DMCC Tradeflow

DMCC WAS ESTABLISHED IN 2002:

STIMULATING COMMODITY TRADE THROUGH DUBAI

Fastest growing and largest Free Zone in the UAE,

covering more than 450 business activities

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GROWING DUBAIS ECONOMY:
DELIVERING PLATFORMS FOR TRADE

The flow of gold increased from US$ 6billion

(2003) to US$ 70billion in 2012

GROWING DUBAIS ECONOMY:

DELIVERING PLATFORMS FOR TRADE

The UAE is now the worlds largest re-exporter of

tea with a 60% share of the market, valued at
around US$ 48million per annum

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GROWING DUBAIS ECONOMY:
DELIVERING PLATFORMS FOR TRADE

The flow of diamonds increased from

US$ 3-5million (2003) to US$ 39billion

CHANGED FINANCIAL LANDSCAPE:

FROM TRUST ME TO SAYING PROVE ME

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ISLAMIC COMMODITY TRADE:
TRANSPARENCY AND EFFICIENCY ARE KEY DRIVERS FOR INNOVATION

In 2004, DMCClaunched the Dubai Commodities

Receipt (DCR) platform to stimulate physical
commodity financing in the UAE

Following the financial crisis and in response to market

needs, the DCR platform was radically
enhanced which resulted in DMCC Tradeflow

Feedback from the Islamic financing community resulted in

the development of a Sharia compliant Commodity
Murabaha mechanism

CENTRE OF THE ISLAMIC ECONOMY:

DELIVERING THE VISION FOR DUBAI

January 9 2013
Our cosmopolitan outlook to doing business continues to be
our economys driving force. Adopting a modern and scientific
framework for Islamic economies world-wide, here in Dubai,
meets the demand from local, regional and international
investors for a central hub to invest, grow and do business.

HH Sheikh Mohammed Bin Rashid Al Maktoum

Vice-President and Prime Minister of the UAE and Ruler

of Dubai

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DMCC TRADEFLOW PLATFORM:
FACILITATING ELECTRONIC TITLE TRANSFER THROUGH TRADABLE WARRANTS

DMCC Tradeflow is an online exchange for physical commodities

DMCC TRADEFLOW WARRANTS:

ELECTRONIC DOCUMENTS OF TITLE FOR STORED COMMODITIES

Electronic document of title

Provides evidence of the existing

quantity

Legal title remains with the holder of

the warrant

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 MADE FOR TRADE:
BRINGING TOGETHER ALL PARTIES IN THE SAME LEGAL ENVIRONMENT

Framework designed to

Web based, available 24/7 increase transparency and

mitigate risk

Industry leading security

IT All participants adhere to the
Platform
same legal framework
Full audit on all actions

Standardized documents and

Robust risk controls
contracts, executed
electronically

DMCC Legal
Authority Framework

DMCC as registrar and administrator of the

Central Registry

COMMODITY MURABAHA:
TRANSPARENT TRADING OF UAE BASED COMMODITIES

REAL COMMODITIES
Proof that the commodities exist
Open Market

Commodity Supplier
Proof that they are lien free
Located in the region, can be
physically inspected

Purchase of 2
Commodities 4
Issue
Sale
REAL TRADE
Offer
Electronic transactions
Standardized contracts
Murabaha Purchase Full title and possession transfer
Offer/Acceptance

Financing
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Customer REAL SHARIA COMPLIANCE
Bank
Regular Sharia Audits
Halal warehousing inspections
1

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COLLABORATION WITH NOOR BANK:
CORPORATE LENDING THROUGH MURABAHA TRADING

Noor Bank rolled out online commodity Murabaha financing

transactions for all its Corporate and SME
borrowing relationships

Benefits include:
Cost Savings
Higher degree of process digitization
Shorter turn-around time
Better cut-offs for clients with same day processing
Physical goods in existence in the UAE, accessible for inspection
and full possession

THANK YOU

PAUL.BOOTS@DMCC.AE

@DMCCAUTHORITY