Dubai emirate will launch by April the Arab world's first exchange for diamonds to position itself as a leading commodity trading hub, the head of Dubai Metals and Commodities Centre (DMCC) said on Tuesday.
The Diamond Exchange will be the flagship of other exchanges for gold, aluminium, sugar and tea planned by DMCC - which was set up in 2002 to establish a commodity market place in Dubai to lure up to 50 percent of the world's gold output.
DMCC CEO Tawfique Abdullah told Reuters the Diamond Exchange will streamline diamond trade in the United Arab Emirates, which analysts valued at $700 million, in line with global standards.
"We expect to be the Arab world's first diamond exchange which will target the physical market and establish a place to buy and sell this on the spot," Abdullah said.
DMCC officials declined to comment on the value or amount of trade to be conducted through the exchange.
Abdullah said the DMCC applied for membership to the World Federation of Diamond Bourses in November and plans to host an annual meeting of the World Diamond Council in March.
Dubai, one of the seven emirates of the oil-rich UAE and the Gulf's trade and tourism hub, is already the region's gold re-export and marketing centre and currently has about 10 percent of the world's gold trade.
The emirate is striving to diversify its economy to compensate for its falling revenues from dwindling oil output.
The DMCC offers 100 percent ownership and a 50-year tax holiday to resident companies. The project includes the creation of three refineries to process bullion.
Abdullah said no date had been set for the launch of the refineries or other commodity exchanges.
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