By Staff writer
Commercial Bank of Dubai and DMCC Tradeflow behind platform that allows diamonds to be used as collateral for financing
Commercial Bank of Dubai and DMCC Tradeflow, the online platform for registering possession and ownership of commodities stored in the UAE, have launched a new Loans for Diamonds scheme, in partnership with Rocks International.
The innovative product will allow diamonds registered with DMCC's Tradeflow platform to be used as collateral for trade finance loans.
Commercial Bank of Dubai will act as the financier and Rocks International DMCC as the independent collateral manager, a statement said.
In recent years the trade in diamonds has shifted from West to East enabling Dubai and its commodities trading hub DMCC to become established as one of the top three diamond trading centres in the world.
Gautam Sashittal, DMCC CEO, said: "Loans for Diamonds adds enormous value to DMCC's Tradeflow platform and further cements Dubai's position among the top three diamond centres in the world.
"It is an innovation that will change the way rough diamond trade is financed. Establishing diamonds as collateral for loans with Tradeflow will not only add to DMCC's complete portfolio of diamond trading products and services but also support increasingvolumes of diamond trade through Dubai."
Local banks have expressed strong interest in Loans for Diamonds, the statement added.
Peter Baltussen, Commercial Bank of Dubai CEO, said: "This initiative is in line with our commitment to continuously expand our products and services to meet the growing needs of our clients. This unique offering provides an innovative mechanism for diamond traders to use their diamonds as collateral for funding their business growth needs.
"We see this as a catalyst for the development of the diamond industry in line with Dubai's position as a global diamond trading centre and a hub for trade between the East and West."
Ludwig Coelst, managing director of Rocks Middle-East DMCC, added: "We are very glad that our ideas and hard work are now materialising into a product that is absolutely new for the diamond industry in Dubai and across all main diamond trade centres. With the joint efforts from CBD and DMCC Tradeflow we are sure this next step will enable the diamond trade and banking finance in Dubai to grow further."For all the latest banking and finance news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.