The DMCC Diamond Hub
What benefits does the DMCC Diamond Hub offer your firm? We’ll break down how Dubai and the DMCC turned into a premier diamond source on a global scale, and what you can get from the Dubai Diamond Exchange (DDE). As you determine where is the most optimal point to base your operations, we have a compelling case why the benefits of company formation in the DMCC Free Zone in the sector are fantastic.
First, a brief look at the DMCC
While we have analysed the requirements and benefits of company formation in the DMCC, one of the top Free Zones in the world (having earned #1 spot in the Financial Times’s fDi magazine rankings five consecutive years) with a storied history in the commodities trade. Along with the commodities hubs, there are other services, including finance and derivatives trading. As part of the company formation process in this free Zone, you can form your firm using the DMCC Licence that covers commodities activities. They’re also establishing a tech hub full of innovations in this regard.
Another one of the benefits of the DMCC is its location in the Jumeirah Lakes Towers. The area is full of residential options for you to live in the heart of the city while remaining close to work. The site also hosts branches of popular restaurants, allowing for robust leisure and entertainment activities.
The Diamond Business in Dubai
Dubai turned into the third-largest diamond centre in the world in fifteen years, demonstrating massive growth. How did they create the recipe for success? In their words, they “...designed an environment that is safe, business-friendly, and that conveniently links producing and consuming markets.” This infrastructure includes the Dubai Diamond Exchange (DDE) that has the backing of the government, a newly-finished upgrade to their tender facilities and storage and vault facilities.
The Dubai Diamond Exchange (DDE) is in the Almas Tower and is home to more than 1,000 precious stone companies, both Emirati and foreign. It’s the only exchange in the Gulf Cooperation Council (GCC) region that has World Federation of Diamond Business (WFDB) affiliation that includes initiatives for rough and polished diamonds, as well as coloured gemstones and pearls.
It’s also home to the world’s largest diamond trading floor. Curious? Have a look in this video:
The Kimberley Process and DMCC Diamond Companies
What also makes the diamond and gemstone trade distinctive in Dubai? The UAE was the first Arab country to become a Kimberley Process (KP) signatory in 2003, three years after the process came into effect in 2000. What is the KP exactly? It’s a process produced in collaboration with the United Nations, civil society organisms and the global diamond industry to reduce the flow of conflict diamonds. The idea is that consumers have the peace of mind that the diamonds did not play a role in financing human rights abuses or wars.
What does this mean for you? The Ministry of Economy in the UAE is in charge of overseeing the Kimberley Process. It has authorised the DDE as the only point of entry and exit for rough diamonds in the country, making it the place to be if you’re involved in rough diamonds.
What other benefits are there for setting up your diamond business in Dubai?
With the diamond trade contributing 92 billion AED or 25 billion US dollars to the Emirati economy, the Dubai authorities recently put a sign on the iconic Burj Khalifa skyscraper to incentivise diamond firms to join the DMCC. With that in mind, the DMCC is offering a host of attractive incentives for firms looking to set up their diamond brokerage and consultancy businesses in the DMCC.
What are they? First, the DMCC Authority has a 50 per cent discount in the rate for enterprises connected to the diamond trade to establish themselves in the Dubai Free Zone in effect until 30 September 2020. As part of this deal, all firms will receive a 12-month membership in the Dubai Diamond Exchange (DDE) free of charge.
These incentives will allow you to enjoy the robust infrastructure and get a piece of the action as the DMCC looks to become an epicentre for laboratory-grown diamonds (LGD) and coloured stones as the Free Zone looks to adapt to fluctuations in the global diamond supply.
Interested in learning about the price of establishing your diamond company in the heart of the industry in Dubai?
For more about the DMCC and the 50 per cent discount for diamond firms available until 30 September 2020, our team of dedicated Free Zone company formation experts are ready to guide you through the process. As a firm based in the DMCC, we have the firsthand knowledge of the perks that come from being in the premier Free Zone. Would you like to get started? Schedule your initial consultation today.
CEO, Europe Emirates Group