DMCC to set up the largest precious metals refinery In Dubai. Dubai Multi Commodities Centre (DMCC) – the world’s flagship free zone and Government of Dubai Authority on commodities trade and enterprise – signed a sale and purchase agreement (SPA) with REIT Development to establish the largest precious metals refinery and storage facility across the Gulf Cooperation Council (GCC). The refinery will be the first to be completely enabled by blockchain in the GCC.
As part of the agreement, REIT Development acquired industrial land strategically located in DMCC’s Jumeirah Lakes Towers (JLT) vibrant business district. DMCC has premium plots for sale across JLT, which are attracting significant interest from a diverse range of investors and developers, all in search of a dynamic destination to do business.
“The gold and precious metals industry is at a tipping point, but without a doubt, there are boundless opportunities that lie beneath the uncertainty of a post-pandemic world. Signing this agreement with REIT Development underscores the crucial role that DMCC plays in tapping the UAE and the emirate on the world map as a leader in the precious metals industry through the deployment of cutting-edge technology such as blockchain,” said Ahmed Bin Sulayem, Executive Chairman and Chief Executive Officer, DMCC.
Sulayem further said, “The gold and precious metals industry is expected to witness significant growth in the coming period and through similar agreements, we can advance the industry as a whole.”
The facility will refine and store precious metals including gold, silver, platinum, palladium, and rhodium, which will be tokenised on goldexchange.com. Gold Exchange DMCC, a secured trading platform, will provide access to financial assets in the form of stable coins namely GoldCoin, SilverCoin, PlatinumCoin, PalladiumCoin, and RhodiumCoin. Each Ethereum-based token will represent the current value of one gram of each metal and can be traded on the exchange.
The tokens will be physically backed by the precious metals at DMCC’s secure storage facility, meaning they can be traded with confidence.
The first-of-its-kind facility by REIT Development – a leading organisation specialised in precious metals and blockchain technologies – will be completed in the last quarter of 2022. As part of the ongoing commitment to providing robust infrastructure and innovative platforms to individual traders and stakeholders operating in the gold and precious metals industry, this new facility will strengthen DMCC’s position as a global hub for precious metals and a leader in technological advancements.
“Blockchain technology can enable more transparent and accurate tracking of precious metals, ensuring there is no ‘dirty gold’ in circulation and illicit trades. Our 100,000sqft precious metals refinery and storage will create a decentralised immutable record of all transactions, making it possible to track all precious metals that are refined in our refinery and eventually sold internationally to over 150 countries,” said Mike De Vries, Chief Operation Officer, REIT Development.
“Customers who buy our products or use our storage can verify all the information in the blockchain. We believe that by 2025 every precious metals refinery and storage facility will be in the blockchain, let us lead the way.”
Paul Ashton, Executive Director – Property, DMCC, added, “DMCC has successfully established a dynamic business district at Jumeirah Lakes Towers that has redefined the ease of doing business. The appeal of Dubai as a prime destination, combined with our world-class market infrastructure, state-of-the-art facilities, business-friendly environment, and unparalleled investments in digital solutions, provide the ideal proposition for any business looking to grow and set operations in the region.”
“This land sale with REIT Development is testament to the great market confidence in Dubai and DMCC.”