Dubai's DGCX to anchor UAE's future in global gold trade

09/04/1447 04:32 AST

The UAE's removal from the FATF "grey list" on February 23, 2024 and the EU's decision on July 9, 2025 to align its high-risk list accordingly - with the delisting taking effect on August 5, 2025 - signal that the country's reforms are landing with global standard-setters.

Against that backdrop, the UAE Central Bank's direction for domestic bank trading of gold and silver to clear through Dubai Gold & Commodities Exchange (DGCX), and its clearing house DCCC, hard-wires those reforms into market infrastructure: one regulated venue, one clearing rulebook, audited membership standards, and end-to-end surveillance and record-keeping.

This reduces correspondent-banking friction, strengthens KYC and enhanced due diligence at the clearing level, and embeds responsible-sourcing controls for high-risk commodities - supporting long-term AML/CFT effectiveness and making Dubai the trusted venue for regional hedging and physical-linked gold flows.

Cost of being grey-listed
The period of FATF monitoring came at a measurable cost. International research suggests countries on the grey list face an average 7-10% decline in capital inflows, equivalent to an estimated $50 billion-$116 billion in gross inflows potentially deterred or delayed for the UAE during the 23 months of monitoring. These frictions underline why sustained compliance is not optional. Avoiding any return to the grey list is both an economic and reputational imperative.

The Ministry of Economy's temporary suspension of 32 refineries in 2024 for non-compliance further underscores that these standards are not only in place but actively enforced.

Through DGCX, Dubai is consolidating its position as a trusted global hub, sustaining compliance, deepening international confidence, and enabling gold trade flows across Asia, Africa, and the GCC.

Dubai's role in world trade
Dubai has always thrived by staying ahead of global trade. Today, DGCX is positioned to play a defining role in shaping the next era of precious metals trading in the region.

The Central Bank's direction gives Dubai and the wider region something it has never had before: a regulated, centrally cleared platform for gold trading that is designed to protect participants, strengthen compliance, and build international confidence. As the UAE's only regulated derivatives exchange, DGCX is no longer just one option among many - it is the solution for the future of gold trading in Dubai.

Through its partnership with Vermiculus, a Swedish fintech at the forefront of market infrastructure, DGCX is moving into a new league of relevance. This partnership introduces advanced clearing, surveillance, and risk management systems that will make the exchange smarter, faster, and more secure. It shows that Dubai is not resting on its laurels, we are investing in the technologies and partnerships that will define tomorrow's markets.

Importantly, DGCX is embedded in the broader market infrastructure and ecosystem of DMCC, home to over 26,000 companies and the world's leading business district for commodities trade. This includes mandated DMCC vaults for custody, trusted logistics, and a thriving ecosystem that underpins Dubai's role as a global hub for gold.

Why now
Regional demand: GCC firms need a trusted hub to hedge exposures and manage risk.

India flows: CEPA creates new opportunities for contracts linked to physical trade.

Global realignment: Interest in gold and digital assets is reshaping financial architecture, and Dubai is ready with the infrastructure they require.

What DGCX represents
DGCX is more than an exchange. It is a platform that connects Dubai's role as a global trading crossroads with the region's demand for credible, technology-driven solutions. It is not just for the 26,000 companies registered in DMCC - it is for the wider region and beyond.

With the UAE Central Bank's direction, the DMCC ecosystem, and the Vermiculus partnership, DGCX has the tools, the backing, and the vision to shape the future of gold trading, anchoring Dubai's status as the most trusted marketplace for gold in the region and beyond.

Gulfnews