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    DMCC Tradeflow by Mr. Paul Boots

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    Zaché le Juste
    The document summarizes DMCC Tradeflow, a platform launched by DMCC in 2004 to stimulate commodity trade and financing in Dubai. It facilitates electronic title transfers through tradable warrants representing physical commodities stored in Dubai. The platform provides transparency, efficiency and Sharia compliance for commodity murabaha transactions. It has helped grow Dubai as a hub for gold, tea, diamond and other trades between 2003-2012. DMCC collaborates with banks like Noor to provide online commodity murabaha financing for corporate and SME clients.

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    DMCC Tradeflow by Mr. Paul Boots

    Uploaded by

    Zaché le Juste
    219 views7 pages
    The document summarizes DMCC Tradeflow, a platform launched by DMCC in 2004 to stimulate commodity trade and financing in Dubai. It facilitates electronic title transfers through tradable warrants representing physical commodities stored in Dubai. The platform provides transparency, efficiency and Sharia compliance for commodity murabaha transactions. It has helped grow Dubai as a hub for gold, tea, diamond and other trades between 2003-2012. DMCC collaborates with banks like Noor to provide online commodity murabaha financing for corporate and SME clients.

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    The document summarizes DMCC Tradeflow, a platform launched by DMCC in 2004 to stimulate commodity trade and financing in Dubai. It facilitates electronic title transfers through tradable warrants representing physical commodities stored in Dubai. The platform provides transparency, efficiency and Sharia compliance for commodity murabaha transactions. It has helped grow Dubai as a hub for gold, tea, diamond and other trades between 2003-2012. DMCC collaborates with banks like Noor to provide online commodity murabaha financing for corporate and SME clients.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    219 views7 pages

    DMCC Tradeflow by Mr. Paul Boots

    Uploaded by

    Zaché le Juste
    The document summarizes DMCC Tradeflow, a platform launched by DMCC in 2004 to stimulate commodity trade and financing in Dubai. It facilitates electronic title transfers through tradable warrants representing physical commodities stored in Dubai. The platform provides transparency, efficiency and Sharia compliance for commodity murabaha transactions. It has helped grow Dubai as a hub for gold, tea, diamond and other trades between 2003-2012. DMCC collaborates with banks like Noor to provide online commodity murabaha financing for corporate and SME clients.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    of 7

    DMCC Tradeflow

    DMCC WAS ESTABLISHED IN 2002:


    STIMULATING COMMODITY TRADE THROUGH DUBAI

    Fastest growing and largest Free Zone in the UAE,


    covering more than 450 business activities

    1
    GROWING DUBAIS ECONOMY:
    DELIVERING PLATFORMS FOR TRADE

    The flow of gold increased from US$ 6billion


    (2003) to US$ 70billion in 2012

    GROWING DUBAIS ECONOMY:


    DELIVERING PLATFORMS FOR TRADE

    The UAE is now the worlds largest re-exporter of


    tea with a 60% share of the market, valued at
    around US$ 48million per annum

    2
    GROWING DUBAIS ECONOMY:
    DELIVERING PLATFORMS FOR TRADE

    The flow of diamonds increased from


    US$ 3-5million (2003) to US$ 39billion

    CHANGED FINANCIAL LANDSCAPE:


    FROM TRUST ME TO SAYING PROVE ME

    3
    ISLAMIC COMMODITY TRADE:
    TRANSPARENCY AND EFFICIENCY ARE KEY DRIVERS FOR INNOVATION

    In 2004, DMCClaunched the Dubai Commodities


    Receipt (DCR) platform to stimulate physical
    commodity financing in the UAE

    Following the financial crisis and in response to market


    needs, the DCR platform was radically
    enhanced which resulted in DMCC Tradeflow

    Feedback from the Islamic financing community resulted in


    the development of a Sharia compliant Commodity
    Murabaha mechanism

    CENTRE OF THE ISLAMIC ECONOMY:


    DELIVERING THE VISION FOR DUBAI

    January 9 2013
    Our cosmopolitan outlook to doing business continues to be
    our economys driving force. Adopting a modern and scientific
    framework for Islamic economies world-wide, here in Dubai,
    meets the demand from local, regional and international
    investors for a central hub to invest, grow and do business.

    HH Sheikh Mohammed Bin Rashid Al Maktoum

    Vice-President and Prime Minister of the UAE and Ruler


    of Dubai

    4
    DMCC TRADEFLOW PLATFORM:
    FACILITATING ELECTRONIC TITLE TRANSFER THROUGH TRADABLE WARRANTS

    DMCC Tradeflow is an online exchange for physical commodities

    DMCC TRADEFLOW WARRANTS:


    ELECTRONIC DOCUMENTS OF TITLE FOR STORED COMMODITIES

    Electronic document of title

    Provides evidence of the existing


    quantity

    Legal title remains with the holder of


    the warrant

    5
    MADE FOR TRADE:
    BRINGING TOGETHER ALL PARTIES IN THE SAME LEGAL ENVIRONMENT

    Framework designed to

    Web based, available 24/7 increase transparency and


    mitigate risk

    Industry leading security


    IT All participants adhere to the
    Platform
    same legal framework
    Full audit on all actions

    Standardized documents and


    Robust risk controls
    contracts, executed
    electronically

    DMCC Legal
    Authority Framework

    DMCC as registrar and administrator of the


    Central Registry

    COMMODITY MURABAHA:
    TRANSPARENT TRADING OF UAE BASED COMMODITIES

    REAL COMMODITIES
    Proof that the commodities exist
    Open Market

    Commodity Supplier
    Proof that they are lien free
    Located in the region, can be
    physically inspected

    Purchase of 2
    Commodities 4
    Issue
    Sale
    REAL TRADE
    Offer
    Electronic transactions
    Standardized contracts
    Murabaha Purchase Full title and possession transfer
    Offer/Acceptance

    Financing
    3
    Customer REAL SHARIA COMPLIANCE
    Bank
    Regular Sharia Audits
    Halal warehousing inspections
    1

    6
    COLLABORATION WITH NOOR BANK:
    CORPORATE LENDING THROUGH MURABAHA TRADING

    Noor Bank rolled out online commodity Murabaha financing


    transactions for all its Corporate and SME
    borrowing relationships

    Benefits include:
    Cost Savings
    Higher degree of process digitization
    Shorter turn-around time
    Better cut-offs for clients with same day processing
    Physical goods in existence in the UAE, accessible for inspection
    and full possession

    THANK YOU

    [email protected]

    @DMCCAUTHORITY

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