DGCX, DMCC signs MoU with RAKBANK To Develop Precious Metals Products to Enhance Retail Appeal

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Dubai, UAE, April 8th 2017: The Dubai Gold and Commodities Exchange (DGCX), the Dubai Multi Commodities Centre (DMCC) and RAKBANK signed a Memorandum of Understanding (MoU) today for development of bullion products. One product that is in immediate consideration is a Retail Spot Gold contract that could be specifically targeted for retail investors and traders. All products will be submitted to the relevant regulatory authorities for approval prior to launch.

A potential Retail Spot Gold contract could have a smaller denomination size in comparison to the existing DGCX Spot Gold contract which requires physical delivery of one kilogram gold bars. Launched in 2016, the DGCX Spot Gold contract has attracted several institutional participants and gold players from overseas as well as from the region due to the availability of a transparent and locally relevant price discovery mechanism. The potential Retail Spot Gold contract would be fully backed by physical gold, and will be held in a electronic form with the capability of physical redemption. This will cast a wider net in terms of a target investor audience and is expected to appeal more to retailers and smaller, more risk-averse investors and traders based in the region who have been looking at gold products offered through a fully lisenced exchange, such as the DGCX.

Gaurang Desai, CEO of the DGCX, commented on this MoU: “We are delighted to announce this strategic partnership with RAKBANK in association with DMCC. Product innovation is at the core of our business strategy as an Exchange. We are constantly exploring new product lines with the needs of an ever-changing and growing customer base with the objective of catering to both institutional and retail participants. We strongly believe that by working together with RAKBANK and DMCC, we can leverage each other’s strengths to create synergies and develop a safe and efficient platform for retail gold trade and investment in Dubai, ultimately contributing to the development of the region’s bullion market.”

Peter England, RAKBANK CEO, said: “We recognize the strong appeal of owning gold across the UAE with many people having a strong belief in the great security and safe haven store of value that physical gold brings. RAKBANK’s tie up with the DMCC and DGCX will  enable the development of a platform that allows customers, large and small, from across the region to acquire gold, at competitive prices, with a click of a button through an integrated Digital Banking platform. By providing customers with this opportunity, we will help them to diversify their currency and asset holdings in a simple and cost effective manner, and enable them to manage risks in a secure, reliable and well regulated environment.”

Commenting on the development, Gautam Sashittal, CEO of DMCC, said: “Our partnership with RAKBANK marks an important milestone in our journey to create a fully integrated global bullion market in the UAE. This is the beginning of an exciting journey that will offer for the first time, retail bullion investment products on exchange. This, together with our listed existing  futures and spot products create a truly unique and appealing portfolio to the international trading and investor community, both wholesale and retail.”

Since its inception in 2005, DGCX has been supporting the hedging needs of gold traders based in Dubai through numerous Gold futures contracts. DGCX’s product portfolio covers a diverse range of energy, precious metals, base metals and currencies.

ENDS

About DGCX:  Established in 2005, DGCX is the region’s leading derivatives exchange and the only one allowing participants to clear and settle transactions within the Gulf region. The Exchange has played a pioneering role in developing the regional market for derivatives.

DGCX is a subsidiary of Dubai Multi Commodities Centre (DMCC), a strategic initiative of the Government of Dubai, with a mandate to enhance commodity trade flows through the Emirate by providing the appropriate physical, market, financial infrastructure and services required. It is an electronic commodity and currency derivatives exchange with 219 members from across the globe, offering futures and options contracts covering the precious metals, energy and currency sectors.  For more information: www.dgcx.ae and www.dccc.co.ae

For media enquiries, please contact:

Meng Chan Shu

Director of Business Development and Sales

Dubai Gold and Commodities Exchange

Tel: +9714 361 1660 Email: meng.shu@dgcx.ae

OR

Dhanya Issac/Lara Batato

Weber Shandwick PR

Tel: +971 (0) 4 445 4222

Email: dissac@webershandwick.com /lbatato@webershandwick.com

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