made for trade - dmcc · 2017-04-12 · major markets means we remain optimally positioned to...
TRANSCRIPT
Annual Report 2016
MADEFOR
TRADE
DMCC IS
It is why we built the world’s leading,
most interconnected Free Zone.
It is why we took a progressive view of the business landscape, identifying global reach and high performance as the keys to empowering success.
It is why we ensure direct access to Dubai, the UAE and the world’s commodities markets for every member; plus the full suite of business support, to accelerate your enterprise, and connect you to an active network of global businesses.
And, if commodities are your trade, you will benefit from our world-class expertise and infrastructure.
It’s all here, in a prestigious location: home to everything you need to work, thrive and live your life to the full.
In the heart of Dubai, the center of the trading world.
MADEFOR
TRADE
ANNUAL REPORT 2016
01
Introduction
Executive Chairman Statement 04
CEO Strategic Review 06
Overview
The Year in Review 08
Free Zone 10
Property 16
Gateway to Trade
Commodities 20
Kimberley Process 24
DMCC Tea Centre 26
Dubai Gold and Commodities Exchange (DGCX) 28
DMCC Tradeflow 29
Developing Dubai
Community 30
Our People 32
Our Brand & Marketing Efforts 34
Principal Risks and Opportunities 36
Looking Ahead 38
Appendix
Connecting Markets Across the World 40
Awards and recognition 42
Contents
16
04
26
36
3206
20
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02 03
Dubai’s advantage of being located at the natural crossroads of the world’s major markets means we remain optimally positioned to facilitate global trade.
Ahmed Bin Sulayem DMCC Executive Chairman
2016 was a year of significant volatility for global markets.
Events such as Brexit and the US election in the West, and Chinese economic uncertainty in the Far East caused price fluctuation and widespread caution.
Here in the Middle East, weak oil prices affected sentiment negatively and naturally we saw some stockpiling of goods as buyers waited on the sidelines.
However, markets are cyclical and the end of 2016 brought reasons for optimism, not least a small rise in US interest rates and China’s continued focus on re-establishing ancient trading routes through the ambitious Belt and Road initiative.
Ahmed Bin Sulayem DMCC Executive Chairman
In 2016, DMCC worked hard to prepare for a return of world trade momentum by deepening existing relationships with members through dialogue and consultation, and by working together to explore ways in which to connect with new markets.
Dubai’s advantage of being located at the natural crossroads of the world’s major markets means we remain optimally positioned to benefit from a strengthening of global tradewinds.
It was imperative, therefore, that in 2016 we wasted no opportunity to harness the entrepreneurial spirit that defines us, remain disciplined in our spending and structured in our planning in order to capitalise on future opportunities.
DMCC made a strong contribution to the Dubai economy in 2016 and I am confident the groundwork we laid over the course of the year will enable us to flourish in 2017 and beyond.
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04
In 2016, we continued to focus on working with members to better understand their needs and to proactively find new ways to enhance the services we offer.
Gautam Sashittal DMCC Chief Executive Officer
CEO Strategic Review
Gautam Sashittal DMCC Chief Executive Officer
In 2016, DMCC improved profitability and its cash flow by continuing to attract a record 2,016 new members to our Free Zone; delivering high quality commercial spaces such as ONE JLT; enhancing products, services and infrastructure for our customers; and by creating new, as well as nourishing more established marketplaces for the benefit of the global trade.
The Dubai Gold and Commodities Exchange (DGCX), the Dubai Diamond Exchange (DDE), DMCC Tradeflow and the DMCC Tea Centre all saw healthy trade volumes throughout the year, demonstrating that appetite remains vigorous despite sometimes challenging global economic conditions. We expect to see volumes increase with a return of global economic confidence.
Our members, a global community of over 13,000 companies and 45,000 people, are naturally at the center of everything we do. In 2016, we therefore continued our efforts to provide the most innovative platforms, tools and services to ensure that doing business with DMCC is as efficient as possible.
Our digital transformation journey is key in this as it has made our services available to customers anywhere in the world through our online DMCC Member Portal, and in doing so, further lowered the time it takes to set up a business in our Free Zone.
Likewise, our efforts to create new marketplaces for the agri and coffee trade, to stimulate growth and better connect the industry, will create significant new opportunities for our members, as well as driving further expansion by DMCC in 2017.
I look forward to further our international growth strategies with a strong focus on our key markets this year; as we continue our journey as the world’s leading Free Zone; and enabler of trade in Dubai, in the region and in the world.
Our soon to be premium address for the global business community, the Burj2020 District, is also well underway and we look forward to bringing this world-class, mix-use property development to the next level in 2017.
