Dubai multi and Commodities Centre

Dubai multi and Commodities Centre

   Government of Dubai

    (General information)

Dubai Multi and commodities centre (DMCC) offers investors a world-class hub for trading in gold, precious metal, diamonds and colored stones as well as other commodities.

The DMCC has been created as a part of the strategic goal of the government of Dubai to establish a commodity marketplace in Dubai.

DMCC was launched in April 2002.DMCC provides the facilities That bring together the gold trade, the diamond trade The trade in other selected commodities. The centre aims to attract key players through out the entire value chain of each of the industry sectors, together with relevant support industries such as finance, logistic and insurance.

DMCC’s300 hectare development will include three industry-specific commercial towers, several gold refineries and jewelries manufacturing complex.

Location

DMCC’s process –built development is situated in the heart of new Dubai on sheikh zayed road ,and is surrounded by Dubai newest project included the palm, Dubai internet city and the Dubai marina. Strategically located in close proximity to the major port of the jebel ali and in easy reach of Dubaiinternational airport, The centre lies between the fifth and sixth interchange on sheikh zayed road

DMCC is ideally  situated to service and access markets that span the middle East, Northern and southern Africa, South Asia and commonwealth of independent states(CIS)

DMCC offers its member services ranging from registration and license to general services that ease the process of setting up a business within the complex. This One step shop ‘strategy allows member companies to complete the employees affairs procedures, renewal and traffic affairs through the DMCC itself.

Ease of business:

·                    Unique world wide centre industry clustering

·                    Purpose built infrastructure

·                    World class security system

·                    Single window clearance

·                    Preferential service rates

·                    Regulated environment

Commercial incentives

·                    Free hold commercial property

Market infrastructure

Gold and precious metals-Much of the world demand for gold emanates from the south Asia and the East Asian countries. Dubai with its excellent facilities , further east and beyond. DMCC plan s to strength Dubai position as the regional centre for the billion. and precious stones business by offering improved facilities to enterprises establishment themselves under the center’s auspices.

These facilities include :

*          The Dubai gold nad commodities exchange, an electronic platform for the trading                     

             Of gold and other  commodities.

·                    Secure valet facilities

·                    Purpose built gold refineries

·                    Jewelry and gemplex-workshop facilities for manufacture of gold jewelry, with accompanying staff accommodation on site

·                    Office space for whole sellers, traders and bankers

·                    Assay facilities

·                    Introduction of code of conduct for supervision of billion enterprises to insure that they abide by the highest international standards

Diamond and color stones

The infrastructure of DMCC will accommodate every facet of the diamond business including manufacturing, trading, education, certification and technology. alliance with other members of trade, including finance organization and government institution, will promote complete growth of industry .facilities for diamonds and colored stones sectors include:

·                    Gem laborites to insure quality and certification

·                    The best educational institution to make the latest in technology and process available to the local and regional market

·                    Implementation of the Kimberly process certification scheme, which is an innovative, voluntary  system that impose extensive requirements on participants to certify that shipment of rough diamonds are free from diamonds that are used by rebel movements of finance wars against legitimate governments .the Kimberly process is composed of 43 participants, including the European community. Kimberly process participants account  for approximately 99.8%of the global production of rough diamonds.

Dubai diamond exchange

The Dubai diamond exchange (DDE) has been established to capitalize on the rapidly growing trade flow of diamonds through the Middle East and beyond .with the primary objective to promote regional trade with global accessibility, DDE will open the door to tremendous opportunities for local, original and international diamond traders. The Dubai diamond exchange is member of the world federation of diamond bourses

Commodities

Dubai has become the first dedicated commodities centre in the time zone between in the Europe and Far East .Located at the cross roads of the trade flows between the Arabian pensiula, Iran, India and Africa, Dubai has been regional commodity –trading centre through out its history, that tradition is today reinforce by the Dubai’s outstanding port facilities and its emerging status as modern financial centre

Not only will the Dubai base supply the local market, It will act as the trans-shipment and staging point for Middle East and beyond

Through the development of the industry specific market infrastructure DMCC will increase the value and volume of trading commodities it and through Dubai .the DMCC is building on these natural strength to reinforce Dubai’s position as regional hub for the

Trading of commodities .in fulfilling its mandate, DMCC is developing value-added products and service in line with the needs of the products and services in line with the needs of the growing market and its participants, both direct and indirect .this include commodity trading companies, raw materials processors, logistic providers, storage warehousing firm and banks current initiatives focus on the commodities sectors included:

The Dubai commodity recipient DMCC has created an innovative and exciting product to facilitate the growth of commodity trade finance and risk management .-The Dubai commodity receipt (DRC)

DRCs are negotiable warehouse receipts that improve the financing of the commodity trade and combat fraud. The DCr system is a mechanism of the creation of warehouse receipts for good stored in Dubai, but also a facility within which these receipts can be transferred among members of the system and used to obtain finance from financier member. these transactions are made on an electronic, web-based that ensure efficiency, speed and security.

