DMCC pays close attention to International Security by xdu18397

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									JANUARY – APRIL 2008 ISSUE NO. 16
                                                                                                                                              DMCC News
                                                                                                                                       The Source | January – April 2008   03

DMCC pays close attention to
International Security
                                                                                                                                      tanzanian visit to dmcc
                                                                                                                                      Ahmed Bin Sulayem, Executive Chairman,
                                                                                                                                      DMCC and Dr. David Rutledge, CEO,
                                                                                                                                      DMCC met recently with Gabriel D. Y.
                                                                                                                                      Kitua – Director of Research Policy and
                                                                                                                                      Planning and Mr. Nicodemus D. Mkama
                                                                                                                                      – Manager Finance, Administration
                                                                                                                                      and Personnel, from Capital Markets
                                                                                           Hassan Nasser, Compliance Director, DMCC
                                                                                           participating in a panel discussion        and Securities Authority (CMSA), the
                                                                                                                                      Tanzanian securities regulatory agency,
                                                                                                                                      with the mandate to develop the market
                                                                                                                                      and provide advisory services on securities
Dubai Multi Commodities Centre (DMCC)                               crimes. The Centre’s participation at this event                  to the Tanzanian Government. CMSA
recently participated at the 5th Worldwide                          highlighted DMCC’s efforts in this direction. The                 is also involved in the financial sector
Security Conference in Brussels, organised by                       panel recommended that there should be full                       reforms being coordinated by the Bank of
the EastWest Institute in collaboration with                        cooperation and information sharing between                       Tanzania (central bank).
the Ministry of Foreign Affairs of Japan and                        all competent authorities across the world. It                       The CMSA officials visited DMCC as
the World Customs Organization. The DMCC                            was also agreed that there should be complete                     part of their preliminary studies, ahead
was represented by its Director for Compliance,                     coordination amongst relevant authorities                         of setting up of the commodities market
Hassan Nasser, who also participated in a panel                     at the national level including customs, FIU,                     in Tanzania. The two-member Tanzanian
discussion regarding illicit trade in precious                      law enforcement bodies and the ministry of                        delegation expressed particular interest
metals.                                                             commerce or economy. Robust application of                        in learning as much as possible about
   Since inception, DMCC has made great                             AML/CFT laws, rules and regulations, tightening                   market conditions, options in establishing
effort to generate greater awareness of                             controls on borders and inclusion of precious                     a good market and the required
the susceptibility of international trade to                        metals in the cash reporting system were the                      regulations for such market transactions.
fraud, scams and other types of financial                           other recommendations discussed by the panel.                     Endowed with both metal and
                                                                                                                                      agricultural commodities, Tanzania stands
Below: Students from Thunderbird School of Global Management recently visited DMCC to learn more about the organisation and its       to benefit greatly from the establishment
contribution to the regional commodities trade
                                                                                                                                      of an organised and well-regulated
                                                                                                                                      commodities market.
  04                    DMCC News
                        The Source | January – April 2008

Careers UAE 2008
With its strategic objective to help build the                       build general awareness for DMCC and introduce                       6th dubai city of gold
National talent supply for commodities sectors,                      our businesses, brands and strategic initiatives                     conference
DMCC participated at the 8th Annual Careers                          while gathering CVs of interested candidates.
UAE 2008 Exhibition, held under the patronage                        Our proudest moment came when HH Sheikh                              The 6th Dubai City of Gold Conference held
of HH Sheikh Mohammed bin Rashid Al                                  Mohammed stopped by DMCC’s stand area                                at the Park Hyatt, hotel in Dubai from April
Maktoum, Vice President and Prime Minister of                        to greet our team and review our application                         12-13, 2008, proved to be a great success
the UAE and Ruler of Dubai. During the 3-day                         forms. The event helped further present DMCC                         again witnessing participation from over 20
event, DMCC joined other Dubai World Group                           as an employer of choice, offering long-term and                     international speakers and more than 500
companies to share an impressive 1200 sq.m.                          fulfilling careers to qualified candidates, and                      delegates. Organised annually by the Dubai Gold
stand as our HR team and our Emirati employees                       supported our organisational efforts to attract and                  & Jewellery Group in association with the Dubai
interacted with a large number of visitors to                        select the best talent for our team.                                 Multi Commodities Centre (DMCC), this year’s
                                                                                                                                          event provided an excellent forum for intense
                                                                                                                                          discussions on the current state of the industry.
                                                                                                                                          Discussions and individual speaker presentations
                                                                                                                                          focused on integrating efforts across the entire
                                                                                                                                          value chain of the gold and jewellery industry,
                                                                                                                                          to collectively face the challenges of price
                                                                                                                                          rises, supply crunch and onslaught from the
                                                                                                                                          luxury industry. The conference also focused on
                                                                                                                                          training and education, certification processes
                                                                                                                                          and adopting innovative retailing to maintain
                                                                                                                                          standards of products and services. DMCC
                                                                                                                                          speakers at the event included Ian MacDonald,
                                                                                                                                          Executive Director, Gold and Precious Metals,
                                                                                                                                          Gaiti Rabbani, Executive Director, Coloured
                                                                                                                                          Stones and Pearls, and Peter Meeus, Executive
                                                                                                                                          Director, Diamonds and CEO, IDL.

Delegation from India                                                                                 Delegation from Sierra Leone

DMCC recently hosted an Indian trade delegation comprising senior officials from the Indian govern-   Headed by the Vice President, H.E. Samuel Sam Somana, a delegation from Sierra Leone visited
ment, including the Consul General of India H.E. Mr. Venu Rajamony. Discussions explored possible     DMCC to introduce the country’s mining potential, and explore possible mutual partnerships. The
cooperation with DMCC for boosting the export of Indian Textiles to Dubai.                            delegation included James Caulker, Protocol; Alex Mansaray, Communications; Ms. Diana Kono-
                                                                                                      manyi, Aid and Dr. Nissim Levy CEO of Target Resources London a London-based listed company
                                                                                                      with several mining concessions in Sierra Leone.
                                                                                                                      DMCC News
                                                                                                               The Source | January – April 2008   05

Right: Dr.
Gaetano Cavalieri,
President, CIBJO
making opening
Below: Opening
ceremony with
senior officials
from World Gold                                                            Right: Ahmed
Council, World                                                             Bin Sulayem at
Diamond Council,                                                           the inauguration
DMCC, CIBJO,                                                               ceremony
UAE Ministry of                                                            Below: Gaiti Rab-
Economy, World                                                             bani, Executive
Federation of                                                              Director, Coloured
Diamond Bourses                                                            Stones and Pearls

                                                                                                                                                   Above: Pearls
                                                                                                                                                   of Arabia Gala
                                                                                                                                                   Left: Desert
                                                                                                                                                   Dinner hosted by

world jewellery confederation
                                                                                                                                                   Gold Division
                                                                                                                                                   Below and
                                                                                                                                                   bottom: Cocktail

(cibjo) comes to dubai
                                                                                                                                                   hosted by DMCC
                                                                                                                                                   Diamond Division

 Over 200 professionals from jewellery trade            eight-point action plan towards sustainable
 organisations around the world converged from          humanitarian development. This also covers
 April 13-16, at the Grosvenor House hotel in           issues specific to enviornmental sustainability
 Dubai, to attend the 2008 Congress of the World        and protection of labour rights in the context of
 Jewellery Confederation, also known as the             the jewellery industry.
 Confédération Internationale de la Bijouterie,            Gaetano Cavalieri, President, CIBJO, said: “We
 Joaillerie et Orfèvrerie (CIBJO). The congress         are extremely pleased to partner with DMCC to
 was inaugurated by H.E Mohammed Bin Abdul              hold this congress in Dubai, which is located at the
 Aziz the Undersecretary of the UAE Ministry            heart of the jewellery trade in the Middle East.”
 of Economy, who also delivered the keynote                Other eminent speakers at the congress
 address. Held for the first time in the Middle East,   included Hanifa Mezoui of United Nations’
 this three-day conference was hosted by Dubai          Department of Economic and Social Affairs;
 Multi Commodities Centre (DMCC).                       Cecile Molinier, Director, United Nations
    The Congress initiated a dialogue on challenges     Development Programme; Francois Loriot, Vice
 facing the jewellery industry, trends in corporate     President, International Association of United
 social responsibility and best practices across        Nations MDG Trainers and Dr. Michael Hopkins,
 the value chain of jewellery trade. This year’s        Managing Director, MHCi International Ltd.,
 congress was themed around the United Nations          Professor of Corporate Responsibility and Business
 Millenium Development Goals (MDG), an                  Performance at Middlesex University, London.
  06                 DMCC News
                     The Source | January – April 2008

from the bush to the cup:
ExCErptS of An IntErvIEw wIth SAnjAy SEthI, hEAD of DUbAI tEA trADIng CEntrE

