Focus on 'Fuel Oil' and 'Steel Rebars' along the lines of Dubai Gold Receipt

Dubai, July 11, 2006: Dr David Rutledge, Chief Executive Officer, Dubai Multi Commodities Centre (DMCC) announced that the DMCC planned to introduce more commodity specific Dubai Commodity Receipts (DCRs) as the next step in its move to facilitate financing for the commodities industry.

He shared DMCC's future plans while presenting Dubai's innovative DCR system at the Global Warehouse Receipt Financing Conference in Amsterdam being held on 11th & 12th July 2006.

The proposed commodity specific DCRs are to cover 'Fuel Oil' and 'Steel Rebars' and are designed to facilitate financing and the undertaking of physical delivery under the proposed Futures contracts for such products being launched during the third quarter of 2006.

DMCC had initially introduced the DCR system in 2004, involving the 'Field' warehousing of a broad range of commodities and to be used as a risk mitigation tool by Banks to facilitate trade and commodity financing. It then extended the system last year to include the Dubai Gold Receipt (DGR), designed specifically for the Gold industry and reinforcing Dubai's role as a global leader in Gold trade. 

Speaking at the Amsterdam conference Dr. Rutledge said: "DMCC is probably the first to offer an electronic warehouse receipt - the DCR in the Middle East. Regulated and administered by DMCC, the DCR is governed by a transparent legal framework adopting global best practices."

"Operating on a web-based platform that eliminates paper work and provides instant global access, it can cover any commodity stored in a 'Field' warehouse," he said. "It offers flexibility and can be either be 'pledged by way of security' or 'endorsed by way of transfer'. The DGR launched last year, is being used also for physical deliveries under the Futures contracts for Gold and Silver," added Dr. Rutledge.

The Global Warehouse Receipt Financing Conference in Amsterdam is attended by Structured Trade and Commodity Finance specialists from global banks and other industry leaders. It will deliberate on current developments and issues with specific focus on how to secure commodity inventories held in warehouses worldwide in a safe and secure environment, to manage risk, avoid fraud and provide a safe and profitable financing environment for both lenders and borrowers, across a range of transaction structures. In addition to Dr. Rutledge, notable speakers from the US, Africa, Europe and Asia are expected to present papers and be involved in panel discussions at the Conference.

Strategically located on the East-West and North-South trade routes, the DMCC is ideally positioned to serve the large and diverse regional markets by offering world class infrastructure and services to support commodity processing and trade with the objective of promoting Dubai's status as a global trade hub.

-Ends-

Notes to Editors:
COMMODITIES
Located at the crossroads of trade flows between the Arabian Peninsula, Iran, India and Africa, Dubai is set to become the first dedicated commodities centre in the time zone between Europe and the Far East.  The Dubai Multi  Commodities Centre, a strategic government initiative and free zone authority, rated 'A' by Standard & Poor's, is building on these natural strengths to reinforce Dubai's position as a regional hub for the trading of commodities. Through development of industry-specific market infrastructure, DMCC increases the value and volume of traded commodities in and through Dubai.  The centre is actively working to develop value-added services and promote new sources of finance in line with the needs of the growing market and its participants.

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© Press Release 2006