The Dubai Tea Training.

The Dubai tea training centre (DTTC) is a dedicated facility in Dubai at which international tea products and merchants can hold stocks of tea that will be readily available to meet the immediate requirements of importers  in the middle east and adjacent regions .enabling  availability of variety of teas from multiple origins, DTTC will offer  convenience  to tea purchaser, whilst promoting  the interest s of exporters

Potential DTTC members will include tea producers, exporters, regional importers and international merchants. Initially DTTC will be located at an exiting warehouse facility in the free zone within the first two years of the operation .The planned new centre has already won the enthusiastic support of tea industry participants from three of the world’s leading tea exporters –India, Sri lank a and East Africa.

The Dubai Gold & Commodities Exchange

The Dubai Gold & commodity exchange (DGCX) is a joint  venture between the DMCC, multi commodity exchange of India Ltd (MCX) and financial technologies (India ) limited (FTIL) .The exchange has been developed  to Facilitate the trade of gold and commodities.

The transaction of the DGCX will take place on a state-of- the-art electronic trading platform  will be deployed by FTIL.

The first contract listed on the exchange will be gold .Expectation are for the balanced port folio with the futures and option contracts available for all listed commodities .gold will likely be followed by silver, steal, freight, cotton, and energy contracts.

Energy

As the scope of the DMCC covered a broad spectrum of commodities it  is a natural choice  for the energy industry in Dubai. The centre will create a cluster for industry facilitating market participants across the entire energy spectrum including : exploration and production ;oil and chemical gas and power ;renewable logistic and freight ;industry –specific service providers e.g oil field service and suppliers, consultants, information, technology suppliers human resources suppliers, media and advertising .

Activities Allowed by the Free Zone

Manufacturing, Trading and services.

Physical infrastructure

Commercial towers

Available on the Free hold and/or lease basis, these towers are made available to DMMCC registered free zone company only. All construction will be completed by end 2008

Almas towers

Almas means “diamond: in Arabic .towering 64 floors high, this prestigious, land mark building will be home to the regional and international diamond communities.

High security shared vaulting facilities , enhanced natural lighting and reinforced infrastructure designed to hold heavy safe are just some of the unique benefits or residing in the almas tower.

AU Tower

AU being the chemical composition of gold, this tower is appropriately named .designed for the gold, precious metals and jewelry market participants, The entire towers is themed to reflect its name .The gold leaf shaped floor plans allow for spacious and flexible office planning.

Elaf Tower

The Elaf tower is designed specifically for the commodities trade Elaf is an Arabic word that literally translates as á journey for the purpose of exchanging commodities:

Jewelry and Gemplex

The purpose built jewelry and gemplex houses workshops , staff accommodation and offices for service and trading .the complex will also offer Unique facilities for jewelry , diamonds and color stones.

Each building is ground plus 12 floors and located in close proximity to the refineries and DMCC commercial towers within the same development.

Work shop- the work shops can be purchased in any number , up to a maximum of ten per floor . Each work shop is 50 square meters  in size (538 square feet).Each work shop is equipped with the access to central air- conditioning , extraction systems, acid disposal, gas, electricity and water supply .

Located on twelfth floor of each building, the studio apartment are ideal for senior staff accommodation. Each apartments is 59 square meter in size and suitable for one or two residents.

Staff Sponsor ship

Companies are required to submit their applications to DMCC administration department, who in turn will process them for the company.

Types of Trade license available and fees per annum

Business Avenue

License type Trading /commercial  License Service license

Annual fee 8,000 15,000

Annual fee (US$) 2,177 4,083

Commercial towers

License Type Trading /commercial Service

Annual Fee (Dhs) 15,000 15,000

Annual Fee (US$) 4,083 4,083

Jewelry and Gemplex

License Type Trading/commercial license Manufacturing license

Units 1-30 1-30

Area 50sq m-1,500sq m 50 sq m-1,500 sq m

Annual Fee 15,0000-25,000 8,000-25,000

Annual Fee 4,083-6,805 2,177-6,805

Refining

Units Any

Area Any

Annual fee(Dhs) 25,000

Annual Fee (US$) 6,805

Establishing a DMCC Free Zone Company

Setting up a company in DMCC is simple and the procedure are streamlined, quick and hassle free. The quality for establishing a branch of an already established company , You merely need to either have a company already registered in the UAE overseas-including the offshore companies

If You are new company, you could register a legal entity or company in the DMCC- called a DMCC company .

By a applying and completing some simple but essential documentation, a sap rate legal entity called a DMCC –called a DMCC company .

By applying and  completing some simple but essential documents called a DMCC company with limited liability can be formed with its head quarter s in DMCC . its affairs are completely separate from those of its shareholders . it can have its own board of directors and its own bank A/C

Having a DMCC company has many inherent benefits. For instance. Since it is independent of its shareholders  (individual or non-individual). It can retain its profits .This play an important role in international business planning.