Mention ‘tea’ and images of steaming hot cups of the         held in most producing countries. The practice
beverage are conjured – served in a variety of forms         began in 1679 when tea from various parts of India
with milk, lemon or ginger, and that is probably the         and China would be imported to London, and sold
extent of our association with the beverage.                 at the famous London Tea Auction. I continued with
   Consider tea as a commodity however, and a whole          tea tasting, but also moved into trading. I was
new scenario evolves. Most of us are unaware that the        probably the youngest tea auctioneer in Calcutta,
consistent taste and strength that we take for granted in    and really enjoyed sitting on a dias, calling the lot
our daily ‘cuppa,’ is the result of meticulous effort and    numbers, generating demand from buyers and
scrupulous attention to detail. “The quality of the tea      knocking a deal. I was lucky to be working for a
can vary from bush to bush and even from hour to hour        young company with a dynamic management
depending on when the customary ‘two leaves and a            team. They pushed me into exploring several areas
bud’ are plucked,” says Sanjay Sethi, Head of Dubai Tea      of the business, which though uncomfortable at that      teas from other producing countries, Dubai gives
Trading Centre (DTTC), an initiative of the DMCC. And        time, proved to be excellent training for the future.    you an opportunity to understand the international
who better than Sanjay - a second generation tea person                                                               tea industry. I also had a clearer view of marketing
- to give us an insight into the intriguing world of tea?    tea tasting, auctions, marketing, manufacture:           and consumer requirements in the Middle East - one
   Sanjay’s father was one of the first Indians to           there are several aspects to the tea trade. did          of the traditional tea drinking regions of the world.
manage a tea plantation in Assam, India, during the          you focus on one aspect at a time?
golden years of the Indian tea industry. Sanjay              It is a whole process – literally from the bush to the   tell us a little about your own company
himself has worked in every aspect of the tea industry       cup. A true tea professional needs to understand the     Sherwood LLC was set up in 1995 as the Middle East
since starting out as a tea taster at the young age of 17.   whole dynamics and the requirements of the               consultants to companies wanting to launch their
Having completed his schooling from a boarding               consumer to be able to advise the manufacturer. If       own brands. The teas were sourced from 12 different
school in Dehradun, one of the quieter hill stations in      while tasting, you become aware of an unusual taste,     origins and we offered tea tasting services, provided
Northern India (where he says with an enigmatic              you need to be able to identify what went wrong with     advisory facilities related to blending and developed
smile he basically ‘learnt to survive’), Sanjay joined       the process: Was it smoked, or burnt? What went          and packaged in-house brands that were marketed in
college in the busy metropolis of Calcutta. “Classes         wrong in the plantation? Or was it the firing?           the CIS countries, especially Uzbekistan, Tajikistan
were over by 9:40am, and my father would pick me                                                                      and Kazakhstan. We launched three separate brands
up at 9:45. I would work in - Contemporary Tea –             how did the move to dubai happen? could you              - Imperial Tips, Devina and Sheldon – for the
India’s third largest tea tasting and brokering firm.”       describe your early experiences here?                    respective destinations. Over the last 12 years, the
                                                             In 1991, I accepted a job with Dxb General Trading       business has grown considerably and Sherwood has
did you have any other formal training except on             Company, a trading company that needed a tea             increased its packaging capacity from one machine
the job?                                                     professional to expand its business. The company set     to five for tea bags and two for loose tea.
Training in Tea is primarily on the job. I accepted a        up a joint venture initiative with the Choithram
full time job with the same company after                    supermarket chain to launch its own brand - Leone        how did you get involved with dmcc? how was
graduation and the completion of my training.                Tea. I was involved in the development of the product    the concept of dttc born?
                                                             from the blend to packaging and from branding to         DMCC had already been established and the
did you ever consider working in the plantations             marketing. It was one of the first organised brands to   management was exploring a variety of
– like your father?                                          come into the market with a structured marketing         commodities. When I met David through a common
A tea taster is often called upon to advise tea              campaign and a dedicated distribution network.           contact at Dubai Ports, DMCC had already outlined
producers from the marketing and manufacture                                                                          a basic concept for the Dubai Tea Trading Centre
perspective, so there is a close link between the            from the head of the tea division in a trading           (DTTC) and was looking to develop the model
marketing, manufacture and tea tasting. I have often         company to the owner of a tea business: what             further. I came on board as a consultant and worked
visited plantations and understand manufacturing,            made you decide to take the plunge?                      closely with the management to establish the DTTC
but I never really wanted to be based on a plantation.       Working in Dubai for five years had given me an in-      which began operations in March 2005. In fact, I
                                                             depth understanding of the global tea trade.             retained my consultant’s role till December last year
what about tea trading?                                      Contrary to working in a tea producing country,          and have only recently become a full fledged DMCC
Traditionally, sales of bulk tea are through auctions        where you cannot develop close associations with         employee.
                                                                                                                                    DMCC News
                                                                                                                             The Source | January – April 2008    07

  harendra kailath,                                            phillip caraiscos,                                         demet erku,
  director - strategy & planning                               executive director - asset management                      human resources director
  Harendra Kailath, the recently appointed Director            dmcc, chairman of concordia and                            Demet Erku has joined DMCC as Human
  - Strategy & Planning at DMCC, brings along                  mayor of jlt                                               Resources Director to lead the development
  extensive international management consulting                With Jumeirah Lakes Towers well on its way to              and implementation of our corporate HR
  experience in a variety of sectors including                 becoming a vibrant city within a city, DMCC has            strategies, and ensure their alignment with
  owner managed businesses, commodities,                       appointed Phillip Caraiscos as Executive Director          the initiatives of the various business divisions.
  pharmaceuticals, industrial products, oil & gas,             - Asset Management. His immediate task is to               She will be partnering with the management
  defence, government, retail and real estate. At              bring to life Jumeriah Lakes Towers (DMCC’s real           teams in all aspects of people management,
  DMCC, he has been given the mandate to assist in             estate component), where he will assume the                from organisational development and strategic
  the formulation and implementation of corporate              position of ‘Mayor,’ to ensure that the voice of           resourcing to performance management
  as well as divisional strategies and plans, in               the people is not only heard, but addressed. In            and improvement, in addition to employee
  coordination with the senior management                      addition, he is also the Chairman of Concordia,            communications and HR policies. Demet joined
  team. Prior to joining DMCC, Harendra worked                 the facilities management company that has                 Dubai World Group as Group HR Consultant in
  with KPMG for nine years in various positions                been established by DMCC to provide post-                  2004, in addition to taking up HR management
  in London and Bahrain. From 2004 to 2007, he                 construction services to the JLT community.                responsibilities within various corporate
  held the position of Associate Director at KPMG                 Prior to joining DMCC, Phillip has worked with          departments. Before joining DMCC, she was
  Management Advisory, Dubai, and was the                      Qatari Diar Real Estate Investment Authority as            leading the HR function of Istithmar World
  Business Unit Head for the Consumer & Industrial             its Head of Facilities Management. Originally              Aviation. A Turkish national, Demet brings with
  Markets team covering the Lower Gulf. Prior to               from Australia, Phillip is no stranger to large            her over 10 years of international experience
  KPMG, Harendra worked in the management                      community populations having managed the                   gained across various consultancy and internal
  consulting divisions of other well known                     country’s oldest and largest university campus             specialist roles within HR, change management
  international firms such as Deloitte & Touche,               for eight years, in addition to running the                and strategic communications. With a Master’s
  London and Arthur Andersen, Bombay. Having                   Australian Government’s Health Care hospitals              Degree in Social & Organisational Psychology
  taken a first class degree in commerce from the              facilities in Sydney. Having graduated with                from Columbia University, Demet has built
  University of Bombay, Harendra went on to train              a Bachelor of Science, Phillip has completed               her expertise in HR practices across different
                            as a chartered accountant                                  his Masters in Health                                      industries, through her
                            from the Institute of                                      Management before                                          work with leading global
                            Chartered Accountants                                      doing his Master of                                        corporations. She has
                            in England & Wales after                                   Business Administration                                    also worked as a senior
                            which he completed his                                     (MBA) from the University                                  HR Specialist at Akcansa,
                            MBA with distinction from                                  of Technology, Sydney.                                     the leading cement and
                            the City University Business                                                                                          ready-mixed concrete
                            School (CASS), London                                                                                                 producer of Turkey.

why did you opt to work with dmcc rather than                  advice on the most appropriate markets for their teas or   warehouses for flavoured teas and business premises
continue with your own business?                               the best blending solutions. Most importantly, Dubai’s     for members, in addition to tea tasting and blending
Having worked through every step to develop the DTTC           neutrality to the trade - being neither a producer nor a   facilities. DTTC has also contributed significantly to
model, I must admit I am passionate about it. I also see       major consumer – enables it to attract teas from a         bringing the global tea industry together, through
amazing potential for a one-stop shop organisation like        variety of different destinations both for regional        the Global Dubai Tea Forum – a biennial conference
the DTTC that offers a whole host of value-added               consumption and re-export. With DTTC being a part of       held in Dubai. The last such conference held earlier
facilities to the tea trade. Dubai is strategically situated   the DMCC free zone, our strongest USPs are the free        this year, attracted high profile participation from
between the tea producing and consuming countries of           zone benefits of 100 per cent ownership, repatriation of   300 plus delegates from over 35 countries.
the world, many of which have a long way to travel             capital and profits, minimal custom duty and a 50-year        Going forward, I would like to see DTTC and Dubai
before they can access the tea drinking markets directly.      tax holiday on personal and income taxes.                  becoming the centralised mouthpiece for the regional
At DTTC, we offer them the chance to physically clear                                                                     tea trade. Globally, the trade experiences several
and store their tea in Dubai-based warehouses. We              what is your vision for the dttc?                          challenges both from within the industry and from
provide tea tasting services via which they can clearly        We have already announced the new facility for             competing beverages. I see a great opportunity for
qualify their product. Our extensive knowledge of              DTTC (currently under construction) which includes         DTTC to play a leading role in bringing convergence
consumer preferences in the region means we can offer          packaging facilities, temperature controlled               to the industry and give it a new lease on life.
  08             Gold & Precious Metals
                 The Source | January – April 2008

