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 remarks 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 Dinner Left: Desert Dinner hosted by world jewellery confederation Gold Division Below and bottom: Cocktail (cibjo) comes to dubai Reception 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 APPOINTMENTS 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 Council 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 investment. 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 sulayem 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 DGCX 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 diplomas 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. Diamonds 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 markets 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.” Diamonds 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 experts. 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, DMCC 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 parameters. 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 commission 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 delegates. Below: Main picture: Ahmed Bin Sulayem- Executive Chairman, DMCC, Farid Mohammed Ahmed-Sec General, Dubai World and Dr. David Rutledge- CEO-DMCC ????????? 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 Energy 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. Commodities The Source | January – April 2008 25 Bridging gaps in commodity financing through risk dubai: regional hub for trade finance 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 development. 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.” Property 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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