The projects we delivered in 2016 were exciting, challenging and rewarding, and I know 2017 will see us form even more strategic partnerships; and further enhance collaboration with key industry, trade and government entities locally and internationally, as we gear up to outperform in 2017 and long into the future.
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ABOVE PLAN1%
TEA THROUGHPUT
41.6MKGs
%
29.2%
KPCS DIAMOND CERTIFICATES
ISSUED UP
FZ MEMBER RETENTION AT
90
DMCC EXECUTIVE CHAIRMAN
KIMBERLEY PROCESS CHAIR
RAISED GLOBAL AWARENESS OF DUBAI’S
ROLE AS ONE OF THE WORLD’S TOP 3 HUBS
FOR THE DIAMOND TRADE
MURABAHA TRANSACTIONS,
VALUE AED
58.4BN
11,412
ADV UP ONLAST YEAR
Performance Highlights
BURJ 2020 DISTRICT
Re-phasing complete & commencing
first tower
The Year in ReviewOur strategic focus has resulted in DMCC delivering yet another year of strong growth.
• DMCC became majority shareholder of the DGCX and saw the exchange launch 3 new contracts
• DMCC was named Global Free Zone of the Year for the second year in succession by The Financial Times fDi magazine
• We launched the DMCC Thought Leadership programme which examined how the Future of Trade will evolve over ten years. The report was downloaded 8,500 times.
• As part of our international expansion strategy, DMCC participated in Dubai Week in China, a Dubai Inc collaboration, held in Shanghai, during which 3 MoUs were signed with the Shanghai Gold Exchange, Agricultural Bank of China and Mega Capital & Yunnan State Farms Province.
• DMCC and DGCX announced the first landmark yuan-denominated gold future product to be offered outside of China, obtaining a license from the Shanghai Gold Exchange (SGE) to list Shanghai Gold Futures in Dubai using the Shanghai Gold Benchmark Price
• As marketmaker 155 events were held, including the Kimberley Process Intercessional and Plenary Meetings, the World Federation of Diamond Bourses, the Dubai Precious Metals Conference and the Global Dubai Tea Forum
• Over 20 MoUs were signed in 2016 with a strong focus on China including: China Silver Group, China’s largest silver producer; Zhongwei Ningxia Municipal People’s Government in China; Agricultural Bank of China; Shanghai Gold Exchange and Mega Capital & Yunnan State Farms Province
• 2016 was a record year for DGCX during which 19.7m contracts were traded, worth a total $439.5bn. This trade volume represented 36 percent growth compared to 2015.
• DMCC Executive Chairman Ahmed Bin Sulayem was appointed global KP Chair on behalf of the UAE Ministry of Economy, a major honour and recognition of the leadership status Dubai and the wider UAE is accorded within the global diamond industry.
• Significant steps were taken in 2016 to finalise Burj2020 District master development plans and to secure quality commercial tenants for ONE JLT, our Grade A fourteen-storey commercial tower
DGCX RECORDS
36%VOLUME GROWTH
IN 2016
2,016NEW FREE ZONE
COMPANIES
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Named the world’s best Free Zone by the Financial Times fDi for the second year in succession.
DMCC is the number one trade and enterprise Free ZoneWe are home to more than 13,000 companies, ranging from entrepreneurial start-ups to large corporations. We offer a competitive, ultra-modern commercial and residential environment in which businesses and people can thrive.
In 2016, we worked with enthusiasm and drive towards our mandate of promoting commodities trade through Dubai and to ensuring the services we provide remain unparalleled.
We welcomed 2,016 new companies to DMCC in 2016, continuing a trajectory that has established us as the UAE’s largest and fastest growing Free Zone. Over the course of the year, we consulted our members regularly in order to discover new areas in which to innovate, and we continued to undertake ambitious construction projects to expand the range of quality premises, homes and infrastructure we are able to offer.
In short, 2016 was a year of standout achievement for DMCC, culminating in being named the world’s best Free Zone by the Financial Times fDi magazine for an unprecedented second year in succession.
DMCC. Made for Trade.
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More than 87,000 people live and work in the DMCCFree Zone. Comprising 66 towers spread over 200 hectares of prime Dubai real estate, the DMCC Free Zone is a world-class international center for trade and enterprise.
Free Zone
In 2016, we continued to see rapid membership growth, attracting 2,016 new member companies – an average of seven new companies each working day.
DMCC member satisfaction, a key metric by which we benchmark the quality of the professional and residential services we provide, rose to 90 percent, up from 85 percent in 2015. Additionally, we achieved 90 percent member retention in a tough economic environment.