                               Cost of set up (At-a-glance)

Minimum capital requirements License fee DMCC Co. Registration Branch of company registration Registration of company Articles of association and its amendments Fees for one employee

Dhs 200,000 (US$ 54,437)for a DMCC company No capital requirement for branch offices Cost various depending on activity , see previous section Dhs 5,000(US$ 1,362 ) Dhs 5,000 (US$ 1,362 ) Dhs 2,000 (US$ 545 ) Dhs 1,460 (US$ 397 )(including entry permit, company employment card and residence visa  for 3 year)

Documents required for registration

Check list of legal Documents required for DMCC company Registration 

(New company )

The following Documents must be submitted along with an application from before a certificate of registration can be issued. Where indicated, they will have to be notarized and attested DMCC reserved the right to request additional attestation of documents from the UAE embassy or any consulate or embassy where necessary .DMCC also reserves the right to request any additional documents

Individual Applicant (I.e. the share holder is not a company)

No. 1. 2. 3. 4. 5. 6.

Documents Personal profile & business back ground.(for (each individual share holder) Business plan Specimen signature For each individual  shareholder Valid passport copy Resolution Banker’s reference (For each individual shareholder)

Requirements Separate sheet Separate sheet Notarized  Copy  Notarized  Original

Non- individual  Applicant (i.e any existing company or entity )

No 1. 2. 3. 4. a. b. c.

Document Certificate of registration/incorporation of the company OR Original certificate of good standing of the company Memorandum and articles of association Board resolution of the non- individual  calling for the establishment  of the company in DMCC Manager –specimen of signature +passport copy Director- Specimen of signature + passport copy Secretary – Specimen of signature  +passport copy

Requirements Notarized Notarized Notarized  Notarized  Notarized Notarized Notarized

Documents required in order to appoint a legal representative

No. 1. 2. 3. 4.

Documents Appointment of negotiator or legal representative (specimen provided) Power of attorney (if not part of resolution) (Specimen provided) Specimen of signature Valid passport copy

Requirements Notarized Notarized Notarized Copy

1.      upon the confirmation of the DMCC;s provisional approval on registration ;the applicant will be issued with a letter addressed to the bank to open a bank account .

2.      Applicant must deposit the minimum capital Dhs 200,000

3.      Upon confirmation of the same DMCC will issued a certificate of the registration for the new company

Check list of the legal documents required for branch company registration

The following documents are required along with an application from before the registration certificate and license can be issued . As indicated , they will have to be notarized  and attested

No. 1. 2. 3. 4. 5. 6. 7. 8.

Document Certificate of registration or incorporation of the mother company Original certificate of good standing of the company Memorandum and articles  of the association of the mother company 1)      A company board resolution calling for the establishment  of a branch in DMCC and guaranteeing full financial commitment 2)      Appointment  of Negotiator or legal Representative & manager (if not part of resolution) Specimen provided) 3)Power of attorney 4)Specimen of the signature (the manager ) 5)Passport copy (the manager )

Requirements Notarized + Attested Notarized + attested Notarized + attested Notarized + attested Notarized + attested

Types of companies legally allowed in the Zone

DMCC Company and branch of an existing company

Application process

·                    Submit application for registration(for new company registration only ) and the application for the license 9for both new company and branch registration)

·                    Submit all supporting Documents as outlined in the application form, including a letter of internet (LOL) to purchase or lease DMCC premises upon their completion.

·                    Submit application fee

·                    After provisional approval from DMCC , open a Dubai based bank, account and enter into a lease agreement( in the interim- unit DMCC, facilities are completed –You are fee to choose any location in Dubai )

·                    Deposit the working capital  at the bank

·                    Submit the copy of the lease agreement  and a letter from the bank, confirming receipt of working capital, to DMCC

·                    Receive your license from DMCC and start operations

Faisal Ibrahim B. Com, MBA
Senior Business Consultant | Adam Consulting
Mobile: +971 050 7141 665

Email   :  faisal@adamadvisors.com

Skype  :  faisalibrahim786

2A, Building 6 | Gold & Diamond Park | PO Box 183827 | Dubai, United Arab Emirates Switchboard: +971 4341 9701 | Extension 150 www.adamadvisors.com | Member of Adam Holdings

Contact for any assistance regarding the same: Faisal Ibrahim Mobile: 971 55 2419200 ADAM SME consultant 2A, Ground Floor, Building No.6, Gold & Diamond Park P.O. Box:- 183827, Dubai, U.A.E. Fax: 971 4 341 9702 Mobile: 971 55 2419200 Email : faisal@adamadvisors.com Web: www.adamadvisors.com ISO 9001:2008 NO: ME/08/1147 ADAM Consulting as ADAM advisors