ABU DHABI, 26 Sep, 04 (WAM) - The Dubai Metals and Commodities Centre(DMCC) today launched the Dubai Commodity Receipt (DCR), a new systemthat will facilitate the secure storage, trading and financing of commoditiesin Dubai.

The launch of the innovative DCR system is a strategic move by the DubaiGovernment to reinforce the Emirate's role as a leader in internationalcommodity markets, and also reflects DMCC's commitment to build a robustand efficient trade finance system, to further enhance this leadershiprole, according to a press release.

"Dubai, with its established world-class infrastructure, is already theprimary trans-shipment and commercial staging point for commodities inthe Middle East as well as other international markets. The DCR mechanismwill strengthen the security and efficiency of commodity trading and financingin Dubai," said Sultan bin Sulayem, Chairman of the Ports, Customsand Free Zone Corporation (PCFC) and Chairman of DMCC, during a pressconference announcing the launch of the DCR.

DCRs are negotiable warehouse receipts that are issued electronicallyto facilitate the financing of goods, and to combat the fraudulent tradeof commodities. Reflecting regional requirements this trade finance toolhas been structured for Islamic, as well as traditional, financing.

Commenting on the DCR System itself, DMCC's Executive Director, Dr. DavidRutledge, said, "The DCR combines a number of characteristics that makeit unique amongst commodity warehouse receipt systems internationally.

The DCR system is electronic. It involves commodity traders, banks, warehouseoperators and collateral managers all as full participants in the system.

And it is generic - it is not designed for specific, standardized commodities,but rather can be used by the market for a wide range of diverse productsin response to the market's own requirements." DMCC is now accepting membersinto the system. An impressive list of 25 Founder Members, comprisingleading international, regional and local banks, warehouse operators,collateral managers and commodity inspection companies, has been assembledto ensure that, from the outset, the storage, custodial and financingrequirements of commodity trading companies are met.

The Dubai Metals and Commodities Centre (DMCC) was created in 2002 aspart of a strategic goal by the Dubai Government to establish a commoditymarket. It provides the market infrastructure that brings together a widerange of commodities activities, and is committed to serve the needs ofparticipants in the gold, diamonds and commodities markets. Resident areoffered highly attractive benefits under a free zone statues, includinga 50-year guaranteed tax holiday, 100 percent ownership, full ownershipof business premises, and secure regulated environment.