(MENAFN - Khaleej Times) The Dubai Multi Commodities Centre (DMCC) has reported strong growth across its business in 2018, welcoming 1,868 new companies to its free zone during the year - a 12 per cent growth compared to 2017.
With a focus on driving commodity trade flows, the DMCC is home to over 15,000 member companies and registers an average of seven new companies a day. Collectively, the economic impact of DMCC member companies contributes over 10 per cent to Dubai's GDP and positively impacts the long-term economic diversification strategy of the UAE.
"2018 also proved to be a very positive year for the DMCC. Our continued success is testament to the strong foundation that the UAE leadership has laid out in order to shape the future of trade and make Dubai one of the world's leading business capitals," said Ahmed bin Sulayem, executive chairman and chief executive officer of the DMCC.
"We have established our position as the preferred free zone for companies looking to set up their business in the region by creating a trading environment in which they have everything required to grow and become a success."
The increase of companies joining the free zone has resulted in a significant increase in commodity trade flows through Dubai, where the DMCC attained record highs in 2018. The DMCC's Dubai Diamond Exchange hosted 27 diamond tenders in 2018 where Dh1.205 billion worth of diamonds were traded, a significant increase from 13 tenders worth Dh104.7 million in 2017.
Similarly, the DMCC's Dubai Gold and Commodities Exchange witnessed a record-breaking year, trading an aggregate 22.26 million contracts valued at Dh1.744 trillion. This was the highest annual volume traded on the platform, marking a 28 per cent increase year-on-year. For its part, DMCC Tradeflow recorded a total value of Dh126 billion, a 37 per cent increase from 2017.
As part of its mandate to attract foreign businesses and pave trade routes through Dubai, the DMCC signed 10 memoranda of understanding in 2018 with a number of prominent international institutions.
The MoUs were aimed at strengthening bilateral relations, encouraging knowledge-sharing and implementing international best practices. The MoUs include partnerships with leading organisations such as the Indian Institute of Directors, China Council for The Promotion of International Trade and Astana International Financial Centre.
Emrah Yar, head of commercial at Allsopp & Allsopp, noted that the UAE Cabinet's introduction of investor visas and long-term visas are encouraging companies to look at Dubai as a possible business venture.
"The population of Dubai is increasing year-on-year and with this comes a lot of newer businesses being born."
I am a reporter and sub-editor on the Business desk at Khaleej Times. I mainly cover and write articles on the UAE's retail, hospitality, travel, and tourism sectors.Originally from Lahore, I have been living in the UAE for more than 20 years. I graduated with a BA in Mass Communication, with a concentration in Journalism, and a double minor in History and International Studies from the American University of Sharjah.If you see me out and about on assignment in Dubai, feel free to stop me, say hello, and we can chat about the latest kitten videos on YouTube.