Emirates Group has signed an agreement on behalf of its security provider Transguard with the Ports, Customs and Free Zone Corporation that gives companies in the Dubai Metals and Commodities Center (DMCC) reduced rates for gold shipments to all the major gold centers served by the Emirates.
DMCC is a free zone established in April 2002 to provide full facilities for trading in gold diamonds and key commodities along with 100 percent ownership and a 50-year tax holiday. DMCC will provide facilities for trading in gold, diamonds and key commodities.
“We envisage that these reduced rates will assist in strengthening Dubai's position as a gateway for gold exports on a global level," said Sultan Ahmed Bin Sulayem, DMCC board chairman. “The DMCC seeks to provide its companies with the most favorable environment to do business, not only from an alliance perspective, such as this one with the Emirates Group, but also on a technological and facilities basis.”
These companies now have the advantage of Transguard's reduced freight rates when using Emirates SkyCargo to and from the major gold markets such as Mumbai, New Delhi, Chennai, Cochin, Karachi, Lahore, Jeddah, Riyadh, Kuwait, Istanbul, Singapore, London, Bahrain, Doha, Muscat, Zurich, Switzerland, Sri Lanka, Egypt and Jordan
In addition to preferential tariffs, DMCC resident companies will have access to special services through Transguard's facilities. “Transguard investing over 15 million Emirati dirhams in the construction of a special handling facility for precious metals at the Dubai Airport Free Zone and an additional Dh3.5 million to add 15 more special armored vehicles to its existing fleet of 35; bringing our total fleet to 50 armored vehicles by year end,” Abdulla Al-Hashimi, chief of Group Security, said.
Transguard expects around 1,500 tons of gold imports annually, with exports reaching 1,300 tons. With gold prices currently high, around 1,000 tons annually is expected to be scrap gold such as old jewelry to be melted down.
Platinum imports however are expected to be around 6,000 tons annually, especially with the metal used widely as a catalyst by the oil industry and the news that Parekh Platinum is moving its manufacturing base from India to the DMCC.
DMCC facility will offer a full service to those organizations involved in gold trading with physical trading facilities, storage, hallmarking/assaying as well as package and delivery facilities available on-site. Three refineries will also be housed within the complex.
Trading facilities, a convention center, a training center and a gems lab will be available to DMCC resident companies in the diamond trade while the commodities industry will be provided with trading, storage and logistics facilities. — (menareport.com)
© 2003 Mena Report (www.menareport.com)
