By Lynne Nolan
Dubai Multi Commodities Centre (DMCC) has revealed plans to establish a cotton trade corridor through Dubai.
Dubai Multi Commodities Centre (DMCC) has revealed plans to develop a cotton trade corridor through Dubai. The move comes in an effort to establish the emirate as a key link in the global cotton supply chain.
DMCC has signed a Memorandum of Understanding (MoU) with Uzprommashimpeks, a trading company set up under Uzbekistan's Ministry of Foreign Economic Relations and International Trade. In 2007, global cotton production touched 26.74 million tonnes, with Uzbekistan being the second largest exporter after the US.
Imports and re-exports through Dubai were nominal, with major re-export destinations being Pakistan and Algeria.
The MoU was signed by Ahmed Bin Sulayem, executive chairman of DMCC and Mirzakhidov Khurshid, chairman of the state joint stock company Uzprommashimpeks.
"Uzbekistan and the UAE have a history of friendly relations, and we look forward to building on this through strengthening our economic partnerships. We welcome this MoU, which is one of many such steps being taken in this direction. In signing this MoU with DMCC, Uzbekistan supports the status of Dubai as an international centre for trade," said H.E. Elyor M. Ganiev, Uzbekistan's Minister of Foreign Economic Relations & International Trade.
According to the terms of the MoU, Uzbekistan's cotton exports will be routed through the proposed cotton distribution hub in Dubai, to feed Uzbek cotton into Asian markets.
As a significant trade partnership between Uzbekistan and Dubai, this MoU will facilitate Uzbek cotton in gaining access to new markets in Asia.
The partnership also underlines DMCC's efforts in creating industry-specific infrastructure for facilitating physical trade in a wide range of soft commodities, including cotton. The Dubai-based, special purpose, DMCC-owned trading entity will offer online quotes and provide easy access to Uzbek cotton with convenient shipments to consumers in the sub-continent, China and other Asian countries.
In addition, DMCC will facilitate trade finance for cotton inventory purchased by traders and stored in Dubai through its indigenously developed Global Multi Commodities Receipt.
"Dubai has established itself as an important global hub for commodities. DMCC's efforts in the precious commodities sector have been fruitful, and we hope to replicate this success in the soft commodities sector as well," said Dr. David Rutledge, chief executive officer, DMCC.
"After the success of Dubai Tea Trading Centre, we are now proposing a Cotton distribution hub, with the objective of establishing Dubai as an important global centre for cotton trade."For all the latest retail 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.