Golden Opportunities in Dubai

1
Golden Opportunities in Dubai

• Colin Griffith
• Executive Director Gold Precious Metals,
• Dubai Metals Commodities Centre
• Dubai City of Gold Conference, February 2005

2

• Dubai has an impressive history in the
  international gold market but the future is ever
  more exciting
• Colin Griffith
• 2nd City of Gold Conference, 6th December 2003

3
Presentation Overview

• Dubai - Government industry strategy
• Critical Success Factors
• Dubai Good Delivery
• Dubai Gold Commodities Exchange
• DMCC Gold Financing
• The Future
• DGR
• Gold Vault
• Growing the gold trade

4
Dubai Government Industry Strategy

• Industry clustering (Dubai Style)
• DMCC provides a market physical infrastructure
  that support all market participants in the value
  chain
• Trade advice input
• Dubai Gold Advisory Group
• Gold Jewellery Group
• World Gold Council
• Cooperation between Government departments
• Ports Customs
• Dubai Municipality
• DIFC / DFSA
• SCA

5
Presentation Overview

• Dubai - Government industry strategy
• Critical Success Factors
• Dubai Good Delivery
• Dubai Gold Commodities Exchange
• DMCC Gold Financing
• The Future
• DGR
• Gold Vault
• Growing the gold trade

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Critical Success Factors

• International standards
• Transparency
• Readily available statistics
• Fair and simple rules
• Low cost base, low taxation rates
• Competitive freight rates

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Dubai Gold Import Export Figures
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Presentation Overview

• Dubai - Government industry strategy
• Critical Success Factors
• Dubai Good Delivery
• Dubai Gold Commodities Exchange
• DMCC Gold Financing
• The Future
• DGR
• Gold Vault
• Growing the gold trade

9
Dubai Good Delivery

• The Concept
• Setting a high standard for small gold bars
• Fully complements London Good Delivery
• Objectives
• Increasing confidence in quality of gold bars
  sold in Dubai
• Delivery on the DGCX
• Membership Categories
• Category 1 Refineries listed on the LBMA Good
  Delivery List
• Category 2 Other international and local-based
  gold refineries
• Listing requirements
• Minimum annual refined production of 10 tons in
  small gold bars
• Minimum total net worth of US 10 million

Category 1 applications February 05
Category 2 applications - June 05
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Presentation Overview

• Dubai - Government industry strategy
• Critical Success Factors
• Dubai Good Delivery
• Dubai Gold Commodities Exchange
• DMCC Gold Financing
• The Future
• DGR
• Gold Vault
• Growing the gold trade

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• Joint venture between DMCC, MCX and FTIL.
• State-of-the-art electronic trading platform for
  trading of futures options
• Products gold, silver, steel, cotton, energy and
  freight futures
• Expected launch date second half of 2005
• Mission
• Create a dynamic efficient electronic market
  for commodities derivatives
• Employ ethical business practices leading edge
  technology
• Anticipate and respond to changing market
  requirements

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DGCX Gold Contract Specifications
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• Membership Categories
• General Membership
• Can trade on any of DGCXs markets as principal
  or on behalf of clients
• Is transferable to a party approved by the
  exchange
• General Members are eligible to apply for
  Clearing Membership to clear either their own
  business or client business
• Market Membership
• Can trade on those DGCX markets to which the
  category of market membership refers, only on
  their own behalf
• Is transferable to a party approved by the
  exchange
• Market Members are eligible to apply for Clearing
  Membership to clear their own business

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Presentation Overview

• Dubai - Government industry strategy
• Critical Success Factors
• Dubai Good Delivery
• Dubai Gold Commodities Exchange
• DMCC Gold Financing
• The Future
• DGR
• Gold Vault
• Growing the gold trade

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DMCC Gold Financing

• DMCC announces US 200 million Gold related
  structure
• Dubai Islamic Bank and Standard Bank appointed to
  create the financing arrangements
• The structure will
• be at least US 200 million, with a 3-5 year
  tenor
• ensure that the strong credit profile of DMCC is
  transparent and available to a wide cross section
  of investors
• close, subject to market conditions, by end of
  April
• be listed on the appropriate exchanges both
  internationally and locally
• provide investors the exciting opportunity to be
  repaid in gold - kilo bars loco Dubai

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Presentation Overview

• Dubai - Government industry strategy
• Critical Success Factors
• Dubai Good Delivery
• Dubai Gold Commodities Exchange
• DMCC Gold Financing
• The Future
• DGR
• Gold Vault
• Growing the gold trade

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The Future

• DGR launch
• Sister product to Dubai Commodity Receipts
• Electronic receipt system
• Expected launch date April/May 2005
• DMCC Gold Vault
• For local bullion banks, central banks and
  jewellers
• Providing ease of transaction and a secure
  environment
• Located within the Almas Tower
• Expected opening date Late 2006
• Growing the gold precious metals business

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• Dubai has an impressive history in the
  international gold market but the future is ever
  more exciting
• Colin Griffith
• 2nd City of Gold Conference, December 2003
• 3rd City of Gold Conference, February 2005

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