The Dubai Gold and Commodities Exchange (DGCX), the free zone authority on trade, enterprise and commodities in the emirate, has signed an agreement with the Chinese Gold and Silver Exchange Society (CGSE) in Hong Kong, to boost precious metals market development.

This collaboration will enable both DGCX and CGSE to deepen their penetration into emerging markets and further develop the precious metals markets in Asia and the Middle East and North Africa (Mena) region, said a statement from the Dubai exchange.

Both CGSE and DGCX serve their domestic and regional client bases throughout Hong Kong, North East Asia, the GCC and the Indian Subcontinent, and this agreement recognises the significant opportunities to meet the evolving needs of investors in China and the Indian Subcontinent – two of the world’s largest consumers of precious metals, it stated.

The agreement will enable CGSE and DGCX to cooperate within the precious metals markets, with a view to generating greater benefits for their market participants, said the key unit of Dubai Multi Commodities Centre.

It will also pave the way for enhancing the positions of both exchanges as benchmark reference pricing venues, and further establish them as prime centres by connecting Asia and the Middle East.

Gautam Sashittal, chief executive officer of DMCC and board director of DGCX, said: "At DMCC, we have successfully established ourselves as Dubai’s global gateway for trade with a strong focus on commodities, including precious metals."

“This partnership with CGSE marks a natural next step in achieving our underlying vision which is to connect markets and facilitate more global trade. We look forward to collaborating with the CGSE to further support the economic development agenda of China and the UAE,” he said.

Steven Chan Sheung Chi, the president of CGSE, said: "Our mission is not only to develop its role as China’s offshore hub for precious metals trading but also to strengthen cooperation with the Association of Southeast Asian Nations (ASEAN) countries."

“We have a broad ranging strategy in support of the Belt and Road Initiative that satisfies the demand in Dubai and that will benefit both parties. As Dubai is in the route of the Belt and Road, we shall work together to develop a proprietary product satisfying both parties’ need,” he added.

Gaurang Desai, chief executive officer of DGCX, added: “This year has been a period of forging partnerships for us, especially among leading Chinese trading bodies.”

“We are pleased to join forces with CGSE and work towards strengthening our links with the Chinese precious metals market. At DGCX, we adopt an ‘inside out’ and ‘outside in’ approach where we offer regional products to global investors and global products to regional investors,” he said.

“The agreement embodies this approach, as we grow our offerings and expand our reach to cater to different traders and investors across the globe,” he added. – TradeArabia News Service