DMCC to launch financing scheme for commodity warehousing in Dubai
Dubai Metals and Commodities Center (DMCC) announced it would be launching a commodity warehouse receipts system in Dubai. The new Dubai Commodity Receipts (DCR) system is aimed to facilitate both the financing and storage of bulk commodities in Dubai. It will be implemented in early 2004.
"Offering substantial financing opportunities for the commodities sector, DCR's represent an innovation which will bring new volumes of commodities trade to Dubai. DCR's will generate efficiencies in commodity trading, finance and storage,” stated DMCC's Chief Executive Tawfique Abdullah.
“DCR's will directly benefit commodities traders, warehouse operators and banks. Hand-in-hand with the substantial growth in our port facilities this will bring Dubai ever closer to international recognition as a world-class commodities trading hub."
Abdullah added: "We are working closely with the market to ensure that DCR's meet its need. More than 50 interested parties attended a working session with us a few weeks ago, and we are in the process of appointing an advisory committee of traders, warehouse operators and banks to work with us during the implementation stage."
DCR's themselves will be issued by approved warehouses for inbound deliveries of bulk commodities. The warehouses will issue DCR's on a DMCC controlled web-based technology platform. Once the commodity has been delivered, and a DCR issued, it is then a matter of approaching a banking member of the DCR system to obtain finance.
The Dubai Metals and Commodities Center (DMCC) was created as a strategic goal of the Dubai Government to establish a commodity marketplace in Dubai. As an innovator and a regulator, DMCC is committed to serve the needs of participants in the Dubai gold, diamonds and commodities market.
The Center aims to attract key players throughout the entire value chain of each of these industry sectors, together with relevant support industries such as finance, logistics and insurance. DMCC offers resident partners numerous benefits, including a secure regulated environment, special freight rates, a 50-year tax holiday and the benefit of ownership of business premises. – (menareport.com)
© 2003 Mena Report (www.menareport.com)