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DMCC, (‘Dubai Multi Commodities Centre’), the Government authority on trade, enterprise and commodities in Dubai, announced the signing of a Memorandum of Understanding (MoU) with Borsa Istanbul, the Turkish capital’s sole provider of trading, clearing, settlement, custody and registry services across a range of commodities, securities, and sukuk.
The purpose of the memorandum is to extend its current scope of collaboration, and explore how DMCC can offer guidance and best practice insight as the two entities work towards establishing a universal Shariah-compliant gold exchange for Islamic markets. The latter, a topic of much debate and interest following a recent initiative launched by the World Gold Council (WGC) and the Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI), which means that gold can now be used as a commodity to back Sharia-based financial products.
At the meeting, Ahmed Bin Sulayem, DMCC’s Executive Chairman, and Himmet Karadağ, Borsa İstanbul’s Chairman of the Board, discussed their ongoing cooperation in creating dedicated delivery centres for precious metals in Istanbul and Dubai.
Ahmed Bin Sulayem said: “At DMCC, we are dedicated to collaborating with international market players, and working towards establishing and sharing best practices to improve and strengthen the global commodities trade. That is why enhancing our partnership with Borsa Istanbul marks a natural evolution in how we seek to join and develop the global markets, and improve cross-border efficiencies in the precious metals trade.
“This Memorandum of Understanding also strengthens the trading relations between Turkey and the UAE, while reflecting DMCC’s commitment to developing Shariah-compliant market infrastructure to support the future growth of the Islamic economy.”
Turkey is one of the UAE’s largest trading partners, with more than US$6.7 billion is annual bilateral trade last year. The UAE is currently home to more than 10,000 Turkish citizens, with more than 500 Turkish business operating in the country. In October, a senior UAE diplomatic delegation met with Turkish President Recep Tayyip Erdoğan to assess opportunities for further cooperation between the two countries, and to encourage joint investments.
This MoU builds upon DMCC’s current scope of collaboration with Borsa Istanbul, and will seek to draw upon the capabilities of DMCC’s Free Zone, its DMCC Tradeflow platform and Dubai Gold and Commodities Exchange (DGCX). In doing so, the collaboration aims to connect a wide range of financial institutions and physical traders to trade with confidence.
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