Over the course of the year, several important initiatives were launched, each designed to create value for members and to provide seamless customer service including:
• Our collaboration with Gulf recruitment specialists Bayt to facilitate access to talented executives for member companies
• The opening of the DMCC Silver Tower Business Centre to give members access to a world-class business and conferencing centre
• Enhancing our DMCC Member Portal to speed up processes and service delivery
Connecting our community In addition to hosting a number of clubs and events for our members annually, our Executive Management team also welcomes each and every new DMCC member in person as part of the Free Zone’s monthly welcome events.
Setting Standards To ensure business standards within DMCC comply with the very highest levels of international best practice, in 2016 key initiatives were activated to:
• Refresh DMCC Free Zone rules and regulations for business
• Clarify DMCC dispute resolution processes
• Simplify DMCC rules pertaining to corporate governance
• Ensure a clear DMCC policy is in place for corporate whistle-blowers
• Codify best-in-class DMCC safety guidelines
03 04 05 06 07 08 09 10 11 12 13 14 15 162
802
Est
ab
lish
men
t o
f D
MC
C
22
3
67
8
919 1,15
5
1,4
37
1,9
20
2,6
46
4,0
08 5
,72
0 7,3
31
9,8
04 11
,58
8 13,1
76
FREE ZONE MEMBER COMPANIES
CUSTOMERSATISFACTION
IN 201690%13,100
HOME TO OVER
COMPANIES
540RETAIL
OUTLETS
OF MEMBER COMPANIES ARE NEW TO DUBAI
95%
NEW COMPANIES REGISTER EVERY
WORKING DAY
7
SERVICED OFFICES WITHIN THE
BUSINESS CENTRE WERE
OCCUPIED BY THE END OF 2016
100%
HOTELS
5
66TOWERS
Free Zone at a glance
33%
AVERAGE ANNUAL GROWTH RATE LAST
DECADE
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Global Focus A key initiative launched in 2016 was the signing of a memorandum of understanding (MoU) with Ningxia Province, in China. The MoU, which will see DMCC and Ningxia Province proactively seek mutually advantageous commercial opportunities and other forms of collaboration, is a first pillar in DMCC’s long-term strategy to maximise Dubai’s opportunities within the framework of China’s Belt and Road trading initiative.
In order to better understand the requirements of European businesses and trading partners, DMCC also signed a MoU with the German Arabian Business Centre to establish the German Arabian Advisory in Düsseldorf. Acting as a gateway for European companies into the bustling emerging markets across Asia and Africa via Dubai, this DMCC representative office in Germany is making services even more accessible for potential clients.
By visiting the Düsseldorf office, prospective clients do not need to travel to Dubai to process the applications for membership.
Recognition In 2016, we launched the DMCC Awards for Free Zone companies, in order to encourage and reward best practice and to bring members together during a glittering gala dinner at Almas Tower. Awards were across 21 categories to recognise outstanding performance, innovation and growth.
Enhancing Value Added Services DMCC members also benefit from a range of services accessible in one place at DMCC’s Almas Tower:
• Property A dedicated real estate broker with access to most landlords, giving members a faster and more efficient way of finding their most suitable office space
• Residency Visa All visa applications for company employees and their families can be applied for online through the same member portal for their convenience
• Recruitment Start-up job postings available free to new companies allowing them to secure their first and most necessary hires; other packages are offered at discounted rates
• Insurance All mandatory insurance requirements are available through a dedicated insurance broker for DMCC members, giving start-ups and SMEs alike access to insurance often only available to large corporates
• Financing Corporate credit card free for members and offering 12 months instalments options on DMCC charges with 0%
• Telecom Business packages of telephone number with personalised answering service
• Mediation DMCC’s trained lawyers and mediators are available by appointment to mediate disputes that the employer and employee have been unable to resolve internally
RECRUITMENT PACKAGES Available exclusively for DMCC member companies
RULES AND REGULATIONS REFRESH Ensuring that Free Zone rules are clear and relevant
WHISTLE-BLOWER POLICY Making appropriate framework accessible
DISPUTE RESOLUTION CENTRE Access to dispute resolution services
CORPORATE GOVERNANCE Make best practice for corporate governance accessible
Other services include:
Services available via the DMCC Member Portal include:
DMCC’s digital transformation strategy, enabled via robust technology infrastructure, has made 100 percent of all services that can be available online accessible to our member companies on any device from anywhere in the world via the online DMCC Member Portal.
