The Dubai Gold & Commodities Exchange (DGCX) on Thursday announced the signing of a Memorandum of Understanding (MoU) with Dalian Commodity Exchange (DCE), the first MoU that DCE has signed with an Exchange in the Middle East.
The partnership will strengthen DGCX’s and DCE’s global collaboration and support opportunities that will mutually benefit the exchanges. The agreement is designed to facilitate closer cooperation in areas such as product development, price risk management and the sharing of market resources. It additionally will support Middle Eastern investors and producers of energy, petrochemical and plastics to benefit from China’s huge consumer market.
Gary Anderson, CEO of DGCX, said: “We are pleased to have signed this MoU with DCE which is one of the three largest agricultural futures exchanges in the world. The MoU will support DGCX’s and DCE’s mutual interests, help develop our business opportunities, extend our global reach and, benefit our customers. Through this association, both markets will be able to leverage knowledge and expertise to support innovations and development in futures trading.
DCE President & CEO Liu Xingqiang said: “DCE places great value on its collaboration with leading exchanges to effectively support its global business. As a leading derivatives exchange in the Middle East, DGCX has significant influence across regional financial markets. This MoU is an important development for our business in the Middle East.”
Liu Xingqiang further added: “Investors are increasingly interested in the development of petroleum and related downstream products in the Middle East. The region is an influential producer of petroleum commodities, and with China being a major consumer, DCE and DGCX are natural partners in taking advantage of this important economic trend.”
The DGCX-DCE MoU is the latest in a growing number of deals between the UAE and China as both countries strengthen bilateral financial cooperation and promote trade and investment. The UAE-China trade corridor has grown by 35% annually over the last decade and was estimated to be worth $35billion in 2011.
Ahmed Bin Sulayem, Chairman of DGCX, said: “The strength of the UAE’s trade and investment relationship with China and the rest of Asia will play a significant role in the future expansion of the UAE’s economy. We are pleased to be contributing to the continued growth of this investment corridor and in the promotion of the UAE as a leading trade hub in the region.”