DMCCA sets Jumeirah Lakes Towers plan for members

According to an announcement from DMCC, all member companies, including those awaiting membership approvals, will be brought together to form a physical commodities cluster within the 200-acre JLT free zone community, facilitating optimum operational and administrative streamlining.

This will also enable DMCC's registered members to access a comprehensive commodities knowledge base comprising all stakeholders of the commodities trade, and will facilitate the development of mutually beneficial synergistic relationships across the entire value chain of each commodity sector.

According to the announcement, DMCC member companies, which until now have been operating from locations across Dubai, will now be required to relocate to the JLT free zone on completion of the first year of operations. The renewal of licences for existing members currently operating outside the free zone will be linked to their relocation to JLT.

This move is part of a strategic initiative from DMCC to help its registered members avail the exceptional advantages that Jumeirah Lakes Towers currently offers, including low property and rental rates. DMCCA members can now choose from a variety of property options at any of the 79 towers within JLT, the first mixed-use free zone in Dubai offering freehold property options. Core commodities-related businesses operating within the JLT free zone are issued DMCC licences while others (non-commodity related) are issued JLT free zone licences.

Ahmed Bin Sulayem, Executive Chairman of DMCC, said:

"This initiative aims at long-term growth for the commodities industry via the creation of a dedicated commodities cluster. DMCC has taken great care in designing the business facilities at JLT, to offer our members the best in all areas. The move will facilitate higher integration of the commodities market, sharpen our members' competitive edge and strengthen Dubai's status as the most active trading hub in the region."

The move is also in response to the impressive rise in the number of registrations at DMCC and JLT, following the progress in the free zone's development and the increasing interest from investors to set up offices.

Despite the current climate of economic downturn, the first five months of 2009 saw a total of 281 registrations being issued in JLT and DMCC. This included 85 DMCC core member company registrations, 142 registrations for JLT-based companies and 54 Residential Service Company (RSC) registrations.

DMCCA is also working closely with the sub-developers of the Jumeirah Lake Towers project to ensure that the towers and office facilities are completed on schedule, which will help companies finalise their relocation strategy.

Commenting on the new initiative, Sudhakar Tomar, Managing Director, HAKAN AGRO DMCC, a DMCCA member company, said: "We consider this a wise move. Operating from the JLT Zone as a community will streamline commodities trading activity in Dubai. The free zone advantages and the state-of-the-art facilities are sure to provide a competitive edge to companies."

The JLT Zone is Dubai's most ambitious business-cum-residential community. Close proximity to the Emirate's new developments and projects adds to its potential to support the sustainable growth of the commodities sector.

DMCC offers its members several unique benefits including access to physical facilities like the Almas Gold and Diamond vaults, market infrastructure and trading platforms like the Dubai Gold and Commodities Exchange, Dubai Diamond Exchange, Dubai Pearl Exchange, Dubai tea Trading Centre and Dubai Cotton Centre, and a range of commodities backed financial investment tools including Shariah compliant hedge funds and Dubai Gold Securities, the region's first Shariah-compliant gold security listed on NASDAQ Dubai .