New financial direction for DMCC
Dubai Multi Commodities Centre (DMCC) took
on a whole new financial direction with the
recent announcement that it had applied for
a license to set up a UAE investment company
– Dubai Commodity Asset Management DMCC
(DCAM). The new company, which will be 100
per cent owned and managed by the DMCC, will
develop and seed commodity-linked investment                                                                                   World
products for distribution in the UAE and other                                                                                 Gold
markets. DCAM will be registered as a DMCC
Free Zone company, and established with an
initial capital of AED 25 million.
   With this announcement, DMCC has clearly
expanded its range of activities to include
the financial infrastructure for the setting up
of a commodities market place, in addition
to its primary focus on the physical and
market infrastructure. The launch of DCAM
demonstrates DMCC’s commitment to lead the
industry in global commodities trading and

        innovative trade financing options with dubai gold receipt

  Secured financing has reached                      ancillary services for the Gold and Precious       under the overarching umbrella of the
  unprecedented levels in the UAE with               Metals sector. DGR thus offers traders and         Global Multi Commodities Receipt (GMR),
  the Dubai Gold Receipt (DGR) enabling              banks alike, an ideal trade financing tool.        which provides market participants with
  financing of over $180 million over the past          Ian MacDonald, Executive Director, Gold         an electronic platform for interaction and
  twelve months.                                     and Precious Metals, DMCC, said: “DGR              conducting their trade finance activities.
    Gold traders, bullion banks and vault            is increasingly being recognised as an             The GMR product suite consists of the Dubai
  operators have used the DGR, an electronic         innovative risk mitigating trade financing         Commodity Receipt (DCR), the International
  vault receipt system operated by Dubai             tool, and even international banks are             Commodity Receipt (ICR) and the Dubai
  Multi Commodities Centre (DMCC), to                utilising it to finance gold stored in the         Gold Receipt (DGR).
  enable US $103.8 million of financing,             emirate.”                                            The unique design of DMCC’s DGR system
  against a total of 4, 442 kgs of gold                 DGR, an innovative tool for facilitating        means that gold traders across the world
  and 1500 kgs of silver stored in DMCC-             trade finance activities for gold and silver, is   can access lines of credit from global banks/
  approved vaults in the UAE. All DMCC               an integrated electronic vault receipt system      financiers, against their gold stored in UAE-
  approved vault operators — Brinks Global           designed to enable businesses to access            based vaults.
  Services, Transguard and Group 4 Securicor         lines of credit against their inventories, by        The DGR system also enables transfer
  International — have been utilised for these       pledging and securing them in favour of            of title of the underlying gold or silver to
  transactions.                                      member banks. Under the terms of DGR,              trader members within the system, through
    This innovative electronic financing             members who store precious metal in a              an electronic transfer endorsement process.
  platform can be used for effective risk            DMCC-approved bullion vault can be issued          The title transfer functionality also enables
  mitigation by banks, enabling them to              an electronic DGR against the value of             members to carry out physical deliveries in
  enter into secured financing transactions.         the goods. The member can then use the             the UAE against the gold or silver futures
  The development of the DGR platform                online vault receipt to obtain financing from      contracts traded on the Dubai Gold and
  comes as a result of DMCC’s commitment to          member banks and financiers.                       Commodities Exchange (DGCX), a DMCC
  enhancing the physical infrastructure and             The DGR is one of several alternatives          initiative.
                                                                                             Gold & Precious Metals
                                                                                                           The Source | January – April 2008   09

DMCC to develop and seed
commodity-linked investment products
In a related announcement,         witnessing sustained growth        great interest to institutions     and we believe, establish a new
DMCC also confirmed that it        across the globe, and there        and high net worth individuals     specialty asset class in Shariah,”
will develop and manage a          is considerable interest in        who are looking beyond             said Eric Meyer, Chairman
range of Shariah-compliant         commodity-linked investment        the traditional investment         and Chief Executive Officer of
investment products focused        products. With increasing          areas, and want to participate     Shariah Capital.
on commodities, through a          liquidity arising from sustained   in the commodity boom in             Shaykh Yusuf Talal
joint venture initiative between   high oil prices, regional          a sustainable and Shariah          DeLorenzo, Chief Shariah
DCAM and Shariah Capital,          investors are also on the          compliant manner.”                 Officer of Shariah Capital,
a US-based, publicly-traded        lookout for Shariah-compliant         To confirm its commitment       described the Shariah integrity
company on the Alternative         investment products.               to the development of Shariah-     of DSAM: “Our goal is to
Investment Market (AIM) of            Ahmed Bin Sulayem,              compliant, commodity-backed        maintain the highest Islamic
the London Stock Exchange.         Executive Chairman, DMCC           investment products, DMCC          standards while sourcing
The joint venture entity, Dubai    commented: “DMCC has               intends to purchase a 4.99 per     strategies that deliver superior
Shariah Asset Management           progressively established itself   cent equity share of Shariah       Shariah-compliant returns.”
(DSAM), will be owned 51 per       as a provider of innovative        Capital as part of the joint
cent by DCAM and 49 per cent       products in its mandate to         venture arrangement for DSAM,      “DMCC’s unique foCus on
by Shariah Capital. The finer      promote Dubai as the region’s      after which Dr. David Rutledge,    CoMMoDities anD preCious
details of these projects are      pre-eminent commodity              the CEO of DMCC is expected        Metals will Distinguish
expected to be revealed in the     trading hub. DCAM and DSAM         to be nominated to join Shariah    the DsaM branD, anD we
coming days.                       will offer the region’s first      Capital’s Board of Directors.
   The announcement comes          commodity-linked Shariah-             “DMCC’s unique focus on
                                                                                                         believe, establish a new
at an opportune time when          compliant investment products.     commodities and precious metals    speCialty asset Class in
commodity markets are              We believe these will be of        will distinguish the DSAM brand,   shariah”

                                                                                                         left: ian Macdon-
                                                                                                         ald, eric Meyer,
                                                                                                         dr. david rutledge
                                                                                                         and ahmed bin
   10              Gold & Precious Metals
                   The Source | January – April 2008

Dubai Gold Shares to open doors for
investors to trade in gold                                                                                           Dubai 2007 golD traDe
                                                                                                                     inCreases 29 per Cent to
In a landmark move for the regional investment              James Burton, Chief Executive Officer, World             us$19.03 billion
industry, the World Gold Council (WGC) and Dubai         Gold Council, said: “It is the long-term mission of
Multi Commodities Centre (DMCC) announced                Exchange Traded Gold, supported by the World                Dubai’s gold trade has witnessed year-on-
their partnership to launch fully Shariah-compliant      Gold Council, to remove the barriers to investing           year growth, increasing by 29 per cent to
Dubai Gold Shares with the intent to list them on        in gold across the globe. Our partnership with the          reach US$19.03 billion in 2007, up from
the Dubai International Financial Exchange (DIFX),       DMCC brings together our collective strengths to            US$14.75 billion in 2006, and US$10.73
subject to the Dubai Financial Services Authority’s      allow institutions and individuals seeking Shariah-         billion in 2005. A total of 559 tonnes of gold
(DFSA) approval under the trading symbol “GOLD.”         compliant financial products a simple, secure and           was imported into Dubai in 2007, up by 14
   Dubai Gold Shares will be the first initiative to     efficient method of accessing physical gold without         per cent from 489 tonnes in 2006. Exports
be launched through DMCC’s newly established             having to compromise on their Islamic principles.”          from Dubai increased marginally to 287
investment arm – DCAM, which will set up a joint            The introduction of Dubai Gold Shares is a               tonnes compared to 274 tonnes in 2006.
venture company (Dubai Gold Investments - DMCC)          milestone for the product class, as it is the first         Gold price averaged US$696 per ounce in
with the WGC.                                            dollar-priced security of its kind to be fully Shariah      2007, up from US$604 per ounce in 2006.
   Dubai Gold Shares will provide investors with         compliant. The shares will not be issued until the            “Ongoing investor demand from across
secure, low-cost access to owning gold bullion           physical gold has been specifically allocated for this      the world and global concerns about
without the additional costs normally associated         purpose, and the custodian of the gold has confirmed        currency and inflation underline the
with insuring, storing and transacting in physical       the allocation. The physical gold bars backing the          nature of gold as a safe investment,”
gold. Each DGS will be physically backed by allocated    product will be of Dubai and London Good Delivery           said Ian MacDonald, Executive Director
gold held in a vault and, will allow investors to        Standard, and will be held in the vaults of the             for Gold & Precious Metals, DMCC.
gain exposure to 1/10 of an ounce of specifically        custodian, DMCC, and sub-custodian, HSBC, thereby           “Dubai’s gold trade has also benefited
identified and exclusively-owned gold bullion. It will   ensuring that all activities related to the Dubai Gold      considerably from the tight supply and
also provide investors with the opportunity to trade     Shares are fully transparent and open.                      strong demand fundamentals of the
holdings in gold bullion on the DIFX in a Shariah           Ahmed Bin Sulayem, Executive Chairman, DMCC              metal leading to almost 30 per cent
compliant manner for the first time.                     commented: “Dubai Gold Shares will bring about              increase in the emirate’s gold trade in
   Dubai Gold Shares will form an integral part          increased transparency in Dubai’s gold markets,             2007 despite consistently rising prices.”
of the Exchange Traded Gold (ETG) family of              and will give a significant boost to Dubai’s position         In the fourth quarter of 2007, gold
products, established as a result of an initiative       as a leading financial centre and will ensure greater       trade grew by 34 percent to nearly US$5
by the World Gold Council, the marketing                 integration between the physical and financial              billion from US$3.74 billion in the same
organisation funded by the world’s leading gold          markets.”                                                   period in 2006. Dubai imported 107
mining companies. Gold held by products in the              To ensure that Dubai Gold Shares are wholly              tonnes and exported 77 tonnes of gold in
Exchange Traded Gold stable exceeds US$24.2bn            Shariah compliant, WGC and DMCC have retained               Q4 2007, with the geographical reach of
or 806 tonnes as of 31 March 2008, and represents        Shariah Capital as Shariah advisor. Shaykh Yusuf            the business extending to 101 countries.
more than 86 per cent share of the market for this       Talal DeLorenzo, Chief Shariah Officer of Shariah
category of security. Securities within the ETG          Capital, will enlist a dedicated board of Shariah
family are currently listed on the London, New York,     scholars whose role will be to review contracts and
Johannesburg and Australian stock exchanges, with        agreements relating to the Dubai Gold Shares and
secondary listings in Mexico, Singapore, Euronext        ensure that these are consistent with the principles
Paris, Deutsche Boerse and on Borsa Italiana.            of Islamic jurisprudence.
                                                                                               dr. david rutledge,
                                                                                               James burton,
                                                                                               ahmed bin
                                                                                               sulayem, ian
                                                                                               Macdonald and
                                                                                               Moaz barakat at
                                                                                               the launch of dubai
                                                                                               gold shares
                                                                                                                  The Source | January – April 2008   11

