10 months after the DME passed the 3 billion mark and continues the trend of strong trading growth on the Exchange.
The 4 millionth trade on the Exchange took place between Japanese trading house Mitsubishi Corp, and the Anglo–Swiss multinational commodities trader, Glencore, highlighting DME Oman's position as a credible benchmark for oil trading for the Asian markets. DME Oman remains the largest physically delivered crude oil futures contract in the world, with the Exchange trading the equivalent of more than 1 billion barrels of oil for the first time in one year during 2012.