“Golden Opportunities in Dubai”

Colin GriffithExecutive Director – Gold & Precious Metals,

Dubai Metals & Commodities Centre

Dubai “City of Gold” Conference, February 2005

Colin Griffith - DMCC, Dubai City of Gold Conference, February 2005

“Dubai has an impressive history in the international gold market but the

future is ever more exciting”

Colin Griffith2nd City of Gold Conference, 6th December 2003

Colin Griffith - DMCC, Dubai City of Gold Conference, February 2005

Dubai - Government industry strategy

Critical Success Factors

Dubai “Good Delivery”

Dubai Gold & Commodities Exchange

DMCC Gold Financing

The Future– DGR– Gold Vault– Growing the gold trade

Presentation Overview

Colin Griffith - DMCC, Dubai City of Gold Conference, February 2005

Dubai Government Industry Strategy

Industry clustering (Dubai Style)– DMCC provides a market & physical infrastructure that

support all market participants in the value chain

Trade advice & input – Dubai Gold Advisory Group– Gold & Jewellery Group– World Gold Council

Cooperation between Government departments– Ports & Customs– Dubai Municipality– DIFC / DFSA– S&CA

Colin Griffith - DMCC, Dubai City of Gold Conference, February 2005

Dubai - Government industry strategy

Critical Success Factors

Dubai “Good Delivery”

Dubai Gold & Commodities Exchange

DMCC Gold Financing

The Future– DGR– Gold Vault– Growing the gold trade

Presentation Overview

Colin Griffith - DMCC, Dubai City of Gold Conference, February 2005

Critical Success Factors

International standards

Transparency

Readily available statistics

Fair and simple rules

Low cost base, low taxation rates

Competitive freight rates

Colin Griffith - DMCC, Dubai City of Gold Conference, February 2005

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Dubai Gold Import & Export Figures

Colin Griffith - DMCC, Dubai City of Gold Conference, February 2005

Dubai - Government industry strategy

Critical Success Factors

“Dubai Good Delivery”

Dubai Gold & Commodities Exchange

DMCC Gold Financing

The Future– DGR– Gold Vault– Growing the gold trade

Presentation Overview

Colin Griffith - DMCC, Dubai City of Gold Conference, February 2005

“Dubai Good Delivery” The Concept

– Setting a high standard for small gold bars– Fully complements London Good Delivery

Objectives– Increasing confidence in quality of gold bars sold in Dubai– Delivery on the DGCX

Membership Categories– Category 1: Refineries listed on the LBMA Good Delivery List– Category 2: Other international and local-based gold refineries

Listing requirements– Minimum annual refined production of 10 tons in small gold bars– Minimum total net worth of US$ 10 million

Category 1 applications – February 05

Category 2 applications - June 05

Colin Griffith - DMCC, Dubai City of Gold Conference, February 2005

Dubai - Government industry strategy

Critical Success Factors

Dubai “Good Delivery”

Dubai Gold & Commodities Exchange

DMCC Gold Financing

The Future– DGR– Gold Vault– Growing the gold trade

Presentation Overview

Colin Griffith - DMCC, Dubai City of Gold Conference, February 2005

Joint venture between DMCC, MCX and FTIL.

State-of-the-art electronic trading platform for trading of futures & options

Products: gold, silver, steel, cotton, energy and freight futures

Expected launch date: second half of 2005

Mission:– Create a dynamic & efficient electronic market for commodities

derivatives– Employ ethical business practices & leading edge technology– Anticipate and respond to changing market requirements

Colin Griffith - DMCC, Dubai City of Gold Conference, February 2005

SPECIFICATIONS DGCX - GOLD

Symbol DG

Contract Size 32 oz (1 Kilo)

Price Quote US$ per oz.

Minimum Tick Size US$ 0.10

Price Movement Limit US$ 20 = 5%

Maximum Allowed Open Position

Ounces Equivalent

5,000 contracts25% for the spot month160,000 oz

Delivery Unit 1 Kilo

Deliverable Quality 0.995 Gold

Delivery Point Physical delivery in Dubai at DMCC Approved Vaults

Contract Months Even Months

Last Trading Day Third to last business day of the maturing delivery month.

Delivery Day The first day of the delivery month through the last business day of the delivery month.

Last Delivery Day The last business day of the delivery month.

Initial Margin Requirements US$ 500 per contract =3.70%.

DGCX Gold Contract Specifications

Colin Griffith - DMCC, Dubai City of Gold Conference, February 2005

Membership Categories

– General Membership• Can trade on any of DGCX’s markets as principal or on behalf of clients• Is transferable to a party approved by the exchange• General Members are eligible to apply for Clearing Membership to clear

either their own business or client business

– Market Membership• Can trade on those DGCX markets to which the category of market

membership refers, only on their own behalf• Is transferable to a party approved by the exchange• Market Members are eligible to apply for Clearing Membership to clear

their own business

Colin Griffith - DMCC, Dubai City of Gold Conference, February 2005

Dubai - Government industry strategy

Critical Success Factors

Dubai “Good Delivery”

Dubai Gold & Commodities Exchange

DMCC Gold Financing

The Future– DGR– Gold Vault– Growing the gold trade

Presentation Overview

Colin Griffith - DMCC, Dubai City of Gold Conference, February 2005

DMCC Gold Financing

DMCC announces US$ 200 million Gold related structure

Dubai Islamic Bank and Standard Bank appointed to create the financing arrangements

The structure will:– be at least US$ 200 million, with a 3-5 year tenor– ensure that the strong credit profile of DMCC is transparent and

available to a wide cross section of investors– close, subject to market conditions, by end of April– be listed on the appropriate exchanges both internationally and locally– provide investors the exciting opportunity to be repaid in gold -

kilo bars loco Dubai

Colin Griffith - DMCC, Dubai City of Gold Conference, February 2005

Dubai - Government industry strategy

Critical Success Factors

Dubai “Good Delivery”

Dubai Gold & Commodities Exchange

DMCC Gold Financing

The Future– DGR– Gold Vault– Growing the gold trade

Presentation Overview

Colin Griffith - DMCC, Dubai City of Gold Conference, February 2005

The Future

DGR launch– “Sister product” to Dubai Commodity Receipts– Electronic receipt system– Expected launch date: April/May 2005

DMCC Gold Vault– For local bullion banks, central banks and jewellers– Providing ease of transaction and a secure environment– Located within the Almas Tower– Expected opening date: Late 2006

Growing the gold & precious metals business

Colin Griffith - DMCC, Dubai City of Gold Conference, February 2005

“Dubai has an impressive history in the international gold market but the future

is ever more exciting”

Colin Griffith2nd City of Gold Conference, December 2003

3rd City of Gold Conference, February 2005