                                                                                                    dgcx & shfe partner for stronger
                                                                                                    trading futures

                                                                                                    Dubai Gold and Commodities Exchange (DGCX)
                                                                                                    recently signed a strategic alliance with Shanghai
                                                                                                    Futures Exchange (SHFE), East Asia’s premier futures
                                                                                                    and commodities exchange, with the objective of
                                                                                                    facilitating deeper cooperation in areas such as product
                                                                                                    development, clearing and technology, both in the UAE

First delivery of Steel Rebar contracts                                                             and the People’s Republic of China. “The agreement with
                                                                                                    Shanghai Futures Exchange will open a new window of
                                                                                                    opportunities for market participants in both regions,”
Dubai Gold and Commodities Exchange (DGCX) crossed a milestone in February’08 with the              said Malcolm Wall Morris, Chief Executive Officer, DGCX.
first-ever delivery of its Steel Rebar Futures contract - executed by JRG Metals & Commodities      The Chairperson of Shanghai Futures Exchange, WANG Li-
DMCC, one of the leading trading & clearing members of the Exchange. Ahmed Bin Sulayem,             Hua said the pace of growth at DGCX and the breadth of
Chairman, DGCX and Executive Chairman, Dubai Multi Commodities Centre, (DMCC),                      its portfolio positions it as a natural regional partner for
inaugurated the Dubai Commodity Receipt (DCR) for Steel Rebar. The Feb 2008 contract was            SHFE. SHFE started the trading of Gold futures contracts
agreed to be taken for delivery by both the buyer Liyakat Ali, Managing Director, Sarah Steel       in January 2007, after approval from the China Securities
Structure Mfg. LLC, and the seller Ramesh Narang, Director of Al Rama Intl. Traders.                Regulatory Commission. Its second important offering,
                                                                                                    SHFE Zinc futures, has been termed the `most popular
                                                                                                    futures product in 2007’ by Futures and Options World.
         dgcx signs mou with bursa malaysia                                                         The exchange currently has futures contracts in copper,
                                                                                                    aluminium, natural rubber and fuel oil.

                                                                                                    dgcx appoints london-based sempra
                                                                                                    metals ltd as broker member

                                                                                                    Dubai Gold and Commodities Exchange (DGCX) appointed
                                                                                                    Sempra Metals Limited (SML), a leading London-based
  DGCX and the Malaysian exchange,                DGCX and Bursa Malaysia will have                 trading and broking company, as a Broker Member, in
  Bursa Malaysia, signed a Memorandum             a platform to share knowledge and                 a strategic decision that will greatly expand the trading
  of Understanding (MOU) in January               explore potential strategic product               horizon of the exchange. Sempra Metals Limited is
  to establish cooperative ties aimed at          development initiatives, which will               authorised and regulated by the FSA and is a ring-dealing
  developing the derivatives markets              mutually benefit the capital markets of           member of the London Metal Exchange, a founder
  in Malaysia and UAE. With the MOU,              the two countries.                                member of the (LBMA) and a member of the London
                                                                                                    Platinum and Palladium Market (LPPM). SML specializes in
                                                                                                    Non-Ferrous Metals, Precious Metals and Plastics, offering
                                                                                                    broking, market making and associated risk management

DGCX volumes surge to all-time high                                                                 solutions to its extensive customer network.

DGCX reported its highest-ever trading volumes in February 2008, marked by intense activity         dgcx approved as ‘recognized market
across metals and currencies. Total volumes traded on DGCX in February peaked at 118,000            operator’ by monetary authority of
contracts, soaring 66 per cent from 70,000 contracts in the same period last year. February         singapore
volumes also surpassed the previous record of 108,190 contracts in January 2008. February
volumes in gold touched an all-time high of 96,100 contracts, rising by a spectacular 57 per cent   DGCX is proud to have secured an approval from the
year-on-year and 12 per cent over the previous month. The total number of contracts transacted      Monetary Authority of Singapore (MAS), making it a
in currencies also surged by a significant 115 per cent year-on-year.                               Recognized Market Operator (RMO) in Asia’s key trading
                              February 2007                           February 2008                 hub. DGCX can now offer Singapore based market
Average daily volume          3500 contracts                          5600 contracts                participants, direct access to its growing portfolio of
Currencies                    13% of total volumes                    17% of total volumes          commodity and currency contracts.
Gold                          86% of volumes (gold futures)           82% of volumes
   12            Diamonds
                 The Source | January – April 2008

        dubai diamond academy awarded first 17 diplomas

  Seventeen new professionals joined
  the ranks of diamond graders having
  successfully completed the inaugural
  8-day diamond grading course, offered
  by the Dubai Diamond Academy, an
  initiative of the Dubai Diamond Exchange
  in partnership with International
  Diamond Laboratories (IDL). Eli Izhakoff,
  President, World Diamond Council; Ernie
  Blom, President World Federation of
  Diamond Bourses (WFDB) and Dr. Gaetano
  Cavalieri, President of CIBJO (World
  Jewellery Confederation) attended the
  first graduation ceremony along with
  senior management from DMCC. Trade
  participants included Dwarkesh Diamonds,             above: first
  Sky Jewellery, Dhamani Jewels, Sparklers             batch of diamond
  International, Gem Corp DMCC, Bhansali               graduates receive
  Diamonds and Damas LLC.

Dubai and Turkey in joint
effort to enhance regional
diamond expertise
Dubai and Istanbul took a joint step to enhance regional expertise in diamonds and
jewellery, with the signing of a Memorandum of Understanding (MoU) between the Istanbul
Chamber of Jewellery (IKO) and DDE – IDL, alongside the Istanbul Jewellery Show.
  As a result of the MoU, IDL will set up a full-fledged laboratory in Istanbul at the
headquarters of the Istanbul Chamber of Jewellery (IKO). The first of its kind in
Turkey, the IDL Laboratory will issue its first certificate in June 2008.
                                                                                          above: peter
  ‘We are very happy to welcome IDL as the first international diamond grading            meeus and youri
laboratory to Istanbul. High quality certificates, offered locally to the business        steverlynck at
                                                                                          istanbul Jewellery
community are essential for the further development of the Turkish diamond and            show
jewellery business. IDL has the right products and services to respond to that need,’     left: istanbul
                                                                                          Jewellery show
said Allaattin Kameroclu, President of IKO.
  Further, from May 2008 the Dubai Diamond Academy will set up a permanent
branch in Istanbul. The training will focus on diamond grading, covering areas such
as evaluation of polished diamonds, analysis of physical and optical characteristics,
in addition to explaining the use of various tools. Participants will learn how to
determine the quality of diamonds based on their colour, clarity and cut.
  ‘Turkey has become a leading jewellery manufacturing centre and a rapidly
growing diamond jewellery consumer market. A presence in Istanbul is the logical
next step for Dubai,’ commented Peter Meeus, Executive Director – Diamonds,
DMCC and CEO of IDL.
                                                                                                                The Source | January – April 2008   13

Dubai and China join hands to promote jewellery trade
Jewellery trade between        between both countries, with                               Secretary of the Panyu People’s      markets in the high growth
Dubai and China received a     a special focus on diamonds                                Government, the 11-member            economies of the Middle East.”
significant boost when Dubai   and coloured stones. This MoU                              delegation from the Government          DMCC and the Government of
Multi Commodities Centre       has come soon after the recent                             of Panyu visited the DMCC offices,   Panyu will form a four-member
(DMCC) signed a Memorandum     visit of His Highness Sheikh                               ahead of the signing of the MoU.     steering committee to assist in
of Understanding (MoU) with    Mohammed Bin Rashid Al                                     Ahmed Bin Sulayem, Executive         discussing the wider scope of
the People’s Government of     Maktoum, Vice-President and                                Chairman, DMCC, presented each       the MoU. The MoU also seeks
Panyu District, China. The     Prime Minister of the UAE and                              member of the delegation with a      to encourage youth exchange
MoU focuses on increased       Ruler of Dubai, to China to                                Chinese edition of His Highness      programmes and establish
cooperation leading towards    strengthen ties between the                                Sheikh Mohammed’s book: Royati       cultural delegations in the
mutual growth and the          two nations.                                               (My Vision).                         fields of art and music, with the
promotion of jewellery trade      Led by Mr. Tan Ying-hua, Party                             Under the terms of the MoU,       intention of promoting friendship
                                                                                          both parties will mutually           between the two countries.
                                                                                          promote jewellery trade, with           Ahmed bin Sulayem,
                                                                                          the intention of collectively        Executive Chairman, DMCC,
                                                                                          developing a strong presence         said that: “DMCC is very
                                                                                          in international markets and         pleased to enter into this highly
                                                                                          establishing a global influence.     significant relationship with
                                                                                          This will be accomplished            the Government of Panyu,
                                                                                          through the exchange of market       China, which will open up new
                                                                                          expertise in jewellery design,       avenues for strengthening trade
                                                                                          training, business opportunities     links between two prominent
                                                                                          and educational initiatives,         economies.
                                                                                          in addition to facilitating the         Panyu, a district of Guangzhou
                                                                                          reciprocal operation of visiting     situated in the Guangdong
                                                                                          jewellery trade delegations.         province, accounts for more
                                                                                             Mr. Tan Ying-hua, said: “Our      than a fifth of China’s export
                                                                                          MoU with DMCC, the leading           of gold and inlaid jewellery
                                                                   left: dmcc Gov-        government-backed centre for         alone. Panyu has nearly 400
                                                                   ernment of panyu
                                                                   signing ceremony       commodities trade in Dubai,          enterprises employing more
                                                                   below: dmcc of-        will enable us to explore the        than 70,000 workers within the
                                                                   ficials with chinese
                                                                   delegation             extensive scope of the emerging      jewellery trade.
  14            Diamonds
                The Source | January – April 2008

                                                                                                          Idl offers dIamond
                                                                                                          certIfIcatIon servIces
                                                                                                          to damas across 16

                                                                                                          Consumers wishing to purchase
                                                                                                          the best quality diamond
                                                                                                          jewellery and products can now
                                                                                                          buy with confidence as the result
                                                                                                          of a new agreement signed
                                                                                                          between the IDL and Damas. IDL
                                                                                                          certificates are available with
                                                                                                          diamond jewellery from any of
                                                                                                          Damas showrooms with in-house
                                                                                                          brands including Hayati, Dibla,
                                                                                                          Solitaire, Damas cut and others.
                                                                                                          IDL offers a product quality
                                                                                                          certification, following a careful
                                                                                                          examination of the item in its
                                                                                                          high tech laboratories by its
                                                                                                          experienced team of gemologists
                                                                                                          and graders. The certificates will
                                                                                                          offer a grading system for all
                                                                                                          loose diamonds and diamond
                                                                                                          jewellery from various Damas in
                                                                                                          house brands.