This, combined with the Free Zone’s Know Your Customer strategy, has revolutionised how DMCC engages with its customers and how customers engage with DMCC. DMCC is focussing on listening to its members’ needs to ensure they have access to the products, services and infrastructure they need to succeed, and in turn can focus their time and resources on driving their core business forward, while DMCC delivers all the other necessities for businesses to thrive, grow and operate efficiently.
Improving service to our member companies
E-SIGNATURE Quickly and securely authorise documents online
CASE FEEDBACK Instant feedback on cases raised by members
BARCODE TRACKING Instant tracking of important documents
ONLINE LEASE RENEWAL Quickly lease from the portal
DIGITAL NOTICES Company amendment notification online
ESTABLISHMENT CARD REMINDERS Expiry reminders issued to avoid disruption
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Smart District In 2016, we focussed on creating a long-term Smart District strategy to ensure the entire Free Zone community of around 87,500 people (residents and employees) can live, work and thrive in a cutting-edge community that offers the latest available in technology, connectivity and amenities.
The intention of the strategy is to improve connectivity, sustainability and community through smart objectives and initiatives that are aligned with Dubai’s smart city guidelines. We expect that these initiatives will in time deliver benefits to the community including the Burj2020 District.
As a result of our work in 2016 to formulate DMCC’s comprehensive Smart District strategy, in 2017 we will be able to further elevate DMCC’s credentials as a world-leader in terms of investing into and utilising the world’s smartest technologies. The DMCC Smart District strategy will be implemented between 2017 and 2020.
Burj2020 District Significant steps were taken in 2016 to finalise Burj2020 District master development plans, which will see DMCC bring a new breathtaking premium destination to Dubai, tailor-made for the global business community. The Burj2020 District, will offer world-class commercial, residential and retail spaces, including premium hotels, restaurants, recreational areas, and two iconic super-tall towers designed by leading architects Adrian Gill & Gordon Smith.
One JLT In 2016, DMCC undertook extensive work to secure quality commercial tenants for One JLT, a Grade A fourteen-storey commercial tower offering excellent office and retail spaces including Modul University, One Business Centre, Tim Hortons, Real Pilates, 1762 and more.
PropertyThe DMCC community today comprises 66 purpose-built, state-of-the-art commercial and residential towers. Our community and property portfolio is maintained to the highest standards to ensure that commercial members and residents alike have the very best experience possible.
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We are a Government of Dubai entity, dedicated to enhancing Dubai’s position as the primary global gateway for commodities trade.
We do this by creating an environment for businesses to flourish, providing physical, financial and digital infrastructure as well as regulatory frameworks, services, and expertise needed to build a marketplace for success. We help our members connect and trade with businesses across Dubai, the UAE and the world by drawing on our resources to help shape and grow key industries, commodities and the future of trade.
Gateway to Trade
In line with the visionary leadership of the UAE, DMCC’s mission is to place Dubai at the center of global trade.
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Commodities Regulatory Entities & Standards
• DMCC established the Independent Governance Committee for Responsible Sourcing and launched the ‘DMCC Rules for Risk Based Due Diligence in the Gold and Precious Metals Supply Chain’ as part of its continuous drive to enable members to ensure Dubai’s precious metals industry meets the highest levels of compliance with global best practices.
• The Kimberley Process Certification Scheme (KPCS) was implemented in the UAE in 2003 by the Ministry of Economy, making the UAE the first Arab country to introduce this process, and the DMCC Authority the only entry and exit point for rough diamonds in the country.
• In 2016, the UAE Kimberley Process Certification Scheme launched a taskforce to further prevent illicit diamond trade. Headed by His Excellency Juma Mohammed Al Kait, Assistant Undersecretary of the Ministry of Economy for Foreign Trade, the committee includes high-level experts from the Ministry of Foreign Affairs and International Cooperation; the Ministry of Interior; the Federal Customs Authority; the UAE Central Bank; Dubai Customs; and the UAE KPCS office in DMCC.
Trade Facilitation
• The Dubai Diamond Exchange (DDE) which operates as a market maker for the diamond and coloured stones industry as the only bourse in the Middle East affiliated with the World Federation of Diamond Bourses (WFDB), facilitated 15 diamond tenders in 2016. The DDE also attracted 268 new members to the exchange, 945 in total, an increase of 39.5% compared with last year.
• DMCC signed an MoU with the Mineral Commission Ghana and World Gold Council, to enhance responsible sourcing practices in Ghana and bilateral trade relations through mining sector enterprises and sales of Ghanaian mined precious minerals and gold in Dubai.
• DMCC announced its plans to develop a coffee centre. The DMCC Coffee Centre is to offer storage and warehousing facilities, offices and co-location space within a 4,500 squaremeter temperature controlled facility.
