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As of Friday, 21st July 2023, the Dubai Commodity Clearing Corporation (DCCC) has implemented changes regarding the acceptance of Refineries/Brands for Physically Settled Gold Contracts in alignment with the UAE Good Delivery Standard for Gold (UAEGD). The DCCC will only accept Refineries/Brands listed as 'Active UAE Good Delivery Gold Members,' which can be verified on the link https://ugd.gov.ae/.
Refineries/Brands that are not listed as UAEGD on the mentioned link will not be accepted for delivery by the DCCC. However, there is an exception for bars produced by Refineries/Brands during their membership as a UAEGD accepted Brand, provided that these bars are in the status of 'Warrant Issued' in the DMCC Tradeflow application. Such bars will still be eligible for delivery by the DCCC.
These Revisions took place based on the recent update from the UAE Bullion Market committee, chaired by The Ministry of Economy (MOE), which aimed at taking significant steps to establish a standard framework for the gold sector that aligns with international best practices. To achieve this, MOE has introduced the "Due Diligence Regulations for Responsible Sourcing of Gold." These regulations comprise a set of policies and procedures designed to identify and mitigate risks associated with the sourcing of gold. Moreover, adherence to these requirements is essential for refineries and brands to gain wider market acceptance for their gold products.
To comply with the regulations and attain market acceptance, refineries and brands must align themselves with specific quality and technical specifications defined in the UAE Good Delivery (UAEGD) Rules on Risk-Based Due Diligence. These rules likely encompass guidelines related to risk assessment and management, responsible sourcing practices, and ethical considerations in the gold supply chain.
By adhering to these regulations and aligning with the UAEGD Rules, the gold sector in the UAE aims to enhance transparency, sustainability, and accountability in the gold supply chain, ensuring that gold products sourced and refined in the country meet the highest standards of responsible sourcing and are accepted in international markets. This move can contribute to the UAE's reputation as a reliable and responsible player in the global gold industry.
Members who wish to confirm the acceptance status of specific Refineries/Brands can refer to the Notices available on the DCCC website. Additionally, they can reach out to DCCC via email, phone (+971 04 361 16 83-87), or the corporate e-mail addresses clearing@dccc.co.ae and DGCXCommercialTeam@dgcx.ae for further inquiries.