Dubai’s diamond trade reached
US$11.23 billion in 2007
Diamond trade in the UAE witnessed record             Polished diamond imports from India reached         Idl jewellery
growth in 2007 crossing the psychological mark      US$2.33 billion in 2007, an increase of 88 per cent   certIfIcatIon servIce
of US$ 10 billion. Dubai’s total diamond trade      from US$1.24 billion in 2006, while imports from
increased by 53 per cent to reach US$11.23          Belgium rose by 50 per cent to US$ 630 million,       IDL has extended its
billion, according to statistics by the Dubai       up from US$ 420 million the previous year. In the     certification services to
Diamond Exchange (DDE).                             same period, exports of polished diamonds rose by     include finished jewellery
  The Emirate’s rough diamond trade recorded a      115 per cent to US$ $2.73 billion.                    pieces, with the certificates
29 per cent increase from 2006 to reach US$4.82       Rough diamond imports to Dubai reached US$2         providing details on both
billion, while trade in polished diamonds           billion in 2007, an increase of 28 per cent, while    precious metals and precious
increased by a massive 88 per cent to reach         exports stood at US$2.82 billion for the same         stones, including diamonds.
US$6.41billion. In 2006, Dubai’s total rough        period, up 19 per cent. The sharpest increase in      They provide a description of
trade amounted to US$3.93 billion while total       rough import came from Russia (89 per cent),          the entire jewellery piece and
polished trade was US$ 3.39 billion.                South Africa (133 per cent) and Angola (78 per        include identification, weight
  Polished diamond imports to the Emirate           cent), three leading diamond producing countries.     and precious metals used, in
increased by 73 per cent to US$ 3.68 billion in       Youri Steverlynck, Chief Executive Officer,         addition to listing the number
2007, up from US$2.12 billion in 2006, confirming   Dubai Diamond Exchange said: “It is encouraging       of diamonds and precious
Dubai’s role as a gateway to the rapidly growing    to see more rough diamonds coming directly            stones, their natural character
markets of the Middle East. This was mainly due     from producing countries and more polished            as well as their shape and
to sharp increased imports from Belgium and         diamonds coming from established diamond              measurements, clarity, colour
India, currently the largest trading and diamond    centres like Antwerp and Mumbai being                 and finish.
manufacturing centres in the world.                 marketed in Dubai.”
                                                                                            The Source | January – April 2008   15

Sheikh Majed bin Mohamed
bin Rashid Al Maktoum unveils                                                             dubaI welcomed varda shIne,
Arabic IDL Diamond certificate                                                            managIng dIrector dtc

                                                                                          The DMCC recently welcomed Mrs. Varda
Dubai-based International Diamond Laboratories (IDL) has                                  Shine, Managing Director of DTC to Dubai.
become the world’s first issuer of Arabic-language diamond                                The visit is part of DMCC’s Diamond Division’s
certificates. The first such certificate was presented by His                             efforts to familiarise leading diamond
Highness Sheikh Majid bin Mohamed bin Rashid Al Maktoum, to                               producers with the rapidly developing
Tamjid Abdullah, Deputy Managing Director of Damas Jewellery,                             Dubai market. The two-day agenda entailed
for a 24-carat pear shaped diamond.                                                       meetings with officials and industry leaders
  IDL, an initiative of DMCC, provides high-quality diamond                               as well as a site visit to Almas Tower and the
certification services from its headquarters in the UAE, and branch                       new diamond exchange hall.
offices in Antwerp and Mumbai. The Arabic-language certificate is
an industry-first offering from IDL for Arab clients.                 below: sheikh
  IDL’s Arabic language certificates are recognised worldwide. For    majid bin mo-
                                                                      hamed bin rashid
international trade purposes, the certificate mentions the diamond    al maktoum with
grade and colour in English, while the remaining aspects such as      tamjid abdullah,
                                                                      peter meeus and
the weight, cut and clarity are listed in Arabic.                     ahmed bin sulayem

                                                                                          uae welcomes 2nd kImberley
                                                                                          process revIew

                                                                                          The United Arab Emirates (UAE) became
                                                                                          the first country in the world to invite a
                                                                                          second review of its implementation of the
                                                                                          Kimberley Process Certification Scheme
                                                                                          (KPCS). The UAE invited its first review in
                                                                                          May 2004, soon after it became a signatory
                                                                                          to the scheme.
                                                                                            The second KP review for the UAE was
                                                                                          conducted by a high profile team comprising
                                                                                          representatives from the United States,
                                                                                          South Africa, India, the World Gold Council
                                                                                          and Global Witness. The team engaged in a
                                                                                          four-day comprehensive programme, which
                                                                                          highlighted every aspect of the diamond
                                                                                          trade in the UAE. Last year, the UAE was
                                                                                          also appointed as a member of all working
                                                                                          groups of the Kimberley Process including
                                                                                          monitoring, on statistics or on diamond
  16              Coloured Stones & Pearls
                  The Source | January – April 2008

RetuRn of the lustRous peaRl
Nearly a century after the last pearling fleet        and into the region’s storied past. This project,
lifted anchor from Dubai, the Emirate’s historic      in association with Paspaley Pearling Co. PTY
status as the pearl centre of the Gulf is set to be   Ltd, the world’s original south sea pearl company
revived in truly spectacular fashion. Recently,       and producer of the world’s finest pearls, is the
at an official ceremony at The World, Dubai           first stage of Dubai’s plan for reestablishing the
Multi Commodities Centre (DMCC) unveiled              emirate as a centre for the global pearl trade.
its ambitious plans for “Pearls of Arabia,” a         “Less than a century ago, pearling was the very
landmark experience centre that will feature          lifeblood of Arabia, accounting for some 80,000 jobs
a pearl-themed cultural heritage centre, a            in the UAE alone and representing 95 per cent of the
performing arts theatre, an exhibition gallery        country’s total revenues. ‘Pearls of Arabia’ presents
and a themed restaurant alongside boutiques           age-old wisdom in a modern and contemporary
inviting participation from the leading               fashion to revive the region’s historic legacy for the
international names in the pearl industry. The        benefit of future generations,” Ahmed Bin Sulayem,
6,000-square-metre facility is expected to be         Executive Chairman, DMCC.
complete by the end of 2010.                             “Pearls represent a unique partnership
   When completed, visitors will have the             between man and nature, and the pearl story is
opportunity to travel to this unique destination      a beautiful one just waiting to be told,” said Gaiti
by water ferries, which will transport them           Rabbani, Executive Director, Coloured Stones
across the manmade archipelago of 300 islands         and Pearls, DMCC. “For thousands of years,
                                                       Coloured Stones & Pearls
                                                               The Source | January – April 2008   17

Above: Nicholas
Paspaley, Executive
Chairman, Paspaley
Pearling Co. PTY Ltd;
Ahmed Bin Sulayem,
Executive Chairman,
DMCC; and Gaiti
Rabbani, Executive
Director, Coloured
Stones and Pearls,

armed only with their knowledge of the sea and
stars, men have braved the perils of the oceans in
search of such perfection.
  Nicholas Paspaley, Executive Chairman of
Paspaley Pearling Co. PTY Ltd, said at the inaugural
ceremony, “We are delighted to collaborate
with DMCC to revitalise the region’s traditional
association with pearls. Together, we will resurrect
Dubai’s reputation as one of the world’s premier and
most important pearl destinations.”
  DMCC’s objective is to develop the global
and regional pearl market with specific focus
on trading, grading, trade events and auctions
alongside trade and consumer education.
Further cementing its position in the world
of pearls, DMCC will also investigate the
introduction of a uniform certification for
pearls, based on globally recognised quality
  18             Coloured Stones & Pearls
                 The Source | January – April 2008

                 Gemstone traders to
                 congregate in Dubai for ICA                                                                                          dgc oRganizes sale
                                                                                                                                      foR fine bRazilian
                 International Gem Show                                                                                               emeRalds