• DMCC launched The Food Trade Group, the first initiative in Dubai developed specifically to bring traders, producers, service providers and financiers together to help stimulate growth in the food trading market. 50 companies have signed up to date.
DMCC plans to develop a
temperature controlled Coffee Centre.
4,500SQ M
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DPMC keynote speakers: Honourable Mr Abubakar
Bawa Bwari, Minister of State Mines & Steel
Development, Nigeria; and Dr. Diego Parrilla,
co-author of ‘The Energy World is Flat‘, with Ahmed
Bin Sulayem, Executive Chairman, DMCC.
Connecting Markets
• The Kimberley Process Chairmanship In 2016, the UAE and DMCC’s Executive Chairman, Ahmed Bin Sulayem, chaired the Kimberley Process, the United Nations entity tasked with stemming the flow of conflict diamonds internationally.
• The Kimberley Process Intercessional In May, DMCC hosted the Kimberley Process Intercessional event, an opportunity for all participating countries to come together to discuss important diamond regulation and certification issues. The UAE Chair also hosted the first diamond valuation seminar in collaboration with the OECD.
• Kimberley Process Plenary Session A Kimberley Process plenary session took place in November. The Plenary saw agreements struck for the establishment of a Permanent Secretariat to enforce the organisation’s rules and protocols, and the creation of a common fund for NGOs working in the area of conflict diamonds.
• Kimberley Process Chair’s Contribution Award Kimberley Process Chair, Ahmed Bin Sulayem, was also honoured by the Diamond Dealers Club (DDC) of New York in December for outstanding work to support the diamond industry. In particular, the DDC cited Mr Bin Sulayem’s efforts to visit 20 countries and a wide range of the world’s emerging and established diamond centres during his tenureship as Kimberley Process Chair, and his efforts to modernise supply chain processes and security.
• Dubai Precious Metals Conference The fifth edition of the Dubai Precious Metals Conference was attended by 450 delegates from more than 34 countries.
• World Diamond Congress on ‘Transparency, Responsibility and Sustainability’ Attended by over 200 delegates, the 37th meeting of the World Diamond Congress included a meeting of the World Federation of Diamond Bourses (WFDB) and the International Diamond Manufacturers Association (IDMA).
• Africa Dubai Precious Metals Forum on ‘Legitimising the Global Gold Trade’ The second edition of the Africa Dubai Precious Metals Forum attracted 130 delegates and was hosted by DMCC in Accra, Ghana.
• The sixth edition of the Global Dubai Tea Forum attracted over 370 delegates from 30 tea producing and consuming nations.
The Dubai Precious Metals Conference was
attended by
delegates from more than 34 countries
450
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It was the first time that a global industry had cooperated with the UN, governments and civil society to address a humanitarian issue. Today, there are 54 participants representing 81 countries. Participants agree to only allow the export and import of rough diamonds between other countries in the KP, and countries in conflict were barred from becoming a member.
In 2016, DMCC Executive Chairman Ahmed Bin Sulayem was appointed global KP Chair on behalf of the UAE Ministry of Economy, a major honour and recognition of the leadership status Dubai and the wider UAE is accorded within the global diamond industry.
The UAE Chairmanship saw Mr Bin Sulayem travel to 20 countries before concluding the successful chairmanship delivering a speech on the draft resolution “The Role of Diamonds in Fueling Conflict” at the UN General Assembly 69th plenary meeting, 71st session, on February 2nd, 2017.
The UAE led resolution on “The Role of Diamonds in Fueling Conflict” includes important decisions of the Kimberley Process, which were made by consensus during UAE KP’s tenure as the KP Chair in 2016.
Adopted by the UN and co-sponsored by 41 countries, the resolution notes that the KP plenary took note of the UAE’s proposal to develop a methodology on the valuation of rough diamonds, welcomed the proposal to establish a Permanent Secretariat for the Kimberley Process, and welcomes that the plenary acknowledged the proposal of the KP Chair 2016 to set up a multi-donor trust fund for the civil society. This work will now continue under the leadership of Australia, who takes over as KP Chair in 2017.
The chairmanship of the KP will further cement DMCC’s and Dubai’s role in the global diamond trade as a leading diamond hub for years to come.
Kimberley ProcessThe Kimberley Process (KP) is a global initiative bringing governments, the diamond industry and NGOs together to stem the flow of conflict diamonds. In December 2000, all 191 United Nations members voted unanimously to support the KP.
The intention of the Kimberley Process is that the proceeds from international sales are not used to finance violence by groups hoping to overthrow legitimate governments throughout the world.
