In the first half of the year, the Dubai Gold and Commodities Exchange, the Middle East’s largest and most diversified financial derivatives exchange, recorded significant trading activity as 3.5 million contracts worth $71.3 billion were traded.

In an interview with Al-Bayan, Louis Hyams, Commercial Director of the Dubai Gold and Commodities Exchange, said the main drivers of this strong performance were the range of Indian rupee products we offer, as it contributed to the majority of trades with 23. million contracts worth $57.6 billion.

The Dubai Gold and Commodities Exchange, as the largest and most diversified financial derivatives exchange in the region, has succeeded in establishing the emirate’s position as a global hub for commodity trading, and we have succeeded in attracting investors from all over, Hemis said. A world that uses our platform to trade and hedge against risks, the stock market has attracted 93 investors to date. 15 of them are foreigners.

He said the strategic location of Dubai Emirate at the crossroads between East and West allows the stock market to play a decisive role in bridging the gap between the two time zones and allowing investors to trade at the best time when the markets are in the East. and West is closed.

The text of the interview reads:

What was the total number of contracts traded on the Dubai Gold and Commodities Exchange in the first half and their value?

The stock market registered significant activity with 3.5 million contracts traded worth $71.3 billion. The primary drivers of this strong performance were our Indian rupee product portfolio, which contributed the majority of trades with 23 million contracts valued at $57.6 billion. Our futures contracts for six major currencies also contributed to the increase in trading activity, with 168,000 contracts traded worth $8.8 billion, followed by our gold futures contracts, with 76,000 contracts traded worth $4.8 billion.

Our product portfolio’s focus on currencies and gold futures contracts is in line with current global market dynamics as investors seek effective hedging opportunities to mitigate potential risks amid increasing uncertainty in key markets.

Apart from the above, the growing importance of the Indian rupee group also reflects the strength of trade relations between the UAE and India, which has been strengthened by the recently signed Comprehensive Economic Partnership Agreement between the two countries as bilateral trade between the two countries. From April 2022 to last March, India grew by 16% to reach $84.5 billion.

performance

What is your assessment of the overall performance of the stock market in the first half?

We are happy with the general level of trade activity and work closely with our members to introduce new features to the market and remove barriers that hinder trade movement. One of our recent efforts in this direction is to waive fees for some of our products. Trade contracts in the market.

Contracts

What is the share of gold futures contracts in total contracts traded in terms of number and value?

Gold futures contracts have played an important role in protecting investors against price fluctuations by providing a safe and regulated trading environment, especially in light of the high inflationary environment experienced by the global economy.

As a result, the gold futures contract makes up the majority of gold contracts traded on the Dubai Gold and Commodities Exchange. In the first half of 2023, gold futures contracts saw 76,000 contracts with a total value of $4.8 billion.

What is the status of Dubai gold and commodity exchange in the region and globally?

Dubai has long established itself as a major player in international trade, and the establishment of the Dubai Gold and Commodities Exchange is a natural development in the emirate’s journey to attract global investors to the region.

As a subsidiary of DMCC, our strategic focus is on improving the flow of goods trade by providing a comprehensive range of physical, market and financial infrastructure and services across the emirate. Since our founding in 2005, we have remained committed to our message and the mission entrusted to us.

Currently, the Dubai Gold and Commodity Exchange is the most comprehensive and diversified financial derivatives exchange in the Middle East, as our strategic location at the crossroads between East and West allows us to play a decisive role in bridging the gap between exchanges. Two time zones and allows investors to trade at the best times… Eastern and Western markets are closed.

Since starting our journey in 2005, we have developed a wide variety of products designed to meet the changing needs of our investors, including currency derivatives, such as a range of Indian Rupee products and futures contracts on six major currencies. A range of futures contracts for gold, silver, copper and other metals.

Fee Exemption

What is the total volume and value of Shariah-compliant spot gold contracts since inception in 2018 to date? Will the fee waiver offer increase interest and demand for them?

Since its launch, the Shariah-compliant spot gold contract has received significant interest from investors seeking to invest in Shariah-compliant products for hedging and trading purposes.

The first of its kind in our region, this product has achieved exceptional demand since its launch in 2018, as nearly 3,000 contracts were traded with a total value of $154 million. In the first half of the year, we saw 284 trades. The contracts have a total value of $17.4 million dollars.

The significant global growth of the fee-free and Islamic finance sector, which is worth $3 trillion today and is expected to grow by around 10% between 2023 and 2024, has increased the demand for compliant spot gold contracts with Sharia law.

Coins

What are the most traded currencies on the Dubai Gold and Commodities Exchange and why?

Our exchange offers a variety of currency products that have received great interest from investors, including futures contracts for six major currencies, providing a safe and regulated environment for investors to hedge against risks. and macroeconomic dynamics.

Our Indian Rupee Futures range has emerged as the most traded currency on the Dubai Gold and Commodities Exchange and these products include Indian Rupee Futures, Quanto Futures and Mini Futures.

In the first half of this year, the Indian Rupee Contracts Group saw trading of 3.2 billion contracts. This interest in our Indian Rupee Product Group is primarily driven by the large Indian community in the UAE, which has over 83,000 Indian companies. In the country, 11 thousand new companies have been registered in 2022 alone.

As companies seek to hedge the risks of currency fluctuations in their transactions, the large Indian business community in the region is expected to continue to contribute to increasing interest in Indian rupee futures contracts. Also, as I mentioned earlier, trade and investment relations between the two countries are growing, which is our Indian rupee. Increases the attractiveness of future products.

products

What are the most important products that the stock market wants to add in the near future?

Dubai Gold and Commodities Exchange seeks to continuously improve and diversify its product range to meet the evolving needs of its members and traders. We are constantly working to introduce new contracts to the exchange and expand the metals asset class by adding silver contracts. Complies with the rules of Islamic Shariah and is currently subject to the approval of the Securities and Commodities Commission. This deal will provide investors with a reliable and transparent platform for silver trading, and we seek to replicate the success we achieved with the Shariah-compliant spot gold deal.

Investors

What is the percentage of foreign or international investors in the stock market?

As the largest and most diversified financial derivatives exchange in the region, Dubai Gold and Commodities Exchange has succeeded in positioning itself as the Emirate’s global trading hub, and in light of the unique and diverse product range we offer, we have succeeded in attracting investors from around the world who use our platform to trade and hedge, share The market attracted 93 investors, including 15 from outside the country.