                                                                                                                                      Dubai Gems Club, an
The region’s first-ever dedicated coloured stones trade         industry, we are confident that the ICA International Gem             exclusive trading platform
fair will be held in Dubai from 13th -15th October 2008         Show will evolve into an important highlight in the calendar          which facilitates, supports,
under the patronage of DMCC. ICA International Gem              of the global coloured stones industry.”                              and grows the trade
Show Dubai 2008, is being organised by the International           Ms. Gaiti Rabbani, Executive Director, Coloured Stones             in coloured stones in
Colored Gemstone Association (ICA) and supported by             and Pearls division, DMCC, said: “The ICA Gem Show will               the Middle East region,
the Middle East GemBureau.                                      effectively fill the gap in the current product offering for the      successfully organised
  This three-day event is expected to attract a diverse         regional trade, and will enable the growth of the physical            a week-long B-2-B sale
range of participants from across the value chain of the        trade in coloured gemstones in Dubai. Last year, DMCC                 for top quality emeralds
global coloured stones industry, including manufacturers,       supported ICA in establishing a Middle East GemBureau to              from Brazil. One of Brazil’s
providers of technical instruments and others, serving          provide infrastructure, knowledge, expertise and a broad              finest emeralds suppliers,
as a networking platform for traders and allied service         range of resource support services for ICA members across             Canelhas showcased US$2.5
providers. Over 150 exhibitors from the Middle East,            the world. Together, with groundbreaking initiatives such             million worth of emeralds
Thailand, India, China, Hong Kong, Brazil, Australia,           ICA International Gem Show Dubai 2008, we will continue               at the Dubai Gems Club
USA, Germany and Japan are expected to participate.             to grow the value and volume of the coloured stones trade.”           leading to significant trade
  ICA is a non-profit trade association, representing the          Expected to become the leading networking forum for the            transactions.
international coloured gemstone industry in 46 countries        coloured stones trade, the ICA International Gem Show will bring         The sale of Brazilian
worldwide. With over 500 members, ICA partners with             together the essence of the industry. It will include participation   emeralds through Dubai
industry bodies and organisations to foster growth and          from members of the ICA, DMCC and the Dubai Gems Club, in             Gems Club is a growing
networking opportunities in the coloured stones industry.       addition to country specific representation from key coloured         recognition of Dubai as the
  Mr. Andrew Cody, President of the ICA, said: “Capitalising    stone producing countries worldwide, thus ensuring that the           trade hub for top quality
on Dubai’s established and prospering retail jewellery          event is accessible only to ethical gem traders.                      precious stones including
                                                                                                                                      rubies, emeralds, and
                                                                                                                                      sapphires from around the

New public face for Polygon                                                                                                           world. CANELHAS BRAZIL,
                                                                                                                                      often referred to as “King
                                                                                                                                      of Brazilian Emeralds”
Polygon, the jewellery industry’s largest B2B e-marketplace,    Festival (DSF). Through sponsorship of the DMCC, all                  produces some of Brazil’s
unveiled a new look-and-feel this month, with a complete        DGJG retailers accessed the global e-marketplace for                  finest cut emeralds from
redesign of the introductory sections of the website,           their sourcing needs, giving them direct connection to the            the Minas Gerais (mines of
making it more user-friendly. The content is “search-engine     world’s largest inventory of polished diamonds, coloured              the general woods) region.
optimized” (SEO) and provides quick and easy access to          stones and gold jewellery available for business.                     The family business has
the key features that benefit retailers and wholesalers in                                                                            been in operation since 1970
today’s economic environment. A Quick Search area allows                                                                              and now supplies major
“outsiders” the ability to search the four product databases                                                                          wholesalers worldwide.
(diamonds, coloured stones, watches, and finished
jewellery) for content, but does not reveal price or sourcing
data. Jacques Voorhees, Founder and President, Polygon,
commented: “Polygon’s new look provides a compelling
image of what we have been to the jewellery community for
over 20 years: an invaluable, multi-faceted resource.”
   In operation since 1984, Polygon is the jewellery
industry’s largest and most active business-to-business
online marketplace, with the Polygon diamond database,
estimated to exceed US$3 billion in wholesale value.
  Polygon also partnered with the Dubai Gold &
Jewellery Group (DGJG), earlier this year, to provide
sourcing support for retailers during the Dubai Shopping
                                        Coloured Stones & Pearls
                                                      The Source | January – April 2008            19

                                                    gaiti Rabbani elected vice
                                                    pResident of cibjo peaRl

                                                    From left to right: Shigeru Akamatsu, Vice President; Gaiti
                                                    Rabbani, Vice President; Roland Naftule, President of Sector
                                                    III and Martin Coeroli, Vice President

                                                    Ms Gaiti Rabbani, Executive Director,
                                                    Coloured Stones and Pearls Division at

ICA reception at                                    DMCC was elected as the Vice President
                                                    of the Pearl Commission, during the 2008
                                                    annual congress of CIBJO, the World

Tucson and Tokyo                                    Jewellery Federation. DMCC hosted the
                                                    CIBJO congress in Dubai from April 13th to
                                                    16th, 2008
International interest in Dubai has never been
stronger, and this was clearly evident at the ICA
receptions sponsored by the DMCC Coloured
Stones and Pearls division at Tokyo and Tucson,
to promote the forthcoming ICA International
Gem Show Dubai 2008. More than 60 booths
have already been booked for this event in
October at these two international forums.
                                                    dubai peaRl exchange
                                                    witnesses fiRst pRivate sale

                                                    European buyers congregated in Dubai
                                                    during January this year, for the first
                                                    private sale at the Dubai Pearl Exchange.
                                                    DMCC facilitated this sale conducted by an
                                                    important South Sea pearl company.
  20               DTTC News
                   The Source | January – April 2008

                                                                                          Right: Sanjay
                                                                                          Sethi- Head, Dubai
                                                                                          Tea Trading Centre
                                                                                          addressing the
                                                                                          Below: Main
                                                                                          picture: Ahmed Bin
                                                                                          Sulayem- Executive
                                                                                          Chairman, DMCC,
                                                                                          Farid Mohammed
                                                                                          General, Dubai
                                                                                          World and Dr.
                                                                                          David Rutledge-


World of tea comes to dubai
The tea industry visited Dubai earlier this year, as   IMA S.P.A. the world-wide leader in the teabag          infrastructural advantages for the global tea
leading international industry experts gathered        manufacturing and coffee pod packaging                  trade. Highlighting Dubai’s role as the trade hub
for the 2nd Global Dubai Tea Forum. Organised          machinery, Glatfelter Composite Fibers a major          in the region and the ideal platform to host the
biennially by the Dubai Tea Trading Centre, an         supplier of food infusion and filtration products       Global Dubai Tea Forum, he said: “Driven by a
initiative of DMCC, the two day meet was the           and teabag papers, Martin Bauer the world’s             diverse economy, Dubai is in the midst of a period
second edition of the event and truly established      leading supplier for herbal and fruit infusions,        of dramatic growth averaging around 10 per cent
Dubai’s role as an upcoming hub of tea trade.          DPH that represents material suppliers for the          for the past five years. The emirate’s GDP growth
  The forum attracted more than 300 delegates          tea industry, the James Finlay Group a globally         is estimated to reach USD108 billion by 2015,
with the participants comprising some of the           integrated tea company, Alokozay Tea a leading          with per capita income of USD 44,000. Trade
most high profile names in the tea industry            brand in the region, DP World one of the largest        through the emirate represented 80 per cent of
including producers, tea manufacturers,                marine terminal operators in the world, Teamac          the UAE’s US$233 billion foreign trade in 2006.”
merchants, filter paper manufacturers and              which specializes in tea bag packaging machines            Tea trade transacted through the Dubai Tea
indeed all stakeholders from across the value          and the Tea Board of India, a statutory body            Trading Centre (DTTC) has witnessed year on
chain of the tea industry.                             responsible for export promotion of Indian tea,         year growth recording 5.2 million kilos in 2007,
  Supported by leading industry names, the             under the Ministry of Commerce & Industry,              up from 4.3 million kilos in 2006, according
forum has gradually begun to establish itself          Government of India.                                    to Ahmed bin Sulayem, Executive Chairman,
as the premium international tea event that              Delivering the keynote address, Farid                 DMCC. Total tea imports into Dubai touched 96.6
enables frank discussions on all matters related       Mohammed Ahmed, Secretary General of Dubai              million kilos in 2007.
to tea. This year, the event was sponsored by          World, underlined Dubai’s geographical and                 Discussion topics at the forum ranged from
                                                                                                                    DTTC News
                                                                                                         The Source | January – April 2008   21

                                                                                                                            indian tea shares
                                                                                                                            spotlight at
                                                                                                                            gdtf 2008
                                                                                                                            India shared the spotlight
                                                                                                                            at the second Global
                                                                                                                            Dubai Tea Forum,
                                                                                                                            organised by Dubai Tea
                                                                                                                            Trading Centre (DTTC),
                                                                                                                            from February 19-20,
                                                                                                                            2008. Two unique events
                                                                                                                            were organised during
                                                                                                                            the forum to familiarize
                                                                                                                            the trade and consumers
                                                                                                                            with the quality attributes
                                                                                                                            of both Darjeeling and
                                                                                                                            South Indian teas. A
                                                                                                                            tea tasting session of
                                                                                                                            various Darjeeling teas
individual producing country challenges to          Executive, International Tea Committee, UK.        Above: Tea tasting   was organised with the
                                                                                                       sessions alongside
general concerns affecting the entire industry.     He elaborated on various economic and social       the Global Dubai     objective of providing an
High-profile speakers highlighted the growth        factors, such as food price inflation and worker   Tea forum            insight into the special
outlook for tea and focused on identifying          welfare, which will have a bearing on the global                        characteristics of the
consumer trends in order to further bridge the      tea trade and consumption patterns.                                     world famous Darjeeling
supply-demand gap in this truly global industry.       Sanjay Sethi, Head of Dubai Tea Trading                              teas. In addition,
  Kaison Chang, Senior Economist,                   Centre said: “What has been most gratifying is                          the United Planters
Commodities, Food and Agriculture                   the high level of participation witnessed this                          Association of Southern
Organization of the United Nations, said: “World    year, with more senior officials and decision                           India and the Tea Board
tea production reached an estimated 3600            makers attending the event. The response has                            of India hosted the
million kilos at the end of 2006, with markets      been tremendous and delegates have commented                            fourth Golden Leaf India
such as Kenya, India and Sri Lanka driving this     unanimously on the quality of discussions and                           Awards: Southern Tea
robust growth. We expect tea production to          networking opportunities that the conference                            Competition (TGLIA-STC),
maintain healthy growth levels over the next four   provided.”                                                              which recognises and
years and surpass the 4000 million kilo mark in         The networking component of the tea                                 acknowledges exceptional
2010.”                                                forum also proved to be a great success with                          taste and quality among
  The forum also featured insights into tea           delegates relaxing to the beat of traditional                         some 60 varieties of
consumption trends in Africa, Europe and              Arabic music and the slow rhythm of the Dhow                          Southern Indian teas.
America as presented by Manuja Peiris, Chief          as it cruised along the Creek.
    22             Energy
                   The Source | January – April 2008