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In 2016, the DMCC Tea Centre handled more than 41.6m kilograms of tea, testament to the industry’s appreciation for its state-of-the-art facilities.
41.6M KG
DMCC Tea CentreThe DMCC Tea Centre has become an established center for the global tea trade. Today the UAE has 60 percent market share of re-exports, enabled mainly by our Tea Centre.
The DMCC Tea Centre enables tea traders from all corners of the world to meet in comfortable, technologically-advanced surroundings in order to buy, sell and value add.
In 2016, the DMCC Tea Centre handled more than 41.6m kilograms of tea, testament to the industry’s appreciation for its state-of-the-art facilities, which span 24,000 square metres and include extensive climate-controlled warehousing, as well as dedicated tasting, blending and packaging areas.
Global Dubai Tea Forum In April, we hosted the sixth edition of the Global Dubai Tea Forum, bringing together more than 370 industry players from 30 tea producing and consuming nations.
Talks and seminars covered a wide range of topics, from the effect of climate change on the industry to changing consumer trends.
The Forum also focussed on future tea industry trends, particularly the changes that digitisation would effect in markets throughout the world.
Shai Dubai The Dubai Global Tea Forum culminated in the introduction of our own tea brand: Shai Dubai, a signature, high-quality tea, blended using only the finest leaves.
Shai Dubai will be taken to market in 2017.
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DMCC TradeflowThe dedicated online platform for registering possession and ownership of commodities stored in UAE-based storage facilities, DMCC Tradeflow has seen rapid transaction volume growth since inception.
Volatility in several of the world’s key markets was reflected by trading patterns on DGCX. For example, the euro and the British pound saw increased volumes compared to the previous year (8 percent and 167 percent, respectively) following Brexit.
Other events that affected DGCX volumes included the US election, a US interest rate hike and Indian currency demonetisation.
Over the course of 2016, DGCX traded an average 76,835 volumes a day, the highest average level in its eleven-year history.
In 2016, DMCC achieved 98.9 percent ownership (up from 50 percent in 2005) of DGCX in line with a government-mandated goal to be the main provider of the infrastructure needed to trade commodities in Dubai.
New Products DGCX introduced a total of three new contracts in 2016 including:
• 15 single stocks futures from US and India, January 2016
• Dubai India Crude Oil Quanto Futures (DICO) Cash Settled Contract, July 2016
• Cash settled Brent Crude Oil Futures (DBRC) contract along with the first Inter-commodity WTI–Brent spread, November 2016
Dubai Gold and Commodities Exchange (DGCX)Launched in 2005, the Dubai Gold and Commodities Exchange (DGCX) is today the leading derivatives exchange in the Middle East.
In 2016, DMCC Tradeflow recorded a total 11,412 murabaha transactions with a total value of AED 58b, a value increase of 405 percent compared to 2015.
The growing regional popularity of DMCC Tradeflow was evidenced by the addition of 23 new members to the platform, bringing the total number of active members to 118 by the end of 2016.
DMCC Tradeflow was named Best Murabaha Platform at the 2016 Islamic Business and Finance Awards.
New Products We expanded our DMCC range of Islamic financing products with the launch of Salam, a Shariah-compliant lending instrument, in July.
Global Expansion The DMCC Tradeflow team demonstrated a commitment to knowledge sharing and supporting the Dubai economy by signing an MoU with Jebel Ali Free Zone to collaborate in order to facilitate progress. It is hoped the MoU will see best practice exchange and other opportunities to share world-class technologies.
A strategic MoU was also signed with the China Silver Group. It is expected the MoU will lead to further mutually advantageous collaborations over time.
TRANSACTIONS VALUE (AED)
58
,43
1
11,5
71
3,3
76
DMCC Tradeflow recorded 11,412 murabaha
transactions with total value of AED 58b, a
remarkable 405 percent increase over the
same period last year.
12 13 14 15 16
50
58
2016 was a record year for DGCX during which 19.7m contracts were traded. This trade volume represented 36 percent growth compared to 2015.
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CommunityOne of the biggest advantages of the Jumeirah Lakes Towers community is its ideal location and multiple choices available from leisure and recreation through to retail, hospitality, dining and outdoor activities.
Today there are 5 hotels, 2 universities, 66 commercial and residential towers, parks and running tracks, over 540 retail outlets with over 300 restaurants & cafés to choose from including 1762, Jazz @ Pizza Express, Caffé Nero, Little Bangkok and Couqley.
Minutes from the airport and the harbour, moments from shopping malls, the beach and two metro stations, you will find all you need to work, thrive and enjoy life to the full in Jumeirah Lakes Towers.
