The Dubai Gold and Commodities Exchange (DGCX) is preparing to launch a gold contract priced in dirhams, aiming to enhance the UAE’s influence in the international precious metals market, according to Ahmed Bin Sulayem, Executive Chairman and CEO of the Dubai Multi Commodities Centre (DMCC), in a Khaleej Times column.
Bin Sulayem, who also leads DGCX, mentioned that the contract, pending approval from the UAE Central Bank and the Securities and Commodities Authority, will offer physical delivery and be available in both spot and monthly futures formats for up to a year.
“This new contract will reduce geopolitical and USD trading risks linked with foreign markets while enabling local traders to operate using the UAE’s national currency,” he explained.
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“It aligns with the UAE’s broader strategy to internationalize its financial markets, enhance dirham liquidity, and strengthen the dirham’s role in regional commodity trade settlements.”
DGCX is also considering a daily benchmark gold contract, akin to those from the London Bullion Market Association (LBMA) and the Shanghai Gold Exchange.
Bin Sulayem noted that the benchmark, supported by DGCX’s integrated ecosystem, would provide traders with a regionally relevant price reference and tighter spreads.
He emphasized that the benchmark would adhere to International Organization of Securities Commissions (IOSCO) standards to ensure transparency and prevent market manipulation, fostering market confidence and attracting international investors to DGCX.
To expand its global presence, the exchange and its clearing division, the Dubai Commodities Clearing Corporation, are evaluating plans to extend trading hours, starting with Hong Kong and ending with New York, and moving to same-day settlement for physical contracts to enhance trading speed and efficiency.
“This 24-hour trading window would set DGCX apart from markets like COMEX, offering continuous pricing and hedging opportunities across time zones,” Bin Sulayem wrote.
He stated that all physically settled contracts, including the new dirham-denominated futures, will be deliverable directly to DMCC vaults, uniting physical and financial settlement under one platform.
Established in 2005, DGCX has become the largest derivatives exchange in the Middle East, with a 30% increase in average daily volumes during the first half of 2025.
With gold prices surpassing $4,000 per ounce and new regulations requiring all gold bullion to be stored in DMCC-approved vaults, Bin Sulayem remarked that DGCX is “poised to enter a new era of global trade” powered by AI technology, enhanced liquidity, and improved efficiency.
