By Staff writer
Dubai’s government authority on commodities signs agreement to import coffee annually from China’s Yunnan State Farms Group
DMCC, Dubai’s government authority on trade, enterprise and commodities, has signed an agreement with Mega Capital Halal (MCH), a Hong Kong-based holding company, to import coffee annually from China’s Yunnan State Farms Group to Dubai for world distribution.
The agreement will see MCH export up to 140,000 tonnes of Chinese Arabica beans from the Yunnan State Farms Group to Dubai.
DMCC said in a statement that it will also develop a coffee centre, based on the highly successful DMCC Tea Centre, which has enabled the UAE to become the largest re-exporter of tea in the world.
The DMCC Coffee Centre will offer storage and warehousing facilities, offices and co-location space within a 4,500 sq m temperature controlled facility.
The deal was signed at the conclusion of Dubai Week in China in Shanghai.
The Dubai Gold and Commodities Exchange (DGCX) also announced the first 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.
DGCX also announced that Agricultural Bank of China (ABC) has become the first market maker for the Shanghai Gold Futures contract to be listed on its exchange.
Gautam Sashittal, CEO at DMCC, said: “The DMCC partnership agreements we announced at Dubai Week in China, Shanghai, today, is evidence of the deep links between China and Dubai, and the growing role the Dubai trade has in bringing our world’s closer.
"China is Dubai’s number one trading partner. The relationships that we have cemented here with the Shanghai Gold Exchange, Agricultural Bank of China, Mega Capital and Yunnan State Farms Group will further underpin the role that DMCC is playing in boosting the commodities trade along the West to East corridor – connecting directly into China’s Belt and Road Initiative.