Phase two of DMCC project launched

DUBAI - Dubai Metals and Commodities Centre (DMCC) yesterday launched the phase two of the DMCC project, with the sale of jewellery manufacturing units in the specially created complex. The construction of the facility will start in August and is scheduled for completion in the fourth quarter of next year.

By Jamila Qadir

Published: Sun 27 Apr 2003, 2:21 AM

Last updated: Wed 1 Apr 2015, 7:45 PM

The response from the jewellery industry was extremely positive, with half of the space being booked yesterday itself by gold and jewellery manufacturers during the official opening of bookings after a presentation made by DMCC for the trade to outline the facilities available within the phase two. Traders have options either to buy or to lease the units.

This is the first time that jewellery manufacturers can purchase business premises in Dubai within a complex dedicated to the needs of this specialised industry. DMCC has also joined up with Dubai Islamic Bank (DIB) to offer manufacturers a unique medium-term finance package.

Tawfique Abdullah, chief executive officer of DMCC, said: "We have been overwhelmed by the response from local and international manufacturers. This is a truly unique opportunity as participants will be able to own manufacturing units for the first time in such a complex in the UAE. "We are offering very competitive pricing in a purpose-built facility that will eventually house multiple manufacturing units. The total available space will be 5,500 square metres per unit, while there will also be modern accommodation facilities."

DIB's financing scheme, Al Siyagha (Goldsmith) will offer loans of up to 75 per cent on sums up to Dh1 million, with a repayment period of between two and six years. Saad Abdul Razzak, executive vice-president, DIB, said: "The scheme will be open to all DMCC licence holders who have experience of running similar operations. There will be a great deal of flexibility in the financing periods to facilitate different levels of manufacturers and to make the offer open to as many companies as possible."

Moaz Barakat, regional director World Gold Council (WGC), said: "This marks an important phase in developing a jewellery manufacturing business in the UAE, helping Dubai further as a regional hub for gold and jewellery manufacturing." He said last year the UAE had sold 90 tonnes of gold jewellery and this level will likely be maintained this year, adding that the Severe Acute Respiratory Syndrome (SARS), which hit the Far East, might divert tourists to this region, boosting the gold sales, especially in Dubai. According to WGC estimates, some 60 per cent of world gold consumption falls on the Middle East region, the Indian subcontinent and North Africa.

Ahmed bin Sulayem, chief operations officer of DMCC, said that the manufacturing phase was a crucial element of DMCC's strategy to attract key players in the precious metals industry.

"With the refinery phase already under construction and the booking phase of manufacturing units underway, we are on target for our objective of providing a full set of facilities for the gold, diamond and commodities industries in Dubai." The phase one has so far three local gold refineries and one overseas in addition to 11 special manufacturing units.

Tawhid Abdullah, chairman of the Gold and Jewellery Group, said: "The DMCC units will be open to all interested manufacturers and we are confident that the result will be a considerable growth in UAE-made jewellery. Last year the UAE imported 150 tonnes of gold and this year we hope to maintain the same figure." Abdullah, who is also the managing director of Damas Group, said that the group had taken one of the units in the phase one for jewellery manufacturing and diamond cutting activities.

The phase three of DMCC will include the jewellery trading centre and trade in other commodities.

The whole project, which is endorsed by WGC, is expected to be operational by 2005.

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