Editor’s Note
This article introduces the Dubai Multi Commodities Centre (DMCC), a strategic free zone designed to position Dubai as a global hub for commodity trade through its integrated infrastructure and business-friendly environment.
Located in the heart of South Dubai and adjacent to Jebel Ali Port and Al Maktoum International Airport, it has grown into an ideal location for trade. It provides secure storage for high-value gems and specialized storage facilities.
– It is the only international commodity center in the region and the fastest-growing free zone among UAE free zones.
– An average of 7 new companies register every working day, with over 13,000 member companies registered since its establishment.
– Major global tenants include American Express, Bvlgari, Colgate-Palmolive, Duracell, LVMH, Topaz Energy and Marine, and Whirlpool.
– The free zone area is grouped into a total of 28 clusters, from Cluster A to Cluster BB, each consisting of 3 tower blocks, a large lake, and a park.
– It offers online application services to simplify registration procedures and has advantages such as long-term licenses and improved customer relationship management.
– Selected as ‘International Free Zone of the Year’ for two consecutive years (2015, 2016), and ranked first in 5 categories in the Financial Times FDI annual global survey of international free zones.
1. Commodity Services (Commodity Trade Support)
– Gold: Integrates refining, manufacturing, and trading. Operates Dubai Good Delivery, DMCC Vault, Dubai commemorative gold coins, UAE gold bars, and the Dubai Gold Advisory Group.
– Diamonds: Supports manufacturing and trade through the Dubai Diamond Exchange (DDE). Achieved trade of 20.6 billion carats (worth $25.3 billion) in the first half of 2011.
– Pearls: Supports trade through the Dubai Pearl Exchange (DPE).
– Tea: Operates the Dubai Tea Trading Centre (DTTC). The 24,000 m² facility provides a business center, temperature-controlled storage, packaging, professional consulting, and tea tasting services. 4.5 tons of tea were traded in 2015.
2. Financial Services (Financial & Investment Support)
– Supports commodity-related investments through joint ventures with various financial institutions via the operation of Dubai Commodity Asset Management (DCAM).
– Dubai Shariah Asset Management (DSAM): A joint venture between DCAM and Shariah Capital Inc. (a US-based Shariah-compliant financial consultancy). Offers funds based on four strategic products that invest exclusively in Shariah-compliant long/short hedge funds.
– DMCC Tradeflow: An online financial system for inventory management.
– Dubai Gold & Commodities Exchange (DGCX): A major exchange for key commodity and currency derivatives, enabling electronic trading.
3. Property Services (Real Estate Support)
– DMCC possesses not only business but also residential spaces.
– All 66 towers offer residential, office, rental, and freehold options.
– Residential blocks are primarily occupied by high-income expatriates of European descent.
License Registration Procedure
1. Preliminary registration and application form submission.
– License Types: Trading, Service, or Industrial, depending on the nature of business activities within the free zone.
– Application Methods: Online (www.dmcc.ae), Email ([email protected]), Phone (+971 4 424 9600), or In-person visit (New Company Setup Counter #13, Level 1, Almas Tower, JLT).
2. After preliminary registration, obtain a unique portal account for the company from the assigned officer.
3. Log in to the account, pay the initial application fee, fill in details, submit documents, and receive permit notification after a minimum of 7 days.
4. Pay registration and license fees, sign legal documents, and receive the permit for company bank account opening after 5 days.
5. Select and move into a suitable office format.
Required Documents
– Preliminary registration application (online)
– Proof of residence (e.g., utility invoice)
– Sponsor’s No Objection Certificate (if holding a UAE visa)
– Summary of Business Plan
– Passport copy (for the intended branch manager or local corporate business owner)
– Head office documents (Business Registration Certificate, Articles of Association, Signature Certificate, etc., applicable for branch establishment)
– Additional documents may be required depending on the establishment type and business activities.
Costs
– Initial Application Submission: AED 1,015 (one-time)
– Registration Fee: AED 9,020 (one-time)
– License Fee: AED 20,285 (annual renewal, varies by selected business activity)
– Establishment Card: AED 605 (annual renewal)
– Memorandum of Association (MOA): AED 2,020 (one-time, not applicable for branch setup)
– Visa: AED 3,330 (renewed every 3 years) + AED 3,000 (deposit)
– Minimum Capital: AED 50,000 (withdrawable 3 weeks after license issuance)
– Other costs may apply.
*Base Exchange Rate: US$1 = AED 3.67*
Office Occupancy
1. Flexi-desk: Part-time only. Access/usage limited (16 hours/month). Workstation (no assigned seat). Cost: AED 16,000–19,000.
2. Serviced desk: Full-time only. No access/usage time limits. Workstation (assigned seat). Cost: (J&G) AED 22,000–25,000; (AG & i5) AED 30,000–35,000.
3. Serviced offices: Use of separate office space. 1–3 workstations. 215–279 ft². Cost: (J&G) AED 35,000–45,000; (AG & i5) AED 45,000–70,000.
4. Business centres: Utilize one of 13 business centers located within DMCC. 100–500 ft². Cost: From AED 4,000.
DMCC Free Zone Contact Information
– Phone: (International) +971 4 424 9600 / (Local) 60054DMCC (600543622)
– Email: [email protected]
Dubai, known as a global trade hub, has continuously built diverse infrastructure to attract foreign investment since the city’s founding. While it has established several free trade zones, the Dubai Multi Commodities Centre (DMCC) is the only one specialized in commodity trading.
The UAE, one of the world’s oil-rich nations, has significantly higher income and consumption levels compared to other countries, leading to high demand for luxurious products like gold and diamonds. Additionally, there is a high proportion of high-income expatriates residing in the country.
According to the UAE Federal Competitiveness and Statistics Centre’s ‘International Trade 2016’ data, pearls, precious stones, and metal products ranked first in the country’s 2016 re-export sector, accounting for 36.34% (approximately $21.3 billion) of the total value.