From infrastructure and systems management, through to local events and family oriented activities, DMCC’s facilities management service provider, Concordia, ensures that residents and workers can enjoy safe and dynamic community living.
Key highlights delivered by Concordia in 2016 included:
Facility Maintenance 100 percent Facility Maintenance (FM) contract renewal
Key enablers • Realignment of management structure
and responsibilities implemented
• Renewed Dubai Branch Office to facilitate the provision of Security and Parking Services outside JLT
• Dubai Branch Office DPS license for security and lifeguarding services established PINK WALKATHON
OPEN AIR ART GALLERY
FAMILY DAYS
RUBEN SANCHEZ MURAL
FUN RUN
DUBAI TOUR CYCLING RACE
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Our People
We are also deeply committed to the career development of our employees. In fiscal 2016, we enhanced the processes whereby we bring organisational development through human development, both personal and professional, and delivered highly relevant training to our people at the point of need
By investing in our people, we are better able to serve the needs of our clients and our community—and achieve our vision.
We also focused on making information more readily available for everyone, and processes more transparent and accessible to enhance productivity.
From introducing new training programmes, to the launch of an online portal for employee services, to the introduction of a social media platform for employees, we recognise that our organisation is only as good as our people and in order for us to continue to lead, being able to successfully evolve, diversify and expand – we want to make sure we do everything we possibly can to stay ahead of the curve.
We are also plugging into HH Sheikh Khalifa’s UAE Dh300 billion plan on knowledge economy, whose primary goal is to build a vibrant knowledge economy in the UAE. And, to establish a solid future for the coming generation.
As part of our Almas Emirati Graduate Programme, designed to complement the HH Sheikh Mohammed Bin Rashid Al Maktoum Emiratisation plan, ten talented young Emiratis were welcomed permanently to the DMCC corporate family of 47 nationalities in 2016.
2016 was also designated the Year of Reading by HH Sheikh Mohammed Bin Rashid Al Maktoum. DMCC created an employee library and provided all employees with electronic reading devices on birthdays. Additionally, books were given to employees as Eid gifts.
Of all of our accomplishments, we take pride in our business performance, diversity and corporate citizenship. We are set apart in the market by the value we are able to create through the quality and expertise of our employees. DMCC’s greatest asset is its people. Attracting, developing and inspiring the very best talent in our industry is critical to meeting the evolving needs of our clients and growing our business.
NATIONALITIES
YOUNG EMIRATIS EMPLOYED THROUGH GRADUATE PROGRAMME
EMPLOYEES ENROLLED INTO DMCC
LEADERSHIP ACADEMY
37
10
75
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The DMCC brand is one our most important assets as we focus on being even more relevant, differentiated, and competitive. A strong DMCC brand opens doors to new client opportunities and attracts the best and brightest to join our team. And as we continue to grow our business in existing, new and high-growth areas, our brand equity will enable us to move into new market space with credibility. Digital has fundamentally changed how
companies engage with new and existing customers. DMCC is on an accelerated journey of transformation to implement a content driven, digitally enabled marketing strategy. At the core this will provide a more seamless user experience for aspiring and existing customers, and drive new business to Dubai. Over 2016, DMCC increased engagement across digital touch points five-fold, supported by a content rich thought leadership program.
2016 saw the implementation of our first thought leadership programme, a comprehensive report which examined how the Future of Trade will unfold over the next ten years, built on insights shared by 150 experts across five continents. The program gained global recognition and was featured by BBC World, Thomson Reuters and the Wall Street Journal. Over 8,500 people have downloaded the report. DMCC also won ‘Best Integrated PR campaign’ from PRCA for the program.
As DMCC begins to build its brand in China, we joined Expo 2020, Jumeirah Group, Emirates, Jafza, Dubai Chamber, DIFC and DTCM on a trade mission ‘Dubai Week in China’ in Shanghai. The event, under the theme “Creating connections for future mutual growth” saw a delegation of thought leaders, business leaders, government and media collaborate to deliver a programme of activities that aimed to ultimately lead to increased trading activities between Dubai and China.
In 2016, UAE was chair of the Kimberley Process, a United Nations organisation tasked to stem the flow of conflict diamonds. DMCC was responsible for the global marketing program of the Kimberley Process, which included a highly global media campaign, and implementing a new digital strategy and website.
The program generated over USD 51 million in advertising value for the Kimberley Process and the UAE, further cementing DMCC’s and Dubai’s role as a global diamond hub.
$51MADVERTISING
VALUE GENERATED FOR KIMBERLEY
PROCESS
Our BrandAs we continue to grow and evolve our business organically we continue to invest in new capabilities that will drive growth for us and our clients. Likewise, we have rapidly shifted our marketing focus to invest in our brand.