Leading the way to carbon reduction
In an increasingly carbon-conscious world, and with one of the             with Dana Gas and Crescent Petroleum to reduce this impact
largest per capita carbon footprints, it is important that the UAE         and place the UAE at the forefront of regional trading of carbon
proves itself to be a responsible consumer of energy. DMCC has             credits,” said Ahmed Bin Sulayem, Executive Chairman, DMCC.
taken the lead in this area, with several initiatives aimed to reduce        “This strategic alliance will pioneer the development of CDM in
carbon emissions in the region.                                            one of the world’s most carbon intensive industries,” added Adrian
  The first such initiative was DMCC and its partner EcoSecurities         Fernando, Chief Operating Officer of EcoSecurities. “It will encourage
signing a strategic alliance agreement with Dana Gas PJSC and              sustainability and efficiency throughout operations across the region.”
Crescent Petroleum of Sharjah, to jointly develop emissions                  “Crescent Petroleum is firmly committed to the Kyoto Principles
reduction projects in the oil and gas sector, under the Kyoto              and to playing an active role in benefiting our environment
Protocol’s Clean Development Mechanism (CDM).                              through a proactive approach to clean emissions solutions,”
  While Dana Gas and Crescent Petroleum will identify projects             concluded Badr Hamid Jafar, Executive Director of Crescent
across their regional oil and gas operations to reduce greenhouse          Petroleum. “Our partnership with DMCC and EcoSecurities brings
gas emissions and improve energy efficiency, EcoSecurities and             together a powerful consortium to achieve this important aim
DMCC will facilitate the development of the CDM component of these         across the Middle East oil and gas sector.”
projects. They will also create value by trading the Certified Emissions     Rashid Saif Al-Jarwan, General Manager of Dana Gas,
Reduction (CERs) credits generated. DMCC and EcoSecurities will            added: “Dana Gas has always aimed to conduct its operations to
also collaborate with Dana Gas and Crescent Petroleum to jointly           international standards. This partnership in the area of CDM is
identify greenhouse gas emissions reduction opportunities with             the logical next step, applying market techniques to enhance the
regional energy companies and governments.                                 environmental benefits of major energy projects in our region.”
  Dana Gas and Crescent Petroleum’s expertise in the oil and gas             This agreement follows the MoU signed between DMCC and
sector combined with DMCC and EcoSecurities’ technical capacity in         EcoSecurities to promote CDM projects and generate emission
CDM project development is expected to create a robust partnership.        reduction credits within the UAE and elsewhere in the region, while
  “Emissions from the oil and gas sector form the largest part of          raising the profile of Dubai as a regional centre for carbon emission
the Middle East’s carbon footprint. DMCC is delighted to partner           reductions and trading.
                                                                                                                                                     Left: Ahmed Bin
                                                                                                                                                     Sulayem, DMCC,
                                                                                                                                                     Badr Jafar, Crescent
                                                                                                                                                     Petroleum, Adrian
                                                                                                                                                     Fernando, EcoSecu-
                                                                                                                                                     rities and Rashid
                                                                                                                                                     Saif Al-Jarwan,
                                                                                                                                                     Dana Gas
                                                                                                           The Source | January – April 2008   23

dmcc energy division welcomes
thai national oil company as
100th member

DMCC recently welcomed PTT International
Trading (PTTT) DMCC, a subsidiary of Thailand’s
national oil company, as the 100th member
company of its fast-growing Energy Division.
PTTT DMCC is fully owned by Singapore-based
PTT International Trading Pte. Ltd., whose parent
company is the PTT Group otherwise known as
Thailand’s national oil company and a leading
petroleum trading company in Southeast Asia.
PTT’s choice of DMCC as the base for its Mideast
trading operations provides a significant addition
to the list of prominent energy companies already
                                                       Nakheel goes green
present in Dubai and offers yet another clear
indicator of Dubai’s importance as an energy
trading centre.
                                                       with DMCC support
   With its core business being petroleum trading      DMCC and its partner, carbon reduction              to continue delivering both cutting edge
across East Africa and the Middle East, PTTT           project developer EcoSecurities, have               and iconic developments and long-term
DMCC will use its new strategic base in Dubai to       signed a Memorandum of Understanding                environmental sustainability,” said Ahmed
facilitate the supply of crude, refined products       with Nakheel, Dubai’s premier real estate           Bin Sulayem, DMCC Executive Chairman.
and petrochemicals to Southeast Asia, primarily        development company, to jointly identify            “The combination of DMCC’s expertise in
Malaysia, the Philippines, Singapore, Vietnam and      potential projects for reducing greenhouse gas      CDM project development and Nakheel’s
Thailand. PTTT DMCC will initially focus its trading   emissions and improving energy efficiency           position as a world leader in innovative urban
operations on fuel oil and middle distillates,         across the whole of Nakheel’s operations.           project design creates a strong partnership for
before moving into the provision and storage              DMCC will facilitate the development of the      ensuring these challenges are met.”
of oil products to support its bunker trading          CDM component of these projects, which in             Nakheel’s Chief Executive Officer Chris
operations in Malaysia, Singapore and Thailand.        turn will create value by generating Certified      O’ Donnell, added: “Nakheel has always
   Surong Bulakul, Chairman of the Board of            Emissions Reduction (CERs) credits that can         been committed to providing ambitious
Directors, PTTT DMCC, said: “Dubai presents            be traded on global carbon markets. This will       and innovative low-carbon solutions that
an ideal hub for PTT to establish its Mideast          enhance Dubai’s position as a leading centre        will ensure long-term environmental
oil trading operations. We are pleased to be           for carbon emissions reduction initiatives and      sustainability across our various projects. We
associated with DMCC in capitalising on the            firmly establish its place within one of the        are delighted to be working with DMCC to
abundant opportunities available in this energy-       world’s most rapidly growing industries.            develop a proactive approach in identifying
rich region.”                                             Nakheel’s groundbreaking innovation is           clean emissions solutions that will further
 Dr Tilak Doshi, Executive Director, Energy,           already changing how the world views the            reduce Nakheel’s carbon footprint.”
DMCC, added, “The PTT Group is already a major         future of urban design. This partnership with         “The opportunity to collaborate with
participant in Southeast Asian oil markets. The        DMCC will ensure that such innovation is            experts on low-carbon and CDM opportunities
expansion of its trading operations to Dubai           accompanied by environmental best practices         from the start of the feasibility and outline
will help consolidate its move towards market          that create a valuable and sustainable legacy for   design stages of our developments will enable
leadership in that region, as well as highlight to     generations to come.                                Nakheel to effectively deliver solutions
other major energy companies the strategic value          “Energy conservation and the reduction           with longevity” added Nakheel’s Michael
of setting up trading operations here in Dubai.”       of greenhouse gas emissions are the main            Nates, Senior General Manager, HSE &
                                                       obstacles for Dubai to overcome, if it is           Sustainability.
  24              Commodities
                  The Source | January – April 2008

Dubai to become key link in
global cotton supply chain
With global cotton production touching 26.74             “The UAE has made significant strides in           infrastructure for facilitating physical trade in
million tonnes in 2007, it is only natural            the last decade, and has become a leading role        a wide range of soft commodities, including
that DMCC has begun exploring the idea of             model for young nations seeking to achieve            cotton. The Dubai-based, special purpose,
establishing Dubai as a key link in the global        sustainable economic growth particularly in the       DMCC-owned trading entity will offer online
cotton supply chain. The concept took first steps     areas of trade, tourism, real estate and finance.     quotes and provide easy access to Uzbek cotton
towards reality when DMCC recently signed an          Uzbekistan has a history of friendly relations        with convenient shipments to consumers in the
agreement with Uzprommashimpeks, a trading            with the UAE, and we look forward to building         sub-continent, China and other Asian countries.
company set up under Uzbekistan’s Ministry of         further on this,” said H.E. Elyor M. Ganiev           In addition, DMCC will facilitate trade finance for
Foreign Economic Relations and International          the Minister of Foreign Economic Relations            cotton inventory purchased by traders and stored
Trade. This initiative is also in keeping with        & International Trade “MFERIT,” who was               in Dubai through its indigenously developed
DMCC’s strategic plan to build a cotton trade         present at the signing of the MoU.                    Global Multi Commodities Receipt.
corridor through Dubai.                                  According to the terms of the MoU, Uzbekistan’s      Dr. David Rutledge, Chief Executive Officer,
   The MoU, which coincided with the                  cotton exports will be routed through the             DMCC said: “Uzbekistan is a leading producer
visit to the UAE of H.E. Islam Karimov, the           proposed cotton distribution hub in Dubai, for        of cotton and is keen to explore the market
Uzbekistan President, was signed by Ahmed             feeding Uzbek cotton into Asian markets. As a         opportunities in the emerging Asian markets.
Bin Sulayem, Executive Chairman, DMCC and             significant trade partnership between Uzbekistan      Dubai, with its strategic location between
Mr. Mirzakhidov Khurshid, Chairman of the             and Dubai, this MoU will facilitate Uzbek cotton in   Central and Eastern Asia, along with its excellent
State Joint Stock Company, Uzprommashimpeks.          gaining access to new markets in Asia.                infrastructure and port facilities, is well placed
It is to be noted that Uzbekistan is the second          The partnership also underlines DMCC’s             to provide a trade corridor for Cotton from
largest exporter of cotton after the US.              efforts in creating industry-specific                 Central Asia.”

