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Dubai - Commercial Bank of Dubai and DMCC Tradeflow, the dedicated online platform for registering possession and ownership of commodities stored in UAE-based facilities, have launchedan innovative new financing mechanism'Loans for Diamonds', in partnership with Rocks International.
This revolutionary product will allow diamonds registered with DMCC's Tradeflow platform, which will act as the central registry, to be used as collateral for trade finance loans. Commercial Bank of Dubai will act as the financier and Rocks International DMCC as the independent Collateral Manager.
In recent years the trade in diamonds has shifted from West to East enabling Dubai and its commodities trading hub DMCC to become established as one of the top three diamond trading centres in the world. A similar shift has occurred in the financingof diamond trading, an integral element of the industry that DMCC is playing an equally significant role in helping to establish in the UAE.
GautamSashittal, DMCC Chief Executive Officer, said: "Loans for Diamonds adds enormous value to DMCC's Tradeflow platform and further cements Dubai's position among the top three diamond centres in the world. It is an innovation that will change the way rough diamond trade is financed. Establishing diamonds as collateral for loans with Tradeflow will not only add to DMCC's complete portfolio of diamond trading products and services but also support increasingvolumes of diamond trade through Dubai."
Local banks have expressed strong interest in Loans for Diamonds.
Peter Baltussen, Commercial Bank of Dubai CEO, said: "We are extremely pleased to enter into this strategic partnership with DMCC and Rocks International. This initiative is in line with our commitment tocontinuously expand our products and services to meet the growing needs of our clients. This unique offering provides an innovative mechanism for diamond traders to use their diamonds as collateral for funding their business growth needs. We see this as a catalyst for the development of the diamond industry in line with Dubai's position as a global diamond trading center and a hub for trade between the East and West.
Ludwig Coelst, managing director of Rocks Middle-East DMCC, said: "We are very glad that our ideas and hard work are now materialising into a product that is absolutely new for the diamond industry in Dubai and across all main diamond trade centres. With the joint efforts from CBD and DMCC Tradeflow we are sure this next step will enable the diamond trade and banking finance in Dubai to grow further."
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About CBD
The Bank was incorporated in Dubai, United Arab Emirates in 1969 and is registered as a Public Shareholding Company (PSC).The Bank is listed on the Dubai Financial Market and is fully owned by UAE Nationals, including 20% by the Investment Corporation of Dubai (ICD). The Bank employs around 1,100 employees of 39 nationalities of which 41% are UAE Nationals. It offers a wide range of conventional and Islamic banking products and services to its corporate, commercial and personal banking customers through a network of 26 branches 3 Cash Offices and a digital kiosk in partnership with the Dubai Higher College of Technology. Moreover the Bank has invested in an extensive network of 200 ATMs/CDMs.
DMCC - Made For Trade
DMCC is dedicated to enhancing Dubai's position as the global gateway for commodity trade.
The most successful markets create conditions that enable producers, traders and consumers to thrive. DMCC is a Dubai Government Authority committed to developing these ideal conditions for trade and enterprise. DMCC has a strong track record in commodity trade facilitation and we encourage and support business through the platforms we provide. These include our Free Zone, commodity exchanges, legal and regulatory frameworks and our strong real estate offering. As part of our DMCC Free Zone expansion strategy to provide large corporates with a commercial property offering unique to the Dubai marketplace - DMCC is developing the 'Burj 2020 District' with the world's tallest commercial tower, the 'Burj 2020', as its centrepiece.www.dmcc.ae
Tradeflow is a DMCC platform that allows commodity owners to store goods in rated warehouses. Once stored and upon request from the owners, the warehouses can issue electronic warrants that represent ownership of the stored goods. These Tradeflow Warrants can be used by the owners to pledge beneficial ownership or title transfer of the stored goods to financiers in return for working capital. By accepting the beneficial ownership of the underlying inventory, the financiers can reduce credit risk historically associated with commodity trade finance.
Dubai Diamond Exchange (DDE) is a DMCC platform and a leading diamond centre based in Almas Tower. From buyers to sellers to service providers - everything the industry require in terms of infrastructure and a marketplace is available under one roof in a secure environment at Almas Tower including: DDE, vaulting, boiling, polishing, certification, transport and logistics services and the Kimberley Process Certification Scheme.
Contacts
Areej Al Yousuf
PR & Corporate Communication
Commercial Bank of Dubai
Tel: 04-2121749
Email: areej@cbd.ae
OR
DMCC
PR & Corporate Communications
pr@dmcc.ae
© Press Release 2015
