Dubai Multi Commodities Centre (DMCC), the Government of Dubai Authority on commodities trade and enterprise, has had a record-breaking performance in 2020, despite the COVID-19 pandemic.
According to the free zone, 2,025 new companies joined DMCC in 2020, the highest number of registrations in five years. Retention rate remained at an all-time high. This was primarily due to the business support package launched in March 2020 that saw interest from companies in 149 countries.
This was the business hub’s largest ever commercial offer, offering a wide range of incentives and value-added services to both existing and new companies in the free zone. More than 8,000 member companies availed over 13,000 offers and incentives throughout the year.
In recognition of its continued efforts to enhance its ecosystem, DMCC claimed Global Free Zone of the Year by the Financial Times’ fDi magazine for a record sixth consecutive year in October 2020.
Ahmed Bin Sulayem, Executive Chairman and Chief Executive Officer, DMCC, said: “A year like no other, 2020 was shaped by market uncertainty, geopolitical tension and a global pandemic. Despite the difficult context, the UAE’s visionary leadership and prompt and decisive actions meant that our economy remained resilient.
“As for DMCC, we continued to attract, facilitate, and promote global trade flows to and through Dubai. We surpassed 18,000 member companies, broke company registration records, while launching new initiatives and progressing on time with flagship projects. Building on this momentum, we will maximise the progress made to reach new heights in 2021.”
Attracting foreign direct investment to Dubai
China – 2020 saw a 20% year-on-year increase in Chinese companies joining in DMCC. A China Service Centre opened its doors in Almas Tower with Mandarin onboarding support while a representative office in Shenzhen was inaugurated all with the aim of promoting the ease of doing business through the business hub.
Israel – Following a Memorandum of Understanding with the Israel Diamond Exchange, DMCC inaugurated its representative office in Ramat Gan, Tel Aviv, Israel in 2020. The new office is supporting Israeli businesses, from all industries and sectors, to set up an office in DMCC.
Engagement – DMCC hosted 19 virtual Made for Trade Live roadshow webinars to engage with key international markets across including China, Israel, Russia, Switzerland, Germany, Angola, South America, Spain, Turkey, Ukraine, and the UK. Overall, DMCC gathered 11,000 attendees virtually in 2020.
A record-breaking year for commodity trade
With the gold and diamond industry representing 15% of all the exports out of the UAE, second only to oil and petroleum products, DMCC’s role in facilitating trade and connecting markets marched forward at pace in 2020.
Diamonds – In 2020, a total of Dhs91.8 billion worth of rough diamonds were traded through the Dubai Diamond Exchange (DDE), the world’s largest diamond tender facility. The DDE hosted 19 rough and polished diamond tenders and its first emerald tender. At the year end, the UAE’s largest ever rough diamond tender took place on the DDE floor, with 379,912 carats of rough diamonds sold, valued at Dhs321.29 million.
Gold – Throughout 2020, DMCC supported the UAE Ministry of Economy in developing the new UAE Good Delivery Standard to enhance the country’s position as a leading hub in the global gold and precious metal trading landscape.
Coffee – The DMCC Coffee Centre processed and handled 7 million kilogrammes of coffee and facilitated coffee shipments – from 25 countries across Africa, Asia, and Latin America – worth over of Dhs250 million throughout the year.
Tea – The DMCC Tea Centre value added and transacted 40,000 metric tonnes of tea.
A digital first strategy
Digital – DMCC further enhanced its setup process, offering a simplified and fully digitalised onboarding experience. This resulted in a 50% drop in walk-ins and physical visits, with existing and new members preferring to conduct their transactions online. Focused digital outreach across key markets saw 95% of new companies in the free zone start their journey with DMCC digitally.
A thought leader on trade
In October 2020, DMCC launched the third edition of its flagship thought leadership report The Future of Trade. The report examines the impact of geopolitics, technology, COVID-19, and global economic trends on the future of trade. In addition to deep research, the report provides tangible recommendations to government and business on trade and policy to grow trade in the decade ahead. To date, the 2020 report has generated over 13.1 million impressions and over 250,000 downloads.
A smart community
Performance – Overall, the free zone maintained high occupancy levels across its lease asset portfolio, signed substantial lease extensions with key tenants, and executed deals and commercial agreements with several well-known F&B brands coming to JLT in the future.
Uptown Tower – Construction of Uptown Tower, in the much-anticipated Uptown Dubai District, surpassed the 40% mark following the completion of design works. Several smart district initiatives, such as smart parking sensors, smart street lighting, building management systems and energy management upgrades were also successfully implemented.