                                                                                                            “uzbekistan is a leading
                                                                                                            producer of cotton and is
                                                                                                            keen to explore the market
                                                                                                            opportunities in the
                                                                                                            emerging asian markets”

                                                                                                            From left to right: Khurshid
                                                                                                            H Mirzakhidov, Chairman of
                                                                                                            the Board, Uzprommashim-
                                                                                                            peks; H.E. Elyor M. Ganiev,
                                                                                                            the Uzbekistan Minister of
                                                                                                            Foreign Economic Relations &
                                                                                                            International Trade “MFERIT;
                                                                                                            Ahmed bin Sulayem, Execu-
                                                                                                            tive Chairman, DMCC; and
                                                                                                            Dr. David Rutledge, Chief
                                                                                                            Executive Officer, DMCC.
                                                                                                                            The Source | January – April 2008   25

Bridging gaps in commodity
financing through risk                                                                                            dubai: regional hub for trade

management solutions                                                                                              The Fifth Middle East Trade & Export Finance
                                                                                                                  Conference held in Dubai earlier this year, proved
                                                                                                                  to be the industry event of the year for MENA
DMCC’s commodity trade                                                                                            trade professionals. Ashok Das, Executive Director
finance team participated at                                                                                      Soft Commodities and Commodity Finance, DMCC
the 6th Warehouse Receipts                                                                                        discussed regional trade and financing trends
Financing Conference in                                                                                           with a focus on Dubai as the regional trade and
Amsterdam, earlier this year,                                                                                     financing hub. He also presented a case study in
to successfully showcase its                                                                                      trade finance risk mitigation, via DMCC’s innovative
innovative commodity financing                                                                                    trade financing initiative. The Conference attracted
initiative. Dr. David Rutledge,                                                                                   considerable attention from the GCC and greater
CEO, and Ashok Das, Executive                                                                                     Middle East region with significant representation
Director – Soft Commodities                                                                                       from the MENA Hotspots (Sudan, Syria, Iran, Yemen).
and Commodity Finance,                                                                                            Discussion topics included among others Trade
DMCC explained to a niche           commodity inventories held                                                    Services and the Supply Chain, Islamic Finance,
audience how DMCC’s Global          in warehouses worldwide in a                                                  Financial solutions, and Insurance solutions.
Multi Commodities Receipt           safe and secure environment to
(GMR) platform could be used        manage risk, avoid fraud and
to provide sustainable and viable   provide profitable financing
commodity inventory finance         environment for both lenders
and collateral management           and borrowers alike across a                                                  market infrastructure products to
solutions. The focus of the         range of transaction structures.                                              forge stronger ties with plastics
conference was on securing          Ashok Das- Executive Director, Soft Commodities and Commodity Trade Finance   and petrochemical industry

                                                                                                                  DMCC’s Petrochemicals and Plastics division is working
                                                                                                                  closely with the industry in order to identify and
         DMCC BAnK OF BARODA STREnGTHEn RElATIOnSHIp                                                              provide innovative tools, strategies, tangible assets,
                                                                                                                  financial products and infrastructure to help attract
                                                                                                                  global trade and industry to Dubai and to facilitate the
  DMCC met with senior                                                                                            growth of the Plastics and Petrochemical businesses
  officials from Bank of                                                                                          on a regional as well as global scale. One such product
  Baroda including Anil K.                                                                                        designed by the division and soon to be traded on the
  Khandelwal, Chairman                                                                                            Dubai Gold and Commodities Exchange, an initiative
  and MD and and Ashok K.                                                                                         of DMCC, is the world’s first Middle East tradable suite
  Gupta, Chief Executive (GCC                                                                                     of plastics futures contracts.
  Operations) Bank of Baroda.                                                                                        Offering the industry a great way to manage price
  Topics of discussion at the                                                                                     risk and remove a lot of the uncertainty in today’s
  meeting included Bank of                                                                                        volatile markets, the contracts incorporate and
  Baroda’s current role as a                                                                                      integrate the capacity to hedge plastics price risk,
  clearing Banker for DGCX                                                                                        whilst at the same time embracing the GMR (Global
  and a member of GMR suite                                                                                       Multi Commodity Receipt) financing and regional
  in addition to the bank’s                                                                                       plastics storage capabilities.
  mortgage cooperation                                                                                               With the continuing growth and expansion of
  agreement with DMCC for                                                                                         Ethylene production combined with the many other
  JLT properties. DMCC is also                                                                                    advantages that the Middle East has to offer, we
  currently discussing Gold                                                                                       have seen a lot of interest from global companies
  and Diamond financing via                                                                                       wanting to position themselves well for the future
  the bank.                                                                                                       and set up offices in our Free Zone.
    26               Property
                     The Source | January – April 2008

                                                                                                                        concordia to
                                                                                                                        service jumeira
                                                                                                                        lake towers

                                                                                                                        Dubai Multi Commodities
                                                                                                                        Centre Authority
                                                                                                                        (DMCCA) has established
                                                                                                                        Concordia, a joint venture
                                                                                                                        with EMCOR Facilities
                                                                                                                        Services, UAE, to provide
                                                                                                                        master community and
                                                                                                                        infrastructure operations
                                                                                                                        and maintenance services
Above from left                                                                                                         for Jumeirah Lakes
to right: Bryan
Wilson- Executive                                                                                                       Towers (JLT), a dynamic
Director- Property                                                                                                      waterfront community
Division, Ahmed
Bin Sulayem-Ex-                                                                                                         with the highest
ecutive Chairman-                                                                                                       international standards.
DMCC and David
Rutledge-CEO-                                                                                                              Concordia combines
DMCC                                                                                                                    the global real estate
                                                                                                                        expertise of EMCOR and
                                                                                                                        the regional experience
                                                                                                                        of DMCCA, allowing
                                                                                                                        it to provide a great
                                                                                                                        solution to all businesses
                                                                                                                        and residents of JLT.
                                                                                                                        Concordia will also offer
                                                                                                                        a comprehensive suite
                                                                                                                        of facilities and property
                                                                                                                        management services to
                                                                                                                        DMCCA buildings and
                                                                                                                        developers, owners and
                                                                                                                        tenants within the JLT

dmcc hands over almas tower                                                                                                Concordia will manage
                                                                                                                        the entire JLT community
                                                                                                                        infrastructure including
                                                                                                                        mechanical and electrical
                                                                                                                        reticulation systems,
DMCC laid another significant step towards establishing a     said: “The completion of Almas Tower is a significant     lakes, roads, street
diamond industry cluster in Dubai, with the handover of       step towards DMCC’s objective of establishing a           lighting, “hard” &
offices in the Almas Tower to its diamond sector members.     dedicated market place, providing industry-specific       “soft” landscaping and
Located within the upcoming Jumeirah Lakes Towers             market infrastructure and full range of facilities for    irrigation facilities In
development, the 65-floor Almas Tower is DMCC’s flagship      the diamond trade in Dubai. Equipped with hi-tech         addition, it will provide
real estate development, purpose built to cater to the        security systems and secure vaulting facilities, Almas    security, cleaning,
specific needs of the diamond industry.                       Tower offers an entire range of diamond trade related     waste management and
   DMCC handed over the keys to member companies              facilities, and will lay the foundation for a dedicated   recycling services for the
occupying offices within Almas Tower, in two phases earlier   diamond industry cluster in the region. It will also      JLT development.
this year, in two separate ceremonies held in January and     house Dubai Diamond Exchange, the region’s only
March. The clients can now complete the individual fit outs   diamond exchange. We look forward to seeing Almas
of their offices before they move into their new offices.     Tower develop into a thriving hub of diamond trade as
    Ahmed bin Sulayem, Executive Chairman, DMCC               envisioned by DMCC.”
                                                                                                                   The Source | January – April 2008   27

DMCCA hosts Strata Law information
session for JLT developers
Dubai Government took steps to streamline the            will provide a boost to Dubai’s real estate sector,     responsibilities,” said Phillip Caraiscos Executive
growth of its fast developing real estate sector, with   benefiting residents, investors and developers. “The    Director, Asset Management, DMCC who chaired
the introduction of the recently introduced Law on       introduction of the Strata Law will further protect     the information session. “Owners and developers
Ownership of Jointly Owned Properties, commonly          real estate investors and eradicate grey areas in the   often find it difficult to understand the different
known as the “Strata Law, which came into effect         property market. By organising a direct platform        aspects of the law and the monetary issues
on April 1st 2008.” This legislation relates to the      for developers to interact and ask questions, DMCC      associated with it.”
ownership and management of jointly owned                hopes to spread awareness about the law and its            The information session highlighted the kinds
common property, which includes shared facilities        implications.”                                          of titles DMCC will transfer to developers using
in Dubai’s property developments, including                 The presentation detail was advanced by Gary         volumetric subdivision, including its benefits and
parking areas, lifts, pools, gyms and gardens.           Bugden, Australian Strata Law expert and an             impact on the apportioning of Master Community
   In order to ensure that all sub developers            advisor to the Government of Dubai on the enabling      Charges and Building Service Charges according to
within the Jumeirah Lakes Towers community               regulations for the Emirate’s own legislation. Gary     usage. ”With this law in place, DMCC will be able to
are cognisant of the implications of this law and        Bugden was invited to address the gathering by          adopt titling possibilities to effectively manage our
its impact, the Dubai Multi Commodities Centre           DMCCA in line with its vision of taking proactive       Jumeirah Lakes Towers community for the benefit
Authority (DMCCA), which oversees and regulates          steps in engaging developers on property law issues     of all stakeholders,” he added.
the DMCC free zone, recently hosted some 150 real        and asset management best practices.                       DMCCA, as Master Developer and owner of the
estate developers at an in-depth information session.       The Strata Law, introduced by the Government of      Jumeirah Lake Towers development – a prestigious
Marwan Bin Ghalita, Chief Executive Officer, Real        Dubai through RERA, vests ownership of common           mixed-use, free-zone, freehold community also
Estate Regulatory Agency (RERA), an affiliate of         areas with property owners, allowing for the            announced the establishment of a strategic alliance
the Dubai Land Department, was also present at           formation of owners associations to oversee and         with the Owners Association Management division
the session, and commended DMCCA’s effort to             delegate the management of these areas.                 of Nakheel Asset Management, who are recognised
communicate proactively with the developers.                “The law is designed to handle the day-to-day        experts on this newly introduced legislation,
   In his welcome address, Ahmed bin Sulayem,            management of facilities and introduce a simple but     currently managing over 9,750 apartments through
Executive Chairman, DMCC, said the new law               comprehensive system of rights, obligations and         125 owners associations to date.

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