“golden opportunities in dubai”
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“Golden Opportunities in Dubai”. Colin Griffith Executive Director – Gold & Precious Metals, Dubai Metals & Commodities Centre Dubai “City of Gold” Conference, February 2005. “ Dubai has an impressive history in the international gold market but the future is ever more exciting” - PowerPoint PPT PresentationTRANSCRIPT
“Golden Opportunities in Dubai”
Colin GriffithExecutive Director – Gold & Precious Metals,
Dubai Metals & Commodities Centre
Dubai “City of Gold” Conference, February 2005
Colin Griffith - DMCC, Dubai City of Gold Conference, February 2005
“Dubai has an impressive history in the international gold market but the
future is ever more exciting”
Colin Griffith2nd City of Gold Conference, 6th December 2003
Colin Griffith - DMCC, Dubai City of Gold Conference, February 2005
Dubai - Government industry strategy
Critical Success Factors
Dubai “Good Delivery”
Dubai Gold & Commodities Exchange
DMCC Gold Financing
The Future– DGR– Gold Vault– Growing the gold trade
Presentation Overview
Colin Griffith - DMCC, Dubai City of Gold Conference, February 2005
Dubai Government Industry Strategy
Industry clustering (Dubai Style)– DMCC provides a market & physical infrastructure that
support all market participants in the value chain
Trade advice & input – Dubai Gold Advisory Group– Gold & Jewellery Group– World Gold Council
Cooperation between Government departments– Ports & Customs– Dubai Municipality– DIFC / DFSA– S&CA
Colin Griffith - DMCC, Dubai City of Gold Conference, February 2005
Dubai - Government industry strategy
Critical Success Factors
Dubai “Good Delivery”
Dubai Gold & Commodities Exchange
DMCC Gold Financing
The Future– DGR– Gold Vault– Growing the gold trade
Presentation Overview
Colin Griffith - DMCC, Dubai City of Gold Conference, February 2005
Critical Success Factors
International standards
Transparency
Readily available statistics
Fair and simple rules
Low cost base, low taxation rates
Competitive freight rates
Colin Griffith - DMCC, Dubai City of Gold Conference, February 2005
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Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
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onnes)
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Imports
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Total Value
Dubai Gold Import & Export Figures
Colin Griffith - DMCC, Dubai City of Gold Conference, February 2005
Dubai - Government industry strategy
Critical Success Factors
“Dubai Good Delivery”
Dubai Gold & Commodities Exchange
DMCC Gold Financing
The Future– DGR– Gold Vault– Growing the gold trade
Presentation Overview
Colin Griffith - DMCC, Dubai City of Gold Conference, February 2005
“Dubai Good Delivery” The Concept
– Setting a high standard for small gold bars– Fully complements London Good Delivery
Objectives– Increasing confidence in quality of gold bars sold in Dubai– Delivery on the DGCX
Membership Categories– Category 1: Refineries listed on the LBMA Good Delivery List– Category 2: Other international and local-based gold refineries
Listing requirements– Minimum annual refined production of 10 tons in small gold bars– Minimum total net worth of US$ 10 million
Category 1 applications – February 05
Category 2 applications - June 05
Colin Griffith - DMCC, Dubai City of Gold Conference, February 2005
Dubai - Government industry strategy
Critical Success Factors
Dubai “Good Delivery”
Dubai Gold & Commodities Exchange
DMCC Gold Financing
The Future– DGR– Gold Vault– Growing the gold trade
Presentation Overview
Colin Griffith - DMCC, Dubai City of Gold Conference, February 2005
Joint venture between DMCC, MCX and FTIL.
State-of-the-art electronic trading platform for trading of futures & options
Products: gold, silver, steel, cotton, energy and freight futures
Expected launch date: second half of 2005
Mission:– Create a dynamic & efficient electronic market for commodities
derivatives– Employ ethical business practices & leading edge technology– Anticipate and respond to changing market requirements
Colin Griffith - DMCC, Dubai City of Gold Conference, February 2005
SPECIFICATIONS DGCX - GOLD
Symbol DG
Contract Size 32 oz (1 Kilo)
Price Quote US$ per oz.
Minimum Tick Size US$ 0.10
Price Movement Limit US$ 20 = 5%
Maximum Allowed Open Position
Ounces Equivalent
5,000 contracts25% for the spot month160,000 oz
Delivery Unit 1 Kilo
Deliverable Quality 0.995 Gold
Delivery Point Physical delivery in Dubai at DMCC Approved Vaults
Contract Months Even Months
Last Trading Day Third to last business day of the maturing delivery month.
Delivery Day The first day of the delivery month through the last business day of the delivery month.
Last Delivery Day The last business day of the delivery month.
Initial Margin Requirements US$ 500 per contract =3.70%.
DGCX Gold Contract Specifications
Colin Griffith - DMCC, Dubai City of Gold Conference, February 2005
Membership Categories
– General Membership• Can trade on any of DGCX’s markets as principal or on behalf of clients• Is transferable to a party approved by the exchange• General Members are eligible to apply for Clearing Membership to clear
either their own business or client business
– Market Membership• Can trade on those DGCX markets to which the category of market
membership refers, only on their own behalf• Is transferable to a party approved by the exchange• Market Members are eligible to apply for Clearing Membership to clear
their own business
Colin Griffith - DMCC, Dubai City of Gold Conference, February 2005
Dubai - Government industry strategy
Critical Success Factors
Dubai “Good Delivery”
Dubai Gold & Commodities Exchange
DMCC Gold Financing
The Future– DGR– Gold Vault– Growing the gold trade
Presentation Overview
Colin Griffith - DMCC, Dubai City of Gold Conference, February 2005
DMCC Gold Financing
DMCC announces US$ 200 million Gold related structure
Dubai Islamic Bank and Standard Bank appointed to create the financing arrangements
The structure will:– be at least US$ 200 million, with a 3-5 year tenor– ensure that the strong credit profile of DMCC is transparent and
available to a wide cross section of investors– close, subject to market conditions, by end of April– be listed on the appropriate exchanges both internationally and locally– provide investors the exciting opportunity to be repaid in gold -
kilo bars loco Dubai
Colin Griffith - DMCC, Dubai City of Gold Conference, February 2005
Dubai - Government industry strategy
Critical Success Factors
Dubai “Good Delivery”
Dubai Gold & Commodities Exchange
DMCC Gold Financing
The Future– DGR– Gold Vault– Growing the gold trade
Presentation Overview
Colin Griffith - DMCC, Dubai City of Gold Conference, February 2005
The Future
DGR launch– “Sister product” to Dubai Commodity Receipts– Electronic receipt system– Expected launch date: April/May 2005
DMCC Gold Vault– For local bullion banks, central banks and jewellers– Providing ease of transaction and a secure environment– Located within the Almas Tower– Expected opening date: Late 2006
Growing the gold & precious metals business
Colin Griffith - DMCC, Dubai City of Gold Conference, February 2005
“Dubai has an impressive history in the international gold market but the future
is ever more exciting”
Colin Griffith2nd City of Gold Conference, December 2003
3rd City of Gold Conference, February 2005