DMCC’s updated digital
presence aims to make
it easier to set up a
company online, provide
faster access to support
and how-to-guides
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DMCC is mindful of macroeconomic, geopolitical and legal and regulatory risks and opportunities that might impact performance, short-term or long-term. These include:
Macroeconomic Risks • Slow global trade growth due to weak
market sentiment
• Sustained low commodity prices negatively impacting exporters
• Slow MENA economic growth due to sustained weak oil prices
• Reduced GCC government spending on infrastructure or fuel subsidies
Macroeconomic Opportunities • Strong GCC economic growth caused
by oil price resurgence
• Strong Dubai economic performance supported by non-oil sectors
• Strong overseas investment into Dubai in 2017
• Strong local stock market performance
Geopolitical Opportunities • Regional growth caused by lifting of
international sanctions on Iran
• In light of the shifting geopolitical sentiment around the world with Brexit, the recent election in the United States, China’s ambitious Belt and Road initiative, significant change is on the horison for global trade
Legal and Regulatory Risks • The introduction of VAT in GCC
states may have a negative impact on the allure of GCC Free Zones to international investors
• Introduction of mandatory 5 percent customs duty on gold may negatively impact the industry
Principal Risks and Opportunities
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In 2017 and beyond, in order to attract new members we will continue to leverage DMCC’s strengths as a global destination of choice in which to live and to work.
We will also promote the excellence of DMCC’s offering internationally in order to connect old and new markets and to facilitate trade in and through Dubai.
Abroad, our primary focus will be on growing DMCC’s exposure to India, China, Germany and the UK.
Additionally, we will continue to embark on construction projects, such as Burj2020 District, to create world-class commercial and residential spaces. We will also prioritise the upgrade of all existing Free Zone infrastructure in line with our strategy to make DMCC a world-leading utiliser of smart technologies.
In terms of connecting people and markets, we will continue to take a leadership position within the markets in which we operate, issuing regular thought leadership and analysis relating to the commercial issues of the day.
We will also seek to form mutually advantageous strategic partnerships and to host quality commercial events at which high level networking and knowledge sharing can take place.
DMCC was created not only to take advantage of opportunities, but to create opportunities.
Over the coming weeks, months and years, DMCC will proactively seek to identify areas of potential opportunity to maximise benefits for the good of our people, our members and our home, Dubai.
DMCC was created not only to take advantage of opportunities, but to create opportunities.
Looking Ahead: 2017 and Beyond
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Connecting Markets Across the World
Over 12,000 reasons to be awarded Global Free Zone of the Year. Again. 7
REGISTRATIONS EVERY DAY
95% COMPANIES ARE NEW TO DUBAI
87,500 PEOPLE IN OUR COMMUNITY
Home to over 12,700 companies that have chosen to grow their business in and beyond Dubai’s borders, DMCC is the largest and fastest growing Free Zone in the World. Perfectly positioned where East meets West and North meets South, we are the ideal partner for those looking to set up a business to access a truly global marketplace.
Made for Trade. Together. www.dmcc.ae
DMCC advertising on busy street corner in Shanghai, China, November 2016
DMCC launch thought leadership programme ‘Future of Trade’ simultaneously in London and Dubai, March 2016
DMCC making waves at New York’s Time Square,October 2016
CEO Gautam Sashittal plugging DMCC and Future of Trade on BBC World News, March 2016
UAE KP Chair and DMCC Executive Chairman Ahmed Bin Sulayem speaks at UN General Assembly, New York, February 2017
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Ahmed Bin Sulayem honoured by the Diamond Dealers Club (DDC)
DMCC Executive Chairman receives honorary World Jewelry Hub membership
DMCC named Top Investment Agency
Tradeflow won the Best Murabaha Platform at Islamic Business & Finance Awards
DGCX wins Exchange of the Year Award 2016
DGCX’s Indian Rupee Quanto futures named Most Innovative New Contract
Legal 500 Middle East Team Powerlist 2016
The Oath Middle East Legal Awards 2016 Kiran Scarr receives “Honourable Mention”, General Counsel of the Year
The 5x fDi Awards Winner Global Overal, Global SME, Winner Middle East Overall, Winner Middle East SME, Specialism Trade and Commodities
CFO of the Year, CFO Middle East, Jignesh Sanghvi, CFO, DMCC
CIO 100 Awards, Abdalla Al Ali, IT Director, DMCC
Best Integrated PR campaign, PRCA Awards for Future of Trade
Awards and Recognition
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ANNUAL REPORT 2016
www.dmcc.ae