A picture taken on March 14, 2018 shows the skyline of Dubai with the Burj al-Arab in the foreground and Burj Khalifa in the background. [Photo/VCG]
Attracting more Chinese companies to register with the Dubai Multi Commodities Center, the largest free trade zone in the United Arab Emirates (UAE), is central to its growth strategy, according to a senior official for the DMCC.
The free zone marked 12 percent year-on-year growth in 2018 with 1,868 new companies, while companies from China registering with the free zone rose 31 percent to nearly 500, statistics from the DMCC showed.
Chinese companies registering with the DMCC cover a wide range of industries, such as energy, electronics, construction and high-tech, and are from both private and State-owned sectors.
"The performance and growth of the DMCC in 2018 is encouraging. We are particularly pleased with the growing number of Chinese businesses deciding to set up with us in Dubai, and make use of our services, infrastructure and expertise to connect with global trade flows and expand their enterprises," said Feryal Ahmadi, chief operating officer for the DMCC.
She stressed that the DMCC, a global trade gateway and a government entity of Dubai, is a supporter of China's Belt and Road Initiative, because the UAE and China enjoy a strong relationship, and Dubai's Silk Road strategy, also focusing on developing logistics in terms of shipping, aviation and digital capabilities, ties in well with the BRI.
Since a few years ago, the free zone has been holding regular campaigns and activities to attract more Chinese enterprises, which brought about the rise in Chinese company registration, she said.
The recent launch of the DMCC's Mandarin website and Chinese language service has also been hugely impactful, and the DMCC expects to attract even more companies from China in 2019, she added.
The free zone, home to more than 15,000 member companies with an average of seven new companies registering a day, forms a distinctive community for member companies to communicate and get useful information, according to her.
Collectively, the revenue generated by the DMCC member companies contributes over 10 percent to Dubai's GDP and positively impacts the long-term economic diversification strategy of the UAE, according to a press release from the DMCC.
The increase of companies has resulted in a significant rise in commodity trade flows through Dubai. The DMCC's Dubai Diamond Exchange hosted 27 diamond tenders in 2018, which saw AED 1,205 billion ($328 million) worth of diamonds traded, a substantial increase from 13 tenders worth $103 million in 2017.
The DMCC's Dubai Gold and Commodities Exchange witnessed a record-breaking year, trading an aggregate 22.26 million contracts valued at AED 1,744 trillion. This was the highest annual volume traded on the platform, marking a 28 percent increase year-on-year.
